This is much longer than planned, but in trying to respond to those outstanding questions that haven't been addressed, I hope people will bear with me. I am going to be traveling for several days and will not be in a position to view subsequent posts and questions.
· With regard to the ATSB loan approval, we continue to meet with the Board on a regular basis to keep them updated on the restructuring. I am not going to speak for the ATSB and its staff, but I believe they have been favorably impressed by this management team's initiative to address the prolonged deterioration in the industry's revenue outlook. We continue to make a very strong case to the Board as to why the additional cost savings from round 2 are adequate and why we believe we are qualified for the loan guarantee once all the cost savings agreements have been ratified.
· Those who have raised questions about the pilot pension being a more pressing issue than the cost savings from a specific work group miss the point. All of these cost savings items are part of a larger equation that when taken in sum, represent a business plan that hopefully will convince the ATSB and RSA to provide us with financing. As we have disclosed to all employees in the Dec. 24 letter from Dave Siegel, the outcome of the pilot pension plan problem could be that the current plan is terminated and replaced by a less expensive plan. But that does not absolve all employee groups from participating in the restructuring with more competitive work rules and health care costs. And it also does not mean that other
employees are funding the pilot pension program, because they are not.
· There was some discussion about fare restructuring. As many of you realize, the Justice Department would not look kindly on a public discussion about our plans for air fares and pricing policies. UA put forth a pricing initiative on Sunday night that is generating lots of interest. While the media is applauding the customer benefits of reduced fares, US Airways has analyzed the business fare changes initiated by United and determined that they will have a significant negative impact on both United and the industry as a whole. While business travel demand is somewhat elastic, we question whether the UA initiative will produce positive revenue results. Nevertheless, we are not going to put the company at a disadvantage in the marketplace, and at this point US Airways has matched in competitive markets and we will continue to evaluate this and all other pricing options.
· With regard to employee suggestions posted on this site, I am not familiar with that list, nor has it been forwarded to the H.R. Department, which is in the process of putting together a new employee suggestion program that will be rolled out very soon. If it still exists, please send it along and I will forward it to H.R.
· For some of the work groups, the vast majority of savings are driven by modifications to the medical plan, and the balance is in prospective savings. In the fleet service group, for example, we said employees would not be furloughed as we transition to outside vendors for mail/cargo handling all anticipated savings are based on attrition.
· On the issue of "labor friendly, I was going to refer to a recent Dave Siegel speech, but someone has kindly done that for me. Let me just add that we have been pursuing a course of action to keep the company from going out of business. If anyone thinks that such negotiations were going to involve pay raises, more lenient work rules and expanded health care and pension benefits, then they were mistaken. Unfortunately, some of the rhetoric has been rather heated, and it hasn't been helped by our having to
debate about the "fairness" of pay cuts or more productive work rules. Not once have we said that we are enjoying asking for concessions or that it would be fun for employees - but we are doing our best to explain the necessity and the rationale of the restructuring plan.
· I'm not sure what the "conflicting" posts are with regard to war and severance pay. Each work group has negotiated severance pay provision - they are pretty clearly spelled out. Ask your supervisor or your union
rep. about your own situation.
· Finally, I think I have made it pretty clear that the personal attacks are uncalled for, so you can forget about my responding to those kinds of questions about other members of the management team. And if in-flight created some management positions, it was in the context of a department reorganization. We have the leanest management team in the industry and one that is fully sharing in the sacrifices of the restructuring. We also have several hundred open management positions, and it is becoming increasingly more difficult to fill them because potential applicants read some of the nastiness that gets posted here, and then looks at the media coverage about the company and the industry, and decides they don't want to bother with us. Given some of the questionable decisions that have been made here over the years, i.e., Business Select, employees should want good management in place that will run this company well because we ALL benefit from good management.
And as far as who said what to a reporter and when? I have several examples of CWA reps. taking confidential information and sharing it with the media or posting it on web sites, so we could debate this for days. All these accusations about "why did you say this in 1983?" are not productive and simply indicate a desire to place blame. Sometimes people are misquoted by reporters who don't fully understand the background of an issue. Sometimes comments are edited out of context in the rush to meet a deadline. Sometimes news sources are mistaken and don't say the right thing. Sometimes spokespeople get phone calls in the middle of the night and need a few minutes to gather their thoughts.
This management team is doing everything possible to improve communications with employees - from Dave Siegel's employee meetings, online chats and weekly phone messages, to information being made widely available to employees about our restructuring, to management getting out in the field to visit with employees. We are trying to improve the flow of information. And on the other end, we can only hope that employees are interested in hearing us out.
Chris Chiames