Us Airways Chief Turns Up The Heat

700UW

Corn Field
Nov 11, 2003
37,637
19,369
NC
US Airways chief turns up the heat
Stay at table until deals done, Lakefield urges union leaders
Friday, July 16, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette

A frustrated US Airways Chief Executive Officer Bruce Lakefield cranked up the pressure on the company's labor groups yesterday, urging recalcitrant union leaders to "get to the table and stay there until we get deals."

"We can't control our destiny if we waste the entire summer without reaching labor agreements," he said, "because then we are going to be faced with even uglier choices."

In a blunt telephone message available to the company's 28,000 employees, Lakefield pleaded with labor groups to speed up their cooperation as the airline rushes to cut $800 million in labor costs and $1.5 billion in total costs by the end of September. Failing at that means a possible default on $726 million in federally backed loans that allowed US Airways to emerge from bankruptcy last year.

For Lakefield, a former Lehman Bros. executive who left the comfort of his Naples, Fla., retirement home in the spring to rescue the nation's seventh-largest airline, yesterday's message marked his first use of sharp words in three months at the helm, a period that has earned him plaudits as an honest and straightforward CEO.

It came a day after US Airways' flight attendants responded to his plea for new bargaining, joining the pilots as only the second union to engage this year in official contract negotiations.

"This isn't the typical labor negotiation," he said, "where we can spend months passing pieces of paper back and forth or worse, tossing rhetorical hand grenades at each other in order to soften up the other side for negotiation. There are too many people with a stake in this."

Lakefield is still hoping for official negotiations with the International Association of Machinists and Aerospace Workers and the Communications Workers of America -- two other big unions representing mechanics, ramp workers and gate and reservation agents.

Both groups have yet to approve a new round of negotiations, although each has offered their own ideas for cost cutting. The CWA has not ruled out new contract talks, but the machinists have. IAM spokesman Joe Tiberi reiterated yesterday that nothing Lakefield can say will change the union's position.

"We are not feeling any pressure at all," he said. "Our members directed us not to reopen our contract and that's where we stand."

Beyond persuading the machinists to talk about their contract, Lakefield also needs to speed up the pace of talks with the pilots, who are being asked to give up $295 million in annual concessions -- the most of any union.

A month into talks, the two sides are at odds over the amount of hours each pilot should work per month, and some pilot leaders are upset that the company has not put a value to a proposal the pilots made on June 23 that called for a 12.5 percent pay cut.

Some are also upset that the company has not explained how it plans to fill the gap between $800 million being asked of the unions and the $1.5 billion the company plans to cut overall.

Lakefield has been pleading with the pilots to lead by example, showing the other unions that cost cuts are needed quickly. He told the pilots in a June 17 meeting at the Pittsburgh International Airport that while "I know you guys can't do it alone," the airline needs the pilots to "provide leadership," according to a transcript of the meeting obtained by the Post-Gazette.

"The other employee groups expect the pilots to provide the leadership," Lakefield told the pilots. "They know you guys have the resources to know whether it's necessary."

The backdrop to Lakefield's pleas is the industrywide problems now facing the nation's largest and oldest airlines.

United, Delta and American Airlines are all struggling for ways to reduce their sky-high costs, fight off rising fuel prices and compete with more efficient, low-cost rivals such as JetBlue Airways and Southwest Airlines. Lakefield acknowledged that yesterday, saying that "we are not alone" among airlines in "serious financial trouble."

But, he argued, "we are the smallest and the most vulnerable. ... That is not a good place to be."

That vulnerability is underscored by the fear that, if US Airways is not able to get its costs down this summer, it may have to file for bankruptcy again.

Lakefield addressed that possibility yesterday, saying, "there are some people who stated they would prefer another trip through bankruptcy." Representatives for both the machinists' and customer service agents have suggested that it will take a bankruptcy judge to force them to make deep concessions again.

"That just boggles my mind," Lakefield said. "Another trip through Chapter 11 could have a severe impact on our ability to maintain our current size, much less grow."

In his remarks to the pilots on June 17 at the Pittsburgh International Airport, Lakefield said the Retirement Systems of Alabama, which became the airline's majority shareholder during the last bankruptcy in 2002 and 2003, "will not bail us out of another Chapter 11."

Lakefield repeated that theme yesterday, saying "our labor leaders and negotiators must get to the table before our financial partners run out of patience."

"We have talked about the need for change so long, and I know we are all sick of hearing about it, so let's get to the table, cut the deals and get to the other side of the lake before the other legacy carriers do, so that we can get to the business of making money.

"That is a lot more fun."
 
His impatience is understandable, but the dilatory pace was set by management's repeated and idle threats of "if we don't get action in 60-90 days..." which they started issuing last December.

Many more than 60-90 days have passed and, despite repeated reiterations, nothing has changed. A behavioral psychologist would say that management has conditioned labor to ignore what they say.

If Lakefield is serious, there will be consequences; conversely, if there are no consequences, ...
 



Wa WA WA!!

VOTE NO>>>>>>>>>>>>>>

DO WHAT YOU MUST MR LAKEFIELD..


CONGRATS TO THE F/A's............

WE ALL STAND FIRM>>>

EXCEPT TO THE FLY BOY'S OF COURSE>.then again they're not bringing home a measley check of 339.00 NET :down: >>>
 
I really think I would prefer the judge!!!! Maybe then the company would honor the contracts!!!
 
No one knows why the CWA is talking when an overwhelming majority of its members are on the same page as the IAM members.

How is it that the IAM can stand fast but the CWA can't?
 
I think many of us feel that it's best to go ahead into BK and let a judge decide. Most dont believe a word out of the mouths of the likes of Lakefield and the rest of the cronnies. One thing for sure...cant get any worse deal that the crap they're trying to jam down our throats. Wages and benefits of HP.....thats a joke and insult to all of us.
 
Once again I say..CLEAN UP YOUR OWN HOUSE FIRST.....get rid of the massive waste and mismanagement of this company before asking us to pay for your mistakes. Everyday $$$$$ are flying out the door that could be saved except for the poor job of the directives of the various departments in this organazation. And most money we take in the front door at PHL goes out the back door at the downline stations cleaning up the mess they send us everyday.
 
  • Thread Starter
  • Thread starter
  • Banned
  • #10
WestCoastGuy said:
I think many of us feel that it's best to go ahead into BK and let a judge decide.
The judge does not decide your wages, benefits and work rules.

He only rules on the abrogation and then enacts the wages, benefits and work rules the company puts in their motion.
 
golden1 said:



Wa WA WA!!

VOTE NO>>>>>>>>>>>>>>

DO WHAT YOU MUST MR LAKEFIELD..


CONGRATS TO THE F/A's............

WE ALL STAND FIRM>>>

EXCEPT TO THE FLY BOY'S OF COURSE>.then again they're not bringing home a measley check of 339.00 NET :down: >>>
Flyboys went to school a LONG time to get where they are. No offense, but if you want to make more money than 339.00 NET go back to school. It's a proven fact in any field that the more education you have the more you earn. Why bash those individuals who obviously studied and learned a skill that pays a higher wage? Somebody on here said it best, the "class warfare" crap is pulling labor apart when they obviously need each other now more than ever. It's ashame.
 
WestCoastGuy said:
Once again I say..CLEAN UP YOUR OWN HOUSE FIRST.....get rid of the massive waste and mismanagement of this company before asking us to pay for your mistakes. Everyday $$$$$ are flying out the door that could be saved except for the poor job of the directives of the various departments in this organazation. And most money we take in the front door at PHL goes out the back door at the downline stations cleaning up the mess they send us everyday.
it usually is the outlining stations cleaning up the phlly mess not phlly cleaning up the outlining mess. i know this because we deal with it on a daily basis
 
golden1 said:



Wa WA WA!!

VOTE NO>>>>>>>>>>>>>>

DO WHAT YOU MUST MR LAKEFIELD..


CONGRATS TO THE F/A's............

WE ALL STAND FIRM>>>

EXCEPT TO THE FLY BOY'S OF COURSE>.then again they're not bringing home a measley check of 339.00 NET :down: >>>
Yes but you've enjoyed free flight passes!
 
QUOTE: Lakefield has been pleading with the pilots to lead by example, showing the other unions that cost cuts are needed quickly.





He knows the pilots will cave. They always do. :shock:
 
Mr. Lakefield, Bring the Airbus "S" checks INHOUSE where they belong !!!! It's the management team pushing this issue....It's YOUR choice Mr. Lakefield,, Drop the arbitration or WAIT until the ruling......Bruce, it's your buddies that have you in this mess....No one else..
 

Latest posts

Back
Top