CWA-IBT Association and US Airways Interim Letter of Agreement Ratification Vote Placed On Hold

On August 13, 2013, the US Department of Justice (DOJ) along with six States and the District of Columbia filed a lawsuit seeking to block the US Airways-American Airlines merger. The lawsuit claims that the merger will increase fares, reduce competition and result in service cuts hurting the public. Doug Parker, US Airways CEO, has put out a message to all employees reiterating his intent to merge with American and stating that the merger would be good for both passengers and the industry itself. Parker did, however, acknowledge that the timeline for the merger has now been pushed back and wrote to employees, "In light of today's announcement, the companies no longer expect the merger to close during the third quarter of 2013. . . . However, we are hopeful that the litigation will be successfully concluded and we will close the merger before year end." Given the uncertainly the DOJ’s lawsuit creates with respect to the timing and/or viability of the merger, the CWA and IBT believe it prudent to place the ratification vote for the tentative Interim Letter of Agreement on hold while we evaluate the situation and our options. This decision was not made lightly, but the fact that Interim Agreement was premised upon a third quarter 2013 merger closing led the Unions to conclude that this was the best course of action at this time. Accordingly, ballots will not be mailed out to members this week.

The CWA and IBT will continue to monitor this developing situation and we will act accordingly in order to protect the best interests of US Airways passenger service employees.