Talks Break Down Between Us Airways And Its Pilots

[700UW]

COUNCIL 41 UPDATE
URGENT!
AUGUST 23, 2004

NEGOTIATIONS ARE AT A STANDSTILL

On Sunday, August 22, your Negotiating Committee received another counter proposal from the Company. This proposal was essentially the same as the last proposal from August 17. This represented yet another step backwards, instead of towards, our position. It is apparent that the Company feels the only way to an agreement is through ALPA’s complete capitulation.

MEC Chairman Bill Pollock, the Negotiating Committee, and all our advisors have agreed that the ability to reach a consensual agreement with Management for transforming US Airways into a viable competitor is not present. MEC Chairman Pollock and the Negotiating Committee Chairman Doug Mowery both have stated that the Company is not bargaining in good faith. The Company’s stance had made the Negotiating Committee superfluous at this time, despite all attempts to partner with Management to make US Airways a competitive carrier.

The Company has rebuffed all attempts to make a deal. They asked for America West pay, we offered America West pay. They asked for productivity, we offered productivity better than Southwest and America West, approaching that of JetBlue. Yet, still, they will not acknowledge the value of these offers and continue to dig deeper into the contract that we have worked over 50 years to achieve.

Page two is an overview of some of the many differences. Please go to the ALPA website for complete copies of both documents. We recommend you print them out and carefully study the numerous details in both.

ALPA’S PROPOSAL

Wage reductions of (an additional) 16.25%
Contract Amendable date 12/31/08
DC Plan contributions reduced by 10%
Vacation reduced by 10%
Sick accrual reduced to 5:00
Paycap 95:00
VM 6:00
Lineholder guarantee 81:00
Reserve guarantee 82/86
Reserve days off all immovable
Junior assignment pay 25%
Retain current call-out time
Retain bid sheet

COMPANY’S LAST PROPOSAL

Wage reductions of 16.25%
Contract Amendable date 12/31/11
DC Plan contribution lowered to 7% to 10%
Vacation 15+ years - 21 days
Sick use allowance 60 hrs annually
Paycap 95:00
NO VARIABLE MINIMUM
Lineholder guarantee 71:00
Reserve guarantee 72/76
Report to Operations 2 hrs from call-out
No open time required in beginning of month, cannot use AIL to reduce time – except for trip trades with other pilots. Only pick up trips with same # of days.

It is truly unfortunate that the Company refuses to recognize ALPA’s willingness to be in a leadership position among the labor group in the transformation of US Airways. No other labor group has even entered negotiations. We have offered all they have requested, and yet our substantial proposals are met with a disrespectful “not enough.â€

A Special MEC meeting will be held on Wednesday to discuss the strategy from this point.

We will keep you advised as the situation develops.

 

[USFlyer]

Can you summarize for us non-ALPA types what the differences actually are? I'm not seeing that much of a difference based on the prior post.

 

[USA320Pilot]

The reason there was no TA is the the RC4/5 did not begin active negotiations until this week and the creditors pulled the plug because they had enough. The financial community said to ALPA either become an LCC or vanish. The RC4/5 did not believe them, so the company gave the union its last best offer, which is an America West type of contract.

The financial community wants the company to be competitive across-the-board and up to this point, no labor union has accepted the fact that "reality" has changed and the financiers do not care about labor, just profits.

The company’s final offer to ALPA provides for an America West type contract and in their view $295 million per year in savings that include:

 A 16.5% base pay reduction, plus an estimated 13% increase in average monthly pay hours, as well as raises over the duration of the agreement (extended from 2008 to 2011) that compound to 13.7%.

 95-hour monthly pay cap or increased flying to reduce gross pay loss and a generous profit sharing plan that is 36 percent of the total employee payout.

 America West retirement plan.

 No change to seniority or time of service pay rate.

 Cost-saving changes to the Long Term Disability and Retiree Health Care plans.

 Productivity changes to scheduling, vacation, sick leave, and other items.

 Training-related changes that would reduce cost and improve productivity.

 Contract modifications that could reduce or eliminate furloughs.

 279 fleet count outside of bankruptcy.

 Company can substitute EMB-190/195s for EMB-170/175s orders and these aircraft will be flown at MidAtlantic.

 Company can substitute CRJ-900s for previous CRJ orders and these aircraft will be flown at PSA.

 S.1113/S.1114 protection letter, if the agreement is ratified by September 10.

According to management, “These pay, productivity and benefit changes proposed by the Company are entirely consistent with those of low-cost carriers in the market today – taken as a package, they achieve the required cost savings while retaining the seniority of our pilots.â€￾

The MEC is going to meet on Wednesday to decide whether or not to send the agreement out to the membership. If the deal does not go out the company will file for bankruptcy, probably around September 12, and then go into bankruptcy where Chapter 7 has a high probablility.

Without new agreements I suspect the company will fail and 28,000 employees will be unemployed with no pay, benefits, retirement, and medical insurance in the not-to-distant future.

Respectfully,

USA320Pilot

 

[700UW]

Why don't you just take a management job, you sound just like them all ready and you keep forgetting you are just a line pilot, regular employee.

And you don't have a key to the Executive Washroom.

But I hear they need an attendant.

 

[Walmartgreeter]

The reason there was no TA is the the RC4/5 did not begin active negotiations until this week
Respectfully,

USA320Pilot

[post="171958"][/post]​

That is not true and YOU know it. What does that make you? I think we all know. Greeter.

 

[usfliboi]

There ya go 700 finanlly some facts.......

 

[USA320Pilot]

According to management, the ALPA proposal dated August 21, 2004 does increase the pay cap and decrease rates of pay, as well as addressing various other issues. Although ALPA’s proposed changes would result in substantially lower pilot costs for US Airways, our pilot costs would remain far above the competitive level. Unfortunately, competitive revenue levels would not allow for US Airways to earn money or attract financial backers. Some examples of significant differences between the Company and ALPA proposals are:

 ALPA’s “no-furlough, no-displacement†provision could prevent the realization of productivity savings pending growth and is out of place in a carrier undertaking the types of challenges we face.

 ALPA’s changes to DC Plan contributions are far below required changes needed to be competitive with LCCs (for example, a current contribution of 30% would be reduced to 27% under ALPA’s proposal, vs. 7% to 10% in the Company proposal).

 ALPA’s increase in VM rig to 6 hours - an unprecedented level higher than any other carrier in the industry – results in higher pay.

 ALPA’s proposal does not address the cost of important benefits areas such as post-retirement medical or LTD;

 ALPA’s Reserve system adds restrictions and provisions to add flexibility for pilots that drive additional expense for the Company that are not in the Company’s proposal.

 ALPA’s proposal retains our current outmoded rescheduling rules which hamper our ability to serve customers during irregular operations;

 ALPA’s changes to sick and vacation drive significantly less productivity than the Company’s proposed changes.

Respectfully,

USA320pilot

 

[USA320Pilot]

Walmartgreeter:

USA320Pilot comments: "The reason there was no TA is the the RC4/5 did not begin active negotiations until this week."

Walmartgreeter said: "That is not true and YOU know it".

USA320Pilot comments: Walmartgreeter, that all depends on you definition of "active". The MEC told the NC that certain sections of the contract were sacred and the MEC did not address those areas to the deadline day...Saturday. I guess if you call being active waiting until the last day to cover all of management's discussion points then I am wrong.

If the company enters bankruptcy without accepting management’s last offer that must be ratified by September 10, ALPA loses the S.1113 protection, the chance to keep the Group 2 minimum fleet size at 279 (excluding EMB-190/5s & CRJ-900s that would be flown at MDA/PSA) and a good profit sharing plan. This profit sharing plan would pay each active pilot about $11,000 per year for each $100 million in annual pre-tax profits.

Do I like the company’s piece of garbage offer? No, of course not. But, I believe it is better to have a job where narrowbody Captains can make about $150,000 per year and F/O’s about $100,000 with medical coverage and some retirement contributions than nothing at all, while looking for another job, if necesary. Furthermore, the company has provided the union with an option to reduce or eliminate furloughs and I believe it’s imperative that ALPA provide the relief necessary to do so (Hold For Training, Increased Pay Cap Implementation, MidAtlantic Metering Provisions, MidAtlantic Attrition Provisions, Mainline Training and Displacement Minimization).

All the "chest pounding and anger" in the world will do nobody any good and management cannot come off of their offer. I suspect the financial people backing the company have said "enough is enough". Either become an LCC and be profitable or we will take your assets and give them to somebody else who will. Then who wins? The competition.

Respectfully,

USA320Pilot

 

[700UW]

According to management, the ALPA proposal dated August 21, 2004
Respectfully,
USA320pilot

[post="171965"][/post]​

Spoken like a true management wannabe.

You believe the company over your own union, how sad.

Just like they told you to vote for concessions to save your pension.

 

[E-TRONS]

Come, come now capt!!

Time to share the pain or face even WORSE terms in BK. Time to follow your own advice. Maybe you should direct your predictions of doom to ALPA rather than incite people on this forum !!

Time to cowboy-up flyboy. Just keep repeating to yourself...CONCESSIONS WILL SAVE US......CONCESSIONS WILL SAVE US......CONCESSIONS......

DISRespectfully,

E-TRONS

 

[Walmartgreeter]

Walmartgreeter:

I am not chest pounding, but you are not telling the truth, expecially now with your Clinton definition of "active." That is an insult the the long weeks and hard hours the ALPA negociators have been putting in. Of course, we all saw how you trashed their qualifications when they were appointed to the job. To say the definition of active depends on whether or not the company agrees with a proposal is ...well, I cannot post the word I would like to use. If I were a U pilot I would be ashamed of your reporting on this matter. Greeter.




quote edited by moderator

 

[oldiebutgoody]

I say let it fail. ALPA, IAM, CWA, AFA and the others get lawyers to make absolutely sure that RSA's equity is disolved in the bankruptcy. Then we either get a new suitor or the unions put something together themselves. if not, it's all over. I now see who the crook is here. It wasn't Siegel. If he gets away with this, the fine folks at UAIR will be the industry's poster children for impoverished workers for years to come. Call their bluff!

 

[totobird]

USA320 Pilot I read all your posts and respect your insight into these complicated matters. Thankyou for the information you pass along to us.

Question for you.........do you think the proposal will be sent out to the membership or are we headed into Bankruptcy Court ?

 

[mwereplanes]

It is utterly amazing how a man can attempt to spin a management who did not negotiate in good faith into blaming ALPA and the 5 guys who understood what was going on all along. For God's sake even Pollock has stated they did not negotiate in good faith. They never had any intention of doing so. And they HAD A CHOICE TO DO SO. That is a fact. Regardless of what is stated elsewhere. They chose not to and they are taking the chance of a BK judge giving them what they want.

This management "offer" will not be sent to the pilots for a vote. The "offer" is likely at least 200 million more than they said they wanted if not more. How any pilot with any sense can't see what just happened is beyond belief! Amazing!

mr

 

[WestCoastGuy]

From what I've read and seen on the boards here and in the news, it seems correct to believe that the company had no intentions what so ever of negotiations with the Pilot Group. Just going thru the motions. It is a very sad state of affairs to see such deceit, greed, and corruption from the exec's. This management team has to be one of the worst in corporate America. They all appear to have their own adgenda, and it revolves around greed and money for themselves and power. t's too bad that part of any new contracts set by the BK judge, can not involve an immediate change of Corp. Exec's.