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.