Us Airways Pilots Struggle To Agree

[700UW]

By Steve Halvonik
TRIBUNE-REVIEW
Thursday, August 26, 2004

Leaders of the pilots' union at US Airways hunkered down Wednesday in a suburban Washington, D.C., hotel to resolve internal differences that could decide the fate of their company, its 28,000 employees and their own professional careers, a local labor expert said.
"This is a pivotal moment,'' said Marick Masters, a University of Pittsburgh business professor who is writing an academic paper about US Airways' labor relations.

The 12-member Master of Executive Council, composed of two representatives from six cities, including Pittsburgh, scheduled the emergency summit to consider US Airways' request that the MEC act immediately on the company's latest proposal for $295 million in labor concessions.

US Airways, the nation's seventh-largest airline, made the request after talks with the Air Line Pilots Association's negotiating committee broke down Sunday.

US Airways needs employees to accept a total of $800 million in wage and benefits cuts by next month to avoid bankruptcy. Bypassing the negotiating committee and asking the MEC to get involved is an attempt by US Airways to expedite the process leading to a rank-and-file vote.

Before the MEC can act on the company's request, however, it must resolve its own internal differences. Masters said the union seems divided between hardliners who don't want to give more concessions to the company and accommodiationists who wish to strike a job-saving deal.

Masters said that internal strife is common when the stakes are so high.

MEC members are "facing pressure from a variety of directions,'' Masters said, "and their credibility as union leaders is hanging in the balance.''

"I think it's an important time, but I don't know if I feel the weight of the world on me,'' Fred Freshwater, an MEC member from Pittsburgh, said during an afternoon break yesterday.

Union leadership has several options, including referring the company's proposal to the rank and file for a vote without recommendation, Masters said.

"We'll assess all of our options and come up with a game plan,'' Freshwater said.

Union officials said the two sides remain far apart on many issues, including salary cuts and changes in work rules.

With time running out, the company may prefer to have the rank and file vote on its offer as soon as possible. Then it will know, one way or another, whether it has a chance to strike labor agreements or to abandon that plan and seek Chapter 11 bankruptcy protection, Masters said.

 

[fatherabraham]

By Steve Halvonik
TRIBUNE-REVIEW
Thursday, August 26, 2004

Bypassing the negotiating committee and asking the MEC to get involved is an attempt by US Airways to expedite the process leading to a rank-and-file vote.


Naw, its an attempt to bypass those on the MEC and NC that know a land grab when they see it and are secure enough to call the bluff ( if not a bluff then MGT should be personally held liable by creditors ).




Before the MEC can act on the company's request, however, it must resolve its own internal differences. Masters said the union seems divided between hardliners who don't want to give more concessions to the company and accommodiationists who wish to strike a job-saving deal.

ACCOMMODIATIONIST....man is this college boy PC or what? None of my terms for folks like these are PC so I will refrain from comment.



Union leadership has several options, including referring the company's proposal to the rank and file for a vote without recommendation, Masters said. "

Is this dude Masters working on his resume? Yea the company would like to bypass union policy and knowing ALPA they may succeeed.


Union officials said the two sides remain far apart on many issues, including salary cuts and changes in work rules.

If the two sides are unable to do a quanitative analysis on concessions they can both agree is correct then a moderator should be involved....not an end run to the " I am scared and will sell out at all cost" folks.

With time running out, the company may prefer to have the rank and file vote on its offer as soon as possible.


Sure, they stand to only win. If labor says "get real" they will.



:down:

 

[robbedagain]

any guesses on how usa320pilot will divert some of this or change the whole thing to try to scare us as usual???

 

[usair_begins_with_u]

University of Pittsburgh business professor who is writing an academic paper about US Airways' labor relations.

Which I understand may be in contention for the worlds shortest paper! I think is goes like this:

"DOG CRAP" The End.

He should win an award.

 

[skyflyr69]

i hope they know what they are doing. this will bring down ALL groups industrywide
if they pass that piece of junk.
hang in their guys and vote NO on that latest proposal.

 

[BoeingBoy]

After all the times over the years that the MEC cautioned about letting the company negotiate directly with the individual pilot, thus bypassing the negotiating committee and MEC, one would think that the last thing this MEC would do is put the company's "proposal" out for a vote.

Having said that, I suspect that the "accommodiationists" (and not being especially PC, I'll call them the roll over 7) will try everything to get this out for a vote. If the "hardliners" (or realists, in my view) stop it with a roll call vote, the hue and cry will arise that the RC4/5 denied the membership a vote on the "agreement" and thus their futures.

Just my opinion....

Jim

 

[High Iron]

Man oh man skyflyer....I can't help but to notice that you've seemed to have made quite a profound shift in your posts. As the boat goes down, the perspective sure changes as the new waterline gets higher and higher on the vessel.

 

[mwereplanes]

I doubt it will go for a vote as is. What may happen is that the MEC will attempt to change the proposal and send it back to the company for approval THEN send it out. Thing is the company said it's their last offer. I doubt that it is.

So now we have the MEC doing the NC job. Because the company is betting the NC did not have the full force of the MEC behind it they are attempting to get the "rollover 7" as Jim so eloquently puts it, to pressure the realists who represent the majority of pilots to roll over with them. I don't think they will roll over. In fact, I'm CERTAIN they won't roll over.

The company has NOTHING to lose with this strategy. If the MEC, when rollcalled, refuses to send it out then the company comes back and says "oh, wait, we made a mistake. We really don't need the DC plan. We really didn't mean 60 hours of sickbank for the year. We really didn't mean 71 hours guarantee for blockholders etc....

OR............. They could say OK. We'll try our luck in C11. And, contrary to the resident fearmonger, C7 is NOT going to happen. This airline is sitting on a money printing bank if the cretins can figure out how to run it. There have been some good signs in this area. No intelligent man, ATSB, GE Credit, and so on would pull the plug on this cash machine just based on the profit made last quarter. At ridiculous fuel prices, ridiculous cost structure and knowing labor costs will come down inside C11.

If it were going to go C7 then why has the stock been relatively stable since the breakdown of talks? Hmmm? The company has a plan. They are seeing how the pilots react to draconian work rules to see if they can hit the jackpot. If not, they will be satisfied with what is worked out or what comes out of C11.

In either case, 320 is going to be a copilot or furloughed.

mr

 

[savyinvestor]

Boy I can't wait to read or hear about his reaction to that. What goes around comes around. Savy

 

[funguy2]

mwereplanes:

I disagree with you on several issues here..

1. One slight quarterly profit, in the best quarter of the year, is no reason to declare the company profitable. The company still has posted a loss on the first half of the year.

Allow me to illustrate. I had an investment in a savings/loan bank. It's last quarter, before being declared insolvant by the Savings and Loan Commision, during that big scandal, was profitable. One small profitable quarter does not prove solvency.

2. The stock probably did not move materially with the breakdown in ALPA negotiations because:
1. BK risk is already priced in the stock
2. The folks who are stuck with thier shares are holding on and hoping for the best or can't find large buyers (which would drive the price down).

3. I agree that UAIR could have been a viable company if run properly... I think that it is now probably too late to save. If this company is so perfect for being a money-printing machine, how come the previous "intelligent men" haven't been able to start it up? During the past 10 years, we've seen all kinds of schemes and plans to start the money-presses, but only in the best of times has US Airways been able to make a profit.

4. I agree that the company has nothing to lose with this strategy. The company will likely file at least a Ch 11 soon... That is the indicator that there is nothing left to lose. I think Ch 7 is a very real possibilty.

 

[mwereplanes]

mwereplanes:

I disagree with you on several issues here..

1. One slight quarterly profit, in the best quarter of the year, is no reason to declare the company profitable. The company still has posted a loss on the first half of the year.

Allow me to illustrate. I had an investment in a savings/loan bank. It's last quarter, before being declared insolvant by the Savings and Loan Commision, during that big scandal, was profitable. One small profitable quarter does not prove solvency.

2. The stock probably did not move materially with the breakdown in ALPA negotiations because:
1. BK risk is already priced in the stock
2. The folks who are stuck with thier shares are holding on and hoping for the best or can't find large buyers (which would drive the price down).

3. I agree that UAIR could have been a viable company if run properly... I think that it is now probably too late to save. If this company is so perfect for being a money-printing machine, how come the previous "intelligent men" haven't been able to start it up? During the past 10 years, we've seen all kinds of schemes and plans to start the money-presses, but only in the best of times has US Airways been able to make a profit.

4. I agree that the company has nothing to lose with this strategy. The company will likely file at least a Ch 11 soon... That is the indicator that there is nothing left to lose. I think Ch 7 is a very real possibilty.

[post="173011"][/post]​

Let me address your points one by one:

1) I did not say the company was profitable. It is not. My point is that with all the high costs and incompentence in the operation it eked out a profitable quarter when no other legacy carrier could do so. With our higher CASM that tells me if the CASM can be lowered to equal even NWA's we become profitable. And signs point to some good changes being made. FLL for instance.

2) Whoever is holding their stock must feel reasonably sure it is worth more than it is selling for or they would sell. Only morons hold stock "hoping" things will get better. I doubt everyone holding the stock are morons. But you never know. You could be right about this one.

3) We have NEVER (for a lot longer than 10 years) had "intelligent men" running this outfit. None had the expertise or leadership of Bethune, Kelleher, Iacoca, Welch or any of the corporate brains who know how to make money. All were looking to do something else. Running an efficent airline took a back seat to everything. For the record, Chrysler was too late to save too. Until Lee Iacocca got there. So was K-Mart recently.

4) C11 seems to me to be a foregone conclusion. Remember CAL? They didn't get it right the first time either. And they were written off. Now look at them. Don't think it can't happen here. The big if is whether we can find a leader and someone who knows how to run it. That will determine the fate of U.

mr

 

[cavalier]

Let me address your points one by one:

1) I did not say the company was profitable. It is not. My point is that with all the high costs and incompentence in the operation it eked out a profitable quarter when no other legacy carrier could do so. With our higher CASM that tells me if the CASM can be lowered to equal even NWA's we become profitable. And signs point to some good changes being made. FLL for instance.

2) Whoever is holding their stock must feel reasonably sure it is worth more than it is selling for or they would sell. Only morons hold stock "hoping" things will get better. I doubt everyone holding the stock are morons. But you never know. You could be right about this one.

3) We have NEVER (for a lot longer than 10 years) had "intelligent men" running this outfit. None had the expertise or leadership of Bethune, Kelleher, Iacoca, Welch or any of the corporate brains who know how to make money. All were looking to do something else. Running an efficent airline took a back seat to everything. For the record, Chrysler was too late to save too. Until Lee Iacocca got there. So was K-Mart recently.

4) C11 seems to me to be a foregone conclusion. Remember CAL? They didn't get it right the first time either. And they were written off. Now look at them. Don't think it can't happen here. The big if is whether we can find a leader and someone who knows how to run it. That will determine the fate of U.

mr

[post="173041"][/post]​

I think you are wrong, I respect you’re opinion but believe it's based on your own cynicism, you and a few others who believe this is all about union busting when reality shows us it's way bound that. I still believe this company will fail completely. It has only faltered since I started there and has never stopped only growing worse. Thinking it will somehow turn around at the worst of times is wishful thinking at best. But I must admit, I hope I am dead wrong.

 

[mwereplanes]

I hope you're wrong too cav. Many of us are totally prepared for a shutdown but none want to see it happen. Personally I enjoy the flying and would hate to see it stop. But nothing in life is ever guaranteed, certainly not a job in this industry.

Our lack of leadership and management expertise over the years has us in serious trouble. Trouble that labor givebacks will not erase. Without leadership and expertise from CCY we will cease to exist regardless of how much any of us give. That is something 320 and his rollover boys have never understood. It's not labor vs. management. It's management doing their job. When they do, labor more than pulls their share. Look at LUV and JetBlue. Hell, look at the job WE do day in and day out while incompetence goes unchecked. In PHL and elsewhere.

Part of management is having forsight. Being proactive rather than reactive. Thinking ahead of the industry. Being in front. We don't have it now, haven't had it in years and will disappear if we don't get it very soon.

I do hope you're wrong. But deep down I know you are likely right. 320 and his buddies will wail on labor causing the demise of U. But those of us who know better know where the blame truly lies. I think one guy lives in France and the other is moving into a new house in St. Martin. On our nickel. Guess we should have been legalized crooks instead of workers eh?

mr

 

[seeking the truth]

mwereplanes,
Couldn't agree with you more. Of all the inept decisions that been made over the years it's really incredible that the " workers " have made this operation hum on a daily basis in spite of managements decisions. I think we're in the 9th with 2 outs left to go. Bronner is coming up to bat and hopefully has a change of heart. Listens to what the unions are telling him and begins to make changes on mutual respect, not intimidation. Good luck to everyone involved.

 

[Doc]

mwereplanes:

3. I agree that UAIR could have been a viable company if run properly... I think that it is now probably too late to save. If this company is so perfect for being a money-printing machine, how come the previous "intelligent men" haven't been able to start it up? During the past 10 years, we've seen all kinds of schemes and plans to start the money-presses, but only in the best of times has US Airways been able to make a profit.



Because all who have come in here had one vision get consessions from labor!
They did't spend one second on building revenue and customer service this airline used to make money in spite of it self.