Nevets
Well-known member
- Joined
- Oct 22, 2007
- Posts
- 2,431
Question, How did they cause a paycut at XJT? I doubt that the majority will get to that point anytime soon.
Baronman said: "Ah yes....a little history. Back when SKWY first proposed purchasing XJT in that underhanded deal orchestrated by CAL, your Uncle Jerry clearly stated in front of our MEC that we'd have to become more "cost competitive" in order to maintain our flying rather than transfer those aircraft to Skywest Airlines. Oh, that's in addition to the hundreds of furloughs. In the end the BOD felt that staying independent was best yet had to match the CPA that Skywest was gunning for, basically a bare-bones agreement with CAL.
CAL had whipsawed XJT against Skywest, in doing so they got a lower cost CPA which ended up putting the screws to the XJT pilots."
Skywest and CAL agreed to a CPA with assumptions of synergy, economies of scale, and bulk third party vendor pricing along with the 16% concession (which included 4% pay cut, PBS, immediate cessation of B fund, and 4% concession from work rules) from the pilots along with getting rid of the protection of our scope and holding letter thus endangering further aircraft transfers to SKW or ASA. The CPA was for 205 aircraft with the ability for CAL to put that CPA up for bid again in 12 months. Also there was a second separate CPA for 25 XJT aircraft that would be transferred and operated by SKW. They planned on furloughing 700 XJT pilots and offering them preferential interviews at SKW (presumably to fly the same 25 aircraft they already were flying on the same routes they were already flying but at first year non-union pay).
With this deal in hand, CAL told the XJT CEO and BOD that either they give CAL that same deal or they would cancel the WHOLE CPA immediately (there was a 12 month notice). The BOD had no choice in that the XJT MEC rejected SKW's proposal. The XJT CEO signed SKW's CPA with all the assumed savings negotiated into it. That is why immediately afterwords, they seeked and got concessions from ALL employees. Skywest got a $9M severance fee from CAL for their services.
Thanks Skywest pilots for being involved at the table with us and ASA on that deal. /sarcasm
And here we is the whipsaw again with you guys being on the sideline again being played to think you actually have a say in this whole shell game.
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