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Writes follow-up letter to CEO after meeting earlier this week

WASHINGTON, DC- U.S. Senator Bob Casey (D-PA) today wrote to Douglas Parker, CEO of US Airways asking him to explain the exact terms of severance packages he referred to in the meeting to all displaced workers and how US Airways is going to increase communication with the public and with elected officials.   The letter is a follow-up to the discussion held earlier this week in Washington DC. 

“While I appreciate the fact that you came to Washington to discuss US Airways operations in the Commonwealth of Pennsylvania, our recent meeting presents more questions than answers,” Casey wrote. 

Casey went on to write, “First and foremost, my focus remains on ensuring that all affected employees are treated in an equitable and dignified manner.”

In particular Senator Casey asked for clarification on the exact terms of the severance packages for all displaced US Airways employees.  In the letter Senator Casey outlined five specific questions to Parker including:

(1)  What are the terms and conditions of the severance packages?  

(2)  In particular, what kind of health care benefits, if any, can employees expect to receive as part of these severance packages?

(3)  To what extent have you communicated these terms and conditions to the affected employees and their labor representatives?

(4)  Have the affected employees and their labor representatives expressed approval and/or satisfaction with the terms and conditions of the severance packages?

(5)  Given past problems, how do you intend to improve communications with your employees? 

In the letter, Senator Casey also asked how US Airways is going to increase communication with the public and with elected officials.  “The questions surrounding your recent announcement in Pittsburgh and the circumstances relating to international operations out of Philadelphia indicate a problem with your communications.  I appreciated your stated intent to improve your company’s communication with the congressional delegation.  In your reply, I would like you to explain how you will accomplish this goal,” Casey wrote.

Last month, Senators Casey and Specter sent a letter to Douglas Parker after learning about US Airways’ plan to cut 40 flights, eliminate 450 local jobs and shift 500 local pilots and flight attendants from the Pittsburgh area as of January 2008.  In the letter, Senators Specter and Casey asserted that such cuts would also adversely affect economic growth around the airport and travel to and from smaller rural airports that rely on Pittsburgh International Airport as a connector between their communities and destinations nationwide.

 

Full text of the letter is below.

 

Dear Mr. Parker:

I am writing to request clarification on some of the points I raised during our recent meeting.  While I appreciate the fact that you came to Washington to discuss US Airways operations in the Commonwealth of Pennsylvania, our recent meeting presents more questions than answers.  Thank you in advance for your timely response to my inquiries.

First and foremost, my focus remains on ensuring that all affected employees are treated in an equitable and dignified manner.  In both the meeting and previous correspondence, I emphasized that affected employees who choose not to relocate to a new job outside of the region should not be penalized for their decision.  Your assertion in our meeting that those employees who choose not to relocated will be offered severance packages may be a positive development.  Before I can make that determination, however, I request your reply to the following questions: 

(1)  What are the terms and conditions of the severance packages?  

(2)  In particular, what kind of health care benefits, if any, can employees expect to receive as part of these severance packages?

(3)  To what extent have you communicated these terms and conditions to the affected employees and their labor representatives?

(4)  Have the affected employees and their labor representatives expressed approval and/or satisfaction with the terms and conditions of the severance packages?

(5)  Given past problems, how do you intend to improve communications with your employees? 

During this week’s press conference, you were quoted as saying “our commitment to Pittsburgh is strong.”   While many in the Pittsburgh region understandably question this assertion, I would like to take this statement as an indication that US Airways has no plans to further cut jobs at Pittsburgh International.  I therefore expect that US Airways will avoid any unnecessary reductions in its presence in Pittsburgh. 

Let me also reiterate my thoughts on this matter from the perspective of Pennsylvania’s taxpayers.  The expansion of Pittsburgh International Airport to accommodate US Airways required significant federal, state, county and local funding.  A similar cooperative effort at all levels of government will be needed as Philadelphia International Airport continues to expand.  In order to support such efforts, taxpayers need reasonable assurances that these investments are beneficial both in the short and the long term. 

As I said during our meeting, I remain very concerned with US Airways’ poor track record as to how you communicate with the public and with elected officials.  As a prime example of the problems we have encountered in recent weeks, on Friday, August 24, 2007 you sent an email to the head of the flight attendants’ union in which you stated that you had “no current plants to reduce PIT mainline flying and therefore nothing to announce.”  Less than two months later, you made drastic cuts to US Airways personnel at the Pittsburgh Airport.

You surely understand that the business decisions you make have a profound and lasting impact on your employees and their families, as well as all of the citizens of southwestern Pennsylvania.  The questions surrounding your recent announcement in Pittsburgh and the circumstances relating to international operations out of Philadelphia indicate a problem with your communications.  I appreciated your stated intent to improve your company’s communication with the congressional delegation.  In your reply, I would like you to explain how you will accomplish this goal.

I would hope that Philadelphia would continue to serve as your international gateway.  That is why I supported your application to the US Department of Transportation for a new route between Philadelphia and Beijing.  Mayor-elect Nutter has requested that you refrain from taking any drastic action until he has time to get a full briefing on this matter.  I trust that you will honor this request while continuing to work with local officials to reach an appropriate accommodation. 

Although I appreciate your assertion that US Airways is committed to the Commonwealth of Pennsylvania, many of my constituents remain justifiably skeptical given your recent actions.  I share this skepticism.  However, I am prepared to work with you and my congressional colleagues and others to do what is best for Pennsylvania. 

Thank you and I look forward to your response to this letter. 

 

Sincerely,

 

Bob Casey, U.S. Senator

  

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