This just from the ALG web site:
Date: March 3, 2003 Interoffice
Correspondence
To: Allegheny, Piedmont, PSA and MSC Employees
From: Michael Scheeringa
Vice President Express Division
Subject: Reorganization
As you are aware, US Airways Group, Inc. continues its restructuring process to lower costs, become
more efficient, and return to profitability. As part of this process, an independent consulting firm
(Accenture) was engaged to look into possible areas of cost reduction. As a result of their analysis a
decision has been made that will allow us to reduce certain administrative costs.
Beginning May 1, 2003, several functions within the wholly owned carriers, Allegheny, Piedmont, PSA
and MSC will transition to a new Subdivision within Allegheny referred to as the Shared Services
Organization (SSO). The affected areas are Recruiting, Benefits Administration, IT, Purchasing,
Accounting and Payroll. The SSO will be operated out of Allegheny’s Headquarters in Harrisburg.
Below is a summary of the functions that will be completed by the SSO.
PURCHASING - SSO FUNCTIONS
The SSO will issue Purchase Orders for all purchases. A partial list of SSO responsibilities will be
purchases of aircraft parts, shop supplies, office supplies and equipment, tooling, test equipment,
computer hardware, software and outside services, telecommunications equipment and services, crew
(RON) hotels and transportation, aircraft chemicals, aircraft cleaning supplies, paper supplies,
skydrol/oil, and aircraft hardware. In addition the SSO will purchase such items as de-ice fluid POs
and usage through Merlin and all component repair agreements.
HUMAN RESOURCES – RECRUITING AND BENEFITS - SSO FUNCTIONS
The SSO will be responsible for staffing recruiter positions at the carriers and will liaison with carriers to
establish hiring requirements, participate in recruiting sessions and forward candidate recommendations
to Carrier management. The SSO will contract administration of benefit plans and will be responsible for
employee enrollments, changes, all other claims processing as it related to benefits.
FINANCE –PAYABLES, RECEIVABLES, AND PAYROLL – SSO FUNCTIONS
The SSO will generate all payments and cash disbursements for all purposes including manual checks.
This includes processing all invoices through the accounting systems and following up on invoices. The
SSO will prepare all cash planning schedules and will initiate all wire transfers. The SSO will generate
final invoices and process through the accounting system. The SSO will prepare all financial statementsand generate internal reports. The SSO will compile final versions of budgets. The SSO will process all
payroll hours and generate paychecks for each Carrier's employees.
IT - SSO FUNCTIONS
The SSO will ensure that existing computer and phone systems continue to function properly. They will
work with end-users on problem resolution and also outside support vendors where appropriate. They
will make sure that systems are properly maintained and backed up.
Unfortunately, this reorganization will result in employee reductions at the wholly owned carriers. Each
carrier will be working with their employees affected by this transition in an effort to minimize the impact.
The SSO will offer many new opportunities to the affected employees and they are anxious to discuss
these possibilities with the affected employees. Over the next few weeks, the SSO we will be actively
recruiting to fill the positions. Postings for the available positions will be distributed to all employee
locations by March 4, 2003. If you are interested in any of the positions, please contact Michelle
Foose, Director of Human Resources at Allegheny at DN 948-5410 who has been tasked with the
SSO transition. It is anticipated that all vacant positions will be filled by March 28, 2003.
I realize this change will impact the way each Company does business. Your management will make
every effort to keep you advised of the progress of the SSO and assist in making the transition as
smooth as possible for all involved.
Date: March 3, 2003 Interoffice
Correspondence
To: Allegheny, Piedmont, PSA and MSC Employees
From: Michael Scheeringa
Vice President Express Division
Subject: Reorganization
As you are aware, US Airways Group, Inc. continues its restructuring process to lower costs, become
more efficient, and return to profitability. As part of this process, an independent consulting firm
(Accenture) was engaged to look into possible areas of cost reduction. As a result of their analysis a
decision has been made that will allow us to reduce certain administrative costs.
Beginning May 1, 2003, several functions within the wholly owned carriers, Allegheny, Piedmont, PSA
and MSC will transition to a new Subdivision within Allegheny referred to as the Shared Services
Organization (SSO). The affected areas are Recruiting, Benefits Administration, IT, Purchasing,
Accounting and Payroll. The SSO will be operated out of Allegheny’s Headquarters in Harrisburg.
Below is a summary of the functions that will be completed by the SSO.
PURCHASING - SSO FUNCTIONS
The SSO will issue Purchase Orders for all purchases. A partial list of SSO responsibilities will be
purchases of aircraft parts, shop supplies, office supplies and equipment, tooling, test equipment,
computer hardware, software and outside services, telecommunications equipment and services, crew
(RON) hotels and transportation, aircraft chemicals, aircraft cleaning supplies, paper supplies,
skydrol/oil, and aircraft hardware. In addition the SSO will purchase such items as de-ice fluid POs
and usage through Merlin and all component repair agreements.
HUMAN RESOURCES – RECRUITING AND BENEFITS - SSO FUNCTIONS
The SSO will be responsible for staffing recruiter positions at the carriers and will liaison with carriers to
establish hiring requirements, participate in recruiting sessions and forward candidate recommendations
to Carrier management. The SSO will contract administration of benefit plans and will be responsible for
employee enrollments, changes, all other claims processing as it related to benefits.
FINANCE –PAYABLES, RECEIVABLES, AND PAYROLL – SSO FUNCTIONS
The SSO will generate all payments and cash disbursements for all purposes including manual checks.
This includes processing all invoices through the accounting systems and following up on invoices. The
SSO will prepare all cash planning schedules and will initiate all wire transfers. The SSO will generate
final invoices and process through the accounting system. The SSO will prepare all financial statementsand generate internal reports. The SSO will compile final versions of budgets. The SSO will process all
payroll hours and generate paychecks for each Carrier's employees.
IT - SSO FUNCTIONS
The SSO will ensure that existing computer and phone systems continue to function properly. They will
work with end-users on problem resolution and also outside support vendors where appropriate. They
will make sure that systems are properly maintained and backed up.
Unfortunately, this reorganization will result in employee reductions at the wholly owned carriers. Each
carrier will be working with their employees affected by this transition in an effort to minimize the impact.
The SSO will offer many new opportunities to the affected employees and they are anxious to discuss
these possibilities with the affected employees. Over the next few weeks, the SSO we will be actively
recruiting to fill the positions. Postings for the available positions will be distributed to all employee
locations by March 4, 2003. If you are interested in any of the positions, please contact Michelle
Foose, Director of Human Resources at Allegheny at DN 948-5410 who has been tasked with the
SSO transition. It is anticipated that all vacant positions will be filled by March 28, 2003.
I realize this change will impact the way each Company does business. Your management will make
every effort to keep you advised of the progress of the SSO and assist in making the transition as
smooth as possible for all involved.
