US Airways CEO urges unions to strike deals
Friday July 16, 6:40 pm ET
CHICAGO, July 16 (Reuters) - The chief executive of US Airways (NasdaqNM:UAIR - News), in an urgent plea to employees, called the No. 7 U.S. airline the "most vulnerable" among its troubled peers and said he could not preserve any jobs with certainty given the carrier's high costs.
CEO Bruce Lakefield did not mince words in his latest message to employees, recorded late Thursday, in which he urged unions to negotiate deals with the struggling carrier quickly.
Fifteen months after emerging from bankruptcy, US Airways has turned to its unions seeking another $800 million in labor concessions after workers agreed to huge givebacks in Chapter 11.
Lakefield has said the airline must trim $1.5 billion in annual costs by September to avoid another possible bankruptcy.
"The list of legacy carriers in serious financial trouble is growing. We are not alone, but we are the smallest and most vulnerable ... and that's not a good place to be," Lakefield said.
"Given our current cost structure, we can't preserve any jobs with any certainty, and we certainly cannot grow," he said. "Furthermore, we can't control our destiny if we waste the entire summer without reaching labor agreements because then we are going to be faced with even uglier choices."
Lofty jet fuel prices have exacerbated problems for US Airways and other carriers. Lakefield said a huge airfare sale launched this week by several low-cost carriers also has increased the pressure on airlines with higher costs.
"Our labor leaders and negotiators must get to the table -- and do so quickly -- before our financial partners run out of patience," he said.
US Airways pilots are weighing new concessions, and flight attendants said this week they would discuss new givebacks with the company. Management also will soon sit down to negotiate with the union that represents reservation agents, ticket counter workers and gate agents.
The mechanics union, however, has not agreed to a new round of talks.
"We've told them very clearly we will not negotiate any changes to our collective bargaining agreement," Joe Tiberi, a spokesman for the mechanics union, said this week.
The mechanics have offered cost-savings proposals and feel no new pressure to change their position even though other major labor groups at the company are either discussing givebacks or getting ready to do so.
Friday July 16, 6:40 pm ET
CHICAGO, July 16 (Reuters) - The chief executive of US Airways (NasdaqNM:UAIR - News), in an urgent plea to employees, called the No. 7 U.S. airline the "most vulnerable" among its troubled peers and said he could not preserve any jobs with certainty given the carrier's high costs.
CEO Bruce Lakefield did not mince words in his latest message to employees, recorded late Thursday, in which he urged unions to negotiate deals with the struggling carrier quickly.
Fifteen months after emerging from bankruptcy, US Airways has turned to its unions seeking another $800 million in labor concessions after workers agreed to huge givebacks in Chapter 11.
Lakefield has said the airline must trim $1.5 billion in annual costs by September to avoid another possible bankruptcy.
"The list of legacy carriers in serious financial trouble is growing. We are not alone, but we are the smallest and most vulnerable ... and that's not a good place to be," Lakefield said.
"Given our current cost structure, we can't preserve any jobs with any certainty, and we certainly cannot grow," he said. "Furthermore, we can't control our destiny if we waste the entire summer without reaching labor agreements because then we are going to be faced with even uglier choices."
Lofty jet fuel prices have exacerbated problems for US Airways and other carriers. Lakefield said a huge airfare sale launched this week by several low-cost carriers also has increased the pressure on airlines with higher costs.
"Our labor leaders and negotiators must get to the table -- and do so quickly -- before our financial partners run out of patience," he said.
US Airways pilots are weighing new concessions, and flight attendants said this week they would discuss new givebacks with the company. Management also will soon sit down to negotiate with the union that represents reservation agents, ticket counter workers and gate agents.
The mechanics union, however, has not agreed to a new round of talks.
"We've told them very clearly we will not negotiate any changes to our collective bargaining agreement," Joe Tiberi, a spokesman for the mechanics union, said this week.
The mechanics have offered cost-savings proposals and feel no new pressure to change their position even though other major labor groups at the company are either discussing givebacks or getting ready to do so.
