US Airways Flight Attendants Outraged By Management Profiteering
June 16, 2006
Management Cashes in Millions in Stock Options
Phoenix, AZ – While flight attendants from US Airways and America West, both represented by the Association of Flight Attendants-CWA (AFA-CWA), are wading through negotiations for a combined contract, the airline's management team was busy exercising over eight million dollars in stock options. Yet despite their sudden increase in wealth, management refuses to recognize that flight attendant sacrifices need to be repaid.
"US Airways flight attendants gave over $150 million in contract concessions, including termination of our pensions, in order for the airline to survive and be a partner in the merger," said Mike Flores, US Airways Master Executive Council President. "For former America West executives, who absent the merger would likely be in bankruptcy court themselves, to now cash in pre-arranged merger created stock options and grants is just beyond obscene."
According to UBS Financial Services, Scott Kirby, US Airways Vice President of Sales and Marketing, cashed in a total of over $4 million, while their Chief Administrative Officer Jeff McClelland made $2.2 million before tax. General Counsel Jim Walsh and Chief Financial Officer Derek Kerr made pre-tax earnings of $1.53 and $1.1 respectively.
Negotiations have been largely unproductive with even simple non-economic issues unresolved.
"If management's attitude at the bargaining table continues, predictions of a smooth merger will fall short," said Gary Richardson, America West Master Executive Council President. "Given the company's intransigence on simple matters so far, it is hard to see how an agreement could be reached by the company's target date."
For over 60 years, the Association of Flight Attendants has been serving as the voice for flight attendants in the workplace, in the aviation industry, in the media and on Capitol Hill. More than 46,000 flight attendants at 20 airlines come together to form AFA-CWA, the world's largest flight attendant union. AFA is part of the 700,000-member strong Communications Workers of America (CWA), AFL-CIO. Visit us at www.afanet.org.