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May 20, 2005 |
Members,
US AIRWAYS AND AMERICA WEST ANNOUNCE MERGER
As expected US Airways CEO Bruce Lakefield and America West CEO Doug Parker announced yesterday the two companies have reached an agreement to merge. The stated intent of the merger is utilize the strengths of both airlines to create a new nationwide low cost carrier designed to compete against both the competition and the industry environment of reduced revenues and high fuel costs. The new company will operate under the single brand of US Airways but its operational labor groups will be integrated
over a two to three year period. Click on the following link to read the entire press release issued jointly by the two carriers:
http://www.afausairways.org/Eline/may19x_05.htm.
Both companies maintain they see no significant loss of jobs and all attempts to minimize employee dislocation will be made. To me the loss of one job is significant. As with any merger there will be consolidation and change. Anxiety and uncertainty levels will rise among our respective memberships. Unlike our colleagues at America West most of us at US Airways have been through several mergers during our careers and know that many of our fears were never realized and we lived to tell the tale. The message being sent by both companies is that the merger will create a viable competitive carrier much stronger than either carrier could hope to create alone. In short, both carriers need each other and therefore so do both employee groups. Both US Airways and America West flight attendants are represented by the Association of Flight Attendants -CWA and as such are subject to the AFA merger policy. The integration of seniority is not within Company jurisdiction. The AFA International office will begin the process of carrying out that policy with regard to merged contracts and seniority lists. The integration of seniority lists is only one step in this process as we will also need to negotiate a new merged collective bargaining agreement. It is my hope the creation of a new more financially stable competitive company will allow us to do the same with our agreements.
This process is just beginning. The merger agreement must be presented to the bankruptcy court as part of the plan of reorganization. The court, the creditors and the government must approve of the plan. The merger itself must be approved by government regulators. The fact that US Airways is still in bankruptcy means
we are still in a precarious position with regard to our current fleet size. The two companies plan to "right size" the carrier by 15%. This will mean the reduction will come from US Airways. Part of this reduction is planned and accounted for during the remainder of 2005. US Airways has said they hope the planned
voluntary furloughs, retirements and normal attrition over the next year will eliminate the need for furloughs. We have all given so much to get US Airways to this point we should not be expected to give any more.
My goal will continue to be to keep you as informed as I can as our bankruptcy case comes to a close and the merger process begins.
Thank
You,
Mike
Flores
LEC President CLT
AFA-CWA AFL-CIO
704-527-0325 OFFICE
704-576-3174 CELL
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