US Airways (East and West) flight attendants have turned down a contract offer made by US Airways by a margin of as much as 75%.  Both unions think the airline needs to reward their sacrifices made during earlier bankruptcies more.

It’s a contentious problem and one that US Airways needs to start getting addressed.  They continue to have two unions each for both the Flight Attendants and Pilots of the airline more than 5 years after the America West / US Airways merger.  Addressing dual leadership on contracts is a risky move and they need to see the unions, well, unify and show consolidated leadership as well as come to an agreement on a seniority list merge.

Seniority lists that aren’t merged are going to focus the labor of each former airline on what they can get and what they’ve given up.  They won’t speak with one voice and they realize that a new contract may reward some much more than others if the seniority lists aren’t merged fairly.

These unions have, if anything, demonstrated their inability to get on the same page.  To a large degree, this has been to the advantage of US Airways but it’s time to get it solved.  Getting it solved isn’t going to happen by standing on the sidelines and waiting for these parties to make nice with each other.  The airline needs to offer some financial incentives to get the unions merged together and on one seniority list.  Incentives that diminish over time and that reward fast action.

US Airways needs to show that it can manage its labor harmoniously as well as every other area of its operations.  Especially so if it wants to be considered a viable merger partner for American Airlines.

Filed under: Airline News by ajax
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Pinnacle Airlines, a regional airline providing contract services primarily to Delta but also United and US Airways, has filed for bankruptcy. We could talk about how they’ll be getting out of their Q400 flying for United in the NYC area.  We could talk about how they’re walking away from some unprofitable flying for Delta on CRJ-900s.  We could talk about a lot of things that Pinnacle is doing and will be doing to remain a viable regional airline.

I’d rather talk about the fact that one week before this bankruptcy filing, relatively new CEO Sean Menke and COO Spanjers both got huge raises.  Menke went from a base salary of $425K to $675K and Spanjers $275K to $400K.  Menke hasn’t been with Pinnacle for long at all, by the way.  The argument is that Menke and Spanjers will be filling in for the departing CFO.

I call bullshit.

The board and Menke knew what was going to happen and raised the salaries prior to bankruptcy.   They sure weren’t going to get approved for those kinds of massive raises after a bankruptcy filing.

It’s insulting to the staff of that airline, union or non-union, that their delivering themselves raises one week before a bankruptcy filing that will almost certainly find them going to those staff and asking for cost reductions.

Even American Airlines and Tom Horton didn’t have the guts to pull that stunt.

Filed under: Airline News by ajax
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