US Airline Workers See More Bad Times As Oil Rises

[marmar]

from Reuters, via Airwise.com:



June 4, 2008
Just when workers at big US airlines thought they were set to share in a recovery from a traumatic downturn, unions there are again backed into a corner as the industry's fortunes turn bleak.

The heavily unionized six network airlines have collectively lost 75 percent of their market value in the past year as fuel costs have risen steeply and travel has slowed because of the economy. Some experts believe the situation could be worse than the multiple bankruptcies that followed the September 11, 2001, hijack attacks.

"Most airline employees see the good days as over, like the auto industry," said Gary Chaison, a labor expert at Clark University who follows the transportation sector.

Unions, led by the powerful pilots, are upset with prospects of mergers, rising executive pay, fractious contract talks, and management priorities they say have hurt the industry's ability to respond to the fuel price spike.

Union officials, airline industry consultants, analysts and other experts acknowledge that labor-management relations are deteriorating. The out-of-court restructurings and bankruptcies between 2002 and 2007 cut the work force at the six big US airlines by a third to about 276,000.

Bankrupt and near-bankrupt airlines largely met billions in cost-cutting targets through furloughs and labor concessions. Wages and benefits were slashed, and thousands of workers lost their pensions.

"There was talk when restructuring was going on about a new collaborative relationship," said Stuart Klaskin of KKC Aviation Consulting. "In many cases, that lasted about as long as it took to get union (concessions), and then it was 'us and them' again."

Unions hoped to recoup concessions in new contracts, but now they face potential job losses as carriers are desperate to shrink their operations and bankruptcy fears are resurfacing.

Unions complain little progress was made in repairing relations before the latest downturn. ......(more)

The complete piece is at: http://news.airwise.com/story/view/1212573649.html

[dipsydoodle]

1. Also today , same subject : United Airlines cuts 100 planes

US carrier United Airlines is to ground 100 of its planes and cut between 900 and 1,100 jobs, in addition to 500 already announced lay-offs.

It blamed the decision on the need to cope with the spiralling cost of fuel and a weakening US economy.

http://news.bbc.co.uk/1/hi/business/7435443.stm

[DemoTex]

2. Airline labor .. bankers of last resort.

When the government can't/won't bailout the top-heavy, over-paid airline Grand Poobahs, labor always does.

Fuck 'em. Full pay to the last day. Then let the railroads back in.

On edit: When US Airways entered bankruptcy (#1) in 2003, and terminated our pilot pension plan, the airline had more vice-presidents than any other airline in the world! Shortly after getting the pilots' pensions, CEO Dave Siegel was shown the bail-out door by the board .. but unlike the 'chute-less pilots, CEO Siegel had a $10-million golden parachute.