Airline Division Week In Review - November 9, 2013

ExpressJet Negotiations Impacted by Government Shutdown 

The government shutdown caused the October dates to be cancelled.  Negotiations resumed this past week with the Federal Mediator in Philadelphia, Pennsylvania. 

The parties continued where they had left off on Section 22 – (General and Miscellaneous), with the sides having direct meetings and discussions of the outstanding issues, with both sides passing proposals on this section. 

While the discussions were fruitful, the parties were unable to reach a tentative agreement on the section during the session. 

Negotiations are scheduled to resume in January. 

UAL Discussions on Hold as Company Announces Intent to File for Mediation 

Negotiations in an attempt to finalize the joint CBA with UAL management continued in Chicago this past week with the company presenting a comprehensive proposal early in the week that the union rejected after a thorough review which led the committee to determine it would be concessionary for many members. 

Thursday evening, the union gave its comprehensive final proposal to the company. It did so after working shoulder-to-shoulder with its financial, legal and actuarial experts to develop a contract that meets the members’ needs while satisfying the company’s objectives.  In less than a half an hour, the Company rejected the Union’s proposal and stated that the proposal was significantly more expensive than it could afford.  The Company also advised the union that it intended to apply for formal NMB mediation.   

The Company’s filing this evening brings an end to 10-months of intense, direct negotiations facilitated by the NMB under a special process that the Company had asked the Union and the NMB to participate in. The purpose of the facilitated process was for securing a mutually agreed upon collective bargaining agreement on an expedited basis.   

“While the committee is deeply disappointed at the outcome, it was our hope to reach a consensual agreement through direct negotiations. We remain ready to meet at any time and at any place to finalize this agreement in a manner that will best reward the membership for its hard work,” said Division Representative Bob Fisher.  

“The NMB worked tirelessly with both the Union and the Company to reach such an agreement. NMB Representatives who have worked with the parties throughout direct negotiations have committed to continue working with the parties while in formal mediation and have expressed their hope that a mutually satisfactory agreement can be reached,” said Division Director David Bourne. 

In a message to the membership, the committee reminded the membership that the only official source of negotiations information will be from the negotiating committee, the Division or their Local Representatives, urging them not fall victim to rumors.

Airline Industry News 

Governmental and Regulatory 

The Justice Department said it is willing to settle its antitrust lawsuit over the proposed merger between US Airways and American Airlines. However, the government is asking for the carriers to divest valuable slots at Reagan National.   

The Federal Aviation Administration issued an overhaul of flight training requirements on Tuesday. "This rule will give our pilots the most advanced training available to handle emergencies they may encounter," FAA Administrator Michael Huerta said.  

The Federal Aviation Administration said the implementation of NextGen is vulnerable to the political nature of its funding. "We remain committed to NextGen in its current schedule, but we need greater fiscal certainty this year and beyond," said FAA Deputy Administrator Michael Whitaker.  

Airlines, Industry and Labor 

Airport executives are speaking out in opposition to the Transportation Security Administration's plan to abdicate its responsibility for staffing passenger exit lanes. "It's no secret that the airport community and the aviation community at large has some grave concerns about the approach and policy that TSA is taking on this," said Carter Morris, the senior vice president for security policy at the American Association of Airport Executives.  

Tammy Romo, CFO for Southwest Airlines, said the government shutdown is expected to cost the carrier up to $25 million in lost revenue for November. Southwest suffered a similar revenue loss last month from the shutdown, Romo said.  

Indigo Partners has a tentative deal with pilots but not the Association of Flight Attendants-CWA. The company plans to go ahead with its acquisition of Frontier Airlines, and will waive the clause about reaching a deal with the flight attendants' union.  

Boeing reached a tentative deal with its machinist union on Tuesday over production of the 777X in Washington state. A letter of understanding between the two parties says that Boeing "agrees to locate the 777X wing fabrication and assembly, and final assembly of the 777X in Puget Sound" if the deal is ratified by a union vote on Nov. 13.  

Today, in honor of Armistice Day; “the eleventh hour of the eleventh day of the eleventh month” of 1918; what we now call Veterans Day, the offices of the Airline Division will be closed.  

We hope that you will join us as we each offer a moment of remembrance for the veterans, past and present for their selfless dedication to our nation. We will re-open for regular business on Tuesday, November 12^th.

Negotiations Update For November 8, 2013

Mechanics Dispatch - Negotiations Update November 7, 2013

The committee met this week in an attempt to finalize the joint CBA. The company presented a comprehensive proposal early in the week that the union rejected.  

Tonight the union gave its comprehensive final proposal to the company. It did so after working shoulder-to-shoulder with its financial, legal and actuarial experts to develop a contract that meets the members’ needs while satisfying the company’s objectives.  In less than a half an hour, the Company rejected the Union’s proposal and stated that the proposal was significantly more expensive than it could afford.  The Company also advised that it will apply for formal NMB mediation tonight.  The Company’s filing this evening will bring to an end 10-months of intense, direct negotiations facilitated by the NMB under a special process that the Company had asked the Union and the NMB to participate in. The purpose of the facilitated process was for securing a mutually agreed upon collective bargaining agreement on an expedited basis.  The company also informed the committee this evening that they would be filing for mediation. 

The committee is deeply disappointed at the outcome, as it was our hope to reach a consensual agreement through direct negotiations. We remain ready to meet at any time and at any place to finalize this agreement in a manner that will best reward the membership for its hard work.  

The NMB worked tirelessly with both the Union and the Company to reach such an agreement.  NMB Representatives who have worked with the parties throughout direct negotiations have committed to continue working with the parties while in formal mediation and have expressed their hope that a mutually satisfactory agreement can be reached. 

The committee would like to remind the membership that the only official source of negotiations information will be from the negotiating committee, the Division or your Local Representatives.  Please do not fall victim to rumors and stay tuned for further updates.

Download Mechanics Dispatch 62 110713

What follows is Cheiron's (the IBT's third party actuaries for Health and Welfare issues) report highlighting two groups as a sample base. The 12 and 20 year technician at both subsidiaries. The Company's posted proposal revealing a all in wage rate of $40.85 would be for a technician with 30 or more years (approx. 3-4% of our membership).

 

The report details how that hourly wage quickly deteriorates when taking into account the rest of the Company's proposal (longevity scale, step increase scale, increase in medical costs to sUAL, elimination of lifetime recall, elimination of bridge retiree, elimination of line pay for a large group not working on the line, etc.).

 

While some employees would be realizing a minimal increase to their wage rates many would be realizing decreases to their wage rates under the carriers proposal. 

 

Download Cheiron UAL Proposal Analysis 110713

 

Airline Division Week In Review For October 28, 2013

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UAL Negotiations Update  The parties will reconvene on November 4th in Chicago in an attempt to finalize the joint collective bargaining agreement. The parties will be assisted by Senior Mediator Pat Sims and Mediator Michael Kelleher from the NMB.  On Friday, an et al., (“and others”) benefits grievance was filed by the union regarding the unilateral changes imposed by the company. Chief Stewards and the Business Agent will have a copy for members to review and it will be posted electronically. NetJets Technicians and Related Discussions   Prior to a scheduled meeting with the company, the Negotiating Committee met on October 22ndand 23rd to discuss and work on proposals for Articles 7- (Union Representation), 8 – (Grievance Procedure) and 9 – (Arbitration).  Discussions between the NetJets Negotiating Committee and Company continued on October 24th. The negotiating session focused on Article 7 – (Union Representation), 12 – (Jury Duty), 13 – (Funeral Leave), 16 – (Holidays), 23 – (Moving Expenses), 25 – (Sick Leave), and 35 – (Tuition Assistance).  The Union made a proposal on Article 23 – (Moving Expenses). The Company made counter proposals on Articles 12, 13 and 35 and provided opening proposals on Articles 7, 16 and 25, and after discussion the parties reached a Tentative Agreement on Article 23 – (Moving Expenses).   The Union and the Company are currently discussing dates for the next round of talks.  Captain Charles “Butch” Downs Passes Away. “He will be sorely missed,” says ExCo Chairman  Captain Charles Henry ‘Butch’ Downs, 69, formerly a pilot for Cape Air (Local 1224) passed away peacefully Saturday, October 19, 2013 at the Martha’s Vineyard Hospital. A Martha’s Vineyard native, he was born in Oak Bluffs and raised in Edgartown, Massachusetts. He dedicated his life to being a pilot, having been taught to fly at the age of 13. At 16, he enlisted in the Air Force and served two tours of duty as a Ranch-Hand in the Vietnam War. An honored veteran; his C-123, “Patches,” holds the distinction of being the second most shot at airplane during the Viet Nam war - currently sits at the National Museum of the U.S. Air Force in Dayton, Ohio.   The love of flying stayed with him after his service. He had a long and varied flying career that led him around the world and culminated in nearly two decades as a pilot for Edgartown Air, which later became Cape Air. He often told his son that his favorite thing about flying was watching the sun rise and set from thousands of feet above the earth. Butch was also integral to many aspects of the Island. He worked as an AB for the Steamship Authority, had a (very brief) career as Duke’s County Deputy Sheriff, was past commander of the VFW, and was a pioneer in swordfish spotting – his fishing buddies always appreciated his expert eye in the sky from his Piper Cub. He also played the guitar and banjo, and loved the natural beauty and history of the Island. He has amassed a vast collection of found native artifacts including his prized Woolly mammoth’s tooth. Those who knew him all agreed that he was a rare mixture of true husband, father, son, brother and friend. He wouldn’t hesitate to give you a piece of his mind – but he would also be the first person to give you the shirt off his back.  “Butch was the best,” said Cape Air ExCo Chairman Marilyn Rhude. “He was a tremendous pilot and a great friend to everyone who had the fortune to know him and he had a wicked sense of humor that was legendary. His passing leaves a great void in the Cape Air family that won’t be easily filled. He will be sorely missed,” she concluded. Captain Downs is survived by his loving family and would have celebrated his thirty-first wedding anniversary with his wife Carolyn on October 28th. He was a caring father to his son, Captain Andy Downs and his daughter-in-law, Valerie. He was also a loving, loyal and devoted ‘big’ brother to John Downs and his wife, Kathleen as well as a proud uncle and great-uncle. His graveside service with full military honors was held on Wednesday, October 23rd. Airline Industry News  Governmental and Regulatory  The government shutdown was "extraordinarily disruptive" to aviation safety, the FAA's chief said Thursday. The Federal Aviation Administration said the government shutdown has delayed new rules for use of passenger electronic devices. FAA Administrator Michael Huerta said the agency will focus on safety issues first before turning its attention to expanding the use of electronic devices during flights.   Mayors of six major cities have written a letter to the Department of Justice asking the agency to drop its antitrust lawsuit against a proposed merger between US Airways and American Airlines. "We support the merger of American and US Airways because it is based on growth which benefits consumers and our communities," the letter said.   Airlines, Labor and Industry  Analysts predict a rosy future for U.S. airline earnings as airlines keep a close eye on capacity and fly more fuel-efficient planes. "The airlines are poised to show a good year overall for 2013," said Henry Harteveldt, a travel analyst.   Twenty-six chambers of commerce, from U.S. cities as well as states, have sent the Justice Department a letter urging the agency to settle over the proposed US Airways-American Airlines merger.   Airbus has not booked and orders for its A380 this year, and is considering trimming production, but will keep the design of the jumbo jet.   National Mediation Board rules require the Aircraft Mechanics Fraternal Association to wait one year before attempting to organize American Airlines mechanics.   The upcoming expiration of the Wright Amendment could spark an airfare war in Texas.

Mechanics Dispatch For October 28, 2013

Benefits Grievance Update

On Friday, an et al (“and others”) benefits grievance was filed in regards to the unilateral changes imposed by the company. A copy of this grievance will soon be posted on line, until that happens, your chief steward or business agent will have a copy for your review.
 

Business Agent and Chief Steward Training

The Division will be scheduling a training class for Business Agents and Chief Stewards who present grievances at the joint/system board level. The class will be a refresher course for most, but will provide valuable information to those new to the process. The focus of the class will be on the preparation and presentation techniques required to be successful at this step of the grievance process.
 

Negotiations Update

The parties will reconvene on November 4th in Chicago in an attempt to finalize the joint collective bargaining agreement. The parties will be assisted by Senior Mediator Pat Sims and Mediator Michael Kelleher from the NMB.
 

Negotiations Update for October 14, 2013

Negotiations resumed the week of October 7^th with the company in Phoenix, Arizona. Both parties engaged in an effort to narrow issues in order to reach a Joint Collective Bargaining Agreement (JCBA).  

The week began with a presentation from United on the highlights of the TA for IAM represented employees, brief preparations of the committee by representatives of the Airline Division, and an article by article review of open items.  An overview of benefits information was given by Gaelle Gavotte of Cheiron, who represents the actuary, and established a baseline for continued talks regarding benefits including medical, dental , vision care, flexible spending accounts (FSA), and healthcare spending accounts (HSA, VEBA).  The committee was also briefed on United’s current financial situation as it relates to the industry at large and competitors by the group’s financial analyst Dan Akins.   

Members from the ranks of the Flight Simulator Technicians and Engineering Groups on sCO and sUA discussed their integration into our agreement. The union committee was given a presentation by the FST’s regarding the supplemental changes needed to integrate these groups into the mechanic’s agreement.  Recently, NMB ruled that the FST group is a standalone craft and class and an election was held where the two subsidiary groups chose the IBT as their representative.  The sUA group has been a part of the agreement since the 1969 agreement. 

Negotiations continued through the week with progress being made to close out several articles with open items from the previous round of talks.  The committee will next meet with United in Chicago for the week of November 4^th to continue negotiations. 

Airline Division Week In Review - September 28, 2013

Preparation Begins for Next Round of UAL Negotiations 

Union bargaining committee members convened at Local 19’s union hall in Houston this past week to discuss strategy as they prepare to meet with United Airlines in negotiations on October 7^th. 

The negotiators received a briefing from Attorney Ed Gleason on Scope and open Article One items, and were also given a presentation by Ms. Gaelle Gravot, an actuary from Cheiron, on benefit issues. She also discussed the unilateral changes to medical benefits by United as well as the Affordable Care Act (ACA), how it affects current and future medical plans as well as a strategy for negotiating a comprehensive benefits package for members.  

Other topics discussed included grievance activity for scope violations regarding the APU teams on the ramp side and how they affect negotiating strategy, COLA, and issues surrounding United’s wish to implement the use of the Utility Specialist Classification; especially in the Facilities Maintenance and GSE classifications. Local 210 Business Agent Ralph Salzano briefed the committee on the current status of proposals made previously to the carrier and gave a comprehensive overview of items that have been agreed to in principal, and open items in each article that require resolution during the coming round of talks. 

The team will convene on October 7^th in Phoenix, Arizona for their first face to face discussions with United since early June.  In an update to their members, the Committee also extended their thanks and gratitude to Local 19 Principal Officer Bob Clever as well as the Officers and staff for their hospitality and the use of their facilities for the meetings throughout the week.  

UAL APU Burn Team Grievance 

In preparation for an expected arbitration case regarding the APU Burn Team a fill in form has been created. This form will collect relevant data in regards to ramp/fleet service personnel performing the work of mechanics in violation of the scope of the agreement. Here is a link to the form: 

https://docs.google.com/forms/d/1b_oED-RKNIWOi2UcLkSnr8ERozxJzIE6uqZfcQvxZC8/viewform 

Members input is extremely important and the union has requested that anyone with questions about this grievance or the form please contact their chief steward. 

NetJets Technicians and Related 

The NetJets Negotiating Committee and Company negotiators continued discussions on September 25^th. The session consisted of discussions surrounding Article 8 - (Grievance Procedure), 9 – (Board of Arbitration), 12 – (Jury Duty), 13 – (Funeral Leave), 18 – (401K), 19 – (Safety and Health), 23 – (Moving Expenses), 34 – (Prisoner and Hostage) and 35 – (Tuition Assistance).  

The Company made counter proposals on Articles 8, 9, 12, 13, 23, and provided and opening proposal on Article 18 – (401K); with the union countering on Articles 12, 13, and 23.  

Tentative Agreements were reached on, Articles 19 – (Safety and Health) and 34 – (Prisoner and Hostage).

The committee also met on September 24^th and 26th work on Article 32 – (Hours of Service) and 8 – (Grievance Procedure). The parties are in discussions on setting dates for the next round of talks.

Piedmont Negotiations Update 

Negotiations resumed on Monday, September 23^rd and concluded on Thursday, September 26^th.  The discussions and proposals passed were on Compensation and Benefits. 

Both sides passed proposals and a great deal of time was spent examining the impact and true costs and effects of the proposals to the membership. 

Negotiations will resume on October 28^th. 

Airline Industry News 

Governmental and Regulatory 

Some stakeholders are having discussions on privatizing air-traffic control functions because of recent budget cuts and concerns over funding NextGen, according to the General Accountability Office.  

The Federal Aviation Administration (FAA) has extended Lockheed Martin’s contract to enhance air traffic management technology that enables safe and efficient travel within US-controlled airspace over the Atlantic and Pacific oceans. 

The U.S. Justice Department said American Airlines and US Airways should not see documents on the agency's internal analysis of previously approved airline mergers.  

Airlines, Labor and Industry 

Boeing on Friday issued layoff notices to 447 employees across the company, 266 of them in Western Washington. 

Boeing Co. said it's introducing a suite of mobile applications for the iPad to help airplane maintenance technicians with their jobs.

Mechanics Dispatch August 3, 2013

The steering committee reconvened in Chicago on Wednesday July 31st and Thursday August 1st in Chicago to discuss options surrounding the negotiations with United Airlines.
On Wednesday the committee received several presentations on the status of bargaining when the parties last met in May.
Clacy Griswold, Airline Division Rep and Chief Negotiator, opened the session and explained to the group all that had transpired since the committee met last August.
Local 210 Business Agent Ralph Salzano went through article by article all of the non-economic items that were agreed to during the facilitated process. This was followed by a presentation by Peter Hardcastle, of Cheiron, on the VDB (Variable Defined Benefit) pension discussions. He was followed by John Colberg and Jim Holland; both from Cheiron, who gave a presentation on the health and welfare discussions. Dan Akins, economist from Akins and Associates then gave a presentation of the overall economic issues that the negotiating committee both has and will be dealing with.
At the end of each presentation there were question and answer periods for the committee so that they could clearly understand what was being discussed. One of the items that generated much discussion during the health and welfare discussions was the VEBA program. This program is a tax free account used to offset different medical costs. This account can be carried with the employee through retirement and then willed to surviving dependents. More information about this program will be available in the coming months.
Close to the end of the session on Wednesday Clacy received word that the company would like to meet with the IBT leadership that evening to discuss negotiations. On Wednesday evening Mike Bonds, Doug McKeen, Jeff Wall and Marcel Delhommeau from the company met with David Bourne, Clacy Griswold, Ed Gleason, Paul Alves and Bob Fisher from the IBT to learn what direction the company was seeking in regards to negotiations.
Thursday morning the steering committee was given a report on the meeting of the prior evening. The committee was informed that the company desired to get back to the table and that they appeared motivated to finishing what was started in January. Based on this report; the steering committee after much through discussion, determined that the best course of action would be to return to the table as soon as possible to finish the deal. There were concerns however that the company may not be serious and to that end there was a discussion on pulling the resource utilization MOU. After the committee learned that it was the opinion of the Division, through direction of counsel, that the letter could be terminated at any time, the committee tabled a motion to withdraw from the letter and will review progress in October to determine which course of action to take at that time.
Ed Gleason from IBT Legal gave a presentation on scope. It was determined that a joint scope committee meeting should be held in the very near future to discuss several issues that were brought forward in the question and answer period following Ed’s presentation.
The day finished with a general question and answer period and the session ended around 2pm.
After the session, the company was notified that the committee desired to return to the table. The parties will discuss scheduling in the next couple of weeks. It is anticipated that we will return to the table in early September. When dates are agreed upon it will be reported through the Dispatch.