US AIR TODAY GONE TOMORROW
Who’s next?


With the announcement today of the decision by US Airways to withdraw its hostile takeover bid after the Official Unsecured Creditors’ Committee turned down their offer, I’m sure that many of our employees are feeling a bit easier.

Regardless of what promises US Airways made, it was obvious that many of our younger employees would have lost their jobs, not to mention almost all of our upper management team. The GO probably would have been emptied out and despite what many of you might think about those of us who are attempting to unionize, we don’t relish seeing anyone lose their jobs.

We, however, are realists and know that the danger is not gone and our position is still very perilous. There is nothing preventing someone else from making a bid; as a matter of fact, Mr. Grinstein himself is not adverse to the idea of the “right” kind of merger. He has stated in his recent interview with the Delta Board Council that, “we are not opposed to all mergers: just the bad ones.”

He later stated that, “together we’ve created tremendous value over the last couple of years”. “We just don’t want to do anything that delays our exit from bankruptcy.”

My question is: Who gets to reap this tremendous value? Are we hurrying out of bankruptcy so that those who stand to profit the most don’t lose out? If we exit bankruptcy before the next suitor comes calling do you think that the upper management team is going to share the wealth in the way of initial public offerings in stock (IPO’S) with us? Don’t hold your breath.

Merger mania could very well hit a fever pitch after we do exit bankruptcy; why not solidify our position by getting a union contract in place. Those carriers with employees who have union contracts are already reaping the rewards of unionization. Northwest’s pay cuts have been reduced, United’s reductions were never as bad as ours and they remain two dollars an hour ahead of Delta’s pay scale. As a matter of fact, of the 20 plus carriers based in America, we are second or third from the bottom in pay. Mr. Grinstein stated that “Delta people are not interested in last place.” Well hurry up Jerry because we are steadily approaching last place in a number of categories: sick leave, medical insurance, pay, vacation time, etc.

I’ve always trusted Mr. Grinstein, but many empty, unfulfilled promises have been made in the past. I remember letters from Vicki Escarra sent in 1997 and again in 2000 that stated Delta was through contracting out Delta ramp cities. I guess she missed the boat on that prediction. Jerry Grinstein has recently stated that “Delta always will respect and provide for the protection of the seniority and other interests of its people in connection with any potential transaction.” Jerry, you’re no Vicki Escarra, but I still think Ronald Reagan was right when he said, “trust, but verify”.

As you all are well aware of by now, Management teams are always in transition, they come and go. One should not rely on the promises they make. We need the assurances and guarantees that a union contract will provide. Let’s get busy and push our efforts over the top.