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Topic: US Seeks Court Order To Cut Pay 23%
Username: DLKAPA
Posted 2004-09-24 18:12:24 and read 3947 times.

Sorry if I'm a little late with this one, but this can't be good.

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=6327447&src=rss/businessNews§ion=news

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Zvezda
Posted 2004-09-24 18:35:50 and read 3919 times.

Let's hope 23% is sufficient.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Contrails
Posted 2004-09-24 18:48:05 and read 3887 times.

It'll be enough, after management has laid off 10,000 employees, cut a third of their routes, and sold/leased/whatever a few dozen aircraft.

I sympathize with all the US employees out there.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Okie
Posted 2004-09-24 18:53:14 and read 3867 times.

It may be just more sword rattling for leverage or US is just going to jump in and use the court to bypass negotiations.

In either case the management at US is trying to force the situation to a quick resolve.

I do not want to take sides here but from the outside of the pay issue looking in there does seem to be some foot dragging going on.

The down side of the court stepping in would be that the bankruptcy judge would be sole decision maker and could set a precedent for future bankruptcies involving other airlines (DL comes to mind) and take the employees and their unions out of the loop.

Okie

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Flaps
Posted 2004-09-24 19:32:46 and read 3807 times.

Who is the judge?

Most wont automatically circumvent the union contracts. Although they may do so it wont be done arbitrarily as labor still has a great deal of political influence, espicially in the run up to a presidential election. I expect this one to get very close and careful scrutiny. Above and beyond the usual scope.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Jc2354
Posted 2004-09-24 20:15:40 and read 3769 times.

Does anyone know the salaries, benefits, golden parachutes, of the senior management at US Air? Are they taking at least a 23% paycut as well?

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: BENNETT123
Posted 2004-09-24 20:28:42 and read 3751 times.


Assuming that the court goes along with this, how will US pay levels compare with other airlines.

Unless US has been paying well above the norm, I suspect that a lot of CV's are being typed up as we speak.

I also suspect that this is going to impact on morale and customer service unless the Chiefs are taking the strain as well.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: DLKAPA
Posted 2004-09-24 20:45:57 and read 3722 times.

I also suspect that this is going to impact on morale and customer service unless the Chiefs are taking the strain as well.

Doubt it.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Supa7E7
Posted 2004-09-24 22:56:15 and read 3637 times.

According to usairways.com, they have 22 people at VP level and above. Let's say they all make as much as Bruce Lakefield, who makes $400,000. That brings us to $8.8 million a year. The real total is probably lower, obviously.

US Airways has 3,328 pilots. Let's say they make on average $100,000. Of course, mainline pilots all make more than that. Anyway, that adds up to $332 million yearly, not including pension payments, which non-union people do not have.

Using the most conservative estimate possible, pilot pay is 37.8 times higher than corporate officers.

Where do you think money can be saved?

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Flyf15
Posted 2004-09-24 23:08:21 and read 3626 times.

No actually Supa, it looks like (using your example) that corporate officer pay is 4 times that of pilots.

With 22 pilots...and airline isn't going to get anywhere.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: SonOfACaptain
Posted 2004-09-25 00:10:12 and read 3583 times.

Let's say they make on average $100,000. Of course, mainline pilots all make more than that.

Well after this pay cut, we can't say that anymore. Pretty soon US pilots are going to be paid high salary regional jet pay.

-SOAC

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-25 00:42:11 and read 3556 times.

I find it very interesting to note that the TWU-Dispatchers, who reached a consensual agreement with the company, are only facing a 10.3% cut in wages.

Who is the judge?

Most wont automatically circumvent the union contracts. Although they may do so it wont be done arbitrarily as labor still has a great deal of political influence, espicially in the run up to a presidential election. I expect this one to get very close and careful scrutiny. Above and beyond the usual scope.


The judge is Hon. Stephen S. Mitchell, the same judge US had for its first bankruptcy. He has a record of being quite friendly to US.

Also, note that this is an 1113(e) motion, which is a temporary, emergency motion. After getting this relief, US will still need to negotiate permanent agreements with the unions. If they can not negotiate permanent agreements, then they will file a 1113(c) motion for permanent relief, which is much more difficult to get.

Does anyone know the salaries, benefits, golden parachutes, of the senior management at US Air? Are they taking at least a 23% paycut as well?

Bruce Lakefield makes $425,000. He claims to not have a golden parachute.

I don't know about senior management, but general low- and mid-level non-union management employees are rumored to be taking about a 15% cut in wages.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-25 00:55:14 and read 3542 times.

Also, in addition to the wage cuts, I understand the 1113(e) motions will also:

Eliminate the 279 minimum active mainline fleet count;

Provide for outsourcing of covered work in the event of a union slowdown or sickout or mass retirement (this is just begging to be abused);

Allow US to outsource heavy maintenance on the A330 to the extent it is not already permitted to do so (this indicates that US expects to lose the A32X arbitration ruling next week).

The 1113(e) motions will NOT provide for out-of-seniority furloughs.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-25 08:01:45 and read 3406 times.

US AIRWAYS FILES MOTION FOR INTERIM RELIEF UNDER SECTION 1113 (e)

Company seeks to build cash for slow winter season
but will continue to negotiate with unions pending Court ruling

ARLINGTON, Va., Sept. 24, 2004 -- US Airways Group, Inc. today filed a motion seeking interim relief from the company’s collective bargaining agreements with the Air Line Pilots Association (ALPA), Association of Flight Attendants (AFA), Communications Workers of America (CWA), International Association of Machinists and Aerospace Workers (IAM), and certain units of the Transport Workers of America (TWU), under Section 1113(e) of the U.S. Bankruptcy Code.

The motion was filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, which is overseeing US Airways’ Chapter 11 restructuring.

In its motion, the company emphasized that the request for interim relief is made in order to maintain US Airways as a going concern and “preserve approximately 34,000 jobs, preserve air service to hundreds of communities, build the cash reserves needed for the winter, give customers comfort that there is adequate cash for continued operations, and ultimately, avoid the threat of liquidation.”

“We have had constructive discussions this past week with all of our labor groups and we will continue to seek consensual agreements with our unions, pending the Court’s ruling on the motion,” said Bruce R. Lakefield, US Airways president and chief executive officer. “Nevertheless, we must move quickly to secure cost reductions, build cash reserves and send the signal to our financial partners and our customers that we will actively manage this restructuring and not allow the company to be swept up in speculation about our future.”

The interim relief request seeks $38 million per month in cost reductions from labor groups, effective immediately upon the Court’s approval. In addition, US Airways will implement capital expenditure reductions and a series of actions to be announced shortly to reduce non-labor and management costs and generate an additional $5 million per month of savings. These actions do not require court authorization.

US Airways told the court that it meets the “irreparable harm” standard for interim relief and must secure cost savings immediately because financial projections show that in order to avoid a cash crisis in early 2005, it must accrue roughly $200 million in additional cash.

“Over the next six months, we will be faced with significant aircraft lease payments, the traditional seasonal slowdown in both business and leisure travel, and the likely sustained impact of high fuel prices. Waiting for a cash crunch to be right in front of us is simply too late, and if we were forced to implement interim relief at a later date, the pay cuts would be deeper and even more painful. While I don’t relish asking US Airways employees to make sacrifices, securing this short-term relief while we continue to negotiate new permanent labor agreements will allow us to complete an orderly restructuring and implementation of our Transformation Plan,” said Lakefield.

US Airways is the nation’s seventh-largest airline, serving nearly 200 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate over 3,300 flights per day. For more information on US Airways flight schedules and fares, contact US Airways online at www.usairways.com, or call US Airways Reservations at 1-800-428-4322.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-25 08:06:41 and read 3401 times.

The motion is available at http://www.transformingusairways.com/html/pdf/media/Motion.pdf.

Everything is as I expected it, except the IAM-Mechanics motion has been changed from the first version. Now, US is permitted to outsource heavy maintenance on both the A330 and the A32X to the extent it is not already permitted to do so. It's yet another sign that US expects to lose the A32X arbitration ruling next week. It's just a shame that the only satisfaction the IAM will get out of it will be knowing that they were right all along.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: AirframeAS
Posted 2004-09-25 08:13:21 and read 3393 times.

Look at it this way: At least the court order is to cut pay, not jobs. I think thats pretty fair. This should be the LAST time US ever asks for cut in paychecks. If they ask for it again then I think the employees should say no. US has probably gone too far in asking for pay cuts. Sooner or later, the employees might be working for free....which would suck.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: DeltaAgent1
Posted 2004-09-25 08:23:45 and read 3382 times.

I'm sure our pilots at DL are watching this unfold with interest.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Chock2throttle
Posted 2004-09-25 08:28:26 and read 3378 times.

Not good news for US. The airlines are about to enter the winter months in the USA. Fuel prices have just recently risen AGAIN. Winter operations require much more care, including De-Icing. If you don't know, Type one propylene glycol (De-Ice) fluid costs nearly $5USD a gallon. This and the added fuel cost, and this recent announcement spell disaster for US. IMO.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: AirframeAS
Posted 2004-09-25 08:34:25 and read 3371 times.

I'm sure our pilots at DL are watching this unfold with interest.

oh, Im sure. The DL pilots are the only ones who has not contributed to their own airline while the other workgroups have had although they are not unioned dont have much of a choice/control over that.

Ive said this before and Im going to say it again and will keep saying this over and over:

"The glitter and glam of being a high paid pilot in the 60s-80s, those days are over. Times change, expecially post 9/11, pilots need to make lifestyle adjustments including pay rate changes. Welcome to 2004!"

Take a pay cut or you'll be out of a job, wandering out on the streets living in some cardboard box because you rejected the companies latest proposal. You snooze, you lose. Plain and simple.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: DeltaAgent1
Posted 2004-09-25 08:47:59 and read 3362 times.

AirframeAs, from the standpoint of a DL employee who would do just about anything for the company, I do hope the bankruptcy judge in the case of US
does give US the pay reduction on a permanent basis.
Plain & simple-our pilots are the most "underworked" & "overpaid" service workers in the industry.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: AirframeAS
Posted 2004-09-25 09:00:33 and read 3356 times.

Plain & simple-our pilots are the most "underworked" & "overpaid" service workers in the industry.

Well, thats going to change...just watch! Its going to be overworked and underpaid, then the DL pilots will have something to really complain about.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Sydscott
Posted 2004-09-26 06:19:25 and read 3195 times.


"Allow US to outsource heavy maintenance on the A330 to the extent it is not already permitted to do so (this indicates that US expects to lose the A32X arbitration ruling next week).

THis would also give US a starting point for layoffs as more outsourced maintenance = less required company workers.

"Does anyone know the salaries, benefits, golden parachutes, of the senior management at US Air? Are they taking at least a 23% paycut as well?"

Quote from the motion filing;

"The debtors have already made, and continue to make, significant permanent reductions with respect to management and administrative employees. They have begun to implement a program of cost savings of approximately $40 million annually. Management and administrative payroll is projected to be significantly further reduced over the next 30 days."

So let us not criticise US management for not taking a hit as well.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: UAL747DEN
Posted 2004-09-26 06:48:57 and read 3185 times.

I see a lot of people on here that don't understand business at all. Most of you are complaining about the so called "Golden parachute" that the upper executives have. The reason that executives have these deals is because if they didn't there would be no skilled execs working for US. No one wants to work for a company that is not doing well and when you are a high level executive you have your choice of multi million dollar companies to go work for so US has to offer the "GP" before they will even conceder US. If they decided to save that money they would have a lot of employees with nothing to do because there would be no management.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-26 07:14:55 and read 3173 times.

"Allow US to outsource heavy maintenance on the A330 to the extent it is not already permitted to do so (this indicates that US expects to lose the A32X arbitration ruling next week).

THis would also give US a starting point for layoffs as more outsourced maintenance = less required company workers.

Actually, if you read the 1113(e) motion, the relevant language reads "to the extent not already permitted under the terms of the basic agreement between the parties, a provision permitting the Company to outsource all heavy/base maintenance activities on all Airbus narrow-bodied and wide-bodied aircraft, provided that no mechanic and related employees will be furloughed as a result of the outsourcing". Common sense also applies here--US does not currently conduct (and has not ever conducted) Airbus heavy maintenance, so outsourcing it should not result in furloughs, as there are not workers presently dedicated to the work.

There will no doubt be furloughs as part of any future permanent IAM agreement or 1113(c) motion, but let's not make this seem any worse than it already is.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Sydscott
Posted 2004-09-27 01:25:18 and read 3119 times.


"There will no doubt be furloughs as part of any future permanent IAM agreement or 1113(c) motion, but let's not make this seem any worse than it already is."

"This would also give US a starting point for layoffs as more outsourced maintenance = less required company workers."

Actually I wasn't talking about furloughs. Definition of furlough is "to allow or force someone to be absent temporarily from work." I was talking about permanent reductions in the numbers of maintenance employees especially if the IAM and Management can't learn to live, or talk, with one-another. It wont happen now as part of this motion, but it should happen as part of the final business plan if US survives that far into the future. I have no doubt that the IAM wont like the 23% pay cut either if the Court allows it!!!

As a side item if US doesn't get the $800m it wants from the Unions I read in the footnote that "The Debtors presently anticipate that any 1113 (c) proposals made to the unions in Chapter 11 will seek over $950 million in total labor cost savings measured on a 2004 "status quo" basis." So US already has its fallback position ready to file when/if negotiations fail.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: NKP S2
Posted 2004-09-27 02:23:09 and read 3082 times.

A33032X: "US does not currently conduct (and has not ever conducted) Airbus heavy maintenance"

They do the A330's. It's currently performed in-house.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: NIKV69
Posted 2004-09-27 02:47:24 and read 3070 times.

I wish US would do the honorable thing and go under. Why are they trying to get a judge to force the help to give more? It will not work. The employees have given enough. The debt is too high and B6 and WN just destroy them. ENOUGH!!!

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-27 03:55:07 and read 3033 times.

US does not currently conduct (and has not ever conducted) Airbus heavy maintenance

They do the A330's. It's currently performed in-house.

Sorry if I wasn't being clear. The A330 has an annual C-check that is currently performed in-house. (Just like US performs the A32X C-checks in-house.)

The A330 also has a more extensive S-check every 5 years. As US has not had any of their A330 aircraft for 5 years, none of them have had an S-check performed, in-house or otherwise. Until the 1113(e) filing, they were to have been performed in-house; now, they will apparently be outsourced. The first A330 is due for its S-check in March; US was planning to start on the S-checks in October or November so all the planes would be ready for the summer schedule.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Aa717driver
Posted 2004-09-27 04:28:58 and read 3013 times.

Airframe--Delta pilots haven't "contributed". You can spin that any way you want but none of the other work groups "contributed". They are non-union and the company arbitrarily took pay and benefits away. AND, I don't know of any furloughed TWA or AA pilot living in a cardboard box. We tend to be very resourceful and motivated(It kind of comes with the territory). At least we won't be plying our trade at Jiffylube...

AA, DAL, UAL, NW and USAir have ALL seen management do everything they can to increase the number of RJ's on the property and reduce mainline flying.

So, the evil Delta pilots give the company a blank check. What will happen? They will see more NB jobs given to the wholly owned commuters. That's not temporary. Those are narrow-body jobs that are gone permanently. Where's the incentive to give ground on the contract?

The current Delta contract was the product of Leo Mullin telling the pilots that, despite record profits in the '90's, "a contract's a contract". They can't have a bigger piece of the pie despite working for a sub-industry standard contract left over from the "tough times" in the preceeding years.

Ok, it's now Sec. 6 time and payback is a bitch. They went for a contract that they wouldn't have asked for when they first approached Leo.

The USAir pilots have given. Now, you all are spitting on them because the company didn't have a plan or a clue when they were in Ch. 11 the first time around and they're leery about throwing more good money after bad. Fool me once, shame on you...TC

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Sydscott
Posted 2004-09-27 04:32:05 and read 3014 times.

"Why are they trying to get a judge to force the help to give more? It will not work. The employees have given enough."

US wants to be a low cost carrier. According to the motion filing on page 17 US employees get an average of $59,509 and are, on average the 3rd highest paid in the industry. After the 23% wage cut they will still on average earn $45,822 and be better paid than the staff at Jetblue, Spirit, Frontier, America West and Air Tran. So on average to the industry the airlines staff can and will be forced to give more. If they dont want to give up cash then they will have to give up conditions and benefits or work more hours per employee.

In the case of flights attendants they "average among the lowest flights hours in the industry" even though they are the 3rd best paid in the industry. Even after the 23% cut they will earn more than America West, Spirit, Jetblue, Air Tran and Southwest who fly the most hours of any flight attendants in the industry.

Even the average pilot salary will still be $119,300. If you cant get on with life earning $119,300 then there is something wrong with you!!!!!

So in answer to the above the employess have given plenty but compared to the rest of the industry they are still at the top of the market and it is simply unsustainable. What is does highlight is the amount of work left undone in the first bankruptcy.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Aa717driver
Posted 2004-09-27 04:53:56 and read 3000 times.

Sydscott--That is my point. The unions are right to look skeptically at the "plan" because it doesn't add up. The company will still be woefully ill-equipped to battle the LCC's in its back yard.TC

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Sydscott
Posted 2004-09-27 05:35:24 and read 2978 times.


"The unions are right to look skeptically at the "plan" because it doesn't add up."

The plan doesn't add up because the cost base isn't there yet. Labour costs form the biggest component of that and the 23% cut will give US the cash salary component of the LCC wages they need to be viable. Now they need to hammer out the conditions and since they wont be able to reach agreement on that the court will eventually decide it. The Unions can be as skeptical as they like but at the end of the day, based on the figures in the motion filing, their members are overpaid in comparison to the new industry norm which are the LCC's.

"The company will still be woefully ill-equipped to battle the LCC's in its back yard."

I dont think it's woefully inequipped. Slightly inept maybe but the marketing, airfare and other LCC characteristics are there through Go Fares and the like. Once US has some cash I'm sure they will lease additional Airbus planes to simplify the fleet and retire the narrowbody Boeings. That is a more long term proposition though. US is most of the way to a LCC it just needs to get its costs pared back and Labour is the biggest sticking point. The unions may be skeptical but the travelling public isn't willing to pay the airfare necessary to keep their members employed. Thus work for less at US Airways or work for less at an LCC. Either way for them its lose/lose and better the Devil you know.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: AirframeAS
Posted 2004-09-27 09:34:34 and read 2956 times.

Airframe--Delta pilots haven't "contributed". You can spin that any way you want but none of the other work groups "contributed".

Thats right! The DL pilots are the only ones that has NOT contributed at all. As far as the other workgroups, I was trying to say that they were FORCED to contribute, they didnt have any other choice. Thats right, those people are not unioned.

AND, I don't know of any furloughed TWA or AA pilot living in a cardboard box.

Oh I know. What I said was: Would you rather take a pay cut and keep a job or would you rather live in a cardboard box? I didnt say anything about anyone currently living in a cardboard box.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Boeing7E7
Posted 2004-09-27 09:55:03 and read 2953 times.

Good God this airlilne needs to die. Enough is enough. LIQUIDATE ALREADY!

Sometimes a time comes where it's just time to go. That time has come.

[Edited 2004-09-27 09:56:26]

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-27 23:45:34 and read 3079 times.

Judge Mitchell has granted US Airways' request for an expedited hearing on the 1113(e) motion.

The hearing will take place Thursday, October 7.

There is also a hearing earlier in the day about some of the prepetition pension issues, so it's possible that the 1113(e) hearing will not be completed on October 7; in that event, it's likely to resume on October 12.

Responses opposing the motion don't have to be filed until October 5.

http://www.donlinrecano.com/dr201/mwc/04-13819/dk000233-0000.pdf

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: 7E72004
Posted 2004-09-27 23:46:56 and read 2895 times.

I don't want to see US fail, but i think (in my opinion) that they are going to end up liquidating.  Sad

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Moman
Posted 2004-09-27 23:58:28 and read 2879 times.

I agree with 7E72004. I don't see any way that US can be a low cost carrier. The company does not appear to be dynamic enough to survive. Too bad for the employees. I can't imagine hardly anyone thinking of US in the same paragraph as WN, Jet Blue, etc, even if their costs and fares are the same.

Moman

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: 7E72004
Posted 2004-09-27 23:59:53 and read 2877 times.

I wonder if US would have the problems it has if they did not merge with Piedmont...i know the merger was in 1989 but one just has to wonder.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: Moman
Posted 2004-09-28 00:01:42 and read 2876 times.

I've read once that most of US's problems come from poor integration from the Allegheny/Mohawk?/Piedmont mergers.

Moman

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: ACAfan
Posted 2004-09-28 00:06:22 and read 2873 times.

FROM THE TEXT OF THE DOCUMENT:

4. This is truly “stop-gap” relief that will only address the Debtors’ immediate cash crisis. The proposed modifications, while substantial, are significantly less than the total labor cost reductions that the Debtors will need to survive in the long term.

23% is only the beginning...

"Just keep swimming, just keep swimming, just keep swimming swimming swimming"

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: AirframeAS
Posted 2004-09-29 00:21:05 and read 2806 times.

"Just keep swimming, just keep swimming, just keep swimming swimming swimming"

They can keep swimming...but if its a long long swim...sooner or later they're gonna get tired and will drown. In reality: If they continue to do what they are doing now, they are going to liquidate. Theres no light at the end of the tunnel for US.

Topic: RE: US Seeks Court Order To Cut Pay 23%
Username: A330323X
Posted 2004-09-29 01:01:31 and read 2788 times.

I've read once that most of US's problems come from poor integration from the Allegheny/Mohawk?/Piedmont mergers.

While I don't necessarily agree with your premise, you probably mean PSA and not Mohawk. Allegheny and Mohawk merged in 1972.

FROM THE TEXT OF THE DOCUMENT:

4. This is truly “stop-gap” relief that will only address the Debtors’ immediate cash crisis. The proposed modifications, while substantial, are significantly less than the total labor cost reductions that the Debtors will need to survive in the long term.

23% is only the beginning...


Actually, the wage cuts US is eventually seeking are less than 23% for most of the workgroups. To quote from the motion, "In some instances, the Debtors sought smaller pay reductions as part of the permanent relief package than they are seeking as interim relief because, over the longer period of time contemplated by the permanent relief proposals, changes in work rules can increase employee productivity and thus support higher wages." The permanent agreements reached with two of the TWU groups both involved wage reductions substantially less than 23% (10.3% for the dispatchers; I'm unsure as to the exact number for the flight crew training instructors). Increased productivity will likely result in reduced headcount, however.


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