Airline Division Week In Review - February 22, 2014

RAH Negotiators Brief RAH Executive Board and Stewards on Tentative Agreement 

The IBT Negotiating Team met again this week in Indianapolis, Indiana to put the finishing touches on the Tentative Agreement (TA) for a new Collective Bargaining Agreement that was reached with Republic Airlines management on February 14, 2014.  The Team also completed putting together a detailed overview of the TA that was presented to the Local 357 Executive Board and Chief Stewards on Friday, February 21, 2014.  The extensive, in-depth briefing began at 9 AM and concluded at approximately 5 PM.  The Local 357 E-Board will now carefully consider the information it received.  

This coming week the IBT Negotiating Team will be finalizing the scope of the materials, to include a draft copy of the TA that will be sent to the Republic Pilots in advance of the requisite ratification vote, which will take place next month.  A timetable for that vote has not yet been established.  Additionally, the Team is working on scheduling live "Road Show" presentations for the Republic pilots to take place in March.  

More information will be forthcoming as details are completed. 

Amerijet Negotiations Continue 

This past week Amerijet management and the union met for contract negotiations with the membership represented by Local 769 Business Manager Daisy Gonzalez-Colli and David Renshaw from the Local Union. The Company responded to negotiating committee's proposal and is now reviewing Union response to the Company's latest proposals.   

The next negotiating session scheduled for early April. 

TAMC to Launch Investigation into Engine Problems at Allegiant Air 

The Teamsters Aviation Mechanics Coalition (TAMC) announced today that it will launch an investigation into reports of a disproportionate number of engine failures, air returns and declared emergencies at Allegiant Air. After interviewing pilots at the airline, the TAMC recognized that an immediate, comprehensive investigation into the continuing maintenance failures at Allegiant is imperative.  

The TAMC is determined to find the root cause of these maintenance failures regardless of where the investigation may lead. The immediate goal is to identify the underlying cause of these incidents and to offer suggestions to mitigate this unacceptable situation before one of these incidents claims the lives of passengers and crewmembers. 

Dates Set for UAL Arbitrations 

Following discussions between the union and management and barring unforeseen last minute changes or settlement discussions, the union has announced agreement on the following dates for UAL arbitrations.

March 25:        CAL Medical Grievance - Arbitrator Herb Fishgold  at ORD
March 27:         UAL Medical Grievance - Arbitrator Carol Wittenberg at ORD
April 9:              Resource Utilization Dispute - Arbitrator Ralph Berger at NY
May 14:            ORD Data Center outsourcing - Arbitrator Carol Wittenberg at ORD
June 4:             Tool Room Operations Grievance - Arbitrator Ed Krinsky –  TBD
June 11:           APU Shutdown - Arbitrator Ralph Berger -  TBD
June 18:           Newark De-Icing Grievance - Arbitrator Carol Wittenberg – TBD

Airline Industry News  

Governmental and Regulatory 

The Federal Aviation Administration plans to hire and train more than 10,000 air traffic control specialists in the next 10 years.  

Sen. Barbara Boxer (D-Calif.) said Thursday that Congress should place limits on the number of hours the pilots of cargo airplanes can work in honor of the operators of a UPS flight that crashed last year in Birmingham, Alabama.

Airlines, Industry and Labor 

Boeing is offering a bonus to workers at its South Carolina facility if they can catch up on production of the 787.  

American Airlines has decided to run its engine maintenance facility in Tulsa, Okla., seven days a week. The facility, called TAESL, is a joint venture with Rolls-Royce. The new schedule allows American to keep the current workforce in place.  

Boeing Co. is considering manufacturing a medium-size aircraft to replace its 757 to fly transcontinental routes in the U.S.  

United Airlines is scheduled to begin nonstop service from Los Angeles to Melbourne, Australia, on Oct. 26 and plans to fly its larger, stretched version of the Boeing 787 Dreamliner on the route.  

The debate over whether new rest rules for commercial airline pilots should apply to their counterparts flying cargo gained new attention today when a federal hearing revealed that a UPSpilot who died in a crash told a colleague that his work schedule was “killing” him. 

Boeing  announced the aircraft manufacturer will build the composite wings for its 777X in Everett, Wash.

Airline Division Week In Review - February 1, 2014

Movement of Aircraft without IBT Mechanics Triggers Grievance at Horizon/Alaska 

The announcement by Alaska Air Group, the parent to Alaska and Horizon Airlines; to expand service to the State of Alaska with Horizon Air; has created serious questions on how the routine maintenance work on the aircraft will be accomplished.  

The plan; to have three modified Horizon Q400 aircraft perform regular service between cities in Alaska beginning in March 2014, would release some larger Alaska aircraft currently flying these routes to be used in the lower 48 states. Three new aircraft are also being introduced to the Horizon fleet which should trigger an increase in mechanics headcount overall at the carrier. 

“The union continues to hold the position that all planned routine line maintenance work belongs to Teamster represented QX mechanics, while the company, on the other hand is planning from a position that regular maintenance for these aircraft can fall to the Alaska Air mechanics currently stationed in Alaska who are not members of the IBT at Horizon,” said International Representative Dave Saucedo.  “A grievance was filed in reaction to these announcements making it officially known that the work belongs to the Horizon mechanics. The company has denied that a violation has occurred explaining that the maintenance plan has not yet been finalized although they have continued to move forward with initial steps and training that suggests otherwise,” he continued. 

“Although the company has announced full descriptive plans to the employees and public through various publications, the union has not yet been given a final decision of the maintenance intentions,” said Airline Division Director David Bourne. “The Local union has taken steps to continue through the grievance procedure per their agreement and we will join them in monitoring this situation closely for any attempt to violate the working agreement,” he concluded.   

Piedmont Negotiations Update    

Negotiations resumed on Monday, January 27^th, 2014, with discussions on economics moving at a slower than hoped for pace, caused in large part by external factors created by the tentative agreement recently reached by the American Eagle pilots and the mainline.   

The agreement still needs to be approved by their Executive Council and then be ratified by their membership.  It calls for Eagle to receive the rest of the jets that have been ordered and would guarantee that Eagle’s fleet remains at a minimum of 170 aircraft. Piedmont has yet to receive a commitment of replacement aircraft. 

“We remain committed to insuring a fair and equitable agreement for Piedmont aircraft technicians and related group, while protecting the jobs of our members in a difficult economic environment,” said International Representative Bob Luciano. 

Negotiations are scheduled to resume on March 17^th. 

Republic Negotiations Continue 

Negotiations for a new contract for the Pilots flying for the three airlines owned by Republic Airways Holdings, Inc. continued this week with the IBT’s and the Company’s negotiating teams putting in three days of extensive discussions on various provisions in the new contract.  In addition to reaching conceptual understanding on several Letters of Agreement, the majority of time over the three-day session was spent on Article 3, Compensation. 

“We have made some very solid progress,” said Captain Rick Dubinsky, International Representative for the Airline Division who is leading the IBT’s team. “We have had very substantive sessions with management and, if we are able to continue in this positive manner, I am cautiously optimistic that a tentative agreement can be reached on a new contract in the very near future.” 

General President Hoffa Honored by George Washington University 

This past Wednesday, George Washington President Steve Knapp presented General President James P. Hoffa with the George Washington University President’s Medal in a ceremony at the school. The medal is the highest honor the university president can confer.

Speaking during the presentation, Dr. Knapp said, “James Hoffa has worked tirelessly to improve the lives of working families, to strengthen both the Teamsters and the labor movement as a whole and to preserve their proud histories.”

President Hoffa has been a lifelong advocate of workers’ and union rights has protected thousands of Teamsters and their families. His efforts and commitment have also been recognized and witnessed by his appointment to numerous distinguished posts by President Barack Obama including; the Department of Labor Advisory Committee for Trade Negotiations and Trade Policy in 2009 and 2012; the Advisory Committee for Trade Policy and Negotiations in 2010 and the Department of Transportation National Freight Advisory Committee in 2013.  

President George W. Bush appointed President Hoffa to the Council on the 21st Century Workforce and the Secretary of Energy Advisory Board in 2002 and the Advisory Committee for Trade Policy and Negotiations in 2003.

“It is an honor to receive this award from President Knapp,” said Mr. Hoffa. “The Teamsters and GW have established a partnership I am very proud of and that will be instrumental in labor education for decades to come.”

The George Washington University’s President’s Medal was established in 1988 and has been awarded to individuals who have exhibited courage, character and leadership in their chosen fields and who exemplify the ability to improve the lives of others. Past recipients include Mikhail Gorbachev; Walter Cronkite; Israeli Prime Minister and Nobel Laureate Shimon Peres; United States Sens. William Frist and Joseph Lieberman; NASA astronaut Charles J. Camarda, M.S. ’80; Tony- and Emmy-award winning actor Hal Holbrook; jazz legend David Brubeck; Carlos Slim; philanthropist Albert H. Small; and Norma Lee and Morton Funger, A.A. ’52, B.A. ’53.

UAL Announces Major Reductions at Cleveland Hub 

Citing a decade of losses and tens of millions in lost annual revenue; on Friday, UAL President and CEO Jeff Smisek notified employees of the airlines intent to cut operations at the Cleveland hub by 60% before summer. The reduction means the loss of one mainline flight and 70% of the departures by UAL’s regional partners. 

In his letter, Smisek noted that no city had been more supportive and no group of employees more dedicated to delivering a quality service than Cleveland, but in the end the business simply wasn’t there. 

The reduction means the loss of approximately 430 airport operations and 40 catering positions. 

When asked about the announcement, Airline Division Director David Bourne said, “At this time we do not anticipate any furloughs at mainline United, however we are very concerned about the possible furloughs of Express service membership. We are in discussions with UAL and will represent our members’ best interests.” 

Flight reductions will be phased out over the next four months, with the new schedule offering service to 20 destinations in the United system and 72 peak day flights.

Airline Industry News

Governmental and Regulatory

The National Transportation Safety Board has scheduled a one-day hearing next month into a UPS accident last summer.  

The Federal Aviation Administration has directed airlines to inspect the elevators of Boeing 767s. The airworthiness directive affects more than 400 aircraft.

Airlines, Industry and Labor 

Jim McNerney, the CEO of Boeing, said the aircraft manufacturer wants to move forward withbuilding its relationship with its machinists union.  

American Airlines is offering some flight attendants an incentive of $40,000 for voluntary departure. The carrier said the program is available for 1,500 flight attendants, who face a Feb. 28 deadline to sign up for the program.  

A recent study by PwC concludes that airline mergers have benefited the industry and consumers. The study found that airfares decreased by 0.5% from 2004 to 2013 when adjusted for inflation.