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Aug 26, 2005
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Transport Worker’s Union Local 580

January 19, 2006
Unwilling To Accept Concessions, Transport Workers Union, Local 580, representing the America West Fleet Service Agents, Files For Federal Mediation

The Fleet Service Workers of America West Airlines, represented by Transport Worker’s Union Local 580, filed for mediation today with US Airways as negotiations talks stalled.

Phoenix –Fed-up with the runaround in negotiations and the reneging of promises made to employees by CEO Doug Parker, the union representing 2500 baggage handlers filed for federal mediation today over stalled talks. The Transport Worker’s Union Local 580 vows to fight for economic justice for its members and rejects the demands by the company to take hurtful and unnecessary bankruptcy concessions.

The merger of America West Airlines and US Airways, once touted as a savior for both airlines and the future of employees, has turned into a feeding frenzy for stockholders while placing the burden of costs on the backs of baggage handlers.

CEO Doug Parker, the architect and primary beneficiary of the merger, is coming out of the merger like a bandit. According to Security Exchange Filings, Doug Parker’s two year contract includes a “minimum annual cash base salary in the amount of $550,000â€￾ and “eligible for an annual bonus based on a target of at least 80% of his base salary and a maximum of 160% of his base salary.â€￾ His performance based award plans include stock options and restricted stock awards, in addition to existing stock holdings.

Parker has said that the merger “provides both growth and benefits for customers and employeesâ€￾ and that “our goal is to preserve jobs and build upon the professionalism of our collective work force.â€￾

Contrary to these lofty goals, it has become clear the merged company intends to take the same bankruptcy concessions forced on US Airways employees in years past and apply them wholesale to America West employees. These concessions include the ability to outsource stations, the reductions in sick pay and vacation time and the elimination of four holidays and geographical pay.

Pat Rezler, president of TWU Local 580, says “We cannot accept a double bankruptcy concessionary contract. This is in direct contradiction to the promises made by Doug Parker and our members will not accept such terms.â€￾

Under the terms proposed by the company, 22 field stations across 16 states from California to Indiana may be outsourced at their discretion. Rezler says, “This is unacceptable for our members who have shed sweat and tears for the survival and profitability for America West Airlines. The company’s reward for our sacrifices in the last five years is the potential elimination of our jobs in key markets while filling Doug Parker’s pockets with millions of dollars worth of stock options and bonuses.â€￾

The proposed terms would give the company the ability to outsource the following stations: Long Beach, El Paso, Reno, Austin, Albuquerque, Portland, Oakland, Ontario, Minneapolis, Milwaukee, Boston, Burbank, Salt Lake City, Colorado Springs, Wichita, Tucson, Omaha, Sacramento, Columbus, Kansas City, San Jose and Indianapolis. Rezler says, “Doug Parker needs to explain to these Members why their jobs may be in jeopardy.â€￾
 

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