UAL rolls back plan to cut worker hours
 

*Plans to raise $2.25B through bond offering.
*Rolls back plan to cut work hours after lawsuits.

https://news.yahoo.com/united-airlines-offer-2-25-125704226.html?soc_src=social-sh&soc_trk=ma

[QUOTE=Stabilized;3050204]*Plans to raise $2.25B through bond offering.
*Rolls back plan to cut work hours after lawsuits.

https://news.yahoo.com/united-airlin...-sh&soc_trk=ma[/QUOTE]

Now they will just furlough them more aggressively.

Unlike pilots who create expensive and time consuming training cycles when we furlough, and do the same when we recall, these workers can be cut and brought back quickly. If we are 30-40% smaller on October 1, there could easily be 7,500-10,000 workers furloughed day one (based on the reported 25,000 number).

Now how about a fight from ALPA to roll back pilot displacements? Isn't cutting thousands of pilots' pay from captain to first officer rates against the intent of the CARES Act as well? I gotta believe that's why no other airline has announced displacements as of yet.

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.

More precisely, it is how the law is interpreted by the courts. In this case, it's a question of how far do you want to push the issue. The CARES Act was rushed through, but I think the intent was to keep everyone whole until October. Barring some sort of epiphany from United management, the only recourses are political pressure or the government taking the money back or imposing a fine. The later is only going to make things worse for everyone. Interesting though that UAL is the only major going this route before October. I guess their lawyers are smarter...or more cunning!

If I were a betting man I would think the others will be right on our heels to get the reshuffle started.

I bet you're right. We're rightly proud of the UPA language that makes displacing pilots expensive and time consuming, so why be surprised when the company starts the process early...when they have little demand for pilots to fly the line...and training center capacity? Did anyone really think they were going to sit on their hands until Oct? Lets all hope that future bookings pick up substantially before the fall.

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

Yeah, smart move by American. Do you think Doug Parker conspired with IAM 141 and the represented United employees to hurt your balance sheet?

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.

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.

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

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?

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.

Kirby is not the CEO yet.

Delta had no trouble selling 3.5B at 7%. He11, Carnival Cruise Lines sold 6B at 11.5%. 😯

financial times article said there was pushback on the collateral, I guess yall grouped all your old jets for this and they balked.

Did the Delta sale actually execute? I don’t think so.

Their 3.4% dated 2023 are yielding 12%, selling for .80 cents....sooo

no 7% listed for sale.

Thats what I read in the WSJ. Didn’t actually check the ticker. Dang. 12% !!

Result of the greater fool theory. Hate to be the one holding those bonds when the music stops.

China will own all Americas jets

Kirby did take 20 work days - now unpaid away from management and admin between now and Oct 1.

I agree with UAL97. This is clearly not what the taxpayers expected. Employees that went out and campaigned for this support to the airline are now being undermined by laywer loophole tactics and shenanigan's. It's always fun to see trick plays in little league baseball...like when the pitcher hands off the ball to the first baseman...but let's be honest there are livelihoods at stake here and we all know management is grinning and saying "gotcha".

The union sends out a memo that says is perfectly legal to do what they are doing....thanks!!! It's not what was expected though and the American public needs to know this. The union should be slamming the company for these tactics in the media.

I'm ready to sign a petition against it, hopefully the Union will lead us.

The union knows what is in the law, because we had guys in the room when it was being drafted. Who do you think got these employee provisions into the Cares Act? Without it, we would already have guys on the street. BACK the PAC.

Well then why are Delta, American and Southwest not playing these games?

Because we have Kirby.

It seems everything that's going on is his call. maybe not on paper, or official change of command ceremony, but rest assured it's his show. might be the gong show, but it's his. oscar is just shadowing the operation and is the public face for now.

The union knew what was in the USSERA laws too. the union will pick its battles.

We ALL are full up dues paying members. I think 6K plus a year should more than qualify for backing all the PAC's.

No idea. American is reportedly retiring the 330, 756, and E190 fleets, so there will definitely be some displacements. Maybe Delta and Southwest believe demand will come back much quicker. IDK. Kirby is either a genius or an idiot, time will tell.

ZERO dollars of your dues money can go to political donations. Period. That's federal law. So if you're not contributing, don't worry about it. We got you covered. But you might want to chip in. It's like career insurance.

SK is a idiot. He’s not a good guy, he’s playing games with you guys. Stay strong...

I agree at this point. He went from a "let's take over the airline industry" mindset when this first began to "let's make sure we are the first ones that can win the race in shrinking to profitability." He's already lost his credibility with me. You need leaders to lead in a crisis like this. Absolutely horrible timing to have this clown starting his first CEO job.

Admin and low management paychecks are 20/% smaller now.

LOL ... For a second I thought you were referring to POTUS.

You missed the mark on that one.