US Airways asked a bankruptcy court yesterday to throw out contracts covering passenger service agents, flight attendants, mechanics and other workers and replace them with less-expensive ones.This is evil on so many fronts. First, flight attendants make an average of $50,491 per year. But they aren't the ones screwing the company. Bruce Lakefield, the company CEO who doesn't want to pay his flight attendants the wages the company is contractually obligated to pay, makes a salary of about $425,000 per year, plus 760,000 shares worth of stock options in the company. Of course, Lakefield has no intentions of giving himself a pay cut.
The airline also said it wanted to terminate its remaining traditional pension plans and replace them with cheaper retirement benefits like a 401(k) plan. It also plans to reduce substantially or eliminate health care coverage for retirees.
Before we crucify Lakefield, it should be noted that David Seigel, the former President and CEO of US Airways Group, made nearly $9 million in total compensation in 2003.
You also can't blame 9-11 for this problem. The feds gave $15 billion in cash and loan guarantees to the airlines just after the attacks. Of course, republicans filibustered to prevent direct assistance to airline workers, who clearly suffered the most. Funny how they didn't mind filibusters then.
In fact, worker salaries shouldn't be bothering the airlines at all -- they're almost completely predictable. Any decent manager can handle predictable costs. Retirees, however, shouldn't have to predict that promises made are promises broken -- and their health benefits are taken away after decades of service to the company.
The real volatility in the airlines' cost structure is fuel, which, of course, is ridiculously high, thanks to the war in Iraq and the global instability caused by the current administration.
Just the latest example of how working families get stiffed thanks to mismanagement and dishonesty from corporate execs and Republicans.
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