Thu, Dec 18, 2003
Board Says No Way
US Airways pilots want
the airline's president, David Siegel, thrown out on his ear. The
union also wants the company's CFO bounced. Read it as a sign that
negotiations over US Airways' renewed demands for wage concessions
aren't what you'd describe as "smooth" or "friendly."
US Airways workers already kicked in $1.2 billion in concessions
to help bring the carrier out of bankruptcy. But now, the airline
is trying to compete with Southwest, which just started service to
US Airways' most profitable hub in Philadelphia (PA). When
Southwest made that announcement back in May, Siegel (below, right)
warned employees that more cuts were needed so the airline could
remain competitive.
"We have seen absolutely
no accountability from management for the tremendous investment we
have already made, yet we keep hearing their tired refrain that
they need labor costs like those of Southwest Airlines," said Bill
Pollock, chairman of US Airways' pilots group and US Airways board
member. "The concession window is closed for this management
team."
In spite of everything Siegel and company have done to
drastically cut costs, US Airways continued to lose $1 million a
day in the third quarter.
Last month, US Airways chairman David Bronner told the
Washington Post that even more cuts were on the way. Bronner
specifically mentioned the company's many hub operations. "I think
US Airways has too many hubs and its hubs are too close together,"
he said. Besides Philadelphia, US Airways has hubs in Pittsburgh
(PA) and Charlotte (NC).
As for demands that Siegel and CFO Neal Cohen be fired, Bronner
said it's just not going to happen. "The US Airways board of
directors has complete confidence in the management team, and Dave
Siegel in particular." He also said the ALPA's demand for blood
"does nothing to address the bigger issue of how we complete our
restructuring and become a successful company and ignores the fact
that shareholders rely on management and union leaders to work
together to solve problems, rather than looking for someone to
blame."
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