planemaker
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US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 6:30 am

US Airways Employees to Hear Plea for Cuts
CEO Will Make Case for More Concessions in Internet Speech Today

By Keith L. Alexander
Wednesday, March 24, 2004;

The head of financially struggling US Airways plans to appeal directly to employees today to agree to more cuts in wages and benefits.

Executives from US Airways declined to give specifics on president and chief executive David N. Siegel's speech, which will be made during a meeting with about 75 employees and broadcast to others over the Internet. Spokesmen for the airline's pilot and machinist unions who have been briefed on the speech said they expected Siegel to share details of the airline's restructuring plan.

In his latest weekly recorded telephone message to employees, Siegel encouraged workers to watch the meeting.

"This is a truly important time for all of us here at US Airways," Siegel said in the recording. "We're faced with some very tough choices. That's why I urge all of you and your families to view this webcast. My hope is this information will help you make some informed decisions. "

US Airways is trying to cut costs by at least 25 percent because, the company said, cuts of nearly $2 billion made while in Chapter 11 bankruptcy reorganization last year was not enough to make it competitive with expanding low-fare carriers such as Southwest and JetBlue. So far, only the pilots have agreed to talks on concessions.

Last year, the Air Transportation Stabilization Board, which Congress created following the Sept. 11, 2001, terrorist attacks to help stabilize the weakened airline industry, granted US Airways a $900 million loan guarantee to help it reorganize. US Airways recently made an early payment on its loan, securing more time to repay the balance. But as part of that new agreement, the airline has to reduce its costs this year, accumulate a cash reserve of $700 million by June 30 and report a profit next year.

Other traditional airlines also are struggling to return to profitability. Delta Air Lines and Northwest Airlines are trying to secure pay and benefit concessions from its pilots. And United Airlines -- currently reorganizing under bankruptcy protection -- last week said it needed more time to cut costs and doesn't plan to emerge from Chapter 11 reorganization until late summer. United had planned to emerge by June.

Siegel was expected today to address the increased possibility that US Airways will sell one of the airline's most prized assets, such as its Northeast shuttle or one of its hub airport operations, to raise cash. The stabilization board this month gave US Airways permission to sell any assets the airline deems necessary to raise cash.

Siegel is also expected to outline several crucial problems facing the airline.

First, fuel prices have increased to record levels. That means that the second and third quarters -- which usually are among the strongest periods for airlines because of vacation travel -- could be much weaker than had been expected by the industry.

Also, in May, low-cost rivals Southwest and Frontier airlines will begin service at Philadelphia International Airport, one of US Airways' largest and most profitable operations. US Airways must cut costs quickly to fend off the new competition by lowering its fares, adding routes and flights, or both.

"This is kicking off a campaign to bring more specific proposals to organized labor and to justify them to the employees. He's laying the groundwork for substantive negotiations," said Standard & Poor's airline analyst Philip Baggaley.

Today's meeting will be the first company-wide employee gathering Siegel has held this year. The meeting had been scheduled for earlier this year but was postponed after union leaders objected to negotiating with Siegel in view of statements by US Airways executives that the airline needed additional concessions from employees.

Today's meeting will be the first for US Airways employees to be broadcast on the Internet, said David Castelveter, a company spokesman. He said using the Internet was less expensive than flying around the country to meet with employees, factoring in Siegel's time away from the office, equipment rental and other factors.

Spokesmen for the pilot and machinist unions said separately that US Airways "hand-picked" about 75 workers to attend Siegel's hour-long presentation in person and the question-and-answer period afterward. Only those workers present will be able to ask questions; however, the airline said other employees could e-mail questions before the meeting.

Castelveter denied that the airline's executives picked the attendees. Instead, he said, supervisors from various operations were asked to solicit volunteers.

© 2004 The Washington Post Company
Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
 
asuflyer05
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 7:32 am

There was a meeting between the CFO and employees @ 1500 EST.

They are going to webcast the meeting at:
http://usairways.internetstreaming.com/

Matt

Edited becuase I am dyslexic

[Edited 2004-03-24 23:41:20]
 
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EA CO AS
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 8:00 am

Didn't we just leave this party?

Does Siegel expect employees to forego ALL pay and benefits and just do this on the side, sorta like a hobby?
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
AA717driver
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 8:03 am

Concessions are the path to true job security... Insane TC
FL450, M.85
 
asuflyer05
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 8:11 am

Highlights:

"...Southwest is gonna kill us...He wants our jobs..." - CEO of US
'Southwest killed TWA in STL with 8 gates. They are going to have 4 in PHL. They killed them because TWA waited too long. '

Following America West
- Comp. from Southwest
- Similar Fleet
- Fixed their company, making money, and growing again

Simplified fleet
- Get rid of turboprops, more Embraers
- Increased Utilization
- Dual class or Single Class?
- Growing the network, start being more offensive

Philidelphia is going to become a 'rolling hub'
- More point to point from LGA and DCA
- Less Cities
- Sticking with UA & Star

Inflight Product
- Considering Direct TV, Wireless Internet, etc.

Greater Technology
- More Internet Usage
- New website by end of year
- More kiosks
- bar code readers

and yes, lower employee costs.

I was impressed, he was serious but very hopeful. If I were an employee I would feel a little more confident because it gave some direction. Direction is something they seemed to be lacking. Sorta like a beached whale.

Matt

[Edited 2004-03-25 00:17:39]
 
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 9:32 am

'Southwest killed TWA in STL

No, Karabu and TW800 killed TWA.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
ScooterTrash
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 11:32 am

Oh brother...

Nope, sorry Dave. The concessions stand is closed. This airline needs to look at productivity oriented improvements to save cash. If I am asked to give for a third time, my answer is NO.

Scooter
 
freshlove1
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 12:26 pm

Hey Scooter what kind of puddlejumper do you drive for US??? Ive probably loaded one of your flights at one point or another depending on what part of the country you fly in. Yeah I believe the upper people have to take a huge cut, I could understand employees giving into cuts once, two times was asking a bit much, and now a third time i'm not to sure about that one either. I didn't like Seigal from day one and never felt secure with him in charge
 
wgw2707
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 12:29 pm

You US Airways employees do realize do you not that by failing to agree to concessions you'll make yourself obsolete? This is Eastern Air Lines all over again. If you can't understand history enough to see how employee gread (on the part of the mechanics) killed EAL and realise that now is the time to agree to short term concessions in order to secure the long-term future of your jobs, then to be frank you deserve to be out of work. The company is no. 1, not your paycheck.

-WGW2707
 
Alpha 1
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 12:32 pm

As much as I'm not a fan of unions, I have to agree with Scootertrash on this one. US simply can't go to the well any longer and ask employees for even more. Siegel isn't a bad manager, but he inherited a mess, and it's way beyond control now.

I don't know what the answer is for US, but there's only so often you can go to the employee well, without it being bone-dry.
 
Sydscott
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 12:43 pm


Following on from Asuflyer here is an article from forbes.com

If they're 40% more expensive than their competitors then US Airways will die.


US Airways still needs major cost cuts - CEO
Reuters, 03.24.04, 4:14 PM ET

CHICAGO, March 24 (Reuters) - US Airways (nasdaq: UAIR - news - people) Chief Executive David Siegel said on Wednesday the airline still needs to reduce costs dramatically, adding that he is willing to make sacrifices along with employees at the No. 7 U.S. airline.

In a company update broadcast to employees over the Internet, Siegel said US Airways needs to reduce unit costs from 10 cents to 6 cents and have new labor agreements in place by this summer to compete with low-cost carriers that are gaining market share.

US Airways, which emerged from bankruptcy a year ago, still has among the highest unit costs, or costs per available seat mile, in the industry. Low-cost carriers have unit costs in the 6-cent range.
 
NIKV69
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 1:06 pm

When are the executives going to start taking pay cuts? They make me laugh, going to the people who bleed and sweat for the airline over and over again. I am also sick of this "think of the company before yourself" crap. How in the world are they going to compete with WN and Blue? There is no way. I don't see it, unless the pilots, FAs and ground crew all work for $8 an hour with no benefits and Embraer decides to just give them 50 planes. Long term I think USAirways is doomed. They can not fly for the same fares as WN, Blue, Song, Ted, Frontier or any others and if someone doesn't want to fly the LCC they will just fly CO or someone like that. I know this is terrible to say but it's time USAirways went belly up, at least they will be put out of their misery.
Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!
 
ScooterTrash
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 1:19 pm

Freshlove1:

I drive the Dash 8 for one of the Wholly-Boneds... I mean Owneds. If you have chucked bags on a Dash, chances are we have exchanged greetings over an OF-11 or two.

WGW2707:

I am well aware of the possible consequences of refusing yet another round of painful concessions. I am out on the pointy end of the spear every day, and if I thought for one second that US Airways Group had made every productivity oriented change that was necessary, I would be allot more likely to pony up the cash. Siegel only knows one song it seems: It is the employees fault our CASM is as high as it is. Nope, not entirely accurate Dave. Not by a long shot.

Now, here is where I part company with my mainline brethren. I do think there is something that the unions can and should do to save this company. If the employees of US Airways mainline need to concede anything, it is some of their inefficient and costly work rules. A good example is this: Southwest employees about 4 mechanics per airplane as where US Airways employees 12. This is due to the work rules provided under the mechanics contract. All of the major employee groups at the mainline demonstrate equally startling inefficiencies. While I feel for the furloughees, it is time we nodded to the new economic reality: Do more with less and for Pete's sake be as efficient as you can. Simply slashing pay and benefits is not the answer because it does not cure the core problem with this company: Systemic inefficiency.

Note that I am talking only about US Airways mainline employees here. At my part of the company, one of the wholly-owned express carriers, our pilots fly more than any other pilots in the industry, no exaggeration. We fly double the hours of the mainline pilots. We are leaner and meaner, and our part of the company has never lost a dime. Asking Express employees to give again is not just unnecessary, it's immoral. We were doing this LCC thing long before anyone was talking about LCCs.

Another thing US Airways could do to save cash? Institute rolling hubs... NOW! Nothing would go further to save fuel, and that is our biggest variable cost right now. Especially in Charlotte... There should never be a time it takes me more than six minutes to get off the ground after leaving the gate. Yet for months I have been stuck in the last two pushes of the day, waiting for 20-40 minutes to get off the ground. That is burning cash, a whole lot of it.

In conclusion WGW2707: Short term wage concessions won't do jack to save this place. Only fundamental changes in how we do business will.

Scooter
 
freshlove1
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 1:36 pm

Good point Scooter, why don't we kick sweet dave and his boys out and put you in charge. Your right Express , no matter what compnny has never lost any money for US and we do work twice as hard. I used to work for mainline in MDT, i'm an express guy now thank god!! and those guys were the laziest guys I knew. 20 sumthin' bucks an hour to read the paper and do nothing and they were proud to talk about it, while the new hires at 9 bucks an hour are moving airfrieght, baggage from a 734/733, running mail, ect. Ask them for help and it was like pulling teeth. I remember one very very cold A.M in MDT, we were loading a 737 to PIT and it was full, we needed some help putting the bags on the belt loader, so we asked the guy, who was a ramper, in the push back tug if he could help, he was like "no i've been here way longer then you and paid my dues, I don't load bags anymore I just push em' back". All of us were like "F-YOU!!". Maybe if he got off his 20+ dollar an hour ass and helped it would have gone out on time. Thats the type of people we don't need in this company, oh yeah he carried that union book around like it was a bible, and when ever he was asked to do something he looked in it to see if it was under his work description.
 
StevenUhl777
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 1:55 pm

The company is no. 1, not your paycheck

How many airline employees (regardless of airline) do you think believe this, and what is the likelihood that they would start to believe that?

No. These days, people vote with their paycheck, whether it's for wage concessions or in a presidential election. Bottom line. The days of company loyalty are long, long over.

I like my company, (not an airline) but I'm only looking out for me. At the end of the day, I have to look at myself in the mirror and answer to only me, no one else, and sure as hell not my company.

US Airways employees have done their part already. They got shorted because they weren't given a solid business plan, and the initial wage cuts they gave the company were squandered. Plain and simple. They're right by saying the concession stand is closed.

US Airways made it's bed, now it has to lie in it.
And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!
 
freshlove1
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 1:55 pm

Nice to see that the guy in reply 11 would like to see us all lose our jobs. He obviously has a personal hate for US. Well if you don't like US then go and fly WN with the rest of the trailor trash/drunks that do and watch your show "airline" every monday. Maybe you can go fly CO, which you seem to think is the best airline out there and become buddy-buddy with your boy Gordon, i'm sure he would love to hear what you have to say considering you seem to know so much about the airline industry. Your a golf "professional" you say, so stick to golf and try to get under par and keep your useless comments off A.Net
 
wgw2707
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 2:19 pm

I agree with FreshLove, and to some extent, with Scootertrash. Improvements in efficiency are neccessary. I'd also state that concessions should be more heavily required from employee groups who are less productive or who have given fewer concessions than employee groups such as the Express pilots who currently achieve such high marks in terms of productivity and efficiency. The goal should be to trim the wages where they should be trimmed, as opposed to causing a drop in moral by trimming all wages equally, which would not be fair to some employees who work harder than others.

-WGW2707
 
northwestair
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 3:01 pm

Dob't worry US employees your not alone in this I know NW is asking us for paycuts. I think Upper Management needs to stop and think we (airline Employees) have a family to support. The Company can cry wolf only so many times. And I think US has Cried Wolf one to many times. Good luck US Employees I know you guys will survive if you stick together.
I don't care who you fly just as long as you fly
 
asuflyer05
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 3:26 pm

The entire meeting is 60 minutes long. In it Siegal addresses some of the very issues you are all addressing not just wage cuts. He mentions more flexible work rules to increase productivity. The other thing he mentions is product differentiation. They are looking at how they are going to separate US Airways from the rest of the industry. They need to give customers a reason to fly US over Southwest, CO, etc. This is a fundamental shift in the vision US has had for its operation. It's the same corner HP and CO turned. They are refocusing on their customers!

The company is no. 1, not your paycheck.

NO customers are No. 1. When front line employees show the customer they are appreciated, they automatically help the company. Incentive pay is something that succeed for CO and now HP. Why can't it be implemented at US? Wanna see ramprats and CSRs work their butts off to push a flight on-time, give them $50 for every month US is in the top 3 in on-time performance. It works for HP and CO. Want to improve employee attendance? Give each of them who doesn't miss a day of work an entry into a drawing for a new Ford Explorer each quarter. It worked for Continental.

Need other suggestions? Give an employee $10,000 every time they recommend a cost savings program that reduces costs by more than $500k. It worked for the U.S. military.

Want to see US execs and MBAs work their butts off to turn the company around? Tie their pay to company performance.

But most importantly, they need to set realistic goals. Everytime they achieve a goal, they set the bar higher. It is something I learned from running my company.

Matt
 
DC10GUY
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 4:10 pm

I'm sure there are lots of things that could be done to save US airways. But the truth is Usairways is the new Eastern. Simply put they need to go. The 12 mechanics per plane is a good reason. They have so many different types of aircraft it makes all parts of the operation too bogged down to be worth fixing. Southwest only flies 1 type of airplane and Usairways couldn't match there ground operation in 5 + years even if they had the cash to try. Pull the plug let them die. If nothing more for the health of the rest of the "high cost carriers"
Next time try the old "dirty Sanchez" She'll love it !!!
 
H53Epilot
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 4:32 pm

"Thats the type of people we don't need in this company, oh yeah he carried that union book around like it was a bible, and when ever he was asked to do something he looked in it to see if it was under his work description."

IMHO, that union philosophy is a major reason why employees will never win long term in this industry.
 
Guest

RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 5:09 pm

Anyone ever tell this joker that having the thrust of your service based at two hubs less than 300 miles a part is a bad thing?
 
usair330
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 6:18 pm

Ok, many of you will see that I am young if you look at my profile. I'm only 18 years old and really started learning about aviation in 2000. I've liked US Airways ever since I joined Airliners.net, at first because of the colors and the fact that they're the dominating airline in Philadelphia. But the more I got hooked to this forum the more I learned about US Airways. And although I've only been on this forum since 2000, I can honestly say that alot has changed. When an airline was on the verge of liquidation (TWA comes to mind) It was a sad thing to see that airline go. Now all I see in alot of these post is *US Airways days are numbered". Alot of yaw don't realize that these are peoples jobs we're talking about. It's not easy now and days for an employee from a liquidated airline to say "Hey that's ok the other guy will hire me". But back on the subject.

Again I'm no airline CEO but by watching that 1 hour clip, David Siegel looks very confident about his plans for US Airways in the future. He's not gonna run off and let the other guy win the fight, they're gonna play chicken until one turns. In that clip he mentions how he himself will take a paycut and make the same amount as a CEO for a low cost carrier. He understands that there's a problem and he's gonna fix it to the end. I like the fact that he says "Everyone is gonna participate" in the restructure of the airline "There are no exceptions". That's good that he isn't gonna play favorite! The paycuts is definately something that has to be done for the 3rd time.... maybe it can either be 3 strikes your out or a full count and hitting a home run with bases loaded! Now I don't work for US Airways at all but I don't understand how some of these employees (No disrespect to ScooterTrash) wont take the paycut again. Yeah I'm sure its gotta be frustrating but its either take the paycut and make less money or end up in the unemployment line or as I seen on a 777 documentary, go on walfare.

All I'm really trying to say is that it would be sad to see another airline go, especially US Airways. I wish all the employees the best outcome, hopefully a certain spot will be taken back and US Airways can be the #6 airline again or even #5,4,3 etc.
 
NIKV69
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 9:44 pm

FreshLove,

Give me a break please, my Dad worked for EAL for 30 years and I am training to get my pilots license so don't even think I do not know what I am talking about. USAirways has become the biggest drain on everyone, your debt is HUGE, your fares are a joke and the LCCs are killing you. If it wasn't for all that money the government gave you after 9/11 you would have been a memory a long time ago. If all the employees took huge cuts again it would make no difference. As for CO maybe your CEO should buy Gordons book, he may learn a thing or two because at this point USAirways is a sinking ship. To just take more and more from it's employees will not solve a thing. I do not fly WN regularly and if you are going to group all their pax as trailer trash you are showing your naivete. Yes CO is one of the best airlines going so don't hate Gordon for being a success. Maybe you should get your resume together and send it to him, could be a good career move. CO has new planes, great service and great fares. Need I say more?

Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!
 
ifly2eat
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 10:12 pm

Mr. Siegel is being paid $600,000 a year by USAirways. I ask you all this, if a pilot crashes an airplane, a ramp agent always forgets to load the connecting bags on the plane, or a reservation agent books passengers on the wrong flight, how long would they have their jobs? In my opinion he is not doing his job. Siegel is just another in a long list of "fish oil salesmen" in this industry. How many times have you heard this, give up some pay and stick with me and we'll make it." It is never quite the same line but always a version on the same theme. I have had countless friends lose their jobs at US and it even caused a very good friend of mine a divorce. So while I am not directly involved, this whole issue is very real to me. Eventually, it will be better financially for USAirways employees to take unemployment than to go to work for Siegel's company. Every quarter since he took over (check it out for yourself) Siegel issues a press release when the company loses money. Every press release is the same, low cost carriers are killing us, fuel prices are high, and the economy is bad. I suggest Mr. Siegel look inwardly for a fix and quit blaming other carriers, employees, fuel prices, and the economy. Here's an idea, get rid of Siegel, that will save US at least $600,000 a year.
Fly the friendly skys and stay out of mine.
 
fraT
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RE: US Airways Chief To Call For Wage, Benefit Concess

Thu Mar 25, 2004 11:47 pm

"As for CO maybe your CEO should buy Gordons book, he may learn a thing or two because at this point USAirways is a sinking ship."

NIKV69,

correct me if I'm wrong, but didn't Siegel work for CO before joining US??

So he should know this book very well. As some other poster said, he inherited this huge mess. If they fire him, the next CEO will have to deal with the same problems. Won't make things better for US as they have to give Siegel a Farewell payment and pay the new CEO as well.
 
NIKV69
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RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 12:41 am

Mr Siegel is not totally to blame, you are right FraT, USAirways simply can not compete with WN or B6. Not to mention they have a mountain of debt. I don't mean to be cruel but it's time to for them to go under. They can not survive.
Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!
 
toltommy
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RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 1:15 am

Ifly2eat -

I'll accept your statement that Siegle makes $600,000/year. I'll also accept that he's probably not the person to lead the turnaround at US. The first trip thru bankruptcy still left US with the highest costs of the legacy carriers. That alone should be enough to replace all of the senior management. But the board doesn't have the guts to do that. If Siegle left, who would replace him? Who would want to? Right now US is a failing carrier. Without major incentives, you are not going to attract the quality of leadership needed to save the company. You think Gordon Bethune would come in at Dave's current pay? He's known for being the "turnaround guy" at CO, deserved or not. He wouldn't want to be known as "the guy who rode US into the ground"... Do you want someone from outside the industry? Another Glenn Tilton, maybe?

I hope further pay cuts are not necessary. But as Dave said, he wants to get costs reduced by 40%. So where else can those savings be found? Sounds to me like there are still productivity gains to be made. How many US employees are there per aircraft, and how does in compare to the LCC's? How do you change the work rules to allow the headcount to be lowered, and pay not changed?

First thing I'd do? Furlough 80% of the res staff. Yes, the web presence needs to be enhanced, but what I would do is reinstate a small commission to travel agents. Say $5 or $10 per booking. No bookings, no pay. Outsource res as much as possible. There will be certain things that an in-house res staff would still be needed for. But when it comes to making a simple sale, outsource it.

I wanted to see US become the Alaska Air of the east coast. If you look at the history of how Alaska did it, it wasn't pretty. It took courage and leadership to fight back against WN. But they showed that by having a superior product, they could justify a slightly higer price. By getting all costs down, they were able to thrive against WN, and Shuttle by UA.

Sad to say, but I don't see that the leadership has the courage to do it. They've wasted numerous chances over the years, and lost the faith and support of the rank and file. How can that be recovered in time to save US? I'm not sure it can...
 
Spoon04
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RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 1:34 am

It's very easy for individuals who have not worked in the airline industry to express themselves pertinent to what they perceive as very clear-cut "black & white issues". However, for those of us who spent years working in the industry, we've had our individual and collective noses bloodied economically more times than we care to remember with respect to the repeated pay cuts and concessions we incurred. I remember distinctly each instance when management whined for new concessions. And NOT ONE TIME did management ever express to the rank & file what THEY were willing to forsake or sacrifice from their end. Concessions and pay cuts are nothing more than bandaids placed on gaping wounds. In very little time, those bandaids have to be changed for new ones. How many concessions are needed in order to rescue a company from fiscal difficulties? Will this NEW round of concessions requested by US Airways rectify their plight? Or will a NEW round of cuts be demanded ten months down the road. I ALSO remember distinctly the number of times management of my company purposely jacked us around when it was time for new labor contracts. Instead of constructively meeting with us and establishing a purposeful dialog, they viewed us (as they did repeatedly) with disdain and contempt - the perpetual "Us vs. Them" mentality. Regarding, US Airways, I feel a great degree of empathy and compassion for all the employees who are facing YET AGAIN, another round of concessions. Yet, as BoingGoingGone stated, US Airways management CONTINUES to retain a hub system which has disaster written all over it - PIT/PHL and CLT!! Why doesn't management revamp an obviously flawed operational issue before asking again for employee cuts? The question, I feel, begs to be asked: Is rank & file required to make across-the-board sacrifices repeatedly if an airline's financial plight is based on company mismanagement. How many MILLIONS of dollars did US Airways pay that carpetbagger "Mr. Perpetual Golden Parachute Man" Steven Wolf when he decided "enough was enough"? Having lived through numerous concessions myself, I refer to the old saying...."Burn me once, shame on you - Burn me TWICE, shame on ME!!"
 
Bicoastal
Posts: 2446
Joined: Wed Oct 06, 1999 5:56 am

RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 1:49 am

Maybe the request/threat/demand for wage and benefit concessions is a bargaining ploy to get the necessary productivity and work rule changes? If I were working for a company on the brink, I'd be doing whatever it takes to keep the passengers happy (and coming back) and the planes flying....work rules be damned.

Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
ramerinianair
Posts: 1452
Joined: Tue Nov 11, 2003 6:03 am

RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 8:46 am

Karabu and Ichon Killed TWA; WN helped.

EA CO AS,
Good Call



-S.R.
W N = my Worst Nightmare!!!!!
 
BeltwayBandit
Posts: 474
Joined: Tue Mar 11, 2003 4:25 am

RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 8:46 am

Spoon04:

When the two "sides" (labor/management) cannot get past the "whose-fault-is-it?" debate, they are both doomed. The sins of past and current management have no bearing. I do not think anyone is bluffing about the impending demise of the airline; and the competition will get worse. Labor can either revise their pay and work rules to be closer to their crushing competition, or they can cling to what they have for a few more months, and then end up -- best case -- working for that competition.

UAL ultimately proved that human nature makes it impossible to fix a distrusting relationship between labor and management. Even giving the employees ownership of UAL did not make them think or act like owners.
 
Spoon04
Posts: 179
Joined: Tue Mar 09, 2004 11:15 am

RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 10:43 am

Beltwaybandit:
"The sins of past and current management have no bearing". With all due respect, again, the question remains: Exactly how many rounds of concessions are enough? This current round? Another round of proposed cuts in seven months? More concessions in 2005? What will management do with the dollar amount of concessions should US Airways employees say "Yes" to this latest request? And should this latest round of cuts be approved, will US Airways management reduce THEIR salaries as well? How DARE David Siegle continue to be paid SIX HUNDRED THOUSAND DOLLARS annually, and at the same time, plead with his labor groups to forsake yet again, significant dollars in pay. $600,000 a year in salary is just totally O-B-S-C-E-N-E. C'mon. You're an attorney. You're intelligent. Don't you see the obvious mistrust and the inherent contradiction when the individual begging for yet another round of pay concessions continues to make a yearly salary which will PERPETUATE a lifestyle of convenience and luxury? Why doesn't Mr. Siegle step up and lead by example with cutting his own salary down to say, $100,000? Or would that be too much of a sacrifice? "The sins of past and current management have no bearing". Please, that insults my intelligence. For those of us who HAVE spent time in the industry, it's a fact of life that we granted concessions on a quasi-regular basis. And exactly what DID management DO with all the money we provided? Obviously, not too much because they keep coming back for more. With all the concessions we provided, did management actively attempt to revamp and correct money-draining operational issues and problems? Or did they only utilize our wage cuts to continue operating the status quo with no long-term operating changes to be implemented. Here's how I see it.... if US Airways employees vote to accept concessions again, they have my blessing. If they say "Enough is enough", they ALSO have my blessing. I honestly hope US Airways can find the appropriate fix to their current fiscal plight because they are a damn fine group of people with a proud heritage to sustain.
 
NIKV69
Posts: 10889
Joined: Wed Jan 28, 2004 4:27 am

RE: US Airways Chief To Call For Wage, Benefit Concess

Fri Mar 26, 2004 10:54 am

There comes a time when you have to realize that it's time to fold. At this stage even if the employees gave everything USAirways can not survive. I think the damage has been done. WN and B6 and Song etc are just killing them. Contrary to popular belief the average traveler wants the lowest fare to get from point A to point B. Spoon04 was right on when he told us about management. First to come calling for you to give up things when the airline is struggling yet when the airline is prosperous and the employees need a contract it's a different issue. I also hate to say this but I believe in lay offs not wage cuts. All other big business utilize this concept. Why punish your senior people? If you are not turning a profit with your current workforce, sell some planes and trim the help to you can. Just asking all your employees to give give give is horrible and also like Spoon04 said is usually just a band aid, besides with that debt USAirways has all the concessions in the world is not going to matter. It's time for them to exit stage left.
Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!

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