Mesaba's race to the Bottom

[bomberbubba]

With the 50% increase in costs of our health benifits.......I wish i could seek out the cheapest doctor! Too bad they dont advertise their costs! This place sucks!

 

[schmitty340]

just out...mesaba is imposing 20% paycuts to all non union employees. effective April 1. I bet the csa's wish they had voted yes on that last union vote. source is mymesaba.com

schmitty

 

[schmitty340]

oh ya, I forgot... This excludes managment... this is one classy airline. how many people do you think will quit before the holidays? This should be a fun x-mas in DTW.

 

[bomberbubba]

Memo says all salary and non-union folks get 20% paycut effective April 1st. What an April fools joke!

This would include management the way i read it.

 

[xjlifer]

So lets see Foley is right at 1.3 million...so 20% from that.....o never mind

 

[millhouse21]

Memo says all salary and non-union folks get 20% paycut effective April 1st. What an April fools joke!

This would include management the way i read it.

I don't work there but I suspect that mgmnt will read it in such a way as to exclude themselves.

 

[schmitty340]

I should have been more clear. The "Senior leadership Team" will not be taking 20%. I agree with bomberbubba, the day to day managers will be affected.


The funny thing is that our SLT really are only mid level managers for big brother NWA. there only real job is to control cost. All other decisions are made for them.

 

[schmitty340]

Nice comment from FOOLEY in the paper today. and this was in reference to pilots and flight attendants!

But Foley said that lower wages are a reality in the airline industry. "There are more than enough people willing to work at the work rules and wage rates that Mesaba has proposed," Foley said.


This next part is encouraging . I think mesaba and MAIR may have bit off more then they can chew. Go get em Tom !!!

Meanwhile, the creditors committee in the Mesaba bankruptcy wants to probe financial connections between Mesaba and its parent, MAIR Holdings, which is not in bankruptcy. The key creditors, including aviation companies and Mesaba pilots and flight attendants unions, have asked the judge to let them subpoena Foley and other top MAIR executives.
"For years, the Mesaba pilots have been extremely concerned about the uplifting of cash from our company to a separate suite of executives" at Minneapolis-based MAIR, said Tom Wychor, chairman of the Mesaba branch of the Air Line Pilots Association (ALPA).
Now the creditors have united in seeking more information about the financial relationship between MAIR and Mesaba. Minnesota Twins owner Carl Pohlad serves as chairman of the MAIR board of directors. All of MAIR's profit has been generated by its main subsidiary, Mesaba, because tiny Big Sky Airlines, its other subsidiary, has lost money since it was acquired in 2002, Wychor said.


Here is the entire artical:

Liz Fedor, Star Tribune Last update: December 8, 2005 at 8:22 PM


Bankrupt Mesaba Airlines is attempting to slash its labor costs by 19 percent, the head of Mesaba's parent company said Thursday during an airline conference in New York.
Paul Foley, CEO of MAIR Holdings, said Mesaba must reduce its labor rates to continue providing regional flight service for Northwest, which filed for bankruptcy in September. But he stressed that Mesaba also must have a competitive cost structure to attract flying business beyond Northwest.
Meanwhile, the creditors committee in the Mesaba bankruptcy wants to probe financial connections between Mesaba and its parent, MAIR Holdings, which is not in bankruptcy. The key creditors, including aviation companies and Mesaba pilots and flight attendants unions, have asked the judge to let them subpoena Foley and other top MAIR executives.
"For years, the Mesaba pilots have been extremely concerned about the uplifting of cash from our company to a separate suite of executives" at Minneapolis-based MAIR, said Tom Wychor, chairman of the Mesaba branch of the Air Line Pilots Association (ALPA).
Now the creditors have united in seeking more information about the financial relationship between MAIR and Mesaba. Minnesota Twins owner Carl Pohlad serves as chairman of the MAIR board of directors. All of MAIR's profit has been generated by its main subsidiary, Mesaba, because tiny Big Sky Airlines, its other subsidiary, has lost money since it was acquired in 2002, Wychor said.
Foley, during an investors conference, said MAIR has "over $115 million in cash and investments" and "minimal long-term debt." He emphasized that MAIR did not file for bankruptcy but has offered to provide up to $35 million of debtor-in-possession financing to Mesaba.
Wychor argues that MAIR and Mesaba are for all practical purposes one entity, and that the MAIR executives are "playing a shell game."
The Mesaba creditors committee, which wants to recover payments from Mesaba, has formally asked the court to compel MAIR to turn over a massive array of MAIR documents. A hearing on the creditors' motion is scheduled for Jan. 10.
"We will certainly comply with any direction from the court," MAIR spokesman Jon Austin said Thursday. "I think we'd certainly participate in the discussion on the motion, so the creditors committee gets the information it needs without imposing an undue hardship on the company."
Pay cuts looming
Mesaba employees are worried about financial hardships heading their way.
Pilots who fly Mesaba's three plane types are being asked to take 13 to 19 percent pay cuts. Wychor said he has not seen any financial data to justify any level of cutbacks for pilots or other Mesaba employees.
But Foley said that lower wages are a reality in the airline industry. "There are more than enough people willing to work at the work rules and wage rates that Mesaba has proposed," Foley said.
Union negotiators have been told that Mesaba wants to negotiate concessionary agreements by Dec. 19, Wychor said. If that goal is not reached, Wychor said the company is expected to file a motion in bankruptcy court seeking to abrogate its labor contracts.
The other unions at Mesaba are the Association of Flight Attendants, the Aircraft Mechanics Fraternal Association and the Transport Workers Union.
"All employees will bear their share of the burden," Mesaba spokeswoman Elizabeth Costello said.
"The keys for a successful Mesaba reorganization are securing our core business with Northwest, making Mesaba an attractive partner to Northwest for growth opportunities -- whether that is a 50- or 70-seat regional jet -- and a cost structure that allows us to diversify," Costello said.
On Thursday, Foley broached the subject of MAIR or Mesaba acquiring airplanes for non-Northwest flying, but he didn't provide specifics.
Currently, he said, "Northwest is dictating to us what the fleet will be." Northwest has taken nine Avro jets out of Mesaba's schedule and 10 Saab turboprops are expected to be removed next month.

Liz Fedor • 612-673-7709

 

[YourPilotFriend]

Haha you made the guy a millionaire for all your hard work and he insults you. Even dogs dont bite the hand that feeds them, what dumba$$. Doug stealin said the same thing to us a while back. Yeah go find you 300TT hr pilots and let them fly your airline for free, just make sure you tell the public what your doing.

 

[fieldinsight]

just out...mesaba is imposing 20% paycuts to all non union employees. effective April 1. I bet the csa's wish they had voted yes on that last union vote. source is mymesaba.com

schmitty

If your source is mymesaba, then you are being intentionally misleading. It's not pretty, but it's not exactly a 20% PAYcut either. Here's the entire memo:

December 8, 2005

Dear Fellow Employees:

As you know, Mesaba’s financial condition has worsened dramatically over the past few months, and the purpose of our bankruptcy is to bring our expenses in line with our revenues. We’re looking at all areas of the Company to do this. For example, we’ve negotiated new contracts with a number of vendors to achieve savings and we’re implementing process assessments and improvements such as:
​

• ​

An Operations Performance Team to evaluate on a corporate-wide basis how we can achieve improved on-time performance
​

• ​

Project Superstar to determine the current state of the ground operations in order to provide key best practices and recommendations for improvement in quality, cost, delivery, and safety.

In addition, we have begun discussions with our union leadership at AFA, ALPA, AMFA and TWU for concessions. At the same time, we are finalizing all salaried and non-contract hourly employee costs – the results will include an adjustment to compensation and benefits.

We have analyzed market forces for each employee group while considering the need to be fair and equitable. Based on this information and the Company’s business plan going forward,changes to compensation will vary for different employee groups. Each employee group, however, will realize the same cost reduction total of 19.4 percent. This total will be drawn from payroll, benefits and productivity. At this time, we are projecting an average 7.6 percent reduction in pay for CSAs (individual CSA percentages will be determined by demographics and the individual’s rank on the pay scale) and a 10 percent reduction in pay for all salaried and remaining non-contract hourly employees. These changes will be effective April 1, 2006.

Without fail, we have the smartest and best employees in this industry so it is with deep regret that we must implement these compensation changes. However, the Company’s new businessplan compels us to modify all costs in order to ensure a successful future. Again, please know the changes are based on the most reliable financial and business planning information available – and all of us will bear our share of the burden.

Thank you for your continued professionalism and support during this most difficult time in our Company’s history.

Sincerely,
John Spanjers
President & COO

People who shouldn't be taking the hit will be. ALPA is on the creditors committee, Wychor needs to make sure the pain is felt all the way to jinglepants himself. ​

 

[schmitty340]

The CSA's payrate may go down 7%, but that letter cleary states they are looking for a total cost reduction of 19.4%. so with the increases in medical plan cost, less hours worked, or no over time (these are just examples of things they will do) and anything else they can impose on those people, the proposal will equal 19.4% in less pay and/or benefits ( PAY CUTS ) . I am sorry I rounded up to 20%. I will admit I got a little carried away.


"People who shouldn't be taking the hit will be. ALPA is on the creditors committee, Wychor needs to make sure the pain is felt all the way to jinglepants himself"

NOBODY SHOULD BE TAKING A HIT (except the SLT of course)>>the reason this company is BK, is becuase NWA is not paying us. How is 20% from all the employees going to change that. we all could work for nothing and we will still be BK if we continue to provide our services and not get paid. WTFO

 

[xjhawk]

Regional MEC's need to come together

Why does not the MEC's of all the Alpa regional airlines come together and set a liveable payscale? This would stop the skid to the bottom. one or two MEC reps from each regional airline, a weekend confernce, and a scale that will get a minimum standard set, with pay raises etc........i suppose those of you who want to continue the fair market approach we have not will laugh at my idea!

 

[YourPilotFriend]

No XJ hawk, the regionals need to join the mainline. This is the way to stop the slide. Once a regional pilot hits the mainline, he will no longer accept low wages.

 

[smokey999]

OK, I'll join mainline. Where do I sign up?

 

[ReverseSensing]

...the Company’s new businessplan compels us to modify all costs in order to ensure a successful future. Again, please know the changes are based on the most reliable financial and business planning information available – and all of us will bear our share of the burden.

I'm sick and tired of these corporate pukes hawking their "businessplans" as some sort of divinely inspired gospel, instead of the latest steamy plopper they pulled out of their asses.

As if there is any fawking thing as "reliable financial and business planning information" for the pax airline industry right now.

Bunch of Junior Business College goobers. Go run a Chik-Fil-A franchise at the mall.

 

[MesabaDriver]

How about the Section F in the New wish list. I hear the scope protection in the contract with Big Scare is also mentioned in the new list of demands to be revamped. Am I reading that right?

 

[fly4ever]

"Once a regional pilot hits the mainline, he will no longer accept low wages."


YourPilotFriend,

That is one of the biggest piles I've seen in a while. Explain why NWA pilots have accepted their second round of cuts in less than a year. Explain why CAL pilots start out at 29.97 for first year FO. Explain why UAL pilots accepted multiple cuts to their wage and benefits since their bankruptcy. Explain why USAir pilots accepted not only cut wages and benefits but allowed their management to form an alter-ego airline with wages below some regionals.

Low compensation packages have been accepted many times by mainline pilot groups. Sometimes in a true effort to help the company but more often because they were looking out for themselves just as we are forced to do at the regional level. You should be taking your arguments to ALPA National and asking Woerthless why he hasn't shown the leadership needed to help "Brand Bargaining" succeed. We had that promise crammed down our throat at Mesaba just to see mainline NW pilots throw it out the window last year when they had the opportunity to take a step in that direction (all signed off by Woerthless).

Mesaba management, i.e. Northwest management, is directing this little drama and we are the pawns. They have underestimated us this time. We are fed up with the games they are playing with our lives. We don't have the level of pay and benefits that allow concessions like you do at mainline. Therefore, we have nothing to lose. Why worry about keeping a job at all costs when it would mean poverty to stay. If they use 1113c on us and the judge allows it, we will have no choice but to walk off the job. We can't survive on what they have proposed. Whereas mainline pilots that have been getting the higher pay and better benefits are willing to accept lower pay to save their jobs.

Why don't you preach to your own pilot group.

BTW, we can't just "join" the mainline. You had a chance years ago to have a one list and missed the opportunity. Do you really think your bosses will allow one list to exist?

 

[YourPilotFriend]

I do preach to my own pilot group and they listen, thats why we are working on keeping NWA flying in house. In fact, they are willing to murder-suicide over the issue. We know NewCo will exist because it already does exist. What is not known is whether it is XJ/9E/Champion. One of these pilot groups is going to get screwed plain and simple. In the future at that company, you will be faced with 2 options: 1. join the mainline and take a furlough 2. not join the mainline and hit the street.

You can walk out of XJ, and the second you do that, it becomes NewCo without you. MAIR has so much cash on hand from you guys, they could start up a new airline overnight. So how do you protect your job? Start telling your MEC you want to side with mainline pilots. You want to fly 70 a/c as an NWA pilot; bring back the flow through program. This time NWA pilots will listen to you because they know you are coming for their jobs. They blew you off in the past, but things were different then, you have them by the balls now, but they won't admit that.

I know about your proposed contract, and it's a lie. They know fair well you guys aren't going to work at that pay rate. So you know what they are going to do, "Hey guys I know your pay sucks, but how about flying NewCo a/c at say $60,000 a year as a captain". That will look mighty good to someone who just had their pay cut to $45000. This tactic has been used since the beginning of time and you guys are going to fall for it again. Soon as you agree to it, you will hit the streets and NWA pilots will take your places per the scope agreement. Management will even tell you that they are getting out of the scope contract and that you guys wil fly those airplanes, they will lie to you.

Finally, the "bosses" are not going to like it, but thats what they are going to get. Otherwise, we walk out and they are left with nothing.

 

[fly4ever]

You didn't explain why your group has already accepted lower pay and worse work rules. You talk big but with no substance. There never was a flow through with NWA and NWA management will not allow it so you better start looking for another job just like I am. We'll see who falls for management's lies. Not me.

BTW, your scope seems to already have cracks in it if NWA is "shopping" around for bidders on the 76 seaters or is that a big lie too. Good luck to all of us.

 

[TinGoose1]

Regional feeders need to break away and form their own union. There will never be equality within ALPA between mainline and feeders. One benifits, and the other loses. The simple fact is that the industry is turning over, and the regionals are going to fly bigger aircraft. The only battle either group will win is the whipsaw, and that is a lateral battle. Majors need be ALPA and the regionals need to create their own union. Single lists will not work with thousands on furlough. Even if we staple you guys today, it wouldn't benefit anyone on your property. It would be a decade before any real gains were felt from this kind of arrangement. At this point in the game there really isn't a good fix, only damage control.