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By Barbara De Lollis, USA TODAY
US Airways employees are fuming about $6 million in 2001 bonuses that the company will start paying midlevel and senior executives in October.
US Airways filed for bankruptcy-court protection two weeks ago and is overhauling the airline by cutting flights, reducing the number of jets it flies, laying off employees and reducing the pay of those who stay.
"That's just unbelievable," says Debby Rater, who cleans airplanes at US Airways' Charlotte hub and is married to US Airways mechanic Ron Rater. "It's like they're taking everything from us to supplement their income. We're trying to figure out if we can afford to stay in our home."
The Raters will vote Wednesday on concessions that would cut their pay by at least 8%. The $6 million, she says, makes them want to vote down the proposal and take their chances with a bankruptcy judge.
But US Airways executives say the money is being paid for two reasons: It's owed, and it will help retain employees who are vital to running the airline.
About 500 current employees — including lawyers, financial analysts and marketing staff — will share the money based on the company's performance in 2001, when US Airways lost nearly $2 billion.
The airline says Chairman Stephen Wolf and former CEO Rakesh Gangwal are not on the list of recipients. Monthly payments range from $620 to $13,000. That's $7,440 to $156,000 a year in additional pay.
CEO David Siegel approved the bonuses last spring, shortly after taking the job, then postponed them. But he thinks it's critical to pay the money.
US Airways' turnover rate has tripled among key managers, as headhunters circle "like vultures," says spokesman Chris Chiames. Under this arrangement, employees would collect as long as they stay.
"Bankruptcy estates have to struggle to keep people on staff. If a company wants to retain them, one of the ways to do that," is to offer incentives, says bankruptcy lawyer John McDonald. "It's always hard to understand when you're a union employee."
Wednesday, 13,000 members of the machinists' union will vote on management's proposal, which includes a promise not to seek further cuts.
Union officials say they're repeatedly explaining the bonus payments to members in meetings leading up to the vote.
"It does not look good when they're giving $6 million in bonuses to certain people and asking others to take significant wage reductions at the same time," says machinists' union spokesman Joe Tiberi. "But if the entire upper management were to quit ... the company could not operate."
US Airways employees are fuming about $6 million in 2001 bonuses that the company will start paying midlevel and senior executives in October.
US Airways filed for bankruptcy-court protection two weeks ago and is overhauling the airline by cutting flights, reducing the number of jets it flies, laying off employees and reducing the pay of those who stay.
"That's just unbelievable," says Debby Rater, who cleans airplanes at US Airways' Charlotte hub and is married to US Airways mechanic Ron Rater. "It's like they're taking everything from us to supplement their income. We're trying to figure out if we can afford to stay in our home."
The Raters will vote Wednesday on concessions that would cut their pay by at least 8%. The $6 million, she says, makes them want to vote down the proposal and take their chances with a bankruptcy judge.
But US Airways executives say the money is being paid for two reasons: It's owed, and it will help retain employees who are vital to running the airline.
About 500 current employees — including lawyers, financial analysts and marketing staff — will share the money based on the company's performance in 2001, when US Airways lost nearly $2 billion.
The airline says Chairman Stephen Wolf and former CEO Rakesh Gangwal are not on the list of recipients. Monthly payments range from $620 to $13,000. That's $7,440 to $156,000 a year in additional pay.
CEO David Siegel approved the bonuses last spring, shortly after taking the job, then postponed them. But he thinks it's critical to pay the money.
US Airways' turnover rate has tripled among key managers, as headhunters circle "like vultures," says spokesman Chris Chiames. Under this arrangement, employees would collect as long as they stay.
"Bankruptcy estates have to struggle to keep people on staff. If a company wants to retain them, one of the ways to do that," is to offer incentives, says bankruptcy lawyer John McDonald. "It's always hard to understand when you're a union employee."
Wednesday, 13,000 members of the machinists' union will vote on management's proposal, which includes a promise not to seek further cuts.
Union officials say they're repeatedly explaining the bonus payments to members in meetings leading up to the vote.
"It does not look good when they're giving $6 million in bonuses to certain people and asking others to take significant wage reductions at the same time," says machinists' union spokesman Joe Tiberi. "But if the entire upper management were to quit ... the company could not operate."