When Would Now Be A Good Time To Talk?

[flyswatter]

Rumor in CCY is that Dave has decided not to venture out into the world and tell the employees about his new plan. Of course, his reason is that labor isn't willing to work with managment.

Let me get this right: we have a managment team that has gone to the employees on two separate occassions. They have extracted concessions from the employees in both of those instances, the second time with the threat of liquidation. Over a year later and out of bankruptcy, the wonder boys in CCY still can't figure out how to run an airline or how to compete with the LCC's. The solution of the managment team who obviously got their credentials from either Disneyland or the land of make believe is....let me guess....get it from the employees one more time.

There is no nice way to say this. Dave...pack up your &hit and hit the road. Take Neil Cohen, Jerry Glass, and Doug Mckeen with you. We will send the rest packing right after you clean out your desk. But wait, we need to get security before you clear out your office cause god only knows what you'll try to take with you on your way out the door.

Unfortunately, I too live in a dream world because the Chairman of the Board (and I'm not talking about Frank Sinatra) has declared his dedication to the wonder boy Dave. Wake up Bronner! Dave is destroying your investment. What on earth are you thinking? I bet you don't run RSA in the same sloppy manner that Dave ineptly attempts to run this airline.

Sadly, all the employees will suffer when the end comes because if the Board is committed to Siegel and Company, then the Board is committed to failure and the certain demise of the airline. Compete with LCC's? How? We aren't an LCC; we don't look like an LCC; we don't operate like an LCC. And Siegel, Cohen, and Glass only know one method of operation: stick it to the employees and then we might come out looking like an LCC and Bronner will keep us on so we can suck more blood from the employees of US Airways.

If Siegel and Company aren't discharged, then I highly recommend that every employee at this Company update your resume because you will be looking for a job in the very near term and it won't be because you decided to leave on your own. It will be because Bronner pulls the plug and liquidates the airline. Good luck folks - you are going to need it.

 

[Dea Certe]

Dave says the "unionized employees" aren't interested in hearing the "new plan". Why do you suppose that is? My opinon is that there is no trust in our leadership team. And not much respect, either.

I think Dave's biggest mistake has been the choice of some of his right-hand men. Jerry Glass has alienated the employees. Ben Baldanza outraged many of our best customers. It was like a two-pronged attack on the very groups most needed to pull this airline out of the mire and back into the running.

Were I Dave, I would let Mr. Glass go back to his law practice and then attempt to mend fences with labor. I would drop the Airbus farmouts. I believe that is the straw that will break the camel's back. I would take a good, hard look at the talent we have within the company. I would encourage new ideas, thinking outside of the box and kick to the curb the first manager who says: "We've always done it this way."

Most USAirways employees want our company to succeed. We want to be proud of our airline and proud of the product we offer our customers. We have shown our willingness to be team players several times, as painful as it was. We've taken major hits on pay, benefits and quality of life issues. Not to say we did so quietly; we moaned and groaned and kicked the walls but we did put our best efforts into making it work to the best of our abilities. The proof is in the fact our most loyal customers have stayed with us.

It may be too late at this point, but at least I'd give it a shot.

Dea

 

[flyswatter]

Dea,

I agree with you. Dave's selection of henchmen has only added to his failure to this point. Jerry Glass has no people skills whatsoever and that is sad since he is in charge of the department that deals with all the labor groups. Seems like being skilled in actually dealing with people might be an asset in that position.

Outsourcing the AB maintenance was also a poor idea, one no doubt that was engineered by both Glass and Cohen. Alienate more employees but maybe save a penny or two. And we have all heard about the problems with the one aircraft that was serviced by that Company in Alabama. Wonder if it's just a coincidence that the outsource Company is in Dr. Bronner's back yard? Wonder if the outsource Company has anything to do with RSA? It's not secret that Bronner is the king of the state of Alabama. They treat him like royalty down there.


And yes, I too believe that most employees would like to see the Company succeed. But how much more pain and sacrifice are the employees willing to suffer under the pitiful Siegel entourage? I would bet most employees have reached the point of saying forget it as long as those losers are still running the show.

Makes me long for the days of Gangwal as President of the Company. No matter what spin the current managment team has tried to create, Gangwal had a vision and knew how to run an airline. He was thwarted from being successful after Wolf engineered the UAL merger. From the point of that announcement, Wolf had no interest in running this airline and wouldn't allow Gangwal to run it either. That's why Gangwal left. He wasn't run off the property. He elected to leave because he was no longer being allowed to do his job. And when you compare the job he did during his tenure at US Airways to what Siegel has done, it's easy to see that one man used to work for a rental car company. By the way, Gangwal never worked for a car rental company.

 

[marco90821]

The employees do at the very least want to hear the plan; it is the union leaders that are showing no interest. Dave needs to get out there and deliver this plan to the employees. I am not thrilled with the union leaders' reaction, and Dave is acting childish by believing the rest of us are not interested in at least considering the plan, but cannot do so if we do not know what it is.

 

[mrplanes]

True leadership strikes again. Both in Alabama and Crystal City.

mr

 

[flyswatter]

The employees do at the very least want to hear the plan; it is the union leaders that are showing no interest. Dave needs to get out there and deliver this plan to the employees. I am not thrilled with the union leaders' reaction, and Dave is acting childish by believing the rest of us are not interested in at least considering the plan, but cannot do so if we do not know what it is.

I don't think your assertion is correct. After all, the union leaders know what the plan is because labor has representative on the Board.

There is nothing stopping Dave from going out there and telling the employees all the thrilling details of his new plan except his fear of mob attacks when he suggest the employees once again give at the office.

 

[DCaf]

After reading this board for a couple of months, I've decided to join the fray.
To introduce myself, let me say I work in fleet service, enjoy my job, and
would really like to keep it. I am not oblivious to the failings of company
management. I don't like their style at all. Too heavy-handed. But I'm
not a union yes-man either, which brings me to my point: I think it's
wrong for the unions to not even talk to Dave about the ideas he has for
our company. Maybe his plan is brilliant? Probably not, but we have to
hear it.

 

[delldude]

The employees do at the very least want to hear the plan; it is the union leaders that are showing no interest. Dave needs to get out there and deliver this plan to the employees. I am not thrilled with the union leaders' reaction, and Dave is acting childish by believing the rest of us are not interested in at least considering the plan, but cannot do so if we do not know what it is.

IAM the union...i'd be interested in hearing the plan,but my union did not prevent dave from doing his presentation....they have no control over what he does or doesn't do.
dave is reacting out of his frustration with his lack of leadership....lack of management of the company...he always gripes about "fingerpointing between the laborgroups"...what the hell you call this?
BE ADVISED:EXPECT A RATHER TO THE POINT MESSAGE FROM DOC BRONNER SAYING SOMETHING TO THE EFFECT THAT IF WE DON'T DO AS WE'RE TOLD HE WILL LIQUIDATE THE COMPANY.

 

[AP Tech]

GIVE, GIVE, GIVE, LIQUIDATE, LIQUIDATE, LIQUIDATE.......Sounds like a broken record!!!! Time for you goofs in Crystal City to start running an airline. The employees have given twice when asked, when is it going to cease? Third time a charm? If they were automobiles they could be returned under the "lemon law".

 

[repeet]

flyswatter,

You are dead on. When Mr. Seigel says that the Unions "won't listen to his plan", what he really means is that the Unions will not reopen their contracts to renegotiations. Certianly we all would LOVE to hear this marvalous new plan. And he can announce any type of plan, dream, or fantasy whenever and where ever he pleases.

And if Dr. Bronner feels the need to threaten us with a shut down, FINE.

Vote our job away, take our job away. The end result is the same.

 

[CynicalResAgent]

I would like to hear the plan. It dissapoints me that CCY has decided to not do the roadshow. While nobody here will truly know why they have decided not to share the plan on a roadshow it makes CCY appear as a child who refuses to speak to another child out of spite. I hope that this is not the case.

I want to know the truth about where we stand and need to go! I do not want to be in the dark, but I feel like we are left to wonder about UCTs, ICTs and FUD, and listen to conspiracy theories of merger talk and speculate about back room dealings.

I want to know what direction the company wants and needs to go in. I want my union and management to negotiate to keep us in business. Some people justly complain about being cheated out of wages and retirement. I understand that, but we all have a stake in the company and we all own stock. I am willing to work hard, as I always have, to serve my customers and provide the best travel experience possible, and to make that stock be worth something one day. We need leaders in management and in the unions, and they need to be people of vision who can tell us what we can do, not what we cannot. I want to know what it will take to make this company succeed. If they need more than I can give the I will know that it's time to start passing out resumes.

It makes me nervous for our future and worried when I feel like we are continuously stuck in a slow descending holding pattern.

Tell us the plan. We all want this company to succeed!!!!

 

[USA320Pilot]

See Story

Respectfully,

Chip

 

[USA320Pilot]

Dear Fellow Employee:

On December 16 ALPA issued a press release calling for US Airways chief executive officer Dave Siegel and chief financial officer Neil Cohen’s removal and said that there would be no further discussions or potential contract changes until these two senior officers left the company. In response US Airways’ chairman David Bronner told the Pittsburgh Post-Gazette that Siegel would remain in his position and that he would not acquiesce to the pilots demand.

In addition, other unions have said they have no interest in talking with management about the transformation plan or contract changes to adjust to the company’s challenges.

In the article Bronner made a couple of valid points. For example, Bronner said that if he elected to change chief executives it would take a few months to find a suitable replacement, the new CEO would still have to develop a transformation plan, and then negotiations would have to begin with the unions for contract changes. How long would that take and how long can US Airways wait to find a way to further lower its unit costs?

On September 30 US Airways reported a restricted cash position of $1.94 billion and unrestricted cash balance of $1.38 billion.

At the last labor coalition meeting US Airways told labor that the ATSB loan guarantee covenants required the company to maintain an unrestricted cash balance of about $1 billion (see slide presentation of the ALPA website).

In the fourth quarter the company made a one-time payment of $62 million to the pilots DC Plan and in today’s Post-Gazette the newspaper wrote US Airways is burning through an estimated $1 million in cash every day, and the concern is that company "may very well violate that covenant" during a typically slow travel period in the spring, said Bill Lauer, a local airline analyst and stockholder.

Therefore, by rough estimates US Airways could post a fourth quarter loss of about $150 million.

Meanwhile, with Southwest’s entrance into Philadelphia and the historical yield deterioration of 30% due to the Southwest effect couple with other LCC expansion, how long can US Airways continue to lose money before it violates the loan guarantee covenants?

Interestingly, today the Post-Gazette said Siegel's reference to the covenants is ominous, since his options are few if US Airways can not meet the loan terms. One option would be involuntary bankruptcy. "It is a risk that prudent management would not like to gamble on," said Philip Baggaley, an airline analyst with ratings agency Standard & Poor's in New York. US Airways Chairman David Bronner, in a Dec. 18 interview with the Post-Gazette, also appeared concerned about the federal loan guarantees. Arguing that the airline would be struggling for survival over the next 30 to 90 days, Bronner said, "We are not going to put the stockholders and the ATSB loan at risk." "I would rather take cash and pay off the government than sit here and bleed to death slowly ... We are not going to bleed slowly over a year or two." The company, he said, will either "fix itself or pay off the loans and stockholders the best we can."

The Post-Gazette continued, “In other words, US Airways needs to save itself or liquidate its assets, Lauer said in interpreting Bronner's remarks.â€

See Story

With none of the unions agreeing to talk with management about the transformation plan, in yesterdays recorded message Siegel said he plans to spend the next few weeks analyzing the company's financial alternatives and thinking about how it can meet its "financial commitments" without the cooperation of labor groups. What could that be?

Could Siegel announce major layoffs, base and city closures, declare Force Majuere over the A320 overhaul issue, place EMB-170s on Boston, New York, and Washington Shuttle flights to match capacity with demand, agree memorandums of understanding to sell assets like slots or international routes? For example, could we see the “Pref Bid†and Reserve Time Balancing system improvements result in more pilot furloughs instead of staffing the reported 60 additional A320 family aircraft?

Nobody likes the issue at hand but I believe refusing to talk serves no useful purpose. The options seem obvious: Either listen to the plan and then react or simply liquidate and then fill out the unemployment application.

When would now be a good time for labor to sit down with management and at least hear the proposed transformation plan? With that said, I understand today the ALPA MEC Officers and Communication Committee members held a conference call to discuss the pending issues and determine an appropriate strategy.

Respectfully,

Chip

 

[delldude]

give me one more chance...i promise this will be the last time.

 

[repeet]

Dr. Bronner said:

"I would rather take cash and pay off the government than sit here and bleed to death slowly ... We are not going to bleed slowly over a year or two." The company, he said, will either "fix itself or pay off the loans and stockholders the best we can."
====================

After years of being battered and brutalized, all we can say is, Fine.