Midwest 50%??

[ATA For Now!]

Midwest To Ask Pilots, Flight Attendants To Take Cuts

Melissa McCrady
Katie De Long


MILWAUKEE – TODAY’S TMJ4 has learned Midwest executives are calling on two of the airline’s most powerful unions to agree to job cuts and pay cuts for their members.

A source close to the negotiations says that Midwest pilots have been asked to take a 50 percent cut in wages.

Flight attendants have reportedly been asked to take a 30 to 40 percent cut in wages and lay off over 200 members.

Midwest spokesperson Mike Brophy said Tuesday night that he would not comment on the talks, but said that Midwest must make cuts to keep the airline out of bankruptcy. Brophy also said that action must be taken this week.


JUST SAY NO!!!!!!!

 

[jetdawg]

just read that Midex is now getting rid of five of the 717's. not sure what this means to the company but you know it can not be good. They say the 717 will help with the high fuel cost so why drop five of them. Is this just more flying for skywest or a slow dismantling of the airline. I lived in WI for years and my commute down to ATL was never better then when I flew on Midex.

Sorry guys hope all works out but not to sure this time.

 

[FlyWolf]

WEDNESDAY, June 25, 2008, 10:25 a.m.
By Tom Daykin</B>


Midwest cuts to be deeper, pilots say


Midwest Airlines Inc.'s pending route and job cuts will likely be even deeper than initially feared, the head of Midwest's pilots union said today.

Midwest executives are planning to reduce the financially troubled airline's number of jets by nearly half, said Jay Schnedorf, chairman of the Air Line Pilots Association's Midwest chapter. As a result, layoffs at Oak Creek-based Midwest will amount to hundreds of jobs, he said.

Midwest announced last week it will phase out a dozen MD-80 jets used for charter service as well as regular passenger service to leisure destinations and West Coast cities. That would leave Midwest with 25 Boeing 717 jets, which are much more fuel-efficient than the MD-80 jets.

Schnedorf said today that he's received accounts from flight attendants that Midwest executives, in employee meetings, say the company also plans to phase out five of the 25 Boeing 717s. That would reduce the airline's fleet by 46%.

Meanwhile, individual pilots have been told by some managers that the airline's restructuring will likely leave it with around 200 pilots, Schnedorf said. Midwest now has 400 pilots, although that number will be down to around 365 by July, due to a previously announced work force reduction.

That plan to reduce the fleet size by nearly half will bring job cuts for other employees, Schnedorf said, including flight attendants, ground crews and mechanics.

Meanwhile, Midwest management, through an initial presentation to the pilots union, is seeking pay cuts ranging from 45% to 65%, Schnedorf said. Those cuts are not acceptable, he said, and the pilots union continues to seek additional financial data from management in order to respond to that presentation.

An official from the Association of Flight Attendants, the other union at Midwest, couldn't be immediately reached for comment.

Midwest spokesman Michael Brophy said the company continues to have discussions with the union leaders, but will not comment publicly on those talks.

"We have been transparent in communicating to our employees that there are sure to be reductions in work force and benefits through most parts of the organization, but that they will be fair and equitable," Brophy said, in a statement.

"Obviously, Chapter 11 is not our most desirable destination," Brophy said. "That's why we're working on this restructuring plan, so we can avoid that scenario."

Midwest Chairman and CEO Timothy Hoeksema says Midwest's financial troubles are largely caused by soaring oil prices, with the airline is paying nearly double for jet fuel compared with a year ago. Midwest is owned by investment group TPG Capital and Northwest Airlines Corp.

 

[Dizel8]

"Those cuts are not acceptable, he said, and the pilots union continues to seek additional financial data from management in order to respond to that presentation."

Why bother. That kind of a paycut is downright stupid to accept and it will not be worth saving the company under those conditions.

Tell management to take a hike!

 

[Ocity]

50% PAYCUTS??

If I was a pilot there I'd rather lose my job. The profession has to be worth something.

 

[samballs]

It was a great product, but since 9/11 not so much. If thats what the company needs to stay in business, then they should not be in business. I can run the best airline in the world as long as Airbus gives me the planes, the pilots fly for next to nothing, and the waiters work on tips. Damn I wrote that as a joke, then when I proof read it, I realized Skybus tried that and still failed. Well nice knowing ya, tell tim to go F off.

 

[generaltso]

Why don't they just ask the oil companys to only pay $65 a barrel instead of $130? This would sold a lot of problems.

 

[Superpilot92]

That would put Midwest pilots making about what the skywest guys are flying the CRJs for as a Midwest Connection. Unacceptable.

 

[ThisistheDream]

Pilots and FA could fly for free and most airlines would still lose money if oil remains $130 a barrel or higher. Salaries are not the problem its too low for the airfare and WAY TOOOOOOOO much for gas

 

[On Your Six]

What bonus did Tim receive with the TPG/NWA buyout? Wasn't it something like $10 million? How much is he willing to give back?

Regrettably, I think the pilots should vote to shut the place down if management won't budge on nearly 50% cut... There are other aviation jobs out there that will actually pay you for your skills (corporate, fractional, etc.). You should not be paid CRJ wages to fly 717s - PERIOD.

Good luck to all involved!

 

[CitationLover]

Why don't they just ask the oil companys to only pay $65 a barrel instead of $130? This would sold a lot of problems.

how true of a statement. my skilled labor is a commodity to the company no different than oil.

 

[Jetjockey]

Midwest upper management sucks, is this news to anyone?

 

[ultrarunner]

What bonus did Tim receive with the TPG/NWA buyout? Wasn't it something like $10 million? How much is he willing to give back?

I don't know that he got a bonus, but maybe he did. I'd have to go back and the press releases.

But he got what all the shareholders got...17 bucks a share. He might have also had options that TPG made good on, and he might have had options accelerated that were not yet vested, but not under water also. But you can go back and look at the releases. If he got any type of "bonus" it would have been to remain on-board during the dismantling. Which is going on right now.

In any event, he's not loosing much sleep over how to pay his bills, that's for sure! ;-)

Ultra.

 

[On Your Six]

I don't know that he got a bonus, but maybe he did. I'd have to go back and the press releases.

But he got what all the shareholders got...17 bucks a share. He might have also had options that TPG made good on, and he might have had options accelerated that were not yet vested, but not under water also. But you can go back and look at the releases. If he got any type of "bonus" it would have been to remain on-board during the dismantling. Which is going on right now.

In any event, he's not loosing much sleep over how to pay his bills, that's for sure! ;-)

Ultra.

No surprise that Kolshak jumped from this ship to another. Maybe he knew these changes were coming. I wouldn't say UAL is in any better shape though.

 

[Ty Webb]

I caught a ride on Midex recently. What a class operation. This is really, truly a shame and a travesty. Your pilots and Flight Attendants deserve so much better.

 

[Max Powers]

Perhaps this is a ploy so they can blame any shutdown on the pilot refusal to "cooperate" with the company. Kinda like NWA and their mechanics they want to furlough 50 percent and pay decreases of over 40 percent. Everyone knew no one would accept that it was a lose lose for the union.

 

[Bringupthebird]

I would expect the contract USAPA is negotiating for themselves will have similar pay scales, just so that they can get the DOH list they so desperately want. And the east pilots will go for it.

 

[deadstick]

Timmy's $10M was from the stock purchase.

I agree with Max Power's assessment. "It's not our fault." Morons...

That's who TH reminds me of! Wallace Shawn's character Vizzini in The Princess Bride. He thinks that he is much smarter than he really is.

 

[Lear70]

Timmy's $10M was from the stock purchase.

I agree with Max Power's assessment. "It's not our fault." Morons...

That's who TH reminds me of! Wallace Shawn's character Vizzini in The Princess Bride. He thinks that he is much smarter than he really is.

"INCONCEIVABLE!"

Can't believe the balls on management these days. I'm kind of hoping the whole thing implodes, the government steps in, and EVERY member of senior management at EVERY airline is permanently banned from any aviation involvement EVER again.

Would be better than 50% paycuts and flying a narrowbody mainline jet for the same thing it pays for a 50-seat RJ.

 

[CitationLover]

Perhaps this is a ploy so they can blame any shutdown on the pilot refusal to "cooperate" with the company. Kinda like NWA and their mechanics they want to furlough 50 percent and pay decreases of over 40 percent. Everyone knew no one would accept that it was a lose lose for the union.

So they can blame the $20 million proposed cuts versus a $300 million increase in their fuel bill?!?! I'm sorry but I would hope even newspaper reporters ain't that dumb to see one is a drop in the bucket compared to the other.

Charge more for the ticket people. You beeyatch and moan about "losing market share" but what the f@#$ are you losing by parking 17 airplanes?

It is time for ALPA to use the "nuclear" option and have a nationwide strike. The raping and pillaging of employees to subsidize substandard air service has GOT TO STOP.

 

[Illinois]

Are the 717 and MD-90 similarities great enough for Flight Op's/MX flexibility? The airframes could be heading to NWA/DAL to replace DC-9's per TPG/NWA.

If so, this will be blamed solely on soaring energy prices and intractable labor groups. Wisconsin will lose many jobs and a great ride while "realizing synergies".

 

[CitationLover]

Are the 717 and MD-90 similarities great enough for Flight Op's/MX flexibility? The airframes could be heading to NWA/DAL to replace DC-9's per TPG/NWA.

If so, this will be blamed solely on soaring energy prices and intractable labor groups. Wisconsin will lose many jobs and a great ride while "realizing synergies".

No. FAA made TWA fly different crews. They made us fly different crews. They will make NWA/DAL fly different crews. Besides DAL's MD-90's are not the "real" MD-90 they designed (it looks exactly like a 717), DAL wanted "synergies" with their 88's (so they look like an 88).

As far as suitability on route coverage, the 717's could easily match a lot of the east coast MD/DC9 flying NWA/DAL does. SLC would be another story....

 

[deadstick]

I would hope even newspaper reporters ain't that dumb to see one is a drop in the bucket compared to the other.

One would hope, but it seems like the public has a poor opinion of pilots when it comes to wages. The media is interested in grabbing headlines. I think they'd run the story.

 

[Illinois]

No. FAA made TWA fly different crews. They made us fly different crews. They will make NWA/DAL fly different crews. Besides DAL's MD-90's are not the "real" MD-90 they designed (it looks exactly like a 717), DAL wanted "synergies" with their 88's (so they look like an 88).

As far as suitability on route coverage, the 717's could easily match a lot of the east coast MD/DC9 flying NWA/DAL does. SLC would be another story....

I appreciate the information, and will stand corrected.

 

[viper548]

They want midwest pilots to work for 50% of what they make now? Unemployment will pay more than that.

 

[AWACoff]

They want midwest pilots to work for 50% of what they make now? Unemployment will pay more than that.

Not even close. You have obviously never been on unemployment before. It's likely none of them will qualify for foodstamps while on furlough either due to their gross earnings per quarter over the last 4 quarters.

 

[airlinepilot]

Lets see...if you are a Capt now and become a FO with the furlough....and you give up 50% of your FO pay.....that sounds like a 75% pay cut....

 

[FlyWolf]

That is correct, some capt's are making $140-150 now, they will be down graded and make a max $37.01.

Fair and equitable, yeah right, I say shut it down, FULL PAY TO THE LAST DAY.

I will be happy to vote on shutting Midwest down than taking this BS.

No way this is going to pass. Jay already said its unacceptable. TH tried to pull a fast one at the beginning of the year, he said TPG agreed to purchase us only if the pilots take a pay cut, now he's trying again.

I say we counter with a pay and benefit increase. Full pay to the last day.

 

[Propsync]

I'm sorry but I would hope even newspaper reporters ain't that dumb to see one is a drop in the bucket compared to the other.

We'll see. Daykin from the Journal is more pro-labor. There's another guy whose name escapes me that goes the 'other way'. He's the one that flew the BS about the EAS stuff awhile back. The crap about the fines and whatnot. If you see articles by this other guy, it's generated by Midwest.

 

[Propsync]

Lets see...if you are a Capt now and become a FO with the furlough....and you give up 50% of your FO pay.....that sounds like a 75% pay cut....

I figured 70 percent, but I really won't argue with you. Downgrading to another paycut is insult to injury. What a mess.