A330323X
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IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 8:16 am

US Airways Update
1113(c) Vote Results

Sixty-one percent of the voting Mechanic & Related membership has accepted US Airways’ final 1113(c) term sheet proposal. Additionally, ninety-seven percent of voting Maintenance Training Specialists have ratified their tentative agreement with US Airways. Upon bankruptcy court approval, the new terms will be incorporated into revised collective bargaining agreements.

Regrettably, your vote came down to choosing between bad and worse. It is remarkable that thousands of IAM members would sacrifice their own jobs to give this airline and their remaining co-workers a chance to survive. This vote should be the final word in any debate over your commitment to US Airways.

I thank the negotiating committee for their work on your behalf in ensuring your issues were heard at the bargaining table, even under the most difficult conditions imaginable.

Where US Airways goes from here is now out of our hands. Hopefully management won’t waste the substantial sacrifice you have agreed to make.

Sincerely and fraternally,

William O’Driscoll
President and Directing General Chairman

POST ON ALL IAM BULLETIN BOARDS
I'm the expert on here on two things, neither of which I care about much anymore.
 
A330323X
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RE: IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 8:22 am

IAM Fleet Service also approved the final offer. All of US Airways' 9 union-represented work groups have now approved and ratified cost-savings agreements.

----------------------------------------------------------

January 21, 2005

IAM Ratifies Three New Contracts at US Airways

The International Association of Machinists and Aerospace Workers (IAM) today announced that all three IAM-represented groups at US Airways voted to accept new four-year agreements providing hundreds of millions of dollars in annual cost savings to the bankrupt airline.

The three groups at US Airways include Fleet Service workers, Mechanic & Related employees and Maintenance Training Specialists who voted separately under the threat of a bankruptcy court ruling that would have terminated existing labor contracts at the airline if the company’s offers were rejected.

“US Airways management must utilize the advantage our members have provided, not squander it as they have done in the past,” said IAM General Vice President Robert Roach, Jr. “The company has everything it needs from labor to succeed. The pressure is now on management to deliver.”

“The vote came down to choosing between bad and worse,” said William O’Driscoll, President of IAM District 142, representing US Airways’ Mechanic & Related and Maintenance Training Specialists. “Let their decision end the debate about our members’ commitment to US Airways.”

“It is time to look beyond labor costs for answers to this industry’s chronic mismanagement,” said Randy Canale, President of IAM District 141, representing Fleet Service workers.
I'm the expert on here on two things, neither of which I care about much anymore.
 
A330323X
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RE: IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 8:47 am

US Airways 1113(c) Vote Results
January 21, 2005

Dear Sisters and Brothers,

With 79 percent of the active membership participating, 62 percent of District 141 members at US Airways have voted to accept a contract offer that provides the airline with more than $93 million in annual savings and prevents complete abrogation of the collective bargaining agreement.

Despite efforts by the Fleet Service Negotiating Committee to alter the company’s original October term sheet proposal, the terms ultimately presented to members reflect a bankruptcy process tilted heavily against employees. As one IAM member described the 1113(c) process, “We had a knife at our back and a gun to our head.”

Among the significant achievements of the IAM negotiating committee: preserving the industry-leading defined benefit pension plan for Fleet Service members; preventing unrestricted outsourcing of all job classifications and maintaining health care coverage for members and their families.

I want to acknowledge the Committee’s efforts throughout this extraordinary and difficult period. Your negotiators made certain the company’s representatives were fully aware of members’ issues, concerns and frustrations in both large and small locations. In no way is the company’s final offer a reflection of their commitment and loyalty to their fellow members.

In the weeks and months to come, we will hopefully see an improvement in the conditions that led US Airways and four other airlines to seek bankruptcy protection. It is not encouraging, however, to see the price of jet fuel rising or airline executives who willingly engage in destructive fare wars.

One thing is certain: US Airways management is once again indebted to its employees for the chance they have given this carrier. We expect them to use this opportunity wisely and make every effort to restore this airline in a manner that respects the sacrifice you have made.

Sincerely and fraternally,

S.R. (Randy) Canale
President and Directing General Chairman
IAM District 141
I'm the expert on here on two things, neither of which I care about much anymore.
 
A330323X
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RE: IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 9:39 am

US AIRWAYS’ THREE IAM UNITS RATIFY AGREEMENTS ON MORE THAN $353 MILLION IN ANNUAL COST SAVINGS

All Agreements Now Ratified; Company Achieves Labor Savings Goal of more than $1 Billion

ARLINGTON, Va., Jan. 21, 2005 -- US Airways announced today that all three of its employee groups represented by the International Association of Machinists (IAM) have ratified cost-savings agreements.

The ratification, representing a savings of more than $353 million annually over the course of five years, covers approximately 8,800 US Airways mainline employees, including mechanics, utility, fleet service, stock clerks, and maintenance training specialist workers.

The agreement for the mechanics and related employees was ratified by a 61 percent margin, while fleet service employees ratified by a 62 percent margin, and the maintenance training specialist agreement was ratified by a 97 percent margin.

“We have a great deal of respect for our IAM employees, as they were faced with an enormously difficult decision,” said Jerrold A. Glass, US Airways senior vice president of employee relations. “While this ratification vote marks the end of a long and arduous process, it also represents a new beginning for our company. All employees have made tremendous sacrifices, and now we will work in unity to improve relations, transform our business, and emerge as a stronger airline.”

US Airways has ratified cost-savings agreements with all of its labor groups, including non-unionized employees, totaling over $1.1 billion annually. US Airways’ labor work groups are represented by the Air Line Pilots Association (3,074 active employees), Association of Flight Attendants (5,629 active employees), Communications Workers of America (5,387 active employees), IAM (8,814 active employees), and Transport Workers Union (215 active employees). These more than 23,000 unionized employees contributed more than $1.04 billion in average annual cost savings to help implement the company’s Transformation Plan.

US Airways is the nation’s seventh-largest airline, serving nearly 180 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 approximately 3,200 flights per day. For more information on US Airways flight schedules and fares, contact US Airways online at usairways.com.

US Airways is a member of the Star Alliance network. Star Alliance was established in 1997 as the first truly global airline alliance to offer customers global reach and a smooth travel experience. The members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, Thai Airways International, United, US Airways and VARIG Brazilian Airlines.

Reporters needing additional information should contact US Airways Corporate Affairs at (703) 872-5100.
I'm the expert on here on two things, neither of which I care about much anymore.
 
ouboy79
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RE: IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 10:18 am

The last major hurdle...time to rock and roll folks. This is your last chance.
 
ClipperAurora
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RE: IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 11:07 am

NOW it's time for US AIRWAYS to fight back and really become a powerhouse
//////// FLY THE FLAG
 
gift4tbone
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RE: IAM Mechanics Ratify US Airways Agreement

Sat Jan 22, 2005 12:02 pm

OK!! Let's go US. You now have your chance (one i didnt think would happen). But hey this is awesome news, lets hope they can really turn this airline around. We'll see in a few weeks when they release their reorganization plan, what they've got up their sleve. I hope its something good.

Good Luck US.

-Tony@PVD
Top 3 airports: PVD 23.9%(138 flights), PHL 14.7%(85 flights), PHX 10.2%(59 flights)
 
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usdcaguy
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RE: IAM Mechanics Ratify US Airways Agreement

Sun Jan 23, 2005 12:18 am

This is great news. US Airways really does have a fighting chance.
 
kanebear
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RE: IAM Mechanics Ratify US Airways Agreement

Sun Jan 23, 2005 12:35 am

Is the labor agreement enough? What more is needed for US to survive?
 
jacobin777
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RE: IAM Mechanics Ratify US Airways Agreement

Sun Jan 23, 2005 12:54 am

I still think its overcapacity and this will go from a fast, swift death, to a death by a thousand cuts......even though I don't fly US, I wish US the best.
"Up the Irons!"
 
ouboy79
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RE: IAM Mechanics Ratify US Airways Agreement

Sun Jan 23, 2005 12:57 am

This was the last major piece of the pie. Now you'll see important changes start...

Outsourcing portions of the airline that other airlines like Southwest, JetBlue, and America West already do. The Ft. Lauderdale operation will finally get going next month which will help get planes on routes that are traditionally better for US. They are taking more 70-seaters this month and will start giving back some of the older Airbus 320s and 319s that are approaching their heavy checks.

The biggest changes will probably come with moving to more point to point flying and downsizing the PIT operation even more - not so much flights but reservations and maintenance.

I do want to point out one interesting observation. If this was a "IAM Rejects Contract" thread...there would probably be quadruple the number of posts. Its amazing how quickly the anti-US Airways posters flee when any positive news comes out.
 
AA717driver
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RE: IAM Mechanics Ratify US Airways Agreement

Sun Jan 23, 2005 1:29 am

"Powerhouse", "rock and roll". Again, you have got to temper your enthusiasm. USAir has a long slow climb ahead of it. Everything--and I mean EVERYTHING has to go perfectly for U to make a relatively rapid turn around (making money a year out of Ch. 11, IMO).

In reality, if USAir survives it's a success story. That's just the sad history of airlines emerging from Ch. 11. The employees have stepped up (or have been held up at gun point) and given the management what they wanted. Now the management MUST take those concessions and not squander them.

Six months of managerial inertia or a serious marketing misstep will send employee morale crashing and it will take years to recoup that loss of support.

Good luck.TC

P.S.--I would like to personally thank Bill O'Driscoll for making the IAM roll over and let its belly be patted by USAir management to save their jobs. At TWA the IAM was the major impediment to restructuring the company. You were always willing to take down the company for the good of the union. I hope you're thinking about the thousands of former IAM members who are out of work today because of YOUR intransigence. Sleep well Willy.
FL450, M.85
 
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usdcaguy
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RE: IAM Mechanics Ratify US Airways Agreement

Sun Jan 23, 2005 9:33 am

So what do the other carriers have up their sleeves? This is NOT just a US Airways problem; it's an industry problem. Everyone is going to have to either adapt to the new market conditions or go out of business. Change is burdensome in most cases; but in this one, it is more than welcome at every airline in the US.
 
wgw2707
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RE: IAM Mechanics Ratify US Airways Agreement

Mon Jan 24, 2005 8:17 am

"That's it, this is the end of US Airways."  Laugh out loud

Seriously though, they didn't liquidate on the 15th, they didn't liquidate before the 15th, they appear to have positive cashflow from operations, and they have secured concessions and GECAS financing... I just don't see why so many people on this forum continue to post that either US Airways will collapse, or when US Airways actually experiences a bit of good news, frustration. The expression of frustration when US makes a positive announcement is particularly worrisome...

US Airways now has most of the tools needed to be able to recover. With these concessions in place, they now have a very low cost structure, one that ensures they'll be able to profit under conditions when most of their competitors will not. For a network carrier, the new cost structure is outstanding in terms of its competitiveness both with other network carriers and with LCCs. So it's likely at this point in time that they will be able to recover and emerge, as long as they can source $250 million in exit financing.

-WGW2707
 
supa7E7
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RE: IAM Mechanics Ratify US Airways Agreement

Mon Jan 24, 2005 9:27 am

This is shaping up to be one of the most interesting, dramatic stories in airline history.
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