US Airways management...WTF?

Master Shake

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US Airways unions slam exec bonus plan

By Barbara De Lollis, USA TODAY

US Airways' unions on Tuesday will urge a bankruptcy judge to reject a proposed employee retention plan they say would unfairly enrich top executives.
The USA's No. 7 carrier has asked the bankruptcy court in Alexandria, Va., to let it spend up to $55 million to keep as many as 1,900 top officers, managers and staff, or less than 10% of the workforce. The sum would also cover severance payments.

US Airways management proposed the plan before the May 19 announcement of its pending merger with America West. But the retention program becomes more important as key US Airways employees weigh career options in the face of expected cutbacks and a transfer of headquarters to Tempe, Ariz., from Arlington, Va.

The plan would reward executives and key workers for not bailing out.

Jack Stephan, spokesman for the pilots union, says the proposal insults rank-and-file workers. Union members — pilots and others — have taken deep pay cuts to keep the carrier alive.

Those workers were incensed last year when former CEO David Siegel collected $4.5 million in severance.

Adding to their resentment: US Airways CEO Bruce Lakefield, scheduled to become vice chairman of the merged airline, would collect as much as $2.6 million in severance, plus two years of health coverage, if he leaves, according to a filing from the union that represents flight attendants and customer-service agents. His severance deal would be unaffected by the proposed plan.

The airline expects to spend much less than it's asking the court to approve. Whatever it spends, about a third of the money would be used to retain 25 top officers. Most of the money would go to retain 1,873 salaried employees — accountants, engineers and administrative assistants. Up to $5 million could be handed out at the CEO's discretion in payments of up to $50,000.

"We have to do our very best to retain the employees who would be instrumental at keeping the company running today and helping to implement the merger, once approved," says US Airways spokesman David Castelveter.

The airline would finance the program through money saved by positions left unfilled, he says.

In court filings, US Airways says its management ranks are running "dangerously thin." Further losses "will not cut through fat, but muscle and bone." In the past year, it's replaced eight top executives. It has 320 salaried jobs open, twice as many as last year, filings say.

Bankruptcy Judge Stephen Mitchell, who has presided over the US Airways bankruptcy since it was filed last September, will hear arguments.



How can management's actions here not be considered dishonest and underhanded? To my simple mind, it looks like blatant thievery.
 

Newjetjockey

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Its very simple. Executives can move from company to company and are rewarded to do so. Crew members cannot because of our seniority system from the days of regulation. In todays world it does not pay to be loyal.
 

Master Shake

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gkrangers said:
Retaining the top executives that are unable to get the airline out of its mess?
...or how about taking responsibility for the mess to begin with???
 

labbats

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It's amazing to me that any thought of morale has dissolved since 9/11.
 

Fly-n-hi

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"The plan would reward executives and key workers for not bailing out"

Correct me if I'm wrong but isn't the assumption that when you get hired your intentions are to not bail out in the first place?

With this kind of logic every employee who didn't "bail out" should get a bonus, right?

Its almost like they are saying, "Well, we didn't do anything to improve the company and we didn't get out of bankruptcy but at least we didn't bail out...so we deserve a reward"

Imagine if you or I, when asked at our interview "do you intent to stay here or bail out if things get rough", answered "I plan on leaving if things get bad here". Do you really think you would have been hired?

The fact that these guys even proposed this means they should get canned, IMHO.
 

DustyBottoms

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Newjetjockey said:
Its very simple. Executives can move from company to company and are rewarded to do so. Crew members cannot because of our seniority system from the days of regulation. In todays world it does not pay to be loyal.
This is the harsh reality.
 
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DustyBottoms said:
This is the harsh reality.
Good point. These days an executive can get fired and still collect millions.
 

capt. megadeth

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I can't believe someone has not gone postal yet!

WTFO???
 

PHXFLYR

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Nice language...:rolleyes:

PHXFLYR:cool:
 

I.P. Freley

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I think the title of the thread could be applied to just about any time in the last twenty years of the company's history...
 
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