World Airways Shutdown Update
The IBT Airline Division has been working very diligently on behalf of its members in the wake of the airlines untimely shutdown. Attorneys for IBT have spent the past few weeks identifying IBT-represented employees’ claims against World and filed a Proof of Claim on behalf of those employees on April 24, 2014. Of particular concern have been hundreds of thousands of dollars in unpaid medical claims for services provided to for members when the World health care plan was in effect. Worlds shut down with these claims unpaid and with no guarantee of payment, potentially leaving some members liable for extensive medical bills. IBT’s attorneys have been exploring potential legal avenues for relief and have filed multiple motions bringing the issue to the attention of the bankruptcy court. They are now in negotiations with relevant parties for funding and a process to provide for the payment of those claims so that our members will not face any liability.
On the political front, the IBT has also been seeking political assistance with the unpaid medical claims issue. Lobbyists for IBT spent the past week meeting with more than a dozen members of Congress and have generated significant sympathy and interest in our members’ situation. These meetings were used to explore a variety of different options that legislators could employ to bring pressure to bear on Global stakeholders to make good on their obligations to World pilots and flight attendants.
On the media front, General President James P. Hoffa published an article in the Huffington Post titled, “Cerberus Loots Bankrupt Airline’s Health Care Account.” The article explained Cerberus’s involvement in the crisis that members face and the unfairness of Cerberus’s decision to sweep World’s accounts clean while health care obligations remained outstanding. The article generated significant attention and there are plans to follow up with more media coverage.
To read the article, click on the following link:
Additionally, the IBT and Airline Division have reached out to other carriers, including Atlas Air and Omni, to find prioritized placement for its pilots and flight attendants in vacancies at these IBT-represented carriers. More than fifty pilots have applied for jobs at Atlas, a healthy and growing carrier, and there are also a number of opportunities for flight attendants there. Efforts will continue to assist members to find new employment with Teamsters or other carriers wherever possible.
United Airlines Flight Simulator Negotiations Update
The past weeks discussions with United Airlines were met with disappointment as the company expressed their desire to stall negotiations and announced intentions to cancel the next scheduled meeting at the end of this month.
The company has stated its position remains that a contract is developed with no relation to the current Sub-UAL agreement; a position the union has advised management is unacceptable.
The Committee and team will go ahead with their planned meeting later this month, despite the notice by the company that they will not attend. The group will work on language and positions for Articles that have already been passed and ones requiring our attorney’s assistance.
UAL Representatives Attend Training
On April 29th and 30th, twenty five Chief Stewards and Business Agents attended training on preparing and presenting cases at the System/Joint Board level. The class was coordinated by the IBT Training Department and was led by Iliana Flores after a request by the Airline Division.
The first day was spent learning preparation and presentation theory and tactics. The modules taught were building the case file, formulating the question to be asked of the board, witness preparation, painting a simple story for the board and finally what board members look for in a presentation. There was much interaction and feedback regarding past and current cases.
The second full day was spent using the knowledge in a practical situation. A mock board was held using a current discharge case. The class was divided into three groups, the board with both union and company members, the union side and the company side. The case was dissected and discussed in many different ways over the course of eight hours. The designated company representatives presented their case, including witness testimony, and the designated union group cross examined the witness followed by redirect from both sides. In a similar manner the designated union representatives mounted their defense of the grievant. Finally the designated board went into executive session and rendered a decision.
It was evident the participants were enjoying their roles and were gaining insight to further help the members by mounting solid cases. Given the participation and feedback from the group this class will be ongoing. Also materials are being developed as a result of the feedback to further aid these representatives in the future.
The class was hosted by Local 856 in San Bruno. A special thanks goes to Principal Officer Peter Finn and the entire staff of Local 856; without their valuable support this class would not have been as successful as it was.
Former Congressman James “Jim” Oberstar Passes Away, “A Great Supporter of Aviation and Labor”
Former U.S. Congressman James L. “Jim” Oberstar passed away unexpectedly on May 3, 2014 at his home in Potomac, Maryland. He was 79.
Oberstar, a Democrat was first elected to the 94th Congress on in 1974, serving seventeen successive terms from January 3, 1975 until January 3, 2011.
During his tenure, he became a widely recognized expert on aviation and aviation safety. During his entire tenure in the House he served on the Transportation and Infrastructure Committee and known and widely respected for his expertise on aviation and aviation safety. A strong advocate for rebuilding the nation’s infrastructure, he also served as a member of the President's Commission on Aviation Security and Terrorism.
An early and open opponent of free trade agreements, he fought against the North American Free Trade Agreement (NAFTA), and the Central American Free Trade Agreement (CAFTA), believing that the free trading offered little or no economic opportunity for American workers and producers.
"Jim Oberstar was a solid and strong supporter of labor and a good friend to airline labor groups,” said Airline Division Director David Bourne. “Whenever we needed Congressman Oberstar’s assistance, his door was always open and he stood ready to help. He was a tremendous friend to the American worker and hearing of his unexpected passing today was a great shock. While Jim Oberstar will truly be missed by everyone who had the pleasure of knowing him, his legacy will live on,” he concluded.
Congressman Oberstar is survived by his wife Jean, four children and eight grandchildren.
Airline Industry News
Governmental and Regulatory
Two fatal crashes of Alaska commuter aircraft and five other accidents or incidents have led the National Transportation Safety Board to recommend a comprehensive safety audit of the company that provides most commuter air service within the state.
The FAA has released details on airport improvement grants
for 2014.
Airlines, Industry and Labor
The Machinists union said Tuesday it will seek legislation to hold Boeing accountable for creating and maintaining middle-class jobs with the state tax incentives the company received last year. The move follows a series of Boeing announcements that it is moving thousands of engineering jobs out of Washington to lower-pay regions.
Budget airline Norwegian Air has suspended talks on buying 20 Dreamliner planes from Boeing because of a delay in receiving U.S. backing for its long-haul plans, Chief Executive Bjoern Kjos said in a letter.
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