USAirways Pilot Negotiations - New Offers On the Table

[On Your Six]

No big details but it is interesting (and not surprising) that USAirway's management is actually budging vs. its previous "take it or leave it" attitude... I wonder how much lower the bar will go?????????????? What about the provision for importing Indian pilots and paying them $4 per hour?



US Airways pilots, management make new offers
Monday August 30, 5:07 am ET


NEW YORK, Aug 30 (Reuters) - US Airways Group Inc.'s (NasdaqNM:UAIR - News) pilots union leaders on Monday said they proposed new contract terms to management, which in turn made a counteroffer, after the union last week refused to endorse a company plan for $295 million of concessions.

According to the union's Web site, the union made a new offer to management on Saturday, which prompted management to make a counteroffer on Sunday. Terms of the offers were not immediately available.

The union's 12-member negotiating committee plans to reconvene at 8 a.m. EDT (1200 GMT) to consider a response to management's new offer.

US Airways did not immediately return a call for comment.

The No. 7 U.S. airline, based in Arlington, Virginia, has said it has just weeks to reach giveback agreements with all of its unions before deciding whether to enter bankruptcy for the second time in two years.

This month, US Airways Chairman David Bronner told the New York Times that agreements are needed well before September 30, when the carrier might trip covenants in its federally guaranteed loans, or US Airways might be forced to liquidate.

Since emerging from Chapter 11 in 2003, US Airways has been buffeted by soaring fuel prices and fierce challenges from such low-cost competitors as Southwest Airlines Inc. (NYSE:LUV - News).

The carrier has been seeking $800 million of concessions from unions, representing more than half of its immediate cost-cutting targets. The pilots' share, prior to Sunday's counteroffer, would have included a 16 percent pay cut.

Support from pilots for concessions will likely make winning concessions from other unions easier. Talks with machinists, flight attendants and other groups are ongoing.

 

[FurloughedAgain]

Code-a-phone Update

MEC CODE-A-PHONE UPDATE - August 30, 2004

This is MEC Chairman Bill Pollock with a US Airways MEC update for Monday, August 30th , at 1:30am with one new item.

The Negotiating Committee met with management Sunday afternoon at the Key Bridge Marriott in Arlington, VA. They received a counterproposal from the Company in response to our proposal of August 28. This counterproposal is now available on the pilots only home page under “Negotiating Committee Information” along with a Negotiating Committee update for the week ending August 22nd.

The MEC reconvened at 6:00 pm to receive the Company’s counterproposal. They recessed to read through the 49 page document and then reconvened again at 8:25pm.

On the heels of yet another sobering report by our advisors, the following proposal by the CLT F/O Rep and BOS F/O Rep was submitted, after an attempt to recess at 10:00pm to 9:30 Monday morning by the PIT F/O Rep, citing emotion and fatigue, was ruled out of order:

WHEREAS the MEC has received the Negotiating Committee’s report, and

WHEREAS it is incumbent upon the MEC to provide direction to the Negotiating Committee as to how best to proceed in these negotiations, and

WHEREAS the company’s last offer has been reviewed by the MEC and unanimously found to be unacceptable, and

WHEREAS it is in the best interest of the pilot group that a negotiated settlement be reached,

THEREFORE BE IT RESOLVED that the MEC directs the Negotiating Committee to continue table discussions with management in order to secure the best T/A that is achievable.

After some discussion in closed session, a second attempt by the PIT F/O Rep to recess to Monday morning without voting on the same motion failed. After a Roll Call vote to Call the Question failed (a vote to end debate on the resolution) the PIT F/O Rep asked once again to recess to Monday morning stating he was too tired to deal with the above resolution. The Vice Chairman of the Negotiating Committee was also tired and left the meeting early.

This was not our finest hour. After clear advice from our advisors and Negotiating Committee Chairman, I must report that critical negotiating time will go by without the MEC directing further action of our Negotiating Committee. Further MEC action is required since the Committee is acting on a prior roll called resolution that imposed restrictions on the negotiations. The MEC recessed after being in session for less than six hours. You unequivocally deserve better. We are running out of time and wasting opportunities.

The meeting recessed at 11:55pm and will reconvene at 8:00am Monday morning at the Key Bridge Marriott in Arlington, VA. to a hopefully better rested faction of the MEC who will cease with postponing and stalling tactics and address the work of our pilots!

All US Airways pilots are encouraged to attend. You may be very interested to witness first hand what your MEC does, or more importantly what a roll call majority may choose not to do. Either way, their decision will have serious consequences to each and every US Airways pilot. Please note that the hotel does not provide transportation from the airport and that portions of the meeting may be in closed session.

As always, please refer to the code a phone and the pilots only website for the latest information on Transformation Plan Negotiations.

Please remember we have 1,879 pilots on furlough.

Thank you for listening.

 

[On Your Six]

"After some discussion in closed session, a second attempt by the PIT F/O Rep to recess to Monday morning without voting on the same motion failed. After a Roll Call vote to Call the Question failed (a vote to end debate on the resolution) the PIT F/O Rep asked once again to recess to Monday morning stating he was too tired to deal with the above resolution. The Vice Chairman of the Negotiating Committee was also tired and left the meeting early.

This was not our finest hour. After clear advice from our advisors and Negotiating Committee Chairman, I must report that critical negotiating time will go by without the MEC directing further action of our Negotiating Committee. Further MEC action is required since the Committee is acting on a prior roll called resolution that imposed restrictions on the negotiations. The MEC recessed after being in session for less than six hours. You unequivocally deserve better. We are running out of time and wasting opportunities."

Yikes!!!!!!! Not a good sign... What is the timing required for a decision (before the cash well runs dry)? I know there isn't much time left but have any time ultimatums been given yet?

 

[dlredline]

Yikes!!!!!!! Not a good sign... What is the timing required for a decision (before the cash well runs dry)? I know there isn't much time left but have any time ultimatums been given yet?

1. U has a $100+ million pension obligation due around Sept. 15th.
2. Several covenants of the $750+ million ATSB loan guarantee must be met by Sept. 30th, including a successfully renegotiated "plan". U's current cash positions have been "tagged" by various creditors, and any move by the ATSB to call their note may produce a run on USAir's cash.

It has been reported that even if the USAir MEC agreed to the latest company proposal (you can't lower the bar when it's already lying on the ground), the result would be a lowering of CASMs from 11.6 to only 11.4. Eventough AFA has refused to reconstruct their contract, the main variable here remains the IAM and whether or not they'll even reconsider concessions.

There are now 30 days left, and counting. After that, there appears to be few "mulligans" left in USAir's arsenal. Gee, I wish the news was better for them.

Red

 

[FurloughedAgain]

MEC CODE-A-PHONE UPDATE
​

August 30, 2004 #2
​

This is Jack Stephan with a second US Airways MEC update for Monday, August 30th, with one new item.

The MEC reconvened this morning at 8:00am at the Key Bridge Marriott in Arlington, VA. We are pleased to report that the MEC unanimously passed the following resolution in open session:

WHEREAS the MEC has received the Negotiating Committee’s report, and

WHEREAS it is incumbent upon the MEC to provide direction to the Negotiating Committee as to how best to proceed in these negotiations, and

WHEREAS the company’s last offer has been reviewed by the MEC and found to be unanimously unacceptable, and

WHEREAS it is in the best interest of the pilot group that a negotiated settlement be reached,

THEREFORE BE IT RESOLVED that the MEC directs the Negotiating Committee to continue table discussions on the basis of the August 28, 2004 ALPA proposal, and

BE IT FINALLY RESOLVED as any agreement deviates further from the above proposal, the likelihood of failure at the MEC level increases exponentially.



The MEC acknowledged that this resolution supersedes and removes the restrictions placed on the Negotiating Committee by the MEC’s resolution of August 27, although it was stated that “as any agreement deviates from the August 28 ALPA proposal, the likelihood of failure at the MEC level increases exponentially.”

The Negotiating Committee is working internally today preparing a proposal to be given to the Company. The exact time and location of when the proposal will be given to the Company has not yet been determined.

With no further business before the body, the MEC recessed their meeting at 10:46am, to reconvene at the call of MEC Chairman Bill Pollock. This meeting should reconvene soon at the Key Bridge Marriott in Arlington, VA. Please note that this hotel does not provide transportation from the airport and that portions of the reconvened meeting may be in closed session.

Given the language above that states as any agreement deviating from our proposal of August 28 may fail at the MEC level, this next meeting could very well determine whether or not you get to vote on what the Negotiating Committee brings back to the MEC. All pilots are urged to attend this meeting or at the very least contact your Reps immediately and let them know your feelings on your participation in this process.

As always, please refer to the code a phone and the pilots only website for the latest information on Transformation Plan Negotiations.

please remember we have 1,879 pilots on furlough.

Thank you for listening.

 

[leardrivr]

Those Imagrants from the future. came and took are JOBS! Now everyone back on the pile!

 

[On Your Six]

MEC CODE-A-PHONE UPDATE


​

August 30, 2004 #2​

This is Jack Stephan with a second US Airways MEC update for Monday, August 30th, with one new item.

The MEC reconvened this morning at 8:00am at the Key Bridge Marriott in Arlington, VA. We are pleased to report that the MEC unanimously passed the following resolution in open session:

WHEREAS the MEC has received the Negotiating Committee’s report, and

WHEREAS it is incumbent upon the MEC to provide direction to the Negotiating Committee as to how best to proceed in these negotiations, and

WHEREAS the company’s last offer has been reviewed by the MEC and found to be unanimously unacceptable, and

WHEREAS it is in the best interest of the pilot group that a negotiated settlement be reached,

THEREFORE BE IT RESOLVED that the MEC directs the Negotiating Committee to continue table discussions on the basis of the August 28, 2004 ALPA proposal, and

BE IT FINALLY RESOLVED as any agreement deviates further from the above proposal, the likelihood of failure at the MEC level increases exponentially.



The MEC acknowledged that this resolution supersedes and removes the restrictions placed on the Negotiating Committee by the MEC’s resolution of August 27, although it was stated that “as any agreement deviates from the August 28 ALPA proposal, the likelihood of failure at the MEC level increases exponentially.”

The Negotiating Committee is working internally today preparing a proposal to be given to the Company. The exact time and location of when the proposal will be given to the Company has not yet been determined.

With no further business before the body, the MEC recessed their meeting at 10:46am, to reconvene at the call of MEC Chairman Bill Pollock. This meeting should reconvene soon at the Key Bridge Marriott in Arlington, VA. Please note that this hotel does not provide transportation from the airport and that portions of the reconvened meeting may be in closed session.

Given the language above that states as any agreement deviating from our proposal of August 28 may fail at the MEC level, this next meeting could very well determine whether or not you get to vote on what the Negotiating Committee brings back to the MEC. All pilots are urged to attend this meeting or at the very least contact your Reps immediately and let them know your feelings on your participation in this process.

As always, please refer to the code a phone and the pilots only website for the latest information on Transformation Plan Negotiations.

please remember we have 1,879 pilots on furlough.

Thank you for listening.

So, what are they really saying (in English)? Can some non-lawyer spell it out for me?

 

[FurloughedAgain]

Ok, sounds to me like the MEC told the negotiating committee to get back in there and negotiate.

The MEC also wants the negotiating committee to use the Aug 28th ALPA proposal as a baseline in their negotiations.

The MEC then WARNS both the negotiating committee and the company that the farther away from that Aug 28th proposal any eventual TA is ... the less likely it will be that the MEC will approve and ratify (or send to the membership to ratify) said agreement.

In fact they used strong language (which is about the only thing the US Airways MEC EVER does that requires the use of a spine -- write a strongly worded letter)

They said, "BE IT FINALLY RESOLVED as any agreement deviates further from the above proposal, the likelihood of failure at the MEC level increases exponentially."

My take? The MEC is in conflict (surprise surprise). They believe there is a line in the sand SOMEWHERE to protect some small iota of the working agreement that took 50 years to develop, but they're not quite sure where that line is rumored to be...

They're getting a lot of pressure from both senior and junior alike (junior at USAirways, by the way, is an oxymoron) and nobody wants to be the one who "sold out".

It'll be interesting. I am honestly and sincerely sorrowfull for those pilots who have made their careers at US Airways.

There was no way for the pilot hired by Allegheny, or Piedmont, or Empire to know or prepare for the fact that he would find himself unemployed 30 or 40 YEARS in the future.

There was no way for the pilot who has been counting on the USAir pension for the last 30 years to know or prepare for the need to find a part-time job during his retirement simply to pay for health insurance.

There was no way for the pilot hired by US Airways in the early 90s to know that he would be furloughed TWICE by the same company.

These men and women were victims of a combination of bad management and fate and are ALL deserving of any assistance that we can provide them.

There is no glory in watching your competitors struggle to survive in this industry. But for the grace of god, there go we all.

 

[tittyjet]

There is no glory in watching your competitors struggle to survive in this industry. But for the grace of god, there go we all.

Amen.

 

[FurloughedAgain]

USAir's last, final, latest, offer (sign it or liquidate) is out 08/31.

Some details:

• Term: Until Jan 2010
• 35.5% pay reduction
• Defined contribution reduced 30%
• Dedheads 50% pay no credit
• ALPA's percentage of company profit sharing pool 36%
• Voluntary leaves to mitigate future furloughs
• Pilots may not return from voluntary leave until co. is recalling
• Early retirement offered from ages 55-60
• Vacation paid at 3:45 per day
• Post Jan 05 retirees receive no medical
• EMB190s to be flown at MidAtlantic
• CRJ900s to be flown at PSA
• Pilots who goes to MidAtlantic and then resigns from MidAtlantic forfeits his recall to US Airways "mainline"
• Pilot must reimburse US Airways for cost of training if he leaves prior to 24 months. (partial cost at 18 months etc.)
• Elimination of crew meals
• "fuel burn-off" procedure to accomodate jumpseaters eliminated

This proposal is materially WORSE than the one the pilots declined just 3 days ago.

 

[BRA]

EMB190s to be flown at MidAtlantic
CRJ900s to be flown at PSA
ugh.

 

[KeroseneSnorter]

• Pilots who goes to MidAtlantic and then resigns from MidAtlantic forfeits his recall to US Airways "mainline"
• Pilot must reimburse US Airways for cost of training if he leaves prior to 24 months. (partial cost at 18 months etc.)

Sad that it has gotten so bad over there that they are resorting to this crap to keep pilots. Training contract at a Major (well kind of a major), never thought I would see it.

I find myself feeling fortunate that I was one of the first furloughees and I am now not tied to this company to feed my family!

I feel bad for the 15 and 20 year guys that will probably be on the street shortly. Hard for a 50 something guy that hasn't flown anything other than 121 in many years to find a job flying.

 

[SDF2BUF2MCO]

FF email

Received a generic email from US marketing. It was a long email but the message was clear "US wants to be your low fare air carrier". Rather sad. Guess the new slogan should be "Don't fly US because you want to, fly US because we're cheap". Reminds me of some poor high school girl where the only way she could get the attention of the boys was to be "easy" (i.e, cheap). Meanwhile, all is well at the ivory tower.

 

[reepicheep]

It's basically this,


18 years you're on the street

19-20 years, 58k Reserve F/O pay

25 years, 85k Reserve C/O pay

 

[typhoonpilot]

The really sad part about this is if the pilots agree it still won't be enough to save the company. Management has been looking in the wrong place all along, fixated on cost instead of seeking more revenue and more efficient use of resources. My feelings go out to those remaining on the sinking ship.

Typhoonpilot

 

[dlredline]

My take? The MEC is in conflict (surprise surprise). They believe there is a line in the sand SOMEWHERE to protect some small iota of the working agreement that took 50 years to develop, but they're not quite sure where that line is rumored to be...

Excellent synopsis of the current USAir MEC.

The really sad part about this is if the pilots agree it still won't be enough to save the company. Management has been looking in the wrong place all along, fixated on cost instead of seeking more revenue and more efficient use of resources. My feelings go out to those remaining on the sinking ship.
Typhoonpilot

As do mine. And even if the pilots agree to these concessions, they do nothing but lower the CASM from 11.6 to 11.4. As reported today, USAir told IAM yesterday that their cost reduction suggestions aren't enough, and I don't personally see IAM doing anything substantial regarding consessions in time for the Sept. 30th deadline. Also, if USAir got all of the $800 million in labor concessions they seek immediately, management told the ALPA NC that the remaining $700 million in operational savings (their part of the total $1.5 billion desired cost reduction) won't even go into effect until the year 2007. So if all the labor units give, will it be enough to satisfy the ATSB loan covenants by the Sept. 30th deadline, or keep the creditors from making a run on USAir's cash positions in a last ditch effort to recoup something, anything, on their investment?

I hope this is not simply a rearrangement of the deck chairs on the Titanic. Management needs a revenue generation plan, quickly.

Red

 

[Dizel8]

They couldn't honestly be expecting the pilots to take a 35 percent paycut, on top of what they have already taken. That is absolutely crazy!

 

[michael707767]

They couldn't honestly be expecting the pilots to take a 35 percent paycut, on top of what they have already taken. That is absolutely crazy!

They do expect it, that or give up what little pension they have left.

 

[Dizel8]

That is sheer lunacy, hopefully the good U pilots will tell them were to shove it!

 

[Heavy Set]

What's the time deadline?

This bullying is getting ridiculous.... Just say no!!!!! I was fine with it until I read "no crew meals" - noooooooooooooo! In the UK, Ryanair forces its pilots to pay for any drinks (including bottled water) while in flight - perhaps that will happen next...

Just imagine how low the morale and conditions would be at the "new" USAirways post contract agreement - it will never be the same... Bullying, threats and resentment will become commonplace.... Wait, that's happening now. Where's Virgin America and its cheap contract when you need it????????

What is the time deadline for the contract decision? What is the potential liquidation date? Best of luck to all involved!