USAirways Pilot Negotiations - New Offers On the Table

[pilot141]

Slight threadjack - did anyone see the statement by Ryanair's CEO where he said he thought that in ten years he could fly the passengers with NO money out of their pockets? Everything would come from agreements with hotels, cruise lines, etc. That does not bode well for the future.

As for the future of US Airways, someone else here said that they have ATSB loan covenants that get "measured" on Sep 30th. If they are not in the proper financial shape at that time they will violate the covenants of the ATSB loan. I would not expect the company to last much past that date if that occurs.

 

[MJG]

How much of a total paycut from the "original" CBA would 35.5% be on top of the paycuts that have already been taken?


In other words, with this latest round, how much less would a pilot there be making than before all the sh!t hit the fan?

Good luck to the Airways pilots, no one deserves this, no one....

 

[Dizel8]

Although I am unable to find the old U contract, it appears to be about 50 percent paycut, if not more. That is straight pay and would not include such things as being downgraded to F/O, change of equipment, changes in insurance etc. Of course, the loss of pension should be factored in as well.

All in all, the employees at U, not just the pilots, are being taken for an unbelievable ride on which there appears to be no end.

 

[skykid]

Back in the late 90s when the other majors were making billions, analysts and U management were saying even then they could not survive in their present form. I'm afraid their market situation has gotten much worse since, and the problems have little to do with finding more cost savings. I wish they had a more diversified route structure. I don't know anyone still flying w/U, but know several furloughees who have moved on and are doing well. Good luck to them all!

 

[jobear]

"Ok pilots this is management speaking."
"Please bend over and spread your cheeks,this is gonna hurt ya bad."

"No,No,No you may not question our judgement WE know how best to screw up this airline. And oh by the way you can tell your buddies at the other airlines they'll get theirs shortly...."

"Yes we apprecite your sacrifices in the past, now stop tightining up it'll only hurt more. There now you've been screwed again and your FURLOUGHED!"

I heard this while cleaning the Airconditiong vents

Jobear

 

[On Your Six]

It will be interesting to watch as the slow fall season starts up (fewer vacationers) and gas prices remain very high. I think we are going to have a real industry shake down... Too bad the salary/benefits bar will be going even lower in the process.

 

[Dizel8]

It may go lower, then again, it may not.

Most will say, that too many seats are chasing to few pax. If we were to see a reduction in available seats, we may see an increase in fares. That will perhaps shore up the industry for a while, well at least I hope so.

Mgmnt at U does not seem to have a plan, other than getting further cuts from the employees. That may force compensation for all lower, but even with these new cuts, as someone mentioned, that will only bring the cost down by a little bit, will it be enough to survive?

Airlines that run a good operation will continue to be here, but airlines that operate badly, should be allowed to disappear without interference from the goverment.

 

[Dizel8]

The Uair pay decline!

Taking the example of a US Airways B757 Captain at the max pay rate:

From 1/1/96 through 4/30/01, his salary was $184.23 per hour.

On 5/1/01, he received a "parity adjustment" of approximately 17%, and his salary was $215.53 per hour.

On 5/1/02, he received another parity adjustment of roughly 16.1%, and his salary was $250.17 per hour.

That didn't last long ...

On 7/1/02, the two parity adjustments were dialed back in the restructuring agreement, so his salary was again $184.23 per hour.

The new TA that took effect on 1/1/03 reduced his pay by 8%, so his salary was $169.49.

The new TA had a 1% raise built in on 5/1/03, so his rate became $171.19.

On 1/1/04, the new TA rate was to be only 6.5% below the restructuring agreement rate (versus 8% below restructuring agreement as of 1/1/03), so the rate bumped up to $173.98.

On 5/1/04, the TA included a 1% raise, so the rate is now $175.72.

Got all that?

Now, by my calculations, a 35% cut off of that would take the rate down to $114.22.

Versus 2000, the pilot will have given up 38%.

However, versus 5/1/01 through 4/30/02, he will have given up 47%.

And, versus 5/1/02 through 6/30/02 - the two glorious months that both parity adjustments were in effect - he will have given up fully 54.3% of his pay.

 

[MJG]

OUCH !

 

[On Your Six]

Taking the example of a US Airways B757 Captain at the max pay rate:

From 1/1/96 through 4/30/01, his salary was $184.23 per hour.

On 5/1/01, he received a "parity adjustment" of approximately 17%, and his salary was $215.53 per hour.

On 5/1/02, he received another parity adjustment of roughly 16.1%, and his salary was $250.17 per hour.

That didn't last long ...

On 7/1/02, the two parity adjustments were dialed back in the restructuring agreement, so his salary was again $184.23 per hour.

The new TA that took effect on 1/1/03 reduced his pay by 8%, so his salary was $169.49.

The new TA had a 1% raise built in on 5/1/03, so his rate became $171.19.

On 1/1/04, the new TA rate was to be only 6.5% below the restructuring agreement rate (versus 8% below restructuring agreement as of 1/1/03), so the rate bumped up to $173.98.

On 5/1/04, the TA included a 1% raise, so the rate is now $175.72.

Got all that?

Now, by my calculations, a 35% cut off of that would take the rate down to $114.22.

Versus 2000, the pilot will have given up 38%.

However, versus 5/1/01 through 4/30/02, he will have given up 47%.

And, versus 5/1/02 through 6/30/02 - the two glorious months that both parity adjustments were in effect - he will have given up fully 54.3% of his pay.

So, based on these numbers, a USAirways 757 Captain would be making the equivalent to a pilot at which other airline now (e.g., America West, Spirit, Frontier, etc.)? What would be the hard dollar salary number annually?

What would a junior A320/A319 FO be making annually (estimate)?

 

[Prop Trash]

I did the math. An A-320 captain would make about as much as a captain at Mesa with the same amount of seniority. Ouch.

 

[General Lee]

Apparently the IAM members (mechanics) will not give in to managment's last proposal. The pilots may be able to give a lot back, but if the others do not---the ship might sink anyway. That really is sad. Read the last half of the article I posted and read about the IAM.



Bye Bye--General Lee


Associated Press
Pilots, US Airways Continue Negotiations
Thursday September 2, 5:52 pm ET
By Matthew Barakat, AP Business Writer Pilots, US Airways Meet Again on Contract Airline Says Is Necessary to Avoid Another Bankruptcy

ARLINGTON, Va. (AP) -- Negotiators for US Airways' management and pilots met again Thursday to discuss a new labor contract the airline says is necessary to avoid a second trip into bankruptcy.

The talks included a proposal by management that would cut pilot pay by as much as 35 percent and contributions to a 401(k)-style retirement plan by as much as 30 percent, according to sources familiar with the discussions.

[size=-2]ADVERTISEMENT[/size]on error resume nextplugin=(IsObject(CreateObject("ShockwaveFlash.ShockwaveFlash.6")))A spokesman for the machinists' union, meanwhile, said that union remains unwilling to revise its contract and accused management of ignoring proposed changes that could have saved more than $100 million annually.

US Airways Group Inc., which emerged from bankruptcy protection just one year ago, says it must slash costs by $1.5 billion a year to avoid a return to bankruptcy and possible liquidation. Officials are seeking about $800 million in labor cuts, including $295 million a year from pilots.

Arlington, Va.-based US Airways had initially discussed a pay cut of about 16.5 percent, along with significant changes in benefits and work rules designed to increase productivity.

Management said the 35 percent pay cut results from negotiations in which the pilots asked the company to focus on pay rather than work rules and benefits.

Management, in a cover letter obtained by The Associated Press accompanying its proposal to cut pay 35 percent, said the proposal "achieves the same economic goals, but represents a less balanced approach to achieving those goals and is not the preferred alternative. ... Nevertheless, the proposal is responsive" to union requests.

Pilot union leaders are expected to meet Friday or Saturday to discuss options.

Union leadership has to some extent been divided between moderate and hard-line camps, making it difficult to predict that meeting's outcome. Pilot representatives from Pittsburgh and Philadelphia, who have generally taken a more harder stance, could control any vote because they represent a majority of US Airways pilots.

Fred Freshwater, a pilot representative from Pittsburgh, said that pilots who contact him overwhelmingly support a tough stance with management.

"What they're saying is, `Don't even send a piece of crap contract out to the pilots for a vote,'" Freshwater said. "They're incensed. They're furious."

While talks continue with the pilots, the machinists have ruled out any changes to their labor contract.

International Association of Machinists spokesman Joseph Tiberi said Thursday that "no amount of employee concessions is going to save the airline" and complained that management ignored union proposals that would have saved $115 million a year.

"They had made up their mind (against our proposals) before we even walked in the door," Tiberi said.

The proposals included elimination of unnecessary part replacement ($50 million), assigning facilities cleaning work to union members rather than outside vendors ($4 million) and eliminating some supervisory jobs by assigning duties to union crew chiefs ($25 million).

Airline spokesman David Castelveter said the machinists' ideas were impractical and would cost money rather than save it.

"As we again have told the IAM, there is nothing new, unique or innovative about their ideas," Castelveter said. "The IAM leadership must come to grips with the fundamental fact that other union leaders have reluctantly but correctly concluded -- the industry has changed forever." Shares of US Airways gained 43 cents to close at $2.57 Thursday on the Nasdaq Stock Market.