IMPORTANT READ: This is the PHL News-Line 70 from Mollie McCarthy LECP. If you would like to respond to Mollie, please use this email address mmccarthy@afausairways.org.  Subscribe to News-Line 70 from here.  (http://www.afausairways.org/PHL/phlemailform.html)
In This Issue - "The Transformation Plan

May 25 2004


Dear Council 70 Flying Partners:

Hi everyone, sorry it has been a little longer than usual since you last heard from me, as I mentioned briefly in a previous News Line I needed to be out for a couple of weeks due to medical reasons that required surgery. The information given below should help bring you up to speed plus answer many of the questions I received via email while down. In addition, I have gathered some valuable information for you that shows a comparison between our pay and work rules to that of Southwest (who we had been compared to), America West and Jet Blue (who we are now being compared to.) So let's get started!

FYI: All the links listed below can also viewed on the PHL web page. 

AFA MEC Meets With Company May 6 and May 20 

May 6, 2004 - "Transformation Plan" 

The MEC met with management on May 6, 2004 to hear what is now being touted as the "Transformation Plan." Mr. Lakefield, our new CEO, made a brief appearance before excusing himself to attend another meeting. At the point of Mr. Lakefield's departure Mr. Jerry Glass took over 'The Plan' presentation. Later, Mr. Ashby joined us. FYI: You may recall that Mr. Ashby was one of Wolf's top guys and was even slotted to be the 'head man' at Potomac Air had there been a merger between UAL & USA. More recently Mr. Ashby was President of Express. 

Along with Glass and Ashby there were numerous other "Management Types" in attendance and I must admit I was just a wee bit disheartened to see they were basically all the "Same Players" that Siegel had put into place. Though discouraged I am also aware that it is still too early in the game to know what changes Mr. Lakefield will be making to his line-up. 

Management's presentation started out in typical fashion with much of the same stale and worn-out 'dribble' that we have heard numerous times before. Then somewhere in the middle of the presentation the plan began showing some rare, yet welcomed, innovative thinking. 

The new "Transformation Plan" still has a lot of the same 'Filler and Fluff' the previous plan(s) had but I must admit that some of what I heard this time was actually viable, innovative and even aggressive. That is a good thing. 

The problem before us is neither easy nor new. The Airline industry has changed, there will be industry consolidation in the near future and "we" through some bad luck and bad management now find our Company in a precarious spot. 

It's not all bleak though, we are still a major force on the very lucrative east coast, we still have the best employees in the industry, we finally have the beginnings of a plan that may actually make a difference and we may have found a leader who also happens to be a CEO. Must say, after this meeting and taking all things into consideration, I felt pretty good. What good feelings I had were pretty much obliterated at the next meeting…read on.

To read the NON-Confidential Plan 'Hi-Lights' as given to the Labor Advisory Council please click HERE
(http://www.afausairways.org/PHL/presentation.htm)


May 20, 2004 - What Management Wants
 

On Thursday May 20, 2004, the MEC met again with management to hear what they want from us in the event we agree to engage in discussions for an unprecedented THIRD round of concessions in less than two years. 

The information we received was again stamped "confidential." We were warned at least three times during the presentation that what was in front of us was not a "proposal." 

This is what I can disclose: 

  • The "Target Figure" is $116 million.

Note: That is more than the previous two Concessionary agreements combined and back then there were a whole lot more of us to spread around the pain than we will have this time around. 

  • Management actually encouraged us to show you a comparison between the America West FA contract and our own because it is now management's goal to have the FA's cost (pay, benefits and work rules) fall somewhere between America West and Jet Blue. (See links to AMW Contract and a comparison chart between AMW and U below)

FYI: The latest "Management Mantra" is a little something they are calling a "Seniority Disadvantage." Seems our "Average Seniority" is years higher than that of the airlines we are now being compared to. 

The seniority disadvantage management speaks of was something they created when they thought they could downsize to profitability. They saved millions by reducing staffing levels and cutting heads. This in turn caused us to have a higher "Seniority Average" than our competitors. Now management wants to use this issue against us.


In Attendance: 

Again the room was wall-to-wall management. Mr. Ashby led the way only this time it was not Jerry Glass who was standing there with him, it was instead a new face, a stranger. 

The 'stranger' had curiously not been introduced. The mystery was solved when I asked and Mr. Ashby answered the question "If we were to agree to enter into discussions, who would be on the Company side of the table and who will have the authority to make decisions?" Ashby answered that "ALL 11" of those in the room would be in negotiations and it would be himself and one Ronal C. Henson (the stranger), who just happens to be one of 130 lawyers from the law offices of Ford & Harrison LLP, making the decisions. When I heard Ashby's answer I could feel the hair on the back of my neck rise and my blood boil. 

You remember the Atlanta Based Law Firm of "Ford & Harrison" don't you? I mentioned them in a previous PHL News Line where I told you that Jerry Glass was both the Sr. VP of Labor Relations and also the President of his own Labor Relations Consulting Firm. "J. Glass and Associates" which not only does work for US Airways, but is also affiliated with Ford & Harrison.

"Ford & Harrison" and the term "Union Buster" have been know to be used in the same sentence on more than a few occasions. Once "Exposed" they removed most of what could be considered as "Union Busting" rhetoric from their web site. 

But I just happen to have saved a hard copy of something that was on their site before they cleaned it up. Below is what was written under their affiliate "J. Glass and Assoc." 

"Provide research and assistance during Union avoidance campaigns, including the analysis of labor Union's financial statements (LM-2s) and constitutions and bylaws."

Under their Litigation page it still states:

"When they roar, we pounce." (The employee's are the 'they' and the 'we' are the lawyers/litigators of Ford & Harrison

The time has come to face the fact that there are huge law firms who make a better than good living off of Busting Union's and stripping the working man and woman of this great Country of the American Dream. 

If the outside firm of "Ford & Harrison" who happen to specialize in the Airline Industry, have been invited to not only sit at the table but to be a decision maker then the old saying "the devil will be in the details" takes on a whole new meaning. 

If these negotiations are going to be less about 'saving our Company' than they are about 'Busting the Unions' and decimating labor contracts we should have just kept Siegel and saved ourselves 4.5 Million in the process. 

What will the services of "Ford & Harrison" cost our Company and where is the money coming from? 

Are our concessions doing nothing more than paying for Bankruptcy Lawyers, Labor Relation Lawyers, Litigators, Arbiters, Mediators or Bad Management? 

Please visit the Ford & Harrison web site by clicking HERE
(http://www.fordharrison.com/fh/practice/litigation.asp)


Something you need to know about me.
Something you need to know about the PHL/PHW Council 70 survey.


Three members of my family, including myself work here at US Airways. Between the three of us we have over 50 years of loyal service invested in our Company. I am willing to bet that no one has more at stake or would want to see this Company succeed more than I do. 

I am not so foolish that I refuse to acknowledge that our Company may be in real trouble. I am not so stubborn that I am unwilling, under certain circumstances, to meet with Management to hear what it is they need or what it is we can compromise on for the betterment of all, especially if it means some important issues to FA's will be resolved and that "we" will share in a piece of the future. 

However, I am also not so fearful or easily swayed by management's constant threats that I am willing to give away our contract just so some management type or some high-priced lawyer can have an Island Mansion or a Villa in France. 

There can be a big difference (millions of them) between what our Company needs and what our Management wants

I know for a fact what some others may not realize; just because we give 'concessions' does not mean we will save our Company or our careers. A career is when you have an occupation or a profession that you can progress through life with, feel pride in and retire from. Too many management types do not think being a FA was ever meant to be a career to them it was only meant to be a job.

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