UAL rolls back plan to cut worker hours

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05-06-2020, 06:57 PM

#11

206321

Line Holder

Joined APC: Jan 2019

Position: A320 CA

Posts: 80

Quote:

Originally Posted by iahflyr

Yep. Smart move by American. They just hurt the balance sheet of one of their main competitors. Sucks for us...

More like dumb move by Kirby. No offense, but did he really think he was going to get away with this?

Take billions in tay payer dollars and then cut employee pay 25% through hours. Ridiculous. He is a weasel. Just watch out.

Glad everyone spoke out.

05-08-2020, 06:37 AM

#12

EWRflyr

Gets Weekends Off

Joined APC: Jun 2008

Position: 737 CAPT

Posts: 1,900

Quote:

Originally Posted by Itsajob

According to our union, no. Go read the email that the union put out yesterday. In the FAQ section they say that the company is prevented from changing the rates of pay in the UPA. The rate of pay that you were earning prior to the law taking effect can change if you change categories due to a displacement. The devil is in the details when it comes to laws, and this statute said that rates can’t be reduced, it does not state that employee income cannot be reduced. It stinks, but it is legal. It’s kind of like the 14th amendment never intended to create anchor babies, but if a woman violates federal law by entering the country illegally and has a kid, that kid is going to be given US citizenship. It never was the intent, but it is how the law is written.

Just as it was never the intent for any of the payroll grant provisions of the CARES Act to be loans. Congress negotiated a payroll grant provision and a separate loan provision with the understanding that the grants were "free money" for airlines to keep and use to pay employees and benefits. However, the law contained final language allowing the Treasury Secretary sole discretion to determine the payouts so hence we have 30% of the grant money actually being loans to the airlines. Many in congress came out saying that was not the intent, but unfortunately the language is the result. Would have been great if congress had asked what the total payroll costs were for each airline in that 2019 period and wrote the bill with 100% of that number as an unconditional grant. In a $2.2 trillion package, what's another $7-8 billion during this crisis. Unfortunately, that didn't happen and we are all living with this reality. Not unexpected that airline managements will be, well, airline management.

05-08-2020, 05:55 PM

#13

guppie

Banned

Joined APC: Feb 2018

Position: B-737 Captain

Posts: 657

UAL couldn't sell those junk bonds for 9%. They couldn't even sell them at 11%. Scraped the whole thing. No deal. Hope the Gov'mt loan is enough. Scary and sad.

https://www.bnnbloomberg.ca/united-a...ints-1.1433725

05-08-2020, 06:58 PM

#14

jtriple7

Gets Weekends Off

Joined APC: Oct 2015

Posts: 151

Taking hours away from ops and then changing his mind a few days later makes Kirby look bad, they didnt think that the union IAM would take them to Federal court? - which IAM did. Company thought maybe ops people would just lay down and accept it? Company lawyers tell Kirby they would lose in court? A big Fail for one of Kirbys first moves as CEO.

Then a Fail on the bond sale.

Whats the next Fail?

05-08-2020, 09:55 PM

#15

BMEP100

Banned

Joined APC: May 2014

Position: Tom’s Whipping boy.

Posts: 1,182

Quote:

Originally Posted by jtriple7

Setting up a bond sale is not cheap. Nice chunk of cheese gone out the window. Only one making any money from this were the banksters.

Question is, “who in his right mind would think anyone would buy airline bonds right now”? They shoulda just saved that money for the Delaware lawyers.