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July 15, 2004 |
1. Meeting With CEO Lakefield and VP Ashby
2. MEC Decision to Negotiate
3. Global Bid
Council 89 Members:
In May the Company presented the MEC the Transformation plan for USAirways. In June we were presented with their "Cost Proposals" for our group. In the Transformation plan the Company wants to create a "Hybrid" airline consisting of a mix between traditional Hub and Spoke and Point-To-Point flying. To me some parts of the plan seem new and
innovative (for USAirways anyway) and other parts dubious. The proposal regarding costs compares us to America West (Hub) and Jet Blue (Point-to-Point). Comparisons were made along five dimensions: Seniority, Productivity, Pay Rates, Benefits and Scope. NO SPECIFICS were discussed. They company has yet to make a detailed proposal to us regarding any one of these five dimensions. The MEC hired a financial analyst to examine the Company's comparison data and the overall financial condition of the Company. The MEC received his final report on July 9 and asked for a meeting with management.
MEC MEETING WITH CEO LAKEFIELD
The MEC met with Mssrs. Lakefield and Ashby on July 15 to discuss the analysts report and issues regarding our current agreement. Both men seemed honest and willing to listen. Mr. Lakefield confirmed our analysts position that USAirways is close to violating terms of it's loans with the ATSB and General Electric. Bankruptcy is possible to protect what assets USAirways does have if that happens. Mr. Lakefield stressed the Company is not looking to Bankruptcy to solve it's problems with either creditors or labor. Bankruptcy for USAirways this time would be very different than last and the goal is to avoid it. Our analyst agrees that a successful outcome from a bankruptcy filing is not a sure thing. The MEC also discussed the current sick policy and it's punitive and discriminatory effect on our members. We discussed our current reserve system and the seniority and financial hardship it causes. Both men agreed both policies need to be fixed. Both agreed our previous management team was lacking in the negotiation and implementation of the previous agreements. It was stressed to us that this team is different. Assurances were given to us that Sick and Reserve would be "fixed" inside negotiations. Further assurances were also given to us about a greater share of returns for our group. It was also agreed that a meaningful Early Out be negotiated. It was my opinion both men were genuine and realize the Company cannot return to profitability on the backs of it's employees.
MEC DECISION TO NEGOTIATE
In light of our analysis of USAirways financial condition and assurances we received from management the MEC voted to enter negotiations with the Company. (SEE PRESS RELEASE BELOW) The decision did NOT come easily. We have debated this for the past three months. No one WANTS to give up anything. It is our consensus that we can work within our contract to effect changes that can benefit both the company and the members. We advised the company of conditions that we must have in order to negotiate. USAirways and the rest of the legacy carriers are facing challenges that must be faced or they will die. We all know that. If USAirways does not change the way it does business the future is grim. I believe our group can put forth new ideas and cost saving changes that will in the end benefit us.
It was resolved by the MEC to keep all members informed every step of the way. Opening proposals by both the Company and AFA will be released in their entirety. Updates will be provided at every opportunity. You will get to see what is happening during this process.
The MEC decided to issue a press release on July 15 regarding it's decision. I felt it prudent for me to issue my comments to you after the full MEC decision was released.
GLOBAL BID
Bidding for the Global Bid will close at noon (EDT) August 1,2004. Failure to bid will result in defaulting to the 85 hour option. Bidding can only be done via the HUB. A link is provided below.
http://thehub.usairways.com/divisions/operations
/inflight/admin/GlobalBid.htm
For Immediate Release:
July 15, 2004
US Airways Flight Attendants Will Discuss Cost-Saving Alternatives
WASHINGTON, DC - The US Airways Master Executive Council of the Association of Flight Attendants-CWA, AFL-CIO, reached a decision yesterday and agreed to discuss cost-saving changes within the context of their current flight attendant agreement. The MEC has advised the company that it is not interested in discussing JetBlue work rules or America West pay rates as suggested by the company.
The decision to engage in discussions with the company is conditioned upon the company's willingness to make positive changes to both the sick and reserve systems currently in place, as well as provide a fair and equitable profit-sharing plan as an integral part of any agreement that would be presented to the flight attendants at US Airways for ratification.
The MEC met with CEO Bruce Lakefield and Senior Vice President Bruce Ashby in a closed session in Coraopolis, PA, on July 14. The two executives committed to working to correct problems that have arisen since the company's recent restructuring.
More than 46,000 flight attendants, including the 5,200 flight attendants at US Airways, join together to form AFA, the world's largest flight attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO.
MIKE FLORES
LEC PRESIDENT
COUNCIL 89
AFA-CWA AFL-CIO
704-527-0325 OFFICE
704-576-3174 CELL
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