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.