Airline Division Week In Review For March 22, 2014

NetJets Technicians and Related 

The Negotiating Committee met at Local 284 Headquarters the week of March 17^th to complete and pass counter proposals to the company on Article 7 (Union Representation) and Article 13 (Funeral Leave). The Committee also completed and passed the Union’s opening proposals on Articles 20 (Training), 25 (Sick Leave) and 32 (Hours of Service). Additionally, the committee began work on Article 14 (Leaves of Absence). The Union and the Company were able to reach a Tentative Agreement on Article 35 (Tuition Assistance Policy). 

The Union and the Company will be working to set dates for the next round of talks. 

United Airlines Flight Simulator Technician and Related Negotiations Update  

A very busy second week of negotiations between the Union and United Airlines Management for the Flight Simulator Technicians and Related Amalgamated agreement concluded this week. The parties exchanged proposals on Articles 7 (Hours of Service), 13 (Training), 14 (Safety and Health), 17 (Overtime), 18 (Union Security and Representation), 19 (Grievance Procedures) and 20 (Board of Arbitration) with progress being made on several items. 

The next session will be in Denver the week of April 28^th. 

Piedmont Negotiations Continue    

Piedmont negotiations resumed on Monday, March 17^th with a productive week reported as the parties discussed various aspects of both the company and union proposals and some new ideas. While no agreements were reached and the parties did not pass any paper proposals, both sides left with a clearer prospective on what the other side wants in the final Agreement. 

Discussions also took place regarding external events that may possibly impact the discussions. The Company advised the committee that it has reached a tentative agreement with the flight attendants and the ratification process will be concluded on April 9^th. 

The American Eagle pilots’ tentative agreement is also out for ratification and should be concluded on March 28^th.  If ratified, it will assure that Eagle will maintain a minimum fleet of 170 aircraft.  That most likely will account for all the jets that AA is committed to purchase. 

In a message to members, the union advised the membership that they remain committed to and believe that they should be able to reach agreement with the Company on a new contract that will be fair to all sides. 

Negotiations are scheduled to resume on May 5^th. 

ANPRM on Drug/Alcohol Testing for Foreign MRO’s is Applauded by Airline Division, TAMC 

The announcement by the FAA on March 13^th that the agency would be seeking publiccomments on an Advance Notice of Proposed Rulemaking (ANPRM) that would require drug and alcohol testing of maintenance personnel who work on aircraft operated by U.S. air carriers (Part 121) in facilities outside the United States was met with strong support by the Airline Division and the Teamster Airline Mechanics Coalition (TAMC). 

“This is a very positive first step,” said TAMC Chairman Chris Moore. “For too long, foreign MRO facilities have been operating on a lower level of compliance than U.S. based facilities. We believe that there is no justification for anyone who works on a U.S registered aircraft to not fall under the same safety and security guidelines that our members must follow,” he continued. 

“When it comes to safety issues, there can be only one standard; Foreign Repair Stations working on US Carriers Aircraft must be equal to the standards imposed on US Mechanics” said Airline Division Director David Bourne. “The American travelling public and all U.S. flight crews deserve nothing less than 100% assurance that the people working on the airplanes they fly have been held to the same stringent safety standards as the crewmembers themselves. The Airline Division and TAMC have worked together since 2007 on this issue and we will continue to pursue this issue through the ANPRM process and to a final rule on the process” he said.   

Airline Industry News 

Governmental and Regulatory 

Airlines carrying passengers to and within the U.S. served 1.3% more travelers in 2013 than in 2012, according to U.S. Department of Transportation's Bureau of Transportation Statistics.

 Airlines, Industry and Labor 

In a letter to the editor of the Dallas Morning News, Southwest Airlines CEO Gary Kelly furthered his case for why the carrier should receive two more gates at Love Field. "For a variety of reasons, Southwest's only option for expansion in the Metroplex is at Love Field. Southwest expansion would bring additional competition that would not otherwise be possible. Experts agree that Southwest's proposed 20 flights to 12 new destinations will generate far more economic benefit to the Metroplex," wrote Kelly.  

American Airlines plans to relocate 100 accounting jobs to Tempe, Arizona. 

United Airlines is renewing its fleet with the fuel-efficient Boeing 787 and Airbus A350, according to Matt Miller, managing director, Japan and Pacific sales. 

American Eagle pilots have begun voting on a new contract. 

More than 95% of Lufthansa pilots have voted in favor of going on strike, union Vereinigung Cockpit (VC), which represents about 5,400 Lufthansa pilots, announced Friday. 

Atlas Air and Qantas Freight, the cargo unit of Australia’s Qantas Airways, have extended their aircraft, crew, maintenance and insurance (ACMI) contract.  

Speaking at a recent conference, Centurion Cargo Chairman Alphonso Rey was the most upbeat of the panelists, noting that hard times for all-cargo carriers are not only a recent phenomenon, pointing out that more than 100 all-cargo airlines have disappeared in the last twenty years. Regarding competition from belly capacity, he said that passenger airline belly cargo offerings are less flexible and less reliable than what is offered by freighter operators. He urged greater attention to air cargo’s value proposition and warned against complacency, “the enemy of all-cargo airlines is doing nothing.”

Airline Division Week In Review For March 15, 2014

Teamster Mechanics and Related Attend FAA Safety Info Share 

In the highest turnout ever, with over 860 attendees, eighteen Teamster Safety representatives attended the FAA Safety Info Share in Seattle Washington last week. Members of the ASAP Event Review Committees and Flight Safety Committees from UAL, CAL, UPS, Frontier, ASA and XJT took part in the three day conference which also included Airline, FAA, MRO, Military and OEM safety representatives. The meeting provides a platform for Aviation Safety Professionals to discuss Safety Issues effecting all phases of the industry.   

ExpressJet Negotiations Update 

Contract negotiations were held on March 11^th, 12^th and 13^th in Baltimore, Maryland under the direction of the Federal Mediator. There was some continued discussion on Holidays and Personal Days, but no proposals were passed by the parties. 

The Company made a first proposal on Section 11 (Sick Leave and OJI).  There was discussion and the Union passed a first proposal on Section 11.  The two opposing proposals are very divergent, mostly over the economic aspects of the contract section. 

There was also discussion regarding the remaining contract sections being mostly economic in nature.  The Mediator suggested that both sides should consider bringing any economic help to the next session. The Union negotiating committee has been using an outside economic consultant since beginning the process by putting together opening proposals and has been consistent in using an economist when needed. 

Negotiations are scheduled to resume on March 31^st in Baltimore. 

Southwest Flight Simulator Technician Teamster Members Ratify Two Year Agreement 

This past Thursday, Southwest Airlines Flight Simulator Technicians, with 100% participation, ratified a new two year contract by majority vote. The Flight Simulator Technicians are members of Local 19. 

Commenting on the participation and vote, Local 19 President and Business Manager Bob Clever said, “I am so proud to have been able to work with Committee Members, Bruce Fishlock and Bill Baker making improvements to the existing contractual language and economic enhancements for this next 2 year contract. This group, a couple weeks ago, deservingly received the most prestigious award from Southwest Airlines, Hero’s of the Heart. Having worked for them this past year and most recently in negotiations, I never miss an opportunity to brag about the job they do and how fortunate I am to work with them.” 

RAH Ballots Mailed, Roadshow Schedule Announced 

Following on the telephone Town Halls, the roadshow schedule for RAH pilots concerning the TA has been published and is listed below. All members are urged to attend to get a full briefing on the TA and have the opportunity to speak directly to the members of the Negotiating Committee with questions about the agreement.

Ballots for the Republic pilots Tentative Agreement ratification vote were mailed on or about March 7th. Due to continuing severe winter storms over a large part of the country hampering the ability for the Post Office to deliver mail in some cases. Coupled with the intervening weekend, this may have caused an uneven delivery of the ballot information around the country. Reports indicate that the ballots and attendant supporting information has now started arriving at the homes of Local 357 members. Members who have not received their ballot information and packet should contact the Airline Division at 202-624-6848. 

DEN: 3/17

1100 and 1400

Country Inn and Suites

4343 Airport Way, Denver, CO 80239

(303) 375-1105

MCI 3/18

1200 and 1500

Fairfield Inn and Suites

11820 NW Plaza Cir, Kansas City, MO 64153

(816) 464-2424

ORD 3/19

1200 and 1500

Airport Hilton

ORD International Airport Terminal

(773) 686-8000

SDF 3/19

1200 and 1500

Crowne Plaza

830 Phillips Ln, Louisville, KY 40209

(502) 367-6161

IND 3/20

1300 and 1700

Cambria 1100

6014 Gateway Dr, Plainfield, IN 46168

(317) 279-2394

CMH 3/21

1200 and 1500

Country Inn and Suites

2900 Airport Dr, Columbus, OH 43219

(614) 478-2900

CLE 3/22

1200 and 1500

Holiday Inn Strongsville

15471 Royalton Rd, Strongsville, OH 44136

(440) 238-8800

PIT 3/23

1100 and 1500

Airport Hyatt Regency

Pittsburgh International Airport Terminal

(724) 899-1234

LGA 3/25

1300 and 1600

Courtyard by Marriott

9010 Ditmars Blvd, East Elmhurst, New York 11369

(718) 446-4800

EWR 3/25

1200 and 1500

Doubletree Newark

128 Frontage Rd, Newark, New Jersey 07114

(973) 690-5500

DCA 3/26

1200 and 1500

Doubletree Crystal City

300 Army Navy Dr, Arlington, VA 22202

(703) 416-4100

PHL 3/27

1200 and 1500

Wyndham Garden Inn Airport

45 Industrial Hwy, Essington, PA 19029

(610) 521-2400

Airline Industry News 

Governmental and Regulatory 

The Federal Aviation Administration has published an official update of procedures to be followed by air traffic control tower personnel. Officials clearing planes for departure using the pre-departure clearance system available through the electronic control tower datalink system must now deliver some instructions and materials in person, rather than electronically.  

Aviation regulators say they're considering rules that would require alcohol and drug testing for people who work on U.S. airline planes in foreign maintenance and repair shops.

Deborah Hersman, chairwoman of the U.S. National Transportation Safety Board (NTSB), has announced plans to leave the agency in April to become president and chief executive officer of the National Safety Council. 

The National Transportation Safety Board (NTSB) said Wednesday that the pending departure of its chairwoman will not affect its efforts to assist searching for a missing Malaysia Airlines flight or any of its other ongoing investigations.

Airlines, Industry and Labor

UPS pilots are pressing to be covered by the same rules that require passenger airline crews to get more rest. The cargo pilots have filed a lawsuit against the Federal Aviation Administration to bring them under the regulations and are backing legislation in Congress to do the same thing.

American Airlines COO Robert Isom said the merged carrier sees opportunity in boosting its cargo services.

Airline Division Week In Review For March 9, 2014

Discussions on American, USAirways CSR’s Continue

This week, Airline Division Director David Bourne travelled to Phoenix, Arizona to meet with the Local 104 regarding the pending merger of the CSR’s of American and USAirways. Discussions centered on a joint IBT/CWA agreement and looking forward to an organizing campaign to merge the American CSR’s into the unit.

Presently, the CSR’s of USAirways are represented by two unions, the Teamsters and the CWA.

Speaking after the meeting, Airline Division Director David Bourne said, “I want to thank Local 104 Secretary Treasurer Andy Marshall and Local 104 Business Agent Kimberly Barboro for the efforts they put into making the meeting a success. Their hard work allowed for a very good exchange of ideas and concepts. They have my full support and I look forward to working with them in the coming weeks.” 

ExpressJet Negotiations Continue in New York 

Contract negotiations resumed last week in Westchester County, N.Y., with the Federal Mediator, with continued discussions on Section 22 (General and Miscellaneous), and Section 9 (Holidays and Personal Days). 

While proposals were passed on both articles, with discussion on the areas of disagreement, no tentative agreements were reached during the session. 

We will resume negotiations in Baltimore, Md., on March 11, 2014.   

Town Hall Meetings Review Republic TA for Local 357 Members 

This weekend, members of the Local 357 Negotiations Committee, representing the pilots of Republic Airlines, held four “Town Hall” conference calls to fully explain the TA and answer questions streaming in from the membership.  At one time approximately 300 pilots were signed on to one of the calls. 

“I was very pleased by the turnout and questions the members asked of the committee,” said International Representative Captain Rick Dubinsky, who has been working closely with the Republic negotiators. “It has been clear on each call that the members are truly interested in getting the facts about the agreement and getting their questions answered. 

We know that negative rumors abound; that always happens. With the advent of social media and a plethora of public message boards, pilots from other airlines and others outside the industry and the union always seem willing to corrupt the information process.  I’m very pleased to see that the Republic pilots see through that destructive effort and want to cast their votes based on information coming directly from their own negotiators.  The four Republic pilots on the negotiating team worked very diligently for their brothers and sisters and have wholeheartedly and unanimously endorsed this TA,” Dubinsky continued. 

A compendium of the Q&A's from the Town Hall calls is being put together and will be sent to the Local 357 membership in the next few days.  Additionally, the schedule for the live “Road Shows” around the country that will occur during the last two weeks of March is being finalized and will be announced very soon. 

If you are a Republic pilot and were unable to participate on one of the Town Hall calls, your Negotiations Committee members recommend that you make every effort to attend one of the upcoming Road Shows.  At these meetings, those in attendance will be able to discuss the details of this TA face-to-face with their fellow pilots who negotiated the proposed agreement and stand squarely behind it.  The Republic pilots will then be in a position to cast their ratification ballots based on reliable information, not rumors, negative speculation or politically motivated subterfuge. 

Airline Industry News 

Governmental and Regulatory 

Leaders of the House Transportation Committee, led by Rep. Bill Shuster, R-Pa., and Rep. Peter DeFazio, D-Ore., introduced a bipartisan bill to reverse a Transportation Department rule that unfairly allows government to mask the excessive federal tax rate on air travel.  

On Thursday, an administrative law judge ruled that the Federal Aviation Administration does not hold clear cut authority to ban commercial unmanned aerial vehicles in U.S. airspace. The judge overturned a $10,000 fine the FAA had levied against a UAV pilot in 2012.

The FAA issued a final rule, effective April 14, 2014 that prohibits airline pilots from using personal electronic devices (PEDs) while flying

Airlines, Industry and Labor 

Created just three months ago, American Airlines Group Inc. (AAL) is poised to earn an annual profit, which some analysts estimate could amount to an industry record.  

United Airlines debuted an aircraft hangar for widebody planes at Newark Liberty International Airport in Newark, N.J. The 90,000-square-foot hangar will be used to perform maintenance, and is designed to accommodate both the Boeing 787 and Airbus A350-XWB.  

Add the Southwest Airlines Pilots Association (SWAPA) to the list of airline industry organizations in the U.S. who are not happy with Norwegian Air’s plan to start trans-Atlantic flights at deeply-discounted fares. 

FedEx and UPS are having difficulty getting permits to serve Beijing to meet growing package-delivery demand. The country will not give the U.S. firms a permit to operate in Beijing, but has granted individual permits for other Chinese cities.

Negotiations Update March 5, 2014

Negotiations Update

Although the parties have yet to be given dates by the NMB several members have asked how the process works.
Here is a quick chart showing roughly the steps of negotiations under the RLA and where we are currently.

On this chart, we are in the italicized box. There are a couple of possibilities not covered by the chart, including potential intervention by Congress. As we get closer to that phase of negotiations more discussion and detail will be provided about our status. The NMB or the President could fail to intervene but that is extremely unlikely. In that event the parties would immediately enter the 30 day cooling off period and skip to self-help. Given the size of the carrier and the potential economic impact we could certainly count on Presidential intervention. But as there is no time limit that would likely happen in the distant future.

Airline Division Week In Review For March 1, 2014

United Airlines Flight Simulator Technician and Related Negotiations Update  

This week concluded the first week of negotiations with management for the Flight Simulator Technicians and Related Amalgamated agreement. The union passed Articles 7 (Hours of Service), 13 (Training), 14 (Safety & Health), 18 (Union Security), 19 (Grievance Procedure), 20 (Board of Arbitration) and the Required, Consent Decree Notice. Management passed back counters on Articles 13, 18, 19 and 20.  

The next negotiating session scheduled in Houston, Texas the week of March 17^th. 

In a message to members this week, Local 19 President and Business Manager Bob Clever said, “It is important to note, just as the Technicians and Related, this group has demonstrated cohesiveness in their resolve to best represent our fellow members. I appreciate everyone’s understanding being afforded these general updates as we will not go in detail on the proposals until we get a finished product.” 

Republic TA Package Being Prepared for Distribution; Roadshows Being Scheduled and Electronic Vote Announced 

On Friday, February 28, 2014 a draft copy of the February 14, 2014 Tentative Agreement (TA) that was reached with Republic management was sent to Washington, DC for printing.  The TA, including all associated Letters of Agreement (LOA) and Memorandum of Understanding (MOU), will be duplicated and included in the packet of information that will be distributed to the Republic Teamsters membership in preparation for their ratification vote.  A summary of TA highlights, examples and flow-charts will also be included as part of the TA information packet. 

The TA information packet, including voting information, will be put in the mail to the membership byMarch 10, 2014.  Voting will be conducted electronically, with the results of the ratification vote announced on March 31, 2014. 

The IBT Negotiating Team is also finalizing the details of scheduling live “Road Show” presentations for the Republic Pilots around the country to help familiarize them with the terms of the TA.  The majority of these presentations will occur during the last two weeks of March.  They will be conducted by the Republic Pilot members of the IBT Negotiating Team who are each prominent officials of Local 357, which represents the Republic Pilots.  The times and places will be published as soon as they are confirmed, with all presentations taking place prior to the ratification vote deadline.  All Republic Pilots should make plans to attend. 

Sub ASA Technicians and Related Discussions Continue 

Negotiations for a stand-alone Technician and Related, Subsidiary ASA contract resumed this week in Atlanta with the Union and the Company meeting in Federal Mediation. Robert Breaux, the new Business Agent for Local 528 joined the Union Negotiating Team this week. 

The Company has yet to respond to the unions’ proposal that the union is interested in accepting their offer of additional wages and work rules with the understanding that it would only apply to the S-ASA side.  

Negotiations continued with the Union and the Company exchanging passes on Section 7 (Hours of Service), and Section 10 (Leaves of Absence). Although no tentative agreements were reached this week, substantial progress was reported on both Sections 7 and 10. The Union also worked on Section 3 (Classifications). 

For the Stand-Alone Sub-ASA contract, Tentative Agreements on the following Articles 4 (Seniority), 5 (Filling of Vacancies), 6 (Reduction in Force and Recall), 13 (Training), 14 (Health and Safety), 16 (Moving Expenses), 20 (Grievance Procedure), 21 (Board of Arbitration) and the Interim Agreementwhich gives the members a process to fight Discipline and Discharge up to and including Arbitration. 

The next scheduled meetings with the Company are tentatively planned for the week of April 1, 2014.  

Talks also continue in mediation on the Sub-XJT side. If at some point during the Mediation process it is determined to be advantageous to the members, the union will consider offers from the Company for a combined agreement for the S-ASA and S-XJT Mechanic and Related work group. 

GAO Releases 2014 Aviation Workforce Report 

In response to the Friday release of the 2014 Aviation Workforce Report on the “Current and Future Availability of Airline Pilots”, Teamsters Airline Division Director Capt. David Bourne issued the following statement: 

“I’m  pleased that the GAO has confirmed what we in the airline industry have known for years – the starting wage structure in the regional airline industry has not only kept qualified pilots away, it has deterred many from entering the field.  

“In a field that requires not only an extremely high level of training and professionalism and, unlike others, requires semi-annual proficiency checks and medical evaluations –with a failure of either potentially ending a pilot’s career – the current levels of pay for many in the regional industry are inexcusable. 

“The issue causing the shortage is not a lack of skill; it is the inability for many pilots to survive on wages below the poverty level. When faced with that reality and the investment of the money and time required to enter the industry, there is no incentive for them to make the commitment. It is time for the industry to recognize pilots for the professionals they are and compensate them accordingly. When we see pilots paid in a manner commensurate with their skills, training and professionalism, we will see the shortage abate.”  

Airline Industry News 

Governmental and Regulatory 

Transportation Secretary Anthony Foxx said  airport congestion could cost airlines $63 billion in lost revenue by 2040 if further investments in NextGen are not implemented, citing a study by the American Society of Civil Engineers. "There is no project in aviation with the potential to improve efficiency more than NextGen," Foxx said.  

U.S. District Judge Colleen Kollar-Kotelly on Wednesday gave the U.S. Department of Justice untilMarch 10 to finish up its response to comments made by interested parties to the US Airways-American Airlines merger. 

Charles Keegan, who leads transportation training and integration solutions at Raytheon, said the U.S. should improve training for air traffic controllers to reflect modern technologies.

Airlines, Industry and Labor

American Airlines and US Airways will give employees profit sharing bonuses in March. "Eligible employees of legacy American will share a total of $85 million and legacy US Airways employees will share a total of $124 million," American Airlines Group said in a Q&A sent to employees.  

Brian Bedford, the chairman and CEO of Republic Airways, said he has no plans to acquire jets from American Airlines. Last week, an analyst predicted that Republic might pick up jets that were previously destined for American Eagle. 

American and USAirways pilots face numerous challenges as they begin the process of  integrating seniority 

Global airport passenger traffic grew 3.9% in 2013, matching the growth rate reported by Airports Council International (ACI) at the end of 2012.  

Worldwide air freight traffic grew 1% in 2013, a modest improvement from the 0.2% drop in freight traffic reported by ACI for 2012.  

Boeing is seeking buyers for an early model of its 787 Dreamliner. The aircraft manufacturer has 11 787s parked near Seattle, Wash., as the aircraft await acquisition.  

Southwest Airlines CEO Gary Kelly said the carrier sees a "host of expansion opportunities" this year, including the expiration of the Wright Amendment in October. "To me this is like 1971 Southwest Airlines all over again," he said.  

Airline Division Week In Review - February 22, 2014

RAH Negotiators Brief RAH Executive Board and Stewards on Tentative Agreement 

The IBT Negotiating Team met again this week in Indianapolis, Indiana to put the finishing touches on the Tentative Agreement (TA) for a new Collective Bargaining Agreement that was reached with Republic Airlines management on February 14, 2014.  The Team also completed putting together a detailed overview of the TA that was presented to the Local 357 Executive Board and Chief Stewards on Friday, February 21, 2014.  The extensive, in-depth briefing began at 9 AM and concluded at approximately 5 PM.  The Local 357 E-Board will now carefully consider the information it received.  

This coming week the IBT Negotiating Team will be finalizing the scope of the materials, to include a draft copy of the TA that will be sent to the Republic Pilots in advance of the requisite ratification vote, which will take place next month.  A timetable for that vote has not yet been established.  Additionally, the Team is working on scheduling live "Road Show" presentations for the Republic pilots to take place in March.  

More information will be forthcoming as details are completed. 

Amerijet Negotiations Continue 

This past week Amerijet management and the union met for contract negotiations with the membership represented by Local 769 Business Manager Daisy Gonzalez-Colli and David Renshaw from the Local Union. The Company responded to negotiating committee's proposal and is now reviewing Union response to the Company's latest proposals.   

The next negotiating session scheduled for early April. 

TAMC to Launch Investigation into Engine Problems at Allegiant Air 

The Teamsters Aviation Mechanics Coalition (TAMC) announced today that it will launch an investigation into reports of a disproportionate number of engine failures, air returns and declared emergencies at Allegiant Air. After interviewing pilots at the airline, the TAMC recognized that an immediate, comprehensive investigation into the continuing maintenance failures at Allegiant is imperative.  

The TAMC is determined to find the root cause of these maintenance failures regardless of where the investigation may lead. The immediate goal is to identify the underlying cause of these incidents and to offer suggestions to mitigate this unacceptable situation before one of these incidents claims the lives of passengers and crewmembers. 

Dates Set for UAL Arbitrations 

Following discussions between the union and management and barring unforeseen last minute changes or settlement discussions, the union has announced agreement on the following dates for UAL arbitrations.

March 25:        CAL Medical Grievance - Arbitrator Herb Fishgold  at ORD
March 27:         UAL Medical Grievance - Arbitrator Carol Wittenberg at ORD
April 9:              Resource Utilization Dispute - Arbitrator Ralph Berger at NY
May 14:            ORD Data Center outsourcing - Arbitrator Carol Wittenberg at ORD
June 4:             Tool Room Operations Grievance - Arbitrator Ed Krinsky –  TBD
June 11:           APU Shutdown - Arbitrator Ralph Berger -  TBD
June 18:           Newark De-Icing Grievance - Arbitrator Carol Wittenberg – TBD

Airline Industry News  

Governmental and Regulatory 

The Federal Aviation Administration plans to hire and train more than 10,000 air traffic control specialists in the next 10 years.  

Sen. Barbara Boxer (D-Calif.) said Thursday that Congress should place limits on the number of hours the pilots of cargo airplanes can work in honor of the operators of a UPS flight that crashed last year in Birmingham, Alabama.

Airlines, Industry and Labor 

Boeing is offering a bonus to workers at its South Carolina facility if they can catch up on production of the 787.  

American Airlines has decided to run its engine maintenance facility in Tulsa, Okla., seven days a week. The facility, called TAESL, is a joint venture with Rolls-Royce. The new schedule allows American to keep the current workforce in place.  

Boeing Co. is considering manufacturing a medium-size aircraft to replace its 757 to fly transcontinental routes in the U.S.  

United Airlines is scheduled to begin nonstop service from Los Angeles to Melbourne, Australia, on Oct. 26 and plans to fly its larger, stretched version of the Boeing 787 Dreamliner on the route.  

The debate over whether new rest rules for commercial airline pilots should apply to their counterparts flying cargo gained new attention today when a federal hearing revealed that a UPSpilot who died in a crash told a colleague that his work schedule was “killing” him. 

Boeing  announced the aircraft manufacturer will build the composite wings for its 777X in Everett, Wash.

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.