US Airways employees, retiree object to $55 million management retention proposal

By Caroline Salls

Pittsburgh, May 23 - Three US Airways Inc. employees and one retiree filed letters in objection to the company's motion to use $55 million for management incentive bonuses, according to motions filed Friday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

In his letter, employee James E. Hestand said "at a time that US Airways is operating under the protection of Chapter 11, all funds available to the company should be used for the operational survival of US Airways, not for the benefit of a few."

Thomas M. Stansbury, a former flight attendant, said he will now get a "sharply reduced pension (if I get one at all) as a result of the mismanagement of the airline by many of the very people whom the transaction retention program is designed to benefit."

Employee Bonita L. Enjem said pride in the company and employee morale has reached an all-time low. Enjem said giving management bonuses would be "a total insult" to the employees.

Finally, pilot Larry D. McCarroll said "since I first wrote to you, I have watched my life's work disappear and my pension valued now at less than 12% than what I had anticipated."

The company's motion seeks approval of officer employment contracts and severance and retention policies for salaried employees on the possibility of the merger with America West Holdings Corp., which was announced Thursday.

According to a Thursday objection from the Communications Workers of America AFL-CIO, the management retention plan "potentially exposes [US Airways'] estate to $55 million in administrative expenses."

The Arlington, Va.-based carrier filed for bankruptcy on Sept. 12. Its Chapter 11 case number is 04-13819.

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