Those mechanics who voted NO were not misinformed


Aug 20, 2002
It''s not that they think the Judge will be on their side but rather it will force the company to put together a better plan or liquidate.
Reason says this company will appease the mechanics ever so slightly instead of walking away from 1.5 Billion in financing that Dave is drooling over.
The mechanics know that without a signed agreement that Dave won''t get the financing and they are betting he won''t liquidate, although it is something they know they can''t control if Dave does liquidate and throw away 40,000 jobs.
On the other hand, Dave knows that if and when a judge imposes a contract, he will become an image where one can assume the mechanics will, let''s say not be peachy with, and a volitile legal labor situation could arise. There is no cooling off period in this situation. It will simply be a ticking time bomb if Dave makes the terrible mistake of going to a judge because he isn''t smart or creative enough to close a deal.


Aug 22, 2002
True, they may try to appease the mechanics. But I think its more likely they will attempt to turn the screws on them. It wouldn't shock me to see them try and have the whole Contract thrown out, close maint bases (EADS must be drooling at the thought of getting USAirways work) and do a mass layoff of mechanics. I think they need to come up with an alternate plan of consessions to show this Judge they are negotiating in good faith. This Judge has an obligation to get the creditors their money. Not protect good Union jobs.



Dave must have the $154 million IAM and $70 million CWA annual cost reduction or the DIP financing, emergence financing, and ATSB loan guarantee will be gone.

Dave has no option but to seek relief from the courts because the DIP financing agreement requires the cuts. Again, Dave is not the hammer its TPG, CSFB, BOA, and the ATSB. The lending institutions will not place their money at risk unless they believe the company will emerge; therefore, they have protected their investment with the DIP agreements that require a $154 million IAM-M and $70 million CWA cut.

Moreover, the CWA seems to understand this. Today the CLT Observer wrote, the negotiators are trying to meet company demands for $70 million in annual savings, said James Root, president of Charlotte CWA Local 3641, which represents 527 US Airways agents in Charlotte.
"We're looking at different pieces of the puzzle and trying to cut more. We're getting very close, but we're not there yet," Root said.

By the way, today I talked with an informed DCA agent and I understand the CWA reached agreement on a TOS pay rate of $20.20 per hour, but there would be huge productivity concessions that in my opinion would result in significant furloughs in exchange for the pay rate and the need to get to a $70 million concession for 6.5 years.

Joesy, the airline cannot contractually back down and the cuts will come or the airline will liquidate. It's that simple. The IAM-M and CWA will get their cuts one way or another or 36,000 jobs will be lost.