US Airways Negotiations at Standstill

[FurloughedAgain]

COUNCIL 41 UPDATE
URGENT!
AUGUST 23, 2004

NEGOTIATIONS ARE AT A STANDSTILL

On Sunday, August 22, your Negotiating Committee received another counter proposal from the Company. This proposal was essentially the same as the last proposal from August 17. This represented yet another step backwards, instead of towards, our position. It is apparent that the Company feels the only way to an agreement is through ALPA’s complete capitulation.

MEC Chairman Bill Pollock, the Negotiating Committee, and all our advisors have agreed that the ability to reach a consensual agreement with Management for transforming US Airways into a viable competitor is not present. MEC Chairman Pollock and the Negotiating Committee Chairman Doug Mowery both have stated that the Company is not bargaining in good faith. The Company’s stance had made the Negotiating Committee superfluous at this time, despite all attempts to partner with Management to make US Airways a competitive carrier.

The Company has rebuffed all attempts to make a deal. They asked for America West pay, we offered America West pay. They asked for productivity, we offered productivity better than Southwest and America West, approaching that of JetBlue. Yet, still, they will not acknowledge the value of these offers and continue to dig deeper into the contract that we have worked over 50 years to achieve.

Page two is an overview of some of the many differences. Please go to the ALPA website for complete copies of both documents. We recommend you print them out and carefully study the numerous details in both.

ALPA’S PROPOSAL

Wage reductions of (an additional) 16.25%
Contract Amendable date 12/31/08
DC Plan contributions reduced by 10%
Vacation reduced by 10%
Sick accrual reduced to 5:00
Paycap 95:00
VM 6:00
Lineholder guarantee 81:00
Reserve guarantee 82/86
Reserve days off all immovable
Junior assignment pay 25%
Retain current call-out time
Retain bid sheet

COMPANY’S LAST PROPOSAL

Wage reductions of 16.25%
Contract Amendable date 12/31/11
DC Plan contribution lowered to 7% to 10%
Vacation 15+ years - 21 days
Sick use allowance 60 hrs annually
Paycap 95:00
NO VARIABLE MINIMUM
Lineholder guarantee 71:00
Reserve guarantee 72/76
Report to Operations 2 hrs from call-out
No open time required in beginning of month, cannot use AIL to reduce time – except for trip trades with other pilots. Only pick up trips with same # of days.

It is truly unfortunate that the Company refuses to recognize ALPA’s willingness to be in a leadership position among the labor group in the transformation of US Airways. No other labor group has even entered negotiations. We have offered all they have requested, and yet our substantial proposals are met with a disrespectful “not enough.”

A Special MEC meeting will be held on Wednesday to discuss the strategy from this point.

We will keep you advised as the situation develops.

 

[On Your Six]

Contract amendable date in 2011 and no variable minimum? You have to be kidding me... I can understand why negotiations would be at a standstill. Just say NO!!!!!!

 

[On Your Six]

Surprised there aren't more comments about this - a sense of malaise must have set in.... Don't you see that this could impact the ENTIRE airline industry if these pass? Long term implications are very serious given that this could become the benchmark for all future negotiations. Not a good thing for anyone but airline managers...

 

[FurloughedAgain]

I thought it was interesting that ALPA's proposal would've raised the variable min to 6 hours a day. (it was 5 when I was there)

I can see that they're trying to force the company to schedule productively, but if the 5 hour variable min didn't do it, then 6 isn't going to either. What a six hour variable min DOES do is give the company very little scheduling flexibility.

Wouldn't it be nice if we had a schedule where we actually flew 6 - 8 hours a day each and every work day? It would sure make quick work of the month.

Aside from that little moment of ALPA "wishful thinking", I have to agree with you. This is proposterous. It seems as if the company has no interest in coming to an agreement.

Maybe ALPA should take a little breather from negotiations until the company comes to an agreement with AFA, IAM, etc... THEN they could "revisit" their latest 700 million dollar "contribution".

 

[On Your Six]

The trouble is that there is not much time for left for negotiating... Fuel prices will remain very high, the slower fall season is starting, competition is increasing big time (Southwest is reallocating flights to PHL and MDW to take advantage of weaknesses at USAirways and ATA) - the clock is ticking... USAirways is demanding changes that could ultimately adversely impact the entire industry if a benchmark is created. Management is putting a gun to the heads of the pilots and is saying, "succumb to our will or it's over..." And yet, the Chairman still seems interested in liquidation and preserving "some value."

Difficult to say it because of the people/families involved, but at some point, it doesn't make much sense to continue and you might need to turn out the lights... How much lower can it go before the entire profession is irrevocably damaged? How many more pilots need to be furloughed and how much lower can the wage go? USAirways might still falter after the huge concessions - and yet the benchmark will be made for every airline to use thereafter... What a great business!

 

[michael707767]

I thought it was interesting that ALPA's proposal would've raised the variable min to 6 hours a day. (it was 5 when I was there)

I can see that they're trying to force the company to schedule productively, but if the 5 hour variable min didn't do it, then 6 isn't going to either. What a six hour variable min DOES do is give the company very little scheduling flexibility.

.

I tend to agree with you, a six hour VM is pushing it, on the other hand the company proposal of no VM is even more Bulls**t. I can see it now, three days paying 8 hours.

 

[FurloughedAgain]

Never happen.

Where do you draw that line??? It is a challenging problem.

We are all victims of a seniority-based system and what you're asking is for the remaining US Airways pilots to go out and get a job during the tightest job market in the history of the profession.

We've already seen how difficult it has been for furloughees with only 3 or 4 years seniority to find gainful employment (as pilots) in this economy.

Now we're asking pilots who have been faithful employees since the mid-80's -- almost twenty years!!! -- to do the same. Can you imagine how difficult that would be?? I would imagine that it isn't all that different from losing a wife of twenty years.

Unfortunately, as airline pilots, our fortunes are inexorably tied to one airline. Most of us have very few skills that are easily transferable to other professions. And starting over at the bottom of any seniority list is difficult and emotionally gut-wrenching. Essentially you have to admit to yourself that you wasted X-number of years. When that number approaches the teens the amount of time is mind-boggling.

In 2000 there were 6076 pilots at US Airways. Today there are around 3000. There are literally THOUSANDS of pilots in the job market already vying for only a few hundred vacancies. If 3000 more highly qualified US Airways pilots poured into the job market we could all kiss-goodbye the few "career" positions that exist at places like Southwest or FedEx.

What would these 45-60 year old pilots do? Apply for jobs at Skywest or Chicago Express? For most of them USAir has been their entire adult life. Asking them to draw a line in the sand is nonsensical. They won't do it. Why? Because they can't. They've invested too much of their lives into their profession and they simply can not envision a world where they would have to start over. Starting over is, for most of them, not an option they are willing to live with.

So yes, they'll vote for any agreement that comes across the table. And yes, they will publically vilify their management. But at home at night they will say prayers of thanks that they were able to keep the job regardless of what KIND of job it suddenly has become.

This ain't the career we all signed on for folks. Lets hope that somebody is warning the next generation of pilots what their so-called "careers" might ultimately be like.

 

[surplus1]

I know it could never happen because we (pilots) just aren't smart enough. But,

1. Suppose the pilots really had a strong labor union.

2. Suppose that labor union set a standard pay scale, basic work rule and minimum benefit(s) for each aircraft type (blended categories ok)

3. Suppose it was presented to all airline management(s) at the same time, with the following ultimatum: This is what we will work for. If you would like to pay more or exceed these minima, fine. However, the minima are not subject to negotiations. If you do not agree within 15 days, we will all resign.

• It will eliminate your need to compete against each other for labor since all pilots in the same equipment will be compensated the same, regardless of carrier.
• Take it or leave it. The choice is yours.

4. Then have the cojones, all of us, to keep our word.

A. Any company that refuses will simply have no pilots. Former pilots will not "ferry" aircraft to the barn yard. All pilots resign on the deadline.

B. This is not a strike. The government can prohibit strikes, but the government cannot force any citizen to work anywhere. We are not striking, we quit. It's a simple "take this job and shove it" decision.

C. Without pilots, the Company will have decided to close the doors and go out of the airline business. They can remove the wings and have the aircraft trucked to the desert.

I know it can't ever happen for we don't have the courage to do it. It sure would be interesting to see how many of them are willing to shut the door and turn out the lights.

 

[On Your Six]

Furloughedagain,

Very sobering post. The sad part is that even with the huge concessions, USAirways might still tank with all of the macro problems over which it has no control. Conceding would potentially leave a benchmark that could hurt this industry for a long, long time. Renegotiating the contract in year 2011 is just ball$y... Bronner is going for the jugular!

The lucky ones will be the MidAtlantic E170 pilots who can now get picked up by JetBlue and start over again (at much lower pay but at least with some reasonable job security)...

 

[FurloughedAgain]

Surplus:

I wish. As long as we're dreaming how about running a pilots union similar to a plumbers. When airline "X" needs a pilot they call up ALPA and ask for a 737 pilot. They go to the next most senior pilot, and send him to "X". Company "Y" asks for a pilot, same thing. The pilots work for ALPA, not for the airline.

If this happened then a pilot would always retain his seniority. He would not be permanently impacted by furloughs, downsizing, or liquidation of a company. If he was hired with the union in 1968 and his company went out of business today --- he would simply go to his next "job" with a 1968 date of hire. His paychecks would say "ALPA" and he wouldn't fear for his retirement.

(sigh) Sounds nice doesn't it?

OnYourSix:

Time will tell whether or not JetBlue = job security. They have not yet been in business long enough to make that determination. History may prove you to be correct, but i'd say the jury is still out when you're talking about an airline that has only existed for 5 or 6 years.

 

[JB Bus Drvr]

Just when you thought it was getting bad, local news just announced that US Air is now making FLL a "Focus City". They are putting money there but pulling out of PIT, one flt. at a time.

 

[surplus1]

Surplus:

I wish. As long as we're dreaming how about running a pilots union similar to a plumbers. When airline "X" needs a pilot they call up ALPA and ask for a 737 pilot. They go to the next most senior pilot, and send him to "X". Company "Y" asks for a pilot, same thing. The pilots work for ALPA, not for the airline.

If this happened then a pilot would always retain his seniority. He would not be permanently impacted by furloughs, downsizing, or liquidation of a company. If he was hired with the union in 1968 and his company went out of business today --- he would simply go to his next "job" with a 1968 date of hire. His paychecks would say "ALPA" and he wouldn't fear for his retirement.

(sigh) Sounds nice doesn't it?

Believe it or not, ALPA once toyed with that idea but the "chairmen" of the big five weren't interested (times were "good"). It was based on a concept similar to the US Maritime Academy, which is the sole source of licensed mariners in the US.

It should be noted however that this resulted in only a handful of US registered ships plying the oceans. Management countered by registering their vessels under foreign flags and crewing them with nationals of other countries. There are few ships left flying the US flag.

I have little doubt that with the current US Administration the Govt. would immediately approve cabotage. Maybe we simply have to face the fact that corporate America is in charge of everything, including the US Govt.

Time will tell whether or not JetBlue = job security. They have not yet been in business long enough to make that determination. History may prove you to be correct, but i'd say the jury is still out when you're talking about an airline that has only existed for 5 or 6 years.

I sure agree with that. Funny how it took SWA 25 years to be recognized as a real airline, while upstart JBlue has become the "recepie for job security" in only five. Makes me wonder about how "we" think and why. Amazing what a leather interior, a DVD, and cheap labor will do in today's generation. Reminds me of a used car dealership running a "tent sale".

 

[On Your Six]

Just when you thought it was getting bad, local news just announced that US Air is now making FLL a "Focus City". They are putting money there but pulling out of PIT, one flt. at a time.

Sounds like a desperate move to me. Sure, USAirways has done well in the Caribbean, but this is a different story with Spirit about to expand big time in the same markets and SWA likely bolster its local service out of there too. Do you think AA will just allow this to happen without a fight? How long will it take US to get approval from the various governments? How LONG will this take? Does USAirways have the time necessary to build a presence in FLL? It sounds like too little too late to me. Plus, USAirways missed the big vacation season out of FLL - why didn't it implement this plan before the summer season started????? Probably won't get a lot of people interested in Guatemala in early October...

Desperation can cause erratic behavior...

 

[Heavy Set]

COUNCIL 41 UPDATE
URGENT!
AUGUST 23, 2004

NEGOTIATIONS ARE AT A STANDSTILL

On Sunday, August 22, your Negotiating Committee received another counter proposal from the Company. This proposal was essentially the same as the last proposal from August 17. This represented yet another step backwards, instead of towards, our position. It is apparent that the Company feels the only way to an agreement is through ALPA’s complete capitulation.

MEC Chairman Bill Pollock, the Negotiating Committee, and all our advisors have agreed that the ability to reach a consensual agreement with Management for transforming US Airways into a viable competitor is not present. MEC Chairman Pollock and the Negotiating Committee Chairman Doug Mowery both have stated that the Company is not bargaining in good faith. The Company’s stance had made the Negotiating Committee superfluous at this time, despite all attempts to partner with Management to make US Airways a competitive carrier.

The Company has rebuffed all attempts to make a deal. They asked for America West pay, we offered America West pay. They asked for productivity, we offered productivity better than Southwest and America West, approaching that of JetBlue. Yet, still, they will not acknowledge the value of these offers and continue to dig deeper into the contract that we have worked over 50 years to achieve.

Page two is an overview of some of the many differences. Please go to the ALPA website for complete copies of both documents. We recommend you print them out and carefully study the numerous details in both.

ALPA’S PROPOSAL

Wage reductions of (an additional) 16.25%
Contract Amendable date 12/31/08
DC Plan contributions reduced by 10%
Vacation reduced by 10%
Sick accrual reduced to 5:00
Paycap 95:00
VM 6:00
Lineholder guarantee 81:00
Reserve guarantee 82/86
Reserve days off all immovable
Junior assignment pay 25%
Retain current call-out time
Retain bid sheet

COMPANY’S LAST PROPOSAL

Wage reductions of 16.25%
Contract Amendable date 12/31/11
DC Plan contribution lowered to 7% to 10%
Vacation 15+ years - 21 days
Sick use allowance 60 hrs annually
Paycap 95:00
NO VARIABLE MINIMUM
Lineholder guarantee 71:00
Reserve guarantee 72/76
Report to Operations 2 hrs from call-out
No open time required in beginning of month, cannot use AIL to reduce time – except for trip trades with other pilots. Only pick up trips with same # of days.

It is truly unfortunate that the Company refuses to recognize ALPA’s willingness to be in a leadership position among the labor group in the transformation of US Airways. No other labor group has even entered negotiations. We have offered all they have requested, and yet our substantial proposals are met with a disrespectful “not enough.”

A Special MEC meeting will be held on Wednesday to discuss the strategy from this point.

We will keep you advised as the situation develops.

This is absolutely ridiculous! I can't believe how bad things have gotten with USAirways. I, like On Your Six, am floored by the contract term as well as the lack of a variable minimum... This is bad news and I hope that the USAirways folks out there will have the COURAGE to turn this down and continue to negotiate (if there is time). I hope an alternative can be found....

 

[737 Pylt]

I sure agree with that. Funny how it took SWA 25 years to be recognized as a real airline, while upstart JBlue has become the "recepie for job security" in only five. Makes me wonder about how "we" think and why. Amazing what a leather interior, a DVD, and cheap labor will do in today's generation. Reminds me of a used car dealership running a "tent sale".

Surplus:
While I don't agree with much you say, you are right on the money here!
Funny thing is, anymore, people only care about one thing, and that is price!
737

 

[FurloughedAgain]

There is a special MEC meeting starting today in Crystal City where the MEC will determine the direction they want to take.

There is speculation that the pilots would like the opportunity to vote on the company's latest proposal but that the PIT and PHL representatives, in a roll-call vote, would deny them that opportunity.

While I believe that the line-pilots would be voting based on fear and would likely ratify the latest proposal, I honestly can't get behind a representative who uses roll-call to bully the rest of the MEC. If the MEC agrees by majority (leave the roll-call at home) to send it out to the pilot group then hold a series of meetings to explain the proposal to the pilot group (so that they are educated) and then allow them to VOTE on a proposal which will significantly impact (whats left of) their PWA.

ALPA leadership is NOT elected to be your "daddy" and make decisions on your behalf. They are elected to act as a clearinghouse for the direction that the line pilots give them (so that you dont have 3000 - 6000 individual negotiators).

If those guys use the roll call to deny pilot ratification I believe they are making a mistake.

 

[surplus1]

Surplus:
While I don't agree with much you say,

That is only because when you think it is against your interests, you don't really listen.

Thanks for the kudo.

 

[OhDannyBoy]

This is probably a rookie thing to ask, but here goes.

Why does the focus always seem to be on the pilots? Is there nowhere else for US Airways to cut costs? What does managements pay scale and retirement look like? Why were the Pilots, until so recently, the only labor group to go to the negotiations in earnest? Finally, why...why why why does it seem like Management isn't willing to actually 'negotiate', but rather hand over what seems to be an ultimatum?

If these questions are old hat I apologize, new to the industry.

 

[Mach 80]

Airline's executives take flights of fancy

[font=Arial,Helv,Helvetica,Geneva][size=-1][size=-1]Airline's executives take flights of fancy[/size]



[/size][/font][size=-1]By Eric Heyl
TRIBUNE-REVIEW
Wednesday, August 25, 2004 [/size]

It's a good thing David Bronner and Bruce Lakefield are navigating an airline and not an airplane. Were US Airways' two top executives copiloting a Pittsburgh-to-Philadelphia flight, the plane might well touch down in Paraguay.

US Airways inexplicably announced Monday it wants to become a gateway to the Caribbean and Latin America by significantly bolstering its operations in Fort Lauderdale, Fla.

Provided, of course, the perpetually flailing carrier doesn't cease to exist.

The possibility the airline soon might be liquidated was raised last week by Bronner, the airline's chairman. So talk of any expansion left some observers, including the unions from which US Airways again is attempting to extract hundreds of millions of dollars in concessions, scratching their heads.

Makes you think Lakefield, the airline's chief executive, might need some help in clarifying the airline's position during his next weekly recorded message to employees.

Here's how that message might sound:

"Hi folks, Bruce Lakefield here. I know many of you probably are wondering whether we're going to expand or cease operations. While we're not entirely sure ourselves, David Bronner and I are going to try to shed some light here."

"Thanks, Bruce. Hi everyone. Hope the skies are blue wherever you're flying."

"Given our precarious condition, I know many of you are puzzled over our intended expansion. However, David and I firmly believe there is vast, untapped potential in the sunny Caribbean and Latin America via Fort Lauderdale."

"We sure do, Bruce, even though American Airlines has a hub just 25 miles away in Miami and is a larger, more financially stable carrier than we are. We think US Airways will be highly competitive with American once we introduce our discount 'Limbo Lower Now' fares."

"Now, David, could you elaborate on those unfortunate comments attributed to you about our likely liquidation if we're again forced into bankruptcy?"

"Bruce, those remarks were taken somewhat out of context. You have my gratitude for instantly and publicly contradicting them -- even if it did make it appear as though we have conflicting opinions on the company's future."

"You're more than welcome, David. What exactly did you mean to say?"

"Bruce, let me emphasize there would be no immediate selloff of our assets. We wouldn't dream of liquidating until we found a buyer for all the stuff."

"And that could take some time, right, David? I mean, if we go out of business, American probably wouldn't need the planes we could sell it to help ward off the stiff competition we planned to provide it in Florida until we went under."

"Precisely, Bruce. So you see, our expansion plans are as logical as any other idea this airline's management has advanced over the past several years." "Sorry, folks, we're out of time. Until next week, please think about agreeing to those extensive wage and benefit concessions, and try to keep livin' la vida loca."

 

[FurloughedAgain]

Read a book called "Hard Landings".

You can find it on Amazon. If you truly intend to make a career in this industry, this one should be a must-read.