US Seeking to invalidate labor contracts

dispatchguy

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http://biz.yahoo.com/rb/020827/airlines_usairways_10.html

Plus, in a couple of other articles, US management now says that non-refundable tickets no longer have any residual value if not used on the specified flights/dates

Thats really smart, to further alienate customers, when they need every cent.

But, if the BK court allows them to invalidate the labor agreements, thats a VERY DANGEROUS precedent.

I didnt know Dave Siegel studied at the Frank Lorenzo College of Airline Management.
 

chperplt

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I didnt know Dave Siegel studied at the Frank Lorenzo College of Airline Management.

Take yourself out of the "pilot" mentality for a second. What's the guy supposed to do? He is nothing like Lorenzo or Frank Borman. He went to each group and asked for help. Yea, we all want to make a lot of money and be the best paid at our jobs.. That's all well and good. The alternative is not having a job at all. I'm not saying give management the farm, but I think comparing what Siegel is doing and what Lorenzo and his henchman did is way off base.
 

Timebuilder

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Clarify this for me, please.

If the court invalidates the labor agreements, is that a permanent invalidation, or is it limited to a specific term during restructuring? Can the unions immediately resume collective bargaining, including striking, or are they barred from doing so for a specific period of time?
 

metoo

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invalidate contracts

cherplt,

Hey it's early. At this time Siegel is merely a Lorenzo Lite. Give this thing time and Siegel and Leo will make Lorenzo seem like an upstanding ALPA member. It is obvious where all this is going.

timebuilder,

Temporary or permanent will be at the sole discretion of the bankruptcy judge. It is amazing the power judges have in these cases. HIS choice as to accepting the contract as whole, in part or disregarding the contract completely. NOT a good day for ALPA or labor in general. We will be lucky if it stops at USAir. Just came across the news that United has been given a 75/80% chance of being in bankruptcy court be the end of the year.
 

publisher

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court

The court has considerable latitude on what they can order. Technically, emerging from bancruptcy is the end of the courts control.

The fact is that the unions involved had the opportunity to participate in the process and have some input on how to implement the savings and/or cost cutting.

They could not get that to happen and then the court decides. The fact is that by taking the step of bankruptcy, you piss some people off. Aircraft lessors may be left in the cold with aircraft unmarketable. Creditors and stockholders left at the gate.

A CEO takes a move like these very seriously. To compare this to a Frank Lorenzo situation only says you have no first hand knowledge of that situation.
 

dualrated

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Actually, if Continental is the Lorenzo School, then Seigel certainly studied there. Someone with a "first hand knowledge" of the situation should see the irony in dispatchguy's comment.

Lorenzo declared bankruptcy, and at the time, that nullified all labor contracts. Since then, laws have been passed that prevent this. If Seagull wants his company's labor contracts modified in any way, he has to seek negotiation or equest a bankruptcy judge to do it.

I'm sure all the CEOs are very, very serious about BK's. But they are not nearly as serious as a working stiff without a golden parachute. Or a someone whose pension is tied to company stock. Dave is so serious about it, that he gave out bonuses to all the retards that have "managed" USAir right into the ground.
 

reepicheep

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US Airways is entering a vulnerable phase...On September 10 management & the IAM present their cases in court...the company will ask to impose an agreement on the IAM and the mechanics could then strike. This would likely cause the liquidation of the company. Hopefully a settlement can still be reached. The vultures are circling.
 

Boeingman

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reepicheep said:
US Airways is entering a vulnerable phase...On September 10 management & the IAM present their cases in court...the company will ask to impose an agreement on the IAM and the mechanics could then strike. This would likely cause the liquidation of the company. Hopefully a settlement can still be reached. The vultures are circling.
The IAM can strike? I thought the BK judge was just going to address compensation not void the contract.

If so, the IAM had better wise up, quickly.

Good luck
 

reepicheep

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We have been briefed by our attorneys...if the BK court agrees to impose new work rules on the IAM then they are also free to seek self help.
 

publisher

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Walk off

They could walk off and then we would be out of this with one less so called major to worry about. Most golden parachutes are negotiated on the way in not out.

Usually the management that caused the problem is long gone. In teh case of Eastern, Borman set it up for failure and Lorenzo took the blame.
 

dualrated

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Borman had a serious problem on his hands before he lost control of Eastern to Lorenzo. But it was still the number three airline in the country. Lorenzo took over EAL and used it like a "parts car", cannabalizing it by transferring assets to Continental, a newly labor-free enviroment, via his holding company. Borman was running a problematic airline, but Lorenzo was just dismantling it, at the expense of the employees and shareholders. Guess what his most effective tool was?

Bankruptcy.
 
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