Us Airways Watch – 9/28/04

[MrAeroMan]

You forgot one....LIQUIDATION.

 

[ITRADE]

"U went into BK just to kill labor, throw out contracts and pensions. They knew that labor would be disadvantaged, and I call that cheating, unfair, and there needs to be legislative reform for the purpose of "fairness" to all parties."

I love this. Weren't the unions the ones that were saying, we'll take our chances in court???

OOPS.

 

[SKY HIGH]

Hey USA320pilot, any idea how those management pay cuts are coming?

Sky high states: apparently NOT anytime soon!

US Airways won't cut executives' pay 23 percent
9/27/2004

PHILADELPHIA - While US Airways Group is seeking to cut most of its employees' pay by 23 percent, the airline has not asked its 2,300 executives and managers for the same sacrifice.
US Airways officials said management employees' pay has not been cut by the same amount because most non-union employees already earn the same or less than their counterparts at the low-cost carriers that US Airways is trying to emulate.

MOD NOTE: PLEASE SUPPLY A URL TO THE ARTICLE (AND A SOURCE FOR THAT MATTER). REMAINDER OF ARTICLE DELETED.

 

[funguy2]

Management did not go to BK to "kill" the unions. Why? Because in the process, they also "kill" the shareholders, whom they have a fiducery duty to protect.

Management went to BK because they don't have enough cash to pay the bills. Period.

And for the record, ITRADE has a point... If the unions wanted to deal, they could have... I don't blame the unions for not trusting this management team, but the unions could have capitulated one more time. Of course, that would have only delayed BK, not avoided it, in my opinion.

 

[jack mama]

Funny how because of the union, the company has to risk it all in CH 11 just for the hopes to get market rates for the employees...

unions are the opposite of market rates

 

[usfliboi]

Pit bull I think youre way off here. The market is dictating! If you think otherwise, go back to buisness 101 !

 

[sfb]

US Airways officials said management employees' pay has not been cut by the same amount because most non-union employees already earn the same or less than their counterparts at the low-cost carriers that US Airways is trying to emulate.

Funny, in 2003, the highest-paid executive officer at jetBlue made $219,000 -- and they were profitable. Southwest's top five made between $249,000 and $450,000 while being the most profitable airline in the industry. US Airways' top 5 execs made between $285,000 (plus a $250K bonus) and $600,000 (Dave Siegel). BBB made $353,000 plus nearly half a million in "other" compensation. Al Crellin made the same salary, plus a $73K bonus, plus over $600K in "other" compensation. Neal Cohen made $394K plus over $620K in "other" compensation. While there's little visibility into what lower echelons of the management ranks make, senior management at UAIR has clearly been overpaid compared to its more profitable peers.

Now, senior execs at AWA had comparable (but somewhat lower) salaries in 2003, but they made a profit and managed a fairly impressive turnaround. I'd argue, though, that even AWA's execs are somewhat overpaid given that WN continues to beat them on most head-to-head routes.

 

[cavalier]

"U went into BK just to kill labor, throw out contracts and pensions. They knew that labor would be disadvantaged, and I call that cheating, unfair, and there needs to be legislative reform for the purpose of "fairness" to all parties."

I love this. Weren't the unions the ones that were saying, we'll take our chances in court???

OOPS.

[post="185429"][/post]​

Watch out! You will be crucified for using common sense around here.

 

[Smartest Loser]

Hey USA320pilot, any idea how those management pay cuts are coming?

Sky high states: apparently NOT anytime soon!

US Airways won't cut executives' pay 23 percent
9/27/2004

PHILADELPHIA - While US Airways Group is seeking to cut most of its employees' pay by 23 percent, the airline has not asked its 2,300 executives and managers for the same sacrifice.
US Airways officials said management employees' pay has not been cut by the same amount because most non-union employees already earn the same or less than their counterparts at the low-cost carriers that US Airways is trying to emulate.

MOD NOTE: PLEASE SUPPLY A URL TO THE ARTICLE (AND A SOURCE FOR THAT MATTER). REMAINDER OF ARTICLE DELETED.

[post="185436"][/post]​

We were told by our union officals that if the 23% went into effect, it would apply to ALL employees. Not just labor, Mgt as well. There cannot be any differance when applying for this S1113 E motion.

 

[delldude]

We were told by our union officals that if the 23% went into effect, it would apply to ALL employees. Not just labor, Mgt as well. There cannot be any differance when applying for this S1113 E motion

best wake up,as we speak management is manuevering to get around it.

 

[ClueByFour]

Funny how because of the union, the company has to risk it all in CH 11 just for the hopes to get market rates for the employees...

unions are the opposite of market rates

[post="185445"][/post]​

Huh?

I suggest you have a gander at the LUV payscales for pilots, FAs, and mechanics before you talk of "market rates."

 

[Borescope]

My daughter graduated from college in May and is taking a job "entry level" in Coraopolis that pays MORE than the "topped-out" senior f/a. (topped-out senior f/as is from 14 years-45 years).

[post="185381"][/post]​

You have the same option. Go back to school and get that "entry level" position. You'll probably be happier in the long run. Someone in your family saw the light

 

[funguy2]

best wake up,as we speak management is manuevering to get around it.

[post="185458"][/post]​

Yeah, management often gets "retention bonuses" or other retention based exceptions during BK... In fact, I seem to recall US Airways having some kind of retention bonus during BK 1. However, I hope they are serious about cutting management wages too... It would be the first sign of shared sacrifice and a willingness to work with employees in a long time from this management team.

 

[RowUnderDCA]

But how do you force them to stay?

 

[gogogadget]

The real question is not, not having a job, but rather not having a U job. Tons of former U employees working at JBLU and others. All starting at the bottom again but still working. U's management has so trashed the company and industry (with its antics) that working for those wages at an airline with such a history will be like working at the bunny ranch in vegas. Yeah sure you are working but you are giving up something that you can never get back.

Friend of mine let go from Johnson and Johnson after a multitude of years. Still finds work and starts again at an entry level job for his education. Heck of a pay cut but he is surviving. So have all those let go by U.

Scared, you should be. Worried? You shoud be. Will you survive? Yes it just means you might need to work a little differently.

Good luck,
Dont be sceered!