Airline Division Week In Review - September 27, 2014

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Teamster Mechanics Represent at Fall FAA Aviation Safety Infoshare Fifteen mechanic and related Teamsters representing Event Review Committees and Flight Safety committees from five airlines took part in the FAA Aviation Safety Infoshare conference in Baltimore, Maryland this week. Members from UPS, SWA Material Specialists, ExpressJet, s-UAL and s-CAL took part in discussions that covered subjects, including the FAA proposed changes to AC 120-66B which governs ASAP/MSAP programs, Human Factors, Just Culture, L.O.S.A for Aircraft Maintenance and as always, “Mechanic Fatigue” to name a few. “The TAMC commitment to Aviation Safety was visible to the entire industry as Teamster Mechanics easily outnumbered the other Union MX groups combined,” said Airline Division Director Captain David Bourne. “I’m extremely pleased at the TAMC’s presence at the conference and their focus on being the pre-eminent voice for mechanics,” he went on to say. “A tremendous amount of credit and thanks goes to Locals 19, 2727, 781, 210, 455, 856 and 986 for their continued support of their Safety Committees. They are the backbone of this process,” said International representative Chris Moore. A full report on the three day event will be available in the TAMC Aviation Professional Newsletter due out at the end of October. Airline Industry News Governmental and Regulatory U.S. passenger airlines employed 386,243 full-time equivalent workers in July, 1,000 more than in June and 4,944 more than July 2013. The 1.3% year-over-year increase is the largest industry employment jump since 2012, according to the Department of Transportation's Bureau of Transportation Statistics. Google and other search sites say that the Department of Transportation's proposed rules for airfareswould complicate web searches by wrongly classifying search sites as ticket agents. Department of Transportation Secretary Anthony Foxx talks about the effects of airline consolidation and the financial health of the industry. "The industry has gone from being chronically unhealthy to a much more stable and healthy place," he said. "And that is good for the country." The contract employee accused of starting the fire at an FAA facility outside Chicago that canceled and delayed hundreds of flights today is a 36-year-old man who used an unidentified accelerant and acted alone, according to the Aurora, Illinois, chief of police.  Airlines, Industry and Labor The union that represents the 400 pilots of Las Vegas-based Allegiant Air say pilots are leaving the airline at accelerated rates to work for companies that are offering higher pay and benefits. Analysts predict Southwest Airlines will enjoy growth after the expiration of the Wright Amendment next month. The Trefis Team writes "as the carrier is well established and very well recognized in the Dallas market, its additional flights will find many takers." Flight attendants to get pay raises but no profit-sharing in new American contract Hawaiian Airlines has named Sean Menke as executive vice president and chief operations officer. Menke has previously served as president and CEO for both Pinnacle Airlines Corp. and Frontier Airlines Holdings Doug Parker, the CEO of American Airlines, plans to honor the history of the carrier. "We plan to paint some 'heritage' aircraft -- modern planes painted with logos from the past from airlines that have formed today's American," he writes. The aircraft will be painted in one of seven liveries: AirCal, Allegheny, America West, Piedmont, PSA, TWA and Reno Air. Parker started out his career in aviation at America West.

Airline Division Week In Review - September 21, 2014

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American Airlines, US Airways Passenger Service Agents Vote To Join Teamsters-CWA Association  In a vote announced this week by the National Mediation Board (NMB), more than 15,000 passenger service professionals at the newly-merged American-US Airways have voted to join the CWA-IBT Customer Service Employee Association. The joint effort to organize passenger service agents was led by Communication Workers of American (CWA) which will represent about 7,500 new members; 1,300 new members will be represented by the International Brotherhood of Teamsters.  Agents at both airlines voted over the phone and online in a month-long election administered by the NMB. The results were tallied and it was announced today that the workers had voted for the CWA-IBT Association by a 6-to-1 margin.  “We are honored to represent a total of more than 3,000 passenger service agents at the New American Airlines,” said Teamsters Airline Division Director David Bourne. “The Teamsters are committed to providing American Airlines employees and our existing members at US Airways with strong representation as both airlines continue to integrate in this merger.”  Prior to its merger with American Airlines, US Airways’ passenger service agents were represented by CWA in the east with approximately 4,700 members and by the Teamsters in the west with about 1,800 members. The shared representation was the result of US Airways’ merger in 2005 with America West Airlines whose customer service agents were Teamsters. US Airways’ latest merger with American Airlines, whose agents were nonunion, led to an election to determine representation for all agents at the newly-merged carrier.  “With our partners in CWA, the Teamsters are leading the way in protecting airline professionals involved in the biggest airline merger in history,” said Teamsters General President Jim Hoffa. “Our union is dedicated to fighting on behalf of workers in this volatile industry. Our new members at the combined American-US Airways now have two of the strongest airline unions in their corner.  Allegiant Airlines Dispatchers Negotiations Continue The Allegiant Airlines Dispatcher Negotiations Committee prepared for negotiations on Tuesday andWednesday this week. Discussions are on hold because there is no Company negotiator available after their principal negotiator left for another company.    Last month the union was advised that Ford Harrison attorney assigned to replace the principal negotiator for the Company is also leaving.  As yet, no replacement has been named. Consequently, on Tuesday and Wednesday the group continued preparation of contract sections for proposal to the Company the next time they meet.    The next negotiating session will be scheduled contingent upon the appointment of the next Company principal negotiator. Airline Industry News Governmental and Regulatory Acting National Transportation Safety Board (NTSB) Chairman Christopher Hart won approval to serve full term atop the accident investigatory panel from a Senate committee on Wednesday. Hart was appointed permanently to the post by President Obama in June after he took over the helm of the NTSB in April when long-time former NTSB Chairwoman Deborah Hersman left the agency.  Airlines, Industry and Labor Dave Barger, the CEO of JetBlue Airways, plans to leave his position in February after his contract expires. Robin Hayes, a former executive for British Airways, will assume the CEO role on Feb. 16. Hayes was appointed president in January, and recently received U.S. citizenship.   U.S. airlines employed the equivalent of 386,243 full-time workers in July, up 1.3% from July 2013, according to the U.S. Department of Transportation. It was the eighth straight month of industry year-over-year employment gains.   Air freight volumes across the globe rose 6.7% in July compared to the same month last year, according to Airports Council International. "The recovery in world trade -- coupled with improvement in business confidence and domestic demand, particularly in the United States -- are largely attributed to the strong [air freight] recovery," ACI said.   Southwest Airlines is looking to work with labor unions to trim costs. More than 80% of Southwest workers belong to a union. "The nice thing is we have opportunities in our contract negotiations to address waste, to address inefficiencies, to improve productivity," CEO Gary Kelly said.   United Airlines and Republic Airways Holdings announced Wednesday that one of Republic’s units will operate 50 76-seat Embraer E175 jets for United’s United Express regional operations.  As Delta Air Lines prepares to ground 25% of its Boeing 747s, the carrier is offering early retirement to up to 50 pilots of the jumbo jets. Earlier this year, more than 1,000 employees accepted the carrier's offer of early retirement.   Workers at a FedEx Corp warehouse in western Canada have successfully unionized, the first employees besides pilots at the package delivery company to organize in North America, a local Teamsters union said on Wednesday.  United Airlines is offering some flight attendants with seniority up to $100,000 buyouts. "Recalling furloughed flight attendants and aligning our staffing to match our flying schedule will further facilitate the company and AFA reaching a joint collective bargaining agreement," said Mike Bonds, executive vice president for human resources at United. The Association of Flight Attendants lauded the move.

Negotiations Update - September 14, 2014

UAL Negotiations Update

September 14, 2014

The parties met in Washington DC on September 11th and 12th at the offices of the National
Mediation Board under the auspices of mediator Gerry McGuckin.

Thursday morning the company presented a comprehensive economic term sheet proposal. After the company explained their proposal to the full union committee the work of producing a counter proposal began.

The rank and file negotiating committee spent the next day and a half, working late into the night on Thursday, reviewing and putting in writing the counter proposal. With help from lead negotiator Clacy Griswold, the committee was able to present its counter on Friday afternoon.

Included in both of the parties’ proposals were items addressing Scope, Pensions, Health and Welfare and Wages. The committee was assisted in its Scope and Pension responses by attorney Ed Gleason, and for Health and Welfare by actuary Gaelle Gravot, and finally with Wages by economist Dan Akins. Creative solutions are still being explored for health and welfare benefits, which are a major concern of the committee and the membership. One possible solution to health and welfare being discussed was TeamCare, which the UPS workers just recently accepted as their new plan.

After passing the counter proposal on Grievance Procedure, Article 19 was T/A’d. There was also some progress made on items that were not part of the four corner stones. Mediator McGuckin was satisfied with the progress made and encouraged the parties to work in small committees ahead of the next scheduled session in October.

The next formal negotiating session will be the week of October 20th in Chicago.

Airline Division Week In Review - September 14, 2014

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UAL Negotiations Update  The parties met in Washington DC on September 11th and 12th at the offices of the National Mediation Board under the auspices of mediator Gerry McGuckin.  Thursday morning the company presented a comprehensive economic term sheet proposal. After the company explained their proposal to the full union committee the work of producing a counter proposal began.  The rank and file negotiating committee spent the next day and a half, working late into the night on Thursday, reviewing and putting in writing the counter proposal. With help from lead negotiator Clacy Griswold, the committee was able to present its counter on Fridayafternoon.   Included in both of the parties’ proposals were items addressing Scope, Pensions, Health and Welfare and Wages. The committee was assisted in its Scope and Pension responses by attorney Ed Gleason, and for Health and Welfare by actuary Gaelle Gravot, and finally with Wages by economist Dan Akins.  Creative solutions are still being explored for health and welfare benefits, which are a major concern of the committee and the membership. One possible solution to health and welfare being discussed was TeamCare, which the UPS workers just recently accepted as their new plan.   After passing the counter proposal on Grievance Procedure, Article 19 was T/A’d. There was also some progress made on items that were not part of the four corner stones. Mediator McGuckin was satisfied with the progress made and encouraged the parties to work in small committees ahead of the next scheduled session in October.   The next formal negotiating session will be the week of October 20th in Chicago.  Kalitta Charters II Votes to Join Teamsters A recent organizing drive has culminated in a successful election to bring the Kalitta Charters II flight deck crewmembers into the Teamsters effective September 3, 2014.  “We welcome the crewmembers of Kalitta Charters to the Airline Division of the Teamsters and look forward to representing them,” said Airline Division Director Captain David Bourne.  These crewmembers will join Local 1224.  Republic Update  The NMB called the parties to Washington on Friday, September 12th, for a status report for the balance of 2014. Airline Industry News Airlines, Industry and Labor Boeing and Airbus are considering ramping up aircraft production to meet demand. "If we're going to make that decision, we would want to make that decision as soon as possible, because the market's already there," Barry Eccleston, president of Airbus Americas, said of the Airbus A320 family of aircraft. Meanwhile, Boeing has said it may boost production of its 737 aircraft.   Boeing executives said they do not plan to build a final assembly line in China after considering such a plan.   Ray Conner, CEO of commercial airplanes at Boeing, said the aircraft manufacturer may ramp up production of its 737. "There's incredible pressure to go higher," Conner said. Boeing produces 737s at a rate of 42 per month, and plans to increase production to 47 per month in 2017.

Airline Division Week In Review - September 7, 2014

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Union Solidarity Paves the Way to Victory as Norwegian Air is denied Waiver  Following a Teamster online petition campaign to keep Norwegian Air International out of the U.S., the Department of Transportation has denied the low-cost carrier’s procedural application to begin transatlantic flights.  “The Teamsters Airline Division applauds the Department of Transportation’s decision to deny Norwegian Air’s application for a temporary waiver to operate in the U.S. Norwegian Air has been dubbed the ‘Wal-Mart of the Skies’ for its relentless pursuit of cheap labor, driving down standards for airline employees and passenger safety,” said Teamsters Airline Division Director Capt. David Bourne.  According to a filing by the DOT, “Because of the extensive record, which reflects the novel and complex nature of this case…the Department does not find that a temporary exemption is appropriate or in the public interest.”  However, industry insiders say that a full application for NAI to operate in the U.S. is still pending and a decision won’t be made until after the November elections.  Although Norwegian in origin, NAI’s race to the bottom includes the registration of its planes in Ireland, hiring pilots in Singapore, and basing its flight crews in Thailand – all to skirt Norwegian labor laws.  “We cannot allow a greedy airline like NAI to fly in the U.S. We call on the DOT to deny NAI’s full application and protect good middle class jobs in the airline industry,” said Bourne.  Piedmont Stock Clerk Negotiations Update  Stock Clerk negotiations commenced this past week at the Company offices in Harrisburg, Pennsylvania.  A productive session ensued, with the parties reaching Tentative Agreements on the following contract articles:                    Article 3 – Classifications                  Article 4 - Seniority                  Article 5 - Filling of Vacancies                  Article 7 - Hours of Service                  Article 16- Leaves of Absence  The Union also passed proposals on Expenses and Field Service. The Company expressed a desire to defer to economic discussions and Furlough and Recall, which the Company will also respond to.  Negotiations are scheduled to resume on October 9th.  Airline Industry News Airlines, Industry and Labor  United Airlines recently received its first 787-9 Dreamliner  from Boeing. At 206 feet long, the plane is 20 feet longer than its previous version. United plans to fly the Dreamliner between Los Angeles and Melbourne.   American Airlines announced plans to reassign 47 Bombardier CRJ-700s to PSA Airlines next year. "Consolidating our fleets will lower costs for American Airlines Group and simplify the regional feed for our mainline operations," said Kenji Hashimoto, senior vice president of regional carriers for American.   AAR, a maintenance, repair and operations service provider, said U.S. airlines are bringing home wide-body MRO work from overseas. AAR is building a MRO facility in Rockford, Ill., designed to handle wide-body aircraft such as the Boeing 787.  The union representing USAirways pilots said it has reached a tentative deal on a protocol agreement with the union representing American pilots on a process for seniority integration of the two pilot groups.  United Airlines plans to retire its 50-seat regional jets by next year, instead deploying larger Embraer regional jets that can seat 76 passengers.

Airline Division Week In Review August 31, 2014

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Questions Raised by Congress over World Airways shutdown, upstreaming of cash Several U.S. congressmen have sent a letter to U.S. Secretary of Labor Tom Perez regarding the misuse of cash that was to be used for employee health care costs by the employees of World Airways. In the letter from Congressman George Miller (D-CA-11th) and co-signed by twelve fellow congressmen, Miller stated his concerns over the actions of Cerberus Business Finance and; “...that there may have been a misuse of plan assets or other breaches of fiduciary duties under the Employee Retirement Income Security Act (ERISA).” Of primary concern is that Cerberus retroactively cancelled health care coverage and retained the cash for its use instead of covering known employee health care costs, including those of a crewmember who contracted the H1N1 virus while flying military support missions. After being hospitalized for over a month and placed in a medically induced coma, the pilot found that over $2,000,000 of medical bills were unpaid as a result of Cerberus’ actions. Congressman Miller and the co-signers are asking Secretary Perez to launch an investigation to determine if Cerberus violated ERISA or other laws. To read the letter, click on the following link. http://teamsterair.org/sites/teamsterair.org/files/uploads/82914congressltr001.pdf SWA Material Specialists Update SWA Material Specialist Contract Negotiations continued in Dallas this past week. The Negotiating Committee, along with Local Union Business Agents and Airline Division Representation met outside of negotiations on August 25th and 26th to work on Article’s 5 (Hours of Service), Article 27 (Shift and Day Trades) and Article 8 (Field Service). Direct negotiations with the Company continued on August 27th. The Union, after much internal discussion, informed the Company that they would be holding with the last union proposals on Articles 8 and 27 and consider them tabled until the parties are further along in negotiations. The Union also made a counter proposal on Article 5. No additional T/A’s were reached during the session. The parties are working on scheduling dates for the next round of talks. Airline Industry News Airlines, Industry and Labor Southwest Airlines is adding around 900 more parking spaces at Dallas Love Field ahead of the expiration of the Wright Amendment on Oct. 13. JetBlue Airways is strengthening its presence in Orlando with a $40 million investment in its training facility that hosts company employees from around the country. JetBlue operates a 400-person call center at the site and has nearly completed a 200-room lodge on the campus.   Robert Isom, the chief operating officer of American Airlines, said the carrier expects to receive a single operating certificate in the second quarter of next year. Isom said the schedule gives American and its merger partner of US Airways time to ensure operations and policies "are all identical, mirror images at the time of single operating certificate." American Airlines has stopped offering its flights through travel website Orbitz and will remove US Airways airfares from the site Sept. 1. Fliers who previously purchased tickets through Orbitz can still use them, but may only make changes directly through the airline. Several U.S. airlines are adjusting their meal service to meet passenger demand for in-flight fare, writes blogger the Cranky Flier. "Frankly, what amazes me is the attention to detail when it comes to meals," he writes. Major airlines are adding seats to the marketplace to meet the high demand for air travel. The carriers have been rewarded with higher passenger traffic and relatively few empty seats. Today, Labor Day is a day marked with picnics and family, sports, the end of summer and students heading back to school and endless sales. More importantly though, it is and should always be celebrated as the day we set aside to honor the social and economic achievements of American worker. While history debates who actually called for the first Labor Day, the end result is a day that stands as a testament to your fellow workers hard work and dedication to your craft. On behalf of the Airline Division, we extend to you, your families and fellow Teamsters our best wishes for a Happy Labor Day. Our offices will re-open for regular business on Tuesday, September 2nd.