AmWest shareholders approve proposed merger
Dawn Gilbertson
The Arizona Republic
Sept. 13, 2005 01:30 PM
America West Airlines shareholders overwhelmingly approved the company's merger with US Airways this morning, leaving just one hurdle to clear before the airlines combine operations.
The company said 95.5 percent of the total voting shares were in favor of the merger. Approval was widely expected because no shareholders had publicly voiced any concerns since the deal was announced in May.
America West CEO Doug Parker, speaking at a special shareholders meeting in Tempe, called it a great day for America West.
"It's a ringing endorsement for what we believe is a business plan that makes an extreme amount of sense," he said.
The airlines say their goal is to build the best airline in the United States, a nationwide low-fare carrier with full service. It hopes to better compete with the likes of Southwest by offering an extensive route map and more amenities such as assigned seating and airport clubs. The airline will be called US Airways and be based in Tempeand headed by Parker.
Even though the merger got a resounding yes and is expected to be approved by US Airways' bankruptcy case judge by the end of the week, the meeting was anything but a love fest for the pending deal.
America West flight attendants, mechanics, pilots and other employees picketed outside the headquarters before and during the meeting.
The Association of Flight Attendants-CWA organized the rally to protest what it says are the company's stalling tactics in contract negotiations. They filed for mediation on Monday. Organizers said the company's latest offer for America West flight attendants was for a five-year wage freeze, a deal they find unacceptable because they haven't had a raise since 2002.
Employees loudly chanted "Shame on Doug" repeatedly and carried signs saying "Negotiate in Good Faith," "Not one Red Cent" and "Roll the Dice With AWA's Casino."
Inside the shareholder meeting, America West's last as America West, various union representatives pressed Parker on what he would do to protect their jobs.
America West employees are deeply concerned about their jobs because US Airways workers have much more seniority because that airline has been around a few decades longer.
"That's the scary part," said first-year flight attendant Debra Prophet. "I can only imagine what the senior flight attendants are feeling."
The single mother said she makes about $1,000 a month and hasn't been able to use her free flight benefits this year because she can't afford to do anything once she gets there.
The rally and pointed questions at the meeting are the most public demonstration yet of the frustration among America West workers and is a preview of the labor challenges ahead as the merger closes in two weeks.
Bernadette McCulloch, representing the Teamsters union, said America West and US Airways executives have incentive and severance plans in place related to the merger and asked Parker where the packages are for front-line employees. The Teamsters represents America West mechanics, who also are in contract negotiations, and its customer service representatives.
"You guys got your piece; we want ours," she said.
WHAT OCCURRED IN TEMPE
The MEC Communication Chair for US Airways was there and he walked the picket line with America West Flight Attendants. He told several F/As that there really weren't that many SEN FA's at US... like 6 over 40 yr.. maybe 10-15 with 30, beyond that he didn't speculate. He did say that some SEN that had turned in their paperwork for early out and second thoughts and were recinding them.
Some fa's were permitted inside the meeting with the stockholders & Mr.Parker..they said, they could hear us outside which is great for our voice. Doug Parker was a bit concerned, but was relieved after the meeting.
There were also a few Southwest Flight Attendants that joined us. Media was there and hundreds of participants. Voices loud and clear. Yellow was everywhere. Doug got frustrated while talking due to the UNION CHANTS.
Dawn Gilbertson
The Arizona Republic
Sept. 13, 2005 01:30 PM
America West Airlines shareholders overwhelmingly approved the company's merger with US Airways this morning, leaving just one hurdle to clear before the airlines combine operations.
The company said 95.5 percent of the total voting shares were in favor of the merger. Approval was widely expected because no shareholders had publicly voiced any concerns since the deal was announced in May.
America West CEO Doug Parker, speaking at a special shareholders meeting in Tempe, called it a great day for America West.
"It's a ringing endorsement for what we believe is a business plan that makes an extreme amount of sense," he said.
The airlines say their goal is to build the best airline in the United States, a nationwide low-fare carrier with full service. It hopes to better compete with the likes of Southwest by offering an extensive route map and more amenities such as assigned seating and airport clubs. The airline will be called US Airways and be based in Tempeand headed by Parker.
Even though the merger got a resounding yes and is expected to be approved by US Airways' bankruptcy case judge by the end of the week, the meeting was anything but a love fest for the pending deal.
America West flight attendants, mechanics, pilots and other employees picketed outside the headquarters before and during the meeting.
The Association of Flight Attendants-CWA organized the rally to protest what it says are the company's stalling tactics in contract negotiations. They filed for mediation on Monday. Organizers said the company's latest offer for America West flight attendants was for a five-year wage freeze, a deal they find unacceptable because they haven't had a raise since 2002.
Employees loudly chanted "Shame on Doug" repeatedly and carried signs saying "Negotiate in Good Faith," "Not one Red Cent" and "Roll the Dice With AWA's Casino."
Inside the shareholder meeting, America West's last as America West, various union representatives pressed Parker on what he would do to protect their jobs.
America West employees are deeply concerned about their jobs because US Airways workers have much more seniority because that airline has been around a few decades longer.
"That's the scary part," said first-year flight attendant Debra Prophet. "I can only imagine what the senior flight attendants are feeling."
The single mother said she makes about $1,000 a month and hasn't been able to use her free flight benefits this year because she can't afford to do anything once she gets there.
The rally and pointed questions at the meeting are the most public demonstration yet of the frustration among America West workers and is a preview of the labor challenges ahead as the merger closes in two weeks.
Bernadette McCulloch, representing the Teamsters union, said America West and US Airways executives have incentive and severance plans in place related to the merger and asked Parker where the packages are for front-line employees. The Teamsters represents America West mechanics, who also are in contract negotiations, and its customer service representatives.
"You guys got your piece; we want ours," she said.
WHAT OCCURRED IN TEMPE
The MEC Communication Chair for US Airways was there and he walked the picket line with America West Flight Attendants. He told several F/As that there really weren't that many SEN FA's at US... like 6 over 40 yr.. maybe 10-15 with 30, beyond that he didn't speculate. He did say that some SEN that had turned in their paperwork for early out and second thoughts and were recinding them.
Some fa's were permitted inside the meeting with the stockholders & Mr.Parker..they said, they could hear us outside which is great for our voice. Doug Parker was a bit concerned, but was relieved after the meeting.
There were also a few Southwest Flight Attendants that joined us. Media was there and hundreds of participants. Voices loud and clear. Yellow was everywhere. Doug got frustrated while talking due to the UNION CHANTS.
