Tuesday, November 12, 2013

Airline Division Week In Review - November 9, 2013

ExpressJet Negotiations Impacted by Government Shutdown 
The government shutdown caused the October dates to be cancelled.  Negotiations resumed this past week with the Federal Mediator in Philadelphia, Pennsylvania. 
The parties continued where they had left off on Section 22 – (General and Miscellaneous), with the sides having direct meetings and discussions of the outstanding issues, with both sides passing proposals on this section. 
While the discussions were fruitful, the parties were unable to reach a tentative agreement on the section during the session. 
Negotiations are scheduled to resume in January. 
UAL Discussions on Hold as Company Announces Intent to File for Mediation 
Negotiations in an attempt to finalize the joint CBA with UAL management continued in Chicago this past week with the company presenting a comprehensive proposal early in the week that the union rejected after a thorough review which led the committee to determine it would be concessionary for many members. 
Thursday evening, the union gave its comprehensive final proposal to the company. It did so after working shoulder-to-shoulder with its financial, legal and actuarial experts to develop a contract that meets the members’ needs while satisfying the company’s objectives.  In less than a half an hour, the Company rejected the Union’s proposal and stated that the proposal was significantly more expensive than it could afford.  The Company also advised the union that it intended to apply for formal NMB mediation.   
The Company’s filing this evening brings an end to 10-months of intense, direct negotiations facilitated by the NMB under a special process that the Company had asked the Union and the NMB to participate in. The purpose of the facilitated process was for securing a mutually agreed upon collective bargaining agreement on an expedited basis.   
“While the committee is deeply disappointed at the outcome, it was our hope to reach a consensual agreement through direct negotiations. We remain ready to meet at any time and at any place to finalize this agreement in a manner that will best reward the membership for its hard work,” said Division Representative Bob Fisher.  
“The NMB worked tirelessly with both the Union and the Company to reach such an agreement. NMB Representatives who have worked with the parties throughout direct negotiations have committed to continue working with the parties while in formal mediation and have expressed their hope that a mutually satisfactory agreement can be reached,” said Division Director David Bourne. 
In a message to the membership, the committee reminded the membership that the only official source of negotiations information will be from the negotiating committee, the Division or their Local Representatives, urging them not fall victim to rumors.

Airline Industry News 
Governmental and Regulatory 
The Justice Department said it is willing to settle its antitrust lawsuit over the proposed merger between US Airways and American Airlines. However, the government is asking for the carriers to divest valuable slots at Reagan National.   
The Federal Aviation Administration issued an overhaul of flight training requirements on Tuesday. "This rule will give our pilots the most advanced training available to handle emergencies they may encounter," FAA Administrator Michael Huerta said.  
The Federal Aviation Administration said the implementation of NextGen is vulnerable to the political nature of its funding. "We remain committed to NextGen in its current schedule, but we need greater fiscal certainty this year and beyond," said FAA Deputy Administrator Michael Whitaker.  
Airlines, Industry and Labor 
Airport executives are speaking out in opposition to the Transportation Security Administration's plan to abdicate its responsibility for staffing passenger exit lanes. "It's no secret that the airport community and the aviation community at large has some grave concerns about the approach and policy that TSA is taking on this," said Carter Morris, the senior vice president for security policy at the American Association of Airport Executives.  
Tammy Romo, CFO for Southwest Airlines, said the government shutdown is expected to cost the carrier up to $25 million in lost revenue for November. Southwest suffered a similar revenue loss last month from the shutdown, Romo said.  
Indigo Partners has a tentative deal with pilots but not the Association of Flight Attendants-CWA. The company plans to go ahead with its acquisition of Frontier Airlines, and will waive the clause about reaching a deal with the flight attendants' union.  
Boeing reached a tentative deal with its machinist union on Tuesday over production of the 777X in Washington state. A letter of understanding between the two parties says that Boeing "agrees to locate the 777X wing fabrication and assembly, and final assembly of the 777X in Puget Sound" if the deal is ratified by a union vote on Nov. 13.  

Today, in honor of Armistice Day; “the eleventh hour of the eleventh day of the eleventh month” of 1918; what we now call Veterans Day, the offices of the Airline Division will be closed.  
We hope that you will join us as we each offer a moment of remembrance for the veterans, past and present for their selfless dedication to our nation. We will re-open for regular business on Tuesday, November 12th.

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