Us Airways News For July 19, 2004

USA320Pilot said:
I suspect when this is all said and done, employees will be able to keep their gross pay about the same, but there will be changes to work rules, pay rates, and retirements plans.

Respectfully,

USA320Pilot
I suspect that unless the IAM does a 180 then all your dreaming is just that, dreaming, because it will be moot. Planes will not fly without mechanics and to replace mechanics with scabs won’t sit well with an already edgy flying public when there are other and BETTER choices out there. Ignoring the IAM will not happen if this airline is to survive.


Please captain don't respond with your double mindedness. Saying things like you do: The U mechanics are the best in the business and then the very next day when called to task saying the U mechanics can't fix an A/C as fast as the sweat shops.


By the way...there is zero respect in most of your posts when referring to the mechanics so you can drop the signature of RESPECTFULLY when addressing the mechanics. I know and you know you have no respect for what the pilots called the mechanics in the media during the 92 strike, Neanderthals.
 
"The big difference between LCC and legacy carrier employee labor expense is productivity/work rules, retirement plans, and meaningful stock incentive and profit sharing plans."

A pretty accurate broad-brush statement. So let's look at some specifics...

productivity - certainly affected by work rules, but also affected by factors that only management controls (shrinkage producing a more senior workforce, mixed fleet type, hub/spoke system). In short, give us the JB contract and we wouldn't be as productive at them. Likewise the AWA and WN contract (the WN contract would be the most expensive of all).

retirement plans - certainly the DB plan is more expensive per employee than a 401K, plus the risk is on the company's shoulders. Our current DC plan is also more expensive per pilot. Of course, recalling pilots would average down the cost penalty. I guess this boils down to fairness.

meaningful stock incentive & profit sharing - from the get go, meaningful means the company turns a profit, since neither is worth much otherwise.

That's the big assumption some make about the "transformation plan" - that it will enable to company to become profitable and survive. Personally, I'm not convinced and the reason is simple - the tp seems to be too little too late.

You've said that management is "peddling as fast as they can", but I refer you to the preview of the fall schedule in another thread. If PIT is to turn into a focus city, why not implement it in November? Why leave it pretty much a hub/spoke thru at least Jan.?

Management has indicated that the tp will lower CASM 2.1 cents in 1-1/2 to 2-1/2 years. That will leave us with higher CASM than AMR & CAL have today. And still not competitive with the LCC's. Meanwhile, yield will probably continue to fall offsetting at least some of the reduced unit costs, possibly most of them.

Jim
 
Cav:

There is no doubt in my mind that US Airways has great mechanics, but like with my work group the LCC's and other airline's have more productive work rules. I believe the company wants to keep heavy maintenance in-house; they just want the aircraft turned faster.

This would reduce expenses and put the aircraft in the air more, which would not only lower unit costs but increase revenue too.

In regard to the "concession stand is closed", if the IAM takes that approach and does not negotiate with the company, we could see management reject the Charlotte maintenance base too (in bankruptcy) eliminating all overhaul and subcontracting this work. Then if there is a job action, line maintenance could be provided by employees who come to work and contractors like Signature Air, Hudson General etc.

In the end, once there are ALPA, AFA, CWA, TWU TA's and the Airbus grievance Opinion & Award is made public, then I believe the IAM-M and IAM-FSA will come to the table. Do you really think the union wants to lose thousands of dues paying members?

Regardless, it will be interesting to see how this plays out.

Respectfully,

USA320Pilot
 
BoeingBoy:

You were more specific than me, but there is more to the plan than we know and its an "evolutionary" plan. The overhaul of the company to go from a legacy carrier to a network carrier/LCC hybrid will take time and there are no easy answers.

Let's hope it works.

Respectfully,

USA320Pilot

P.S. In the end, I believe the TP is the first step to a corporate transaction, which will further help averge down unit costs, increase stage lengths, and will create economy of scales.
 
BoeingBoy said:
productivity - certainly affected by work rules, but also affected by factors that only management controls (shrinkage producing a more senior workforce, mixed fleet type, hub/spoke system). In short, give us the JB contract and we wouldn't be as productive at them. Likewise the AWA and WN contract...
Don't forget that HP is a hub/spoke airline in nearly every regard.

"peddling as fast as they can"
This phrase has been used several times, and I'm sure that the pun is unintentional, but it's a good one.

From Merriam-Webster online:

ped·dling /'ped-li[ng], 'pe-d&l-i[ng]/
Etymology: back-formation from peddler, from Middle English pedlere
intransitive senses
1 : to travel about with wares for sale; broadly : SELL
2 : to be busy with trifles : PIDDLE
transitive senses
1 : to sell or offer for sale from place to place : HAWK; broadly : SELL
2 : to deal out or seek to disseminate

ped·al·ing also ped·al·ling /'pe-d&l-i[ng], 'ped-li[ng]/
intransitive senses
1 : to ride a bicycle
2 : to use or work a pedal

It seems that they're doing both.
 
USA320Pilot said:
Cav:

There is no doubt in my mind that US Airways has great mechanics, but like with my work group the LCC's and other airline's have more productive work rules. I believe the company wants to keep heavy maintenance in-house; they just want the aircraft turned faster.

This would reduce expenses and put the aircraft in the air more, which would not only lower unit costs but increase revenue too.

In regard to the "concession stand is closed", if the IAM takes that approach and does not negotiate with the company, we could see management reject the Charlotte maintenance base too (in bankruptcy) eliminating all overhaul and subcontracting this work. Then if there is a job action, line maintenance could be provided by employees who come to work and contractors like Signature Air, Hudson General etc.

In the end, once there are ALPA, AFA, CWA, TWU TA's and the Airbus grievance Opinion & Award is made public, then I believe the IAM-M and IAM-FSA will come to the table. Do you really think the union wants to lose thousands of dues paying members?

Regardless, it will be interesting to see how this plays out.

Respectfully,

USA320Pilot
You are in an enviable position and God Bless you for it. Like you once posted whether U survives or not really isn't going to have a major impact on you either way.

With the Bus work hanging in the air how can any reasonable and rational thinking person even think that the IAM would sit down for more punishment? It's pure nonsense to think there is even a slim chance in hell of that happening.

What you and some others are failing to realize I believe is this fact: If we lose the bus work and if the IAM gave them everything they wanted, well then, how many mechanics would be left? Like 700 has posted many times, around 800. Do you really believe 800 would will make or break the IAM international? NO WAY, sure it would hurt but it's not going to break them. I was in the IAM back in the early 70s in a small shop, and there are many other such places all over the place. U will NOT break the IAM.

Considering what they want: Our bus work and many jobs, please explain just who except the 800 might vote for it? Why would they? What, to get cobra like the captain tries to justify.

THESE are the reasons the concession stand is closed and will remain so.
 
mweiss,

" Don't forget that HP is a hub/spoke airline in nearly every regard."

Obviously correct. However, they tend to offset that penalty with long average stage lengths and on balance probably as "bad" a contract as JB (pilot perspective, not management).

Of course, it management gets what they want, our contract will be worse than either, since it'll combine the worst of both.

Jim