Photo by Dennis Schroeder
A marketing sign in front of the Frontier Airlines ticket counter at DIA recently.
Frontier Airlines will temporarily reduce pay and other benefits for most of its 6,000 workers as it looks to cut costs and secure financing to emerge from bankruptcy.
The Denver-based carrier, which filed for Chapter 11 last month, has come to agreements with unions representing 700 pilots and 16 dispatchers on temporary wage reductions and related concessions. The unions must ratify the agreements for the changes to take hold.
Nonunion employees - which represent the majority of Frontier's work force - will see similar cuts as well. Frontier said that the plan calls for the concessions to last through September.
But the one remaining union it's negotiating with, the Teamsters, said the company is looking for $10.2 million in concessions from its workers.
Frontier, battling high fuel costs, said it will reassess business conditions when the concessions are scheduled to expire.
"We anticipate that we'll have a little more knowledge at that time of where fuel is and whether or not we are able to secure the financing" needed to emerge from bankruptcy, Frontier spokesman Steve Snyder said. "Essentially, we're leaving no stone unturned, and we're looking at every avenue to ensure the long-term viability of this company."
Negotiations with the Teamsters took an ugly turn this week. The Teamsters on Wednesday criticized Frontier's management, saying it's looking to create a "golden parachute" for executives while asking employees to take millions of dollars in pay cuts.
The union, which represents 425 Frontier aircraft technicians, ground service workers and other employees, said it was prepared to accept $1 million in wage and other concessions before the company "sprung" on it a proposal to give executives between six and nine months of pay should the carrier not survive. The Teamsters called it a "deal breaker."
"We're upset that the company is trying to line management's pockets on the backs of the employees in the event the airline is liquidated," said Matthew Fazakas, president of Local 961.
walshc@RockyMountainNews.com or 303-954-2744
Post your comment
Registration is required. Click here to create your free user account, or login below.
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.
May 14, 2008
9:17 p.m.
Suggest removal
dv8 writes:
Wow!! A Union is upset that a Company is trying to stay in business. What will be next?? It seems the "Front Office" is trying to keep things in the air. There are a lot more employees that work for Frontier that arent Union who have alot to lose as well. COWBOY UP!!!
May 14, 2008
9:27 p.m.
Suggest removal
FLTCREW writes:
Exactly!! We F9 flight attendants aren't union, and if we want to keep flying....let buckle up and let's do what we got to do to remain in the skies!!!
Give to a UNION to stir things up and go to the press!!
May 15, 2008
7:40 a.m.
Suggest removal
sunflower writes:
Lets see, the CEO, Chairman, CFO and General Counsel all bailed within the last ten months. I think some insight can be gleaned from that knowledge. I know it's hard when you have given so much as the F9 frontline folks have, but the company was in the red at $70 oil. Reality. I wish you folks the best. Other industries arent as cruel. Keep your heads up and be proactive in your career decisions.
May 15, 2008
8:07 a.m.
Suggest removal
bmb527 writes:
I am one of the Frontier mechanics. I agree that what must be done, must be done and we all have to take one for the team. But, I refuse to agree to a pay cut and then have the folks that make huge money have such a nice severance package while those of us that bust our butts every day/night, and I mean every employee in all work groups have NO severance package at all. If F9 fails, we all get nothing, the directors that make $100K get wages and insurance for 6-9 months. I say no way, refuse the cuts and force it to go to the bankruptcy judge. I am not a big fan of the unions, but I am glad they are here to watch what most of us don't see when it comes to these things.
May 15, 2008
8:34 a.m.
Suggest removal
jks038 writes:
I am with the teamsters union workers on this one. Some management that have been with Frontier less than a year will get 6-9 months of salary and medical benefits if the carrier goes under while the union members, some of whom have been there from the beginning, will get nothing. This is why unions exist!! Go Teamsters.
May 15, 2008
9:36 a.m.
Suggest removal
LingLingfor_prez writes:
Although I agree with some of what both sides are saying, there is also no room for error on this one. Other airlines are not doing a whole lot of hiring right now and general aviation is hurting as well, leaving not really anywhere else to go. Big picture is that either you have a job or your don't. However, they could have put the pay cut plan forward and also made a sales pitch such as a bonus for the workers for when September comes around if successful. Not a perfect world though. I am curious if this will send a ripple through some other airlines who may also try and cut wages.
May 15, 2008
9:41 a.m.
Suggest removal
RealifeTauren writes:
The union is looking after it's own interests, and ignoring the greater impact their resistance will have. This is typical. Did you read that the Frontier Execs took a 20% pay cut last week in a first attempt to reach their financial goal? Of course you didn't. But they did.
Difficult times call for difficult decisions. I do not envy the people making these choices at Frontier, but they are doing what they can to prevent a closure and loss of thousands of jobs.
May 15, 2008
9:49 a.m.
Suggest removal
WTF999 writes:
so the CEO takes a 20%cut in his pay, HMMM he still makes 300,000 a year, that is a big change in his "life style".
Management is being very unreasonable seeing that they are all set up pretty if the airline does not make it.
Whats the problem, they are telling the workers that we will be fine, so if that the case it would not cost them anything in the outcome if they agreed to what the union is proposing so BUCK UP THERE Frontier management.
This company was built on the workers back and succeeds on the everyday work and this is how we are treated, SHAME ON YOU MANAGEMENT!!!!!!!!
May 15, 2008
9:54 a.m.
Suggest removal
4gColoNative writes:
I need to buy two RT tickets for a longish flight in October. Currently Frontier has the best price, and I like to patronize Frontier.
If I read that Mgmt, Union, and employees all rapidly reach consensus on these matters and work together to bounce back, I might be willing to book with Frontier and take the chance.
If I see dissension, I go with another carrier.
The point being, if any party to this gets obstinate, they lose still more business and spiral downward.
May 15, 2008
9:57 a.m.
Suggest removal
CalebTGL writes:
Go Teamsters! It sounds like the executive folks are just trying to take care of themselves as best they can, so is the union. It seems foolish for the executives to expect cuts out of the union without making similar or greater sacrifices themselves.
The reality is that airline management does not see this as a "we've all got to pull together and take one for the team" situation. They see it as a, "we've got to boost revenue and cut costs" situation. Which means they don't really care if they cut into frontline employee pay more than they actually need to, they are trying to maximize profit, not just break even. So they'll take it as far as they can, probably even if it means pretending the situation is worse than it really is to get the unions to make extra concessions.
The Teamsters union is a bulldog, it doesn't give in easily, and it takes the equal and opposite approach of management in that it does everything in its power to maximize the pay of it's membership.
May 15, 2008
10:14 a.m.
Suggest removal
Buckwheat writes:
Just don't get rid of the Bear.....
May 15, 2008
10:57 a.m.
Suggest removal
sunflower writes:
Oh yea, and giving back your already low wages isn't gonna save the company. Pay your bills and work on plan B. Airline managements are always from the bottom of the executive talent pool. You won't get a fair shake, period. I'm not a big union fan, but they have their purpose. As for the koolaide drinkers, you're out to lunch.
May 15, 2008
11:05 a.m.
Suggest removal
dv8 writes:
If they are looking for a 10% paycut like they are from the rest of the workforce . would the union rather take a 10% pay cut?? Or maybe a 10% reduction in force. They do have fewer aircraft now. Why is it unions always have a sense of entitlement?? Work through the crappy situtaion just like everyone else and hope Frontier can pull it off.
May 15, 2008
11:06 a.m.
Suggest removal
SeaBass writes:
If the Teamsters are really serious, they'll start digging shallow graves to get there point across.
May 15, 2008
11:20 a.m.
Suggest removal
sunflower writes:
oops, let me correct myself before someone else does. Airline managements are always from the bottom of the executive talent pool - with a couple of notable exceptions, the Herb Kelleher Team and the Gordone Bethune Team. No offence to the younger crowd out there, but how many business cycles can a 39 year old CEO draw experience from, 2? Book smart doesn't cut it.
May 15, 2008
11:31 a.m.
Suggest removal
joggle writes:
I strongly agree with the Teamsters on this. If the execs know they don't have a golden parachute and know that if things go badly they'll be going down with the ship then they'll be more motivated to prevent that from happening. It will also boost the moral of the employees a bit probably since they know that if their income gets cut so does the top brass's income (of course the execs will still have plenty of money in the bank, but at least they wouldn't be getting even more money they don't need after liquidation while the workers go without).
May 15, 2008
12:25 p.m.
Suggest removal
kirger writes:
Great to see the support for the Teamsters...
VOTE NO ON AMENDMEN 47…
Have a VOICE
http://www.coaflcio.org/righttoworkis...
May 15, 2008
2 p.m.
Suggest removal
FLTCREW writes:
As a F9 flight attendant, I'd rather take a paycut then be in that unemployment line!!! Stick up for your company F9er's and do what we have to do to still have a job!! Colorado wants us here!!
If you wanted to make $300K then, do it, go into management then!! DDon't whine on this website about it!!
May 15, 2008
2:21 p.m.
Suggest removal
athought writes:
The CEO's of Delta, United, Northwest, and Continental did not take pay cuts while their companies were in bankruptcy. The unions were right to complain. The Teamsters is being greedy here and acting their usual jerk*** ways. I support unions that support their members and the Teamsters is notorious for not doing so. If top management is taking paycuts, they aren't asking the employees to do anything they aren't doing themselves. Managing a large company isn't easy and they are entitled to make 6 figure salaries provided they do a good job and treat the employees well. F9's staff is very efficient and has always done a great job for this satisfied customer.
May 15, 2008
8:19 p.m.
Suggest removal
bmb527 writes:
To the sky waitress and others that think this is all a good thing, if F9 shuts down next week, not one worker gets anything... other than unemployment and COBRA @ $1000/ month. The bosses get their full wages for 6-9 months, plus full paid insurance. Open your eyes and stick up for yourselves. They put these severance packages in place for a reason, and it is not to protect us the workers who bust our humps every day to make sure the big wigs can maintain their country club membership.