Negotiations Update – August 25, 2012
Proposed path to resolution
The Steering Committee was invited to Chicago yesterday to hear a proposed path to expedite negotiations. The Company stated that they would like to reach a Joint Agreement by the end of this year and they offered a new method recently developed by the National Mediation Board to facilitate this process. The method developed by the NMB was a result of the Dunlop II report issued in April of 2010 and is based on the principals of interest based bargaining or IBB. IBB is generally seen as a quicker process than traditional or adversarial bargaining because rather than disputing particular words in any given Article, the parties first come to an agreement on how the Article should work in a practical application and then once agreement is reached on an issue, language is crafted to address the parties agreement.
Moving Forward
After the rank and file committee discussed the proposed schedule it was unanimously agreed that this approach would be acceptable to the Union. The company was notified of the decision and now the parties will jointly approach the NMB to begin the process. The first item that will need addressed is the protocol agreement. This agreement will establish a timeline as well as consequences in the event the parties are not able to reach an agreement by the agreed upon final date. The next step would be to get the negotiating committee to training for IBB which will be presented by the NMB. Once those steps are completed; which will happen quickly, bargaining in earnest will begin.
Questions about the process
Q. By agreeing to this process are we in traditional mediated talks?
A. No. This process is facilitated by the NMB but this is not mediation in the traditional sense. In other words, there will be no deadlock at the end and the Negotiating Committee could simply revert to traditional bargaining if an agreement is not reached.
Q. Won’t this potentially add to the length of time needed to reach an agreement if the process fails?
A. Possibly, but considering the average length of time from filing for mediation to getting a release by the NMB is now 22 months the Steering Committee felt it would be in the membership’s best interest try to reach an agreement quickly and saw the risks as minimal
Q. Does the membership concede any bargaining rights by using this process?
A. No. If this process is unsuccessful the parties begin traditional Section 6 bargaining under the RLA with full rights to the regular process.
Look for future updates that will discuss the protocol agreement, IBB training and progress made in the near future.
Monday, August 27, 2012
Monday, August 20, 2012
Airline Week In Review August 18, 2012
Local 1224 Files Lawsuit over ABX Captain Fired for Following FAA Safety, Company Regulations
Local 1224 has filed a federal lawsuit against ABX Air over the termination of a veteran Captain who was exercising his federally mandated responsibilities to ensure the safe operation of a Boeing 767 aircraft.
The lawsuit alleges that the pilot; who has an exemplary 28 year record of employment and 25 years as a Captain safely operating company aircraft, was fired when he questioned the use of an airport after identifying numerous factors that made the operation unsafe. When he brought the concerns to light, company management then tried to force him to operate the aircraft in a manner that was against the FAA mandated and approved aircraft operating manual.
“We’re not talking about a marginal pilot or one who has any record of discipline,” said Daniel Wells, President of Local 1224 who is also a Boeing 747 Captain, Check Airman and Instructor. “We have a situation here where an experienced Captain clearly identified safety issues that required resolution for the flight to be operated safely. The Captain promptly reported the problems to ABX and tried to provide solutions so the flight could depart. Instead, he was met with a member of Flight Operations management who directed him to operate the flight as instructed, which was determined to be not allowed by their FAA approved aircraft operating manual. The Captain did exactly as he was trained to do; identify risks and mitigate them. Because of his professionalism the flight went off safely, as well as on time.”
As the FAA designated Pilot in Command, a Captain has the sole responsibility, authority, and right, given to them by the FAA, to make the final decision about the safety of their flight, an authority enshrined in the law as part of the Federal Aviation Regulations (FARs).
The Captain was terminated after he refused to sign a coerced statement admitting that he was incorrect in bringing the safety concerns to light; and should he ever do it in the future, he would be subject to further disciplinary action ‘up to, and including, termination. Clearly this was an attempt to place a chilling effect on the ability of Captains to make an unfettered safety decision without fear of retribution,” Wells continued.
Even more troublesome said Wells, was the manner in which the company handled the personnel matter. “We worked actively with the company to resolve its concerns over this issue, yet instead of doing so in a professional manner, the Company chose to send an email to all crewmembers on a Friday at close of business, telling them the Captain had been fired. This was done without telling the Captain of its decision to terminate him and was clearly sent as a message to other pilots to, ‘shut up and do what we tell you, regardless of the FAA or Company procedures, or else.’ That was wholly unacceptable,” Wells stated.
“Again, the Federal regulations are clear and unambiguous; the Captain is the final responsibility as to the safe operation of an aircraft,” said Wells. He also bears the responsibility for his actions if they result in a violation of regulations, an incident or accident.
Instead of addressing the problems, ABX chose to fire the Captain and use the firing as an intimidation tool. Later, when the Company discovered after the fact that indeed the Captain’s decision was correct under Federal law and company’s FAA approved manuals, they sought to cover up their actions by changing the company manuals to match their actions. This too is wholly unacceptable,” said Wells.
“Not only are Federal whistleblower laws clear in situations like this; I want to be completely clear on this; in addition to the ABX pilots being unmoved by the threats from their management, neither they or any pilot who operates a commercial aircraft are going to be intimidated into operating a flight that is unsafe or in violation of FAA regulations,” said Wells. “While we hope the company will choose to remedy this quickly, we are pursuing all options in concert with the IBT Airline Division which has promised its full support,” he concluded.
An interview with Local 1224 President Wells discussing the firing can be listened to by clicking on the following link:
http://www.teamster.org/sites/
UAL Tech’s Get an Early Opportunity on the Dreamliner
While everyone at United is eagerly awaiting the first chance to see, fly or work on the Boeing 787 Dreamliner, the Airline Division techs will have a head start. UAL’s Tech Ops crews in SEA (Seattle) will be providing support on the Dreamliner, doing line maintenance for the 787s operated by Star Alliance and joint venture partner All Nippon Airways, who will begin flying into Seattle this fall. Tech Ops has trained hundreds of technicians on the Dreamliner and has supply chain and service agreements in place to support 787 flying.
All Nippon has been using the Dreamliner mostly on domestic and inter-Asian routes and operates one regular long-haul international flight, HND (Tokyo-Haneda)-FRA (Frankfurt, Germany).
With 45 Line Maintenance customers at 19 hubs and airports around the globe, UAL also provides line maintenance service to NH at their IAD, LAX, ORD and SFO hubs, as well as at HNL (Honolulu). They also service the Singapore Airlines (SQ) Airbus A380s at NRT.
As the North American launch customer, UAL plans to take delivery of their first 787 in late September. They have firm orders for a total of 50 Dreamliners.
Important Information for Comair Flight Attendants
The unfortunate decision by Delta management to shutdown Comair one of the legendary airlines in the regional industry, has resulted in the pending los of hundreds of jobs throughout their system. While nothing will replace their lost jobs, the Airline Division and Local 513 have worked diligently to negotiate a severance agreement for the membership.
The Separation Agreement and General Release has been mailed to members address of record that is on file with Comair and their Comair email as required by law.
It is imperative that the agreement is executed and returned as soon as possible. It must be received at Comair between September 28th and October 8th.
These are critical dates. Do NOT return it to Comair prior to that or after that. It must be received between September 28 and October 8th. It is recommended that crew members return the documents in a way to have a delivery receipt such as UPS, FedEx, US Post office with delivery confirmation or emailed. Faxing is not recommended because many faxes due to the lack of a guarantee of delivery. For those who wish to scan and email the documents, a special email address has been set-up, generalrelease@comair.com for you to send the scanned document.
It is critical that the documents and writing be legible, so members are encouraged to ensure that regardless of how the documents are returned, they are clear and easy to understand.
For members who have not receive the Separation Agreement in the mail yet or within the next few days (mailed from CVG - please allow delivery time to your part of the country), you will be able to find a copy on Epic and the Local 513 website. Members are encouraged to take the time and effort to check their address in ESS, as it will be important for additional information that may be mailed to you.
If you need assistance with ESS, email humanresources@comair.com for a password reset to ESS. Follow the instructions in the email. The password process for ESS is complicated but must be followed exactly to avoid problems. Once you have the password process is complete, you will need to enter the address change. After you entered an address correction, you are encouraged to check in a couple of days to be sure it was accepted and changed.
If members have problems with the process, they are encouraged to email the Local 513 office, facontract@teamsterslocal513.
Airline Industry News
Industry and Labor
Several experts say a judge's ruling Wednesday against American Airlines' attempt to break its contract with pilots could ultimately benefit the carrier.
AMR sent its pilots revised contract terms Thursday, a move that is backed by AMR creditors. The creditors said the unions should seek consensual deals or face potentially new imposed terms, as well as a court hearing the week of Sept. 3 on contract revisions.
About 18% of United Airlines retirees are owed bigger pensions, according to the Pension Benefit Guaranty Corp.
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Local 1224 has filed a federal lawsuit against ABX Air over the termination of a veteran Captain who was exercising his federally mandated responsibilities to ensure the safe operation of a Boeing 767 aircraft.
The lawsuit alleges that the pilot; who has an exemplary 28 year record of employment and 25 years as a Captain safely operating company aircraft, was fired when he questioned the use of an airport after identifying numerous factors that made the operation unsafe. When he brought the concerns to light, company management then tried to force him to operate the aircraft in a manner that was against the FAA mandated and approved aircraft operating manual.
“We’re not talking about a marginal pilot or one who has any record of discipline,” said Daniel Wells, President of Local 1224 who is also a Boeing 747 Captain, Check Airman and Instructor. “We have a situation here where an experienced Captain clearly identified safety issues that required resolution for the flight to be operated safely. The Captain promptly reported the problems to ABX and tried to provide solutions so the flight could depart. Instead, he was met with a member of Flight Operations management who directed him to operate the flight as instructed, which was determined to be not allowed by their FAA approved aircraft operating manual. The Captain did exactly as he was trained to do; identify risks and mitigate them. Because of his professionalism the flight went off safely, as well as on time.”
As the FAA designated Pilot in Command, a Captain has the sole responsibility, authority, and right, given to them by the FAA, to make the final decision about the safety of their flight, an authority enshrined in the law as part of the Federal Aviation Regulations (FARs).
The Captain was terminated after he refused to sign a coerced statement admitting that he was incorrect in bringing the safety concerns to light; and should he ever do it in the future, he would be subject to further disciplinary action ‘up to, and including, termination. Clearly this was an attempt to place a chilling effect on the ability of Captains to make an unfettered safety decision without fear of retribution,” Wells continued.
Even more troublesome said Wells, was the manner in which the company handled the personnel matter. “We worked actively with the company to resolve its concerns over this issue, yet instead of doing so in a professional manner, the Company chose to send an email to all crewmembers on a Friday at close of business, telling them the Captain had been fired. This was done without telling the Captain of its decision to terminate him and was clearly sent as a message to other pilots to, ‘shut up and do what we tell you, regardless of the FAA or Company procedures, or else.’ That was wholly unacceptable,” Wells stated.
“Again, the Federal regulations are clear and unambiguous; the Captain is the final responsibility as to the safe operation of an aircraft,” said Wells. He also bears the responsibility for his actions if they result in a violation of regulations, an incident or accident.
Instead of addressing the problems, ABX chose to fire the Captain and use the firing as an intimidation tool. Later, when the Company discovered after the fact that indeed the Captain’s decision was correct under Federal law and company’s FAA approved manuals, they sought to cover up their actions by changing the company manuals to match their actions. This too is wholly unacceptable,” said Wells.
“Not only are Federal whistleblower laws clear in situations like this; I want to be completely clear on this; in addition to the ABX pilots being unmoved by the threats from their management, neither they or any pilot who operates a commercial aircraft are going to be intimidated into operating a flight that is unsafe or in violation of FAA regulations,” said Wells. “While we hope the company will choose to remedy this quickly, we are pursuing all options in concert with the IBT Airline Division which has promised its full support,” he concluded.
An interview with Local 1224 President Wells discussing the firing can be listened to by clicking on the following link:
http://www.teamster.org/sites/
UAL Tech’s Get an Early Opportunity on the Dreamliner
While everyone at United is eagerly awaiting the first chance to see, fly or work on the Boeing 787 Dreamliner, the Airline Division techs will have a head start. UAL’s Tech Ops crews in SEA (Seattle) will be providing support on the Dreamliner, doing line maintenance for the 787s operated by Star Alliance and joint venture partner All Nippon Airways, who will begin flying into Seattle this fall. Tech Ops has trained hundreds of technicians on the Dreamliner and has supply chain and service agreements in place to support 787 flying.
All Nippon has been using the Dreamliner mostly on domestic and inter-Asian routes and operates one regular long-haul international flight, HND (Tokyo-Haneda)-FRA (Frankfurt, Germany).
With 45 Line Maintenance customers at 19 hubs and airports around the globe, UAL also provides line maintenance service to NH at their IAD, LAX, ORD and SFO hubs, as well as at HNL (Honolulu). They also service the Singapore Airlines (SQ) Airbus A380s at NRT.
As the North American launch customer, UAL plans to take delivery of their first 787 in late September. They have firm orders for a total of 50 Dreamliners.
Important Information for Comair Flight Attendants
The unfortunate decision by Delta management to shutdown Comair one of the legendary airlines in the regional industry, has resulted in the pending los of hundreds of jobs throughout their system. While nothing will replace their lost jobs, the Airline Division and Local 513 have worked diligently to negotiate a severance agreement for the membership.
The Separation Agreement and General Release has been mailed to members address of record that is on file with Comair and their Comair email as required by law.
It is imperative that the agreement is executed and returned as soon as possible. It must be received at Comair between September 28th and October 8th.
These are critical dates. Do NOT return it to Comair prior to that or after that. It must be received between September 28 and October 8th. It is recommended that crew members return the documents in a way to have a delivery receipt such as UPS, FedEx, US Post office with delivery confirmation or emailed. Faxing is not recommended because many faxes due to the lack of a guarantee of delivery. For those who wish to scan and email the documents, a special email address has been set-up, generalrelease@comair.com for you to send the scanned document.
It is critical that the documents and writing be legible, so members are encouraged to ensure that regardless of how the documents are returned, they are clear and easy to understand.
For members who have not receive the Separation Agreement in the mail yet or within the next few days (mailed from CVG - please allow delivery time to your part of the country), you will be able to find a copy on Epic and the Local 513 website. Members are encouraged to take the time and effort to check their address in ESS, as it will be important for additional information that may be mailed to you.
If you need assistance with ESS, email humanresources@comair.com for a password reset to ESS. Follow the instructions in the email. The password process for ESS is complicated but must be followed exactly to avoid problems. Once you have the password process is complete, you will need to enter the address change. After you entered an address correction, you are encouraged to check in a couple of days to be sure it was accepted and changed.
If members have problems with the process, they are encouraged to email the Local 513 office, facontract@teamsterslocal513.
Airline Industry News
Industry and Labor
Several experts say a judge's ruling Wednesday against American Airlines' attempt to break its contract with pilots could ultimately benefit the carrier.
AMR sent its pilots revised contract terms Thursday, a move that is backed by AMR creditors. The creditors said the unions should seek consensual deals or face potentially new imposed terms, as well as a court hearing the week of Sept. 3 on contract revisions.
About 18% of United Airlines retirees are owed bigger pensions, according to the Pension Benefit Guaranty Corp.
Tuesday, July 3, 2012
Consent Decree Opinion Letter From Spivak Lipton Attorneys At Law
I did my best to take the PDF version of the letter and re-format it so it could be read in this blog. If you find any errors, please let me know.
SPIVAK LIPTON LLP 1700 Broadway
ATTORNEYS AT LAW New York, NY 10019
T
212.765.2100
F 212.765.8954
spivaklipton.com
MEMORANDUM
TO: Edward
Gleason
FROM: Franklin K. Moss, Denis P. Duffey Jr.
DATE: May 16, 2012
RE: IBT-Consent Decree Opinion Letter
__________________________________________________________________________
You have
asked whether, in light of the merger of United Air Lines, Inc.
("United") and
Continental Airlines, Inc. ("Continental"),
a consent decree issued against United and certain
unions prior to the merger applies to employees
represented by the International Brotherhood of Teamsters ("IBT")
under separate collective bargaining agreements with United (the "IBT-
United CBA"), Continental (the "IBT-Continental CBA"), and
Continental Micronesia (the
"IBT-CMI CBA").
As
explained below, the consent decree is and shall continue to be binding as to employees covered by the IBT-United CBA. As to those
covered by the IBT-Continental CBA and the IBT-CMI CBA, the consent decree
should be considered binding once United and Continental are completely
consolidated into a single corporation, Prior to that consolidation, the
consent decree would only become binding as to such employees upon the
integration of the United, Continental, and Continental Micronesia
("CMI") seniority lists pursuant to the relevant CBAs. Moreover,
since the consent decree will be binding once the lists are integrated, it must
be treated as mandatory with respect to both United and Continental employees
during the process of integration.
BACKGROUND 1
Since 1968, United has been a wholly-owned subsidiary
of UAL Corporation ("UAL"), or of UAL's current successor entity, United
Continental Holdings, Inc. (“UCH”).
In 1973, a
federal discrimination complaint was brought under Title VII of the Civil Rights
Act of 1964 against United and certain unions representing its employees,
including the International Association of Machinists ("IAM"). See
EEOC v. United Air Lines, Inc., Civil Action No. 73 972 (N.D. Ill.). In 1976, a consent decree (the
"Original Consent Decree") was entered in the case. The Original
Consent Decree contained, among other things, provisions concerning seniority
for certain IAM-represented employee classifications at United.
In 1995, a
Final Amended Consent Decree ("Final Consent Decree") was entered in
the referenced discrimination case. The Final Consent Decree continued some
provisions of the Original Consent Decree, including certain of the provisions
governing the IAM-represented employees' seniority, and terminated the
remaining provisions of the Original Consent Decree. United, IAM, and certain
other defendant unions were signatories to the Final Consent Decree.2 The Final
Consent Decree provides that its continued seniority provisions "shall be
fully binding upon United and the IAM and TWU or their successor
unions and are hereby made part of such collective bargaining agreements and
shall be expressly printed and incorporated therein at the next printing of
such contracts." Id.,
Final Consent Decree dated March 2, 1995, § III.
In 2008,
the IBT became the representative of the United employees working in the "Mechanic
and related employees" classification (the "Mechanics")
previously represented by the IAM, 3 including the employees covered by the Final Consent
Decree. At all relevant times, IBT has also been the representative of the
Mechanics at Continental and CMI.
On May 2,
2010, Continental and UAL entered into a merger agreement (the "Merger Agreement").
On October 1, 2011, pursuant to the Merger Agreement, UAL changed its name to
United Continental Holdings, Inc. ("UCH") and Continental became a
wholly-owned subsidiary of UCH, along with United. Shortly thereafter, CMI,
which had previously been a wholly-owned subsidiary of Continental, ceased to
be a separate operating company and was folded directly into Continental.
As result
of the merger, a single management group has assumed responsibility for labor
relations at both United and Continental. On November
30, 2011, the Federal Aviation Administration approved UCH's application for a single
operating certificate covering both United and Continental. It also approved UCH's
application to provide for a single repair station certificate for affected
carriers. In March 2012, the reservations and customer service operations of
United and Continental were integrated. Additionally, the National Mediation
Board ("NMB") has already determined that several of the UCH crafts
(the passenger service, fleet service, flight attendant, and stock clerk
employees) constitute a single transportation system for representation
purposes. It is anticipated that an application for the Mechanics
will be filed with the NMB in the near future and that the NMB will determine
that that craft likewise constitutes a single transportation system for
representation purposes.
As a matter
of corporate form, both United and Continental continue to exist as wholly owned
subsidiaries of UCH, but it is anticipated that the two entities will be fully
and formally consolidated in the near future.
IBT
presently has separate collective bargaining agreements ("CBAs")
covering the Mechanics at United, Continental, and CMI respectively. All three
of the CBAs provide as follows:
In the event of a merger of
airline operations between the Company and another air carrier the Company will
require, as a condition of any such operational merger that provisions be
included requiring that the surviving carrier provide for fair and equitable integration
of the pre-merger technician and related seniority list in accordance with Sections
3 and 13 of the Allegheny Mohawk [Labor Protective Provisions].
IBT-United CBA dated Jan.1, 2010 to June 30, 2013,
Art. I.D.3; IBT-Continental CBA dated Jan.1, 2009 to December 31, 2012, Art LD.3;
IBT-CMI CBA dated April I, 2006 to December 27, 2009, Art.3.B.3.4
The Allegheny Mohawk Labor Protective Provisions (the
"AM LPPs") are rules that were promulgated by the Civil Aeronautics Board to
govern the merger of Allegheny and Mohawk airlines in the early 1970s. Sections 3 and 13
of the AM LLPs provide, in effect, that when an airline merger affects employee seniority,
provisions shall be made for integration of
seniority lists in a fair and equitable
manner, and disputes concerning such integration may be submitted to
arbitration.
DISCUSSION
By its
terms, the Final Consent Decree is presently applicable both to United and to
IBT,
as a successor to IAM as the representative of the
United Mechanics covered by the Final
Consent Decree. The entity resulting from the
anticipated combination of United and Continental would also likely be held to
be bound by the Final Consent Decree. In Bates v. Pacific Maritime Corp.,
the Ninth Circuit applied the following factors in determining that a Title VII
consent decree applied to a successor employer: "(1) the continuity in
operations and work force of the successor and predecessor, (2) the notice to
the successor employer of its predecessor's legal obligations, and (3) the
ability of the predecessor to provide adequate relief directly." 744 F.2d
705, 709-10 (9th Cir. 1984); see also Wheeler v. Snyder Buick,
Inc., 794 F.2d 1228, 1236 (7th Cir. 1986) (applying similar factors but finding no successor
liability). All these factors favor applying the Final Consent Decree to any
successor of United, certainly with respect to those working in operations
formerly controlled by United (the "Former-United Employees").
The
applicability of the Final Consent Decree to those who are currently employed
by Continental (including CMI) in operations previously controlled by
Continental and CMI during the period prior to the integration of the
Continental and United seniority lists (the "Former- Continental
Employees") is less clear. The publicly-available terms of the Merger
Agreement do not expressly address this issue, and we have not found any
successorship or other case law on point.
As a
practical matter, however, the degree of integration of the operations of
United and Continental that has already occurred makes any rationale for
excluding those currently employed by Continental from the scope of the Consent
Decree untenable. Once United and Continental have been completely combined,
even any formal basis for exempting the Former-Continental and CMI Employees from the Final Consent Decree will
disappear.
More
critically, the CBAs' provisions concerning the AM LPPs appear to make application
of the Final Consent Decree to Former-Continental and CMI Employees necessary. Those
provisions of the CBAs require, in substance, that the relevant United,
Continental, and CMI seniority lists shall be integrated in a fair and
equitable manner. Assuming, as argued above, that the Final Consent Decree
seniority provisions will be binding as to the Former-United Employees,
excluding the Former-Continental and CMI Employees from the Final Consent
Decree's seniority provisions would be neither fair nor equitable. The Final
Consent Decree provides in part that seniority for purposes of layoff and
recall will be company-wide for covered employees hired after July 2, 1965. The
Former-Continental CBA and CMI CBA Employees have only craft seniority for
these purposes. Craft seniority will never exceed company seniority, and in
many cases will be less than company seniority. Hence, if, in a merged
seniority list, the Former-United Employees have company seniority for these
purposes and the Former-Continental and CMI Employees do not, many
Former-United Employees will end up higher on the seniority list for these
purposes than similarly situated Former-Continental and CMI Employees. That
would be neither fair nor equitable. Thus a date-of-hire approach for purposes
of layoff and recall in accordance with the Final Consent Decree should be used
in the United-Continental/CMI integration process.
Even in the
absence of the CBA provisions, a federal statute known as the McCaskill-
Bond amendment would require the same outcome. In
substance, that statute provides that if a covered air carrier merger 5 affects employee seniority rights, Sections 3 and 13
of the AM LPPs shall apply to the integration of the employees, except that (1)
if the same union represents the employees of
both entities,
the union's internal policies regarding integration, if any, shall not be
affected and shall supersede the requirements of the statute, and (2) the
requirements of any collective bargaining agreement concerning integration
shall not be affected, so long as they allow for the protections afforded by
Sections 3 and 13 of the AM LPPs. 49 U.S.C. § 42112.
Because the
CBAs both already provide for application of Sections 3 and 13 of the AM
LPPs, and because the IBT represents the relevant
employees of both United and Continental
(including CMI), the McCaskill-Bond amendment would
appear to be irrelevant on the present facts. If, however, any question of the
IBT's continuing representation of either group is raised, or any claim is made
that the CBAs' provisions concerning integration are inapplicable, the McCaskill-Bond
amendment would become relevant and would point to the same result as that set
forth above. If the McCaskill-Bond amendment were to control, it would require
application of the AM LPPs, which in turn would effectively require the
application of the Final Consent Decree's seniority provisions to both the
Former-United and Former-Continental Employees (including CMI employees).
CONCLUSION
The Final
Consent Decree is presently applicable to United employees and should be
held applicable to both Former-United Employees and
Former-Continental Employees
(including CMI Employees), following full, formal
consolidation of United and Continental into a single entity. It is less clear
whether it will be binding as to current employees of Continental and CMI prior
to the merger of United and Continental Seniority lists pursuant to the CBAs.
The Final Consent Decree may be binding as to current employees of Continental,
unless and until the United and Continental seniority lists are merged pursuant
to the CBAs.
For purposes of integrating the United,
Continental, and CMI Mechanic seniority lists,
however, the question of whether the Final Consent
Decree is technically binding on the current Continental and CMI employees is
academic. That the Final Consent Decree is currently binding on IBT and United;
that it will be binding on any successor to United; and that IBT, United, and
Continental are all bound by the AM LPPs mean that as a practical matter, the
Final Consent Decree must be regarded as controlling in the process of
integrating the United, Continental, and CMI Mechanic seniority lists.
FOOTNOTES
1. The facts as stated in this section are based on
documents and information provided by the IBT and on publicly available
information.
2. IAM was not a party to the original Consent Decree
3. The IAM was immediately succeeded as representative
of these employees by the Aircraft
Mechanics Fraternal Association ("AMFA") as
a result of a representation election in 2003. The IBT took over representation
of these employees from the AMF A after another representation election in 2008.
4. The IBT has advised us that the CMI Mechanics have
ratified a new collective bargaining
agreement this past week, and that the operative scope
and status of agreement provisions remain intact.
5. A covered merger is one involving combination of
multiple carriers into a single carrier and the transfer of ownership of
control of either 50 percent or more of the equity securities of an air
carrier, or 50 percent or more of the assets of the air carrier. 49 U.S.c. §
42112. The United Continental merger would presumably qualify, as it involved
the exchange of all of Continental's stock
for United stock.
Airline Week in Review July 2, 2012
SPECIAL
EDITION
This morning, the Airline Division of the International Brotherhood of Teamsters announced it has made an application to the National Mediation Board (NMB) for a representation election to be held for the pilots of Allegiant Air.
“We are honored to have been asked by the pilots of Allegiant Air to meet with them and explain the benefits of representation by the International Brotherhood of Teamsters and the Airline Division,” said Captain David Bourne, Director of the Airline Division. “The overwhelmingly positive response we received in meetings and the outstanding response to the card drive is a testament to the dedication of the Allegiant Air pilots. We look forward to a favorable ruling on our application by the NMB and a vote being scheduled as soon as possible.”
Allegiant Air, subsidiary of Allegiant Travel Company is based in Las Vegas, Nevada and employs 363 pilots flying McDonnell Douglas MD80’s and Boeing 757’s.
Airline Division Files for Arbitration for Republic Pilots
Citing an impasse in mediation efforts to reach a settlement with the company, this morning the Airline Division of the International Brotherhood of Teamsters delivered a letter to the National Mediation Board requesting to be released from mediation in its contract negotiations on behalf of pilots employed by Indianapolis-based Republic Airways Holdings.
“This will set the stage for the management group at Republic Airlines to either negotiate in good faith or face self-help by the Republic pilots with the full backing of my office and all 1.4 million Teamsters,” Teamsters Airline Division Director Capt. David Bourne wrote in a separate letter to pilots.
In the letter to the Board on behalf of the Teamsters, Bourne wrote; “in accordance with Section 5, First (b) of the Railway Labor Act, 45 U.S.C. § 155, First (b), requests the National Mediation Board to end mediation and proffer arbitration to the parties in the captioned case.”
“The Teamsters have dutifully committed to mediation with Republic Airways while the company has made no meaningful attempt at negotiating, instead engaging in a pattern of unilateral management efforts that undercut the mediation process,” according to Bourne.
The company attempted to discipline one of the pilots for performing work on behalf of the union, the Teamsters said. Additionally, Republic Airways has tried to impose a new pay rate and instituted a signing bonus to lure new pilots to the company rather than negotiating these items under the auspices of the NMB.
ExpressJet Negotiations Continue
Negotiations resumed in Houston on June 27th and June 28th at the offices of Local 19. The meeting was scheduled by the parties despite the unavailability of the mediator for the session.
These negotiations were held at the offices of Local 19. They were planned without the mediator, who was unavailable for the sessions.
The Union made counter proposals to the Company on Section 3 (Classifications), Bid Areas and Work Areas and Section 10 (Leaves of Absence). While there was through discussion and proposals were exchanged by both sides during the sessions, they were able to reach a tentative agreement on Section 10 (Leaves of Absence).
The next scheduled meeting will be on Monday, July 16th in Baltimore, with the Mediator.
Airline Industry News
Airline and Labor
Delta Air Lines pilots approved a new labor agreement last week after two months of bargaining. The contract, which took effect Sunday, runs through 2015.
AMR Corp., the parent company of American Airlines, wants a three- month extension of its reorganization plan under bankruptcy protection. An extension would push back the deadline from Sept. 28 to Dec. 27.
Fabrice Brégier, the CEO of Airbus, said Sunday that he would announce the European aircraft manufacturer's plans for Mobile, Ala.
Airbus has made offers to move jobs from Europe to the U.S. to blunt a finding by the World Trade Organization that it has received billions of dollars in illegal subsidies. Boeing is trying to pre-empt this strategy by pointing out that even if Airbus moves certain operations to the U.S., it still won't match the number of U.S. jobs lost due to the subsidies.
U.S. airlines employed 1.3% more full-time equivalent employees in April, compared to April of last year, according to the Department of Transportation.
A bankruptcy court has approved new labor agreements between AMR Corp.'s American Airlines and five groups represented by the Transport Workers Union.
In observance of Independence Day, the Airline
Division offices will be closed on Wednesday, July 4, 2012. We will re-open for
normal business on Thursday July 5, 2012.
On behalf of the officers and staff of the Airline
Division, we would like to extend our wishes for a joyful Independence
Day.
Monday, July 2, 2012
Mechanics Dispatch July 1, 2012
Seniority Integration Committee
On June 20th, the National Rank and File Seniority Integration Committee met in Newark to begin the work of integrating the three seniority lists. The committee was joined by Local rank and file committee members from several Locals as well as representatives from the International along with Mediator Ralph Berger and attorney Denis Duffey from the firm of Spivak Lipton. International Representative Clacy Griswold began the meeting with introductions. Mediator Berger then discussed an opinion letter from Spivak Lipton. It was Mr. Berger's opinion that since this was a merger of equals in the mechanics class and craft and that the consent decree from the sub United agreement would cover all members in the amalgamated agreement, then a date of hire seniority integration should occur for purposes of layoff and recall. Attorney Duffey, as coauthor of a legal opinion on the decree, explained the rationale used to come to the conclusion that the decree would apply to the combined list. Essentially, the new United will be a successor to Continental, CMI and the old United and the decree applies to successors. Much discussion occurred among the committee on the consent decree and its effects on seniority as well as several questions regarding procedures to amend or remove the decree. IBT attorney Ed Gleason explained the reasons why it would be impractical to attempt to amend or remove the decree. Each member of the national rank and file committee was given an opportunity to ask questions, share opinions, and suggest alternatives. Several issues were brought up including the disparity in premium seniorities, (i.e. inspectors and leads) as well as previous adjustments and how they were handled on each list and the need to work from lists that are accurate. At the end of the meeting, Clacy gave the committee an overview of what would transpire process wise for the national committee. First, the committee will ensure the accuracy of the list and will meet via conference call in two weeks to discuss progress made. Then, the committee will meet with the national steering committee to report progress and findings. In attendance for the National Rank and File Committee were: Jerry Davis (Local 19), Larry Bailey and Bill Horn (Local 210), Don Ramsey (Local 455), Steve Oggeri (Local 769), Scott Baroni (Local 781), Mark Gabriel (Local 856), Brad Himes (Local 964), Dion Cornelious, Moki Kim and Leigh Skilling (Local 986). In attendance for the Local Rank and File Committee were: Mike Bergen, Bob Clever,
Debra Hernandez and Craig Larson (Local 19), Paul Bacerra (Local 769) and Fred Wood (Local 986). Representing the Airline Division were: Clacy Griswold, Paul Alves, Bob Fisher and IBT Legal Counsel Ed Gleason along with Mediator Ralph Berger and Denis Duffey, from the law firm of Spivak- Lipton.
Benefits Review Committee Report
The benefits review committee met on June 5th & 6th at IBT Headquarters in Washington DC. The committee was accompanied by Hemant Berry, a benefits specialist with the IBT Benefits department, and pension analyst Peter Hardcastle from Cheiron. The committee worked on comparing and contrasting the medical benefits from both carriers to identify the differences in the plans, so the best of both plans can be identified. Different ideas where brought up on ways to control the premium costs, with further investigation into some wellness programs being needed. On Wednesday, June 6th Peter Hardcastle gave a presentation to the committee that explained the differences as well as the pros and cons of the different types of pension plans; Defined Benefit (DB), single payer and multi-employer, Defined Contribution (DC), as well as 401(k)'s and hybrid type plans. The committee will be determining what pension plan would be the best choice to recommend to the members. The committee reconvened in EWR on June 18th and 19th to continue working on opening proposals for Articles 10 and 11 as well as continuing discussions on what pension plan would serve the members best. The committee began a side-by-side comparison of plans, as it relates to benefit issues of the two Collective Bargaining Agreements (CBA’s) to identify the differences, similarities and changes that may be needed in each article. Although there is still much work to be done the committee has built a good foundation that they will continue to improve on. On Tuesday June 19th, the day started with an update, via conference call, from the company on the “wellness plans” they are examining. Research will be done to see if this is a valid way to keep premiums lower. The committee also received its first side-by-side pension comparison presentation by Jim Holland from Cherion. Side-by-side comparisons have been requested on all the different types of pension plans being investigated. This first presentation showed a comparison of the Continental Airlines Retirement Plan (CARP) and the Western Conference of Teamsters Pension Trust. The committee will update everyone as the different comparisons are completed and presented to them. After both presentations the committee continued its’ work on contract language proposals relating to benefits. The committee will reconvene in SFO during the same week as the National System Negotiating Steering Committee meetings. While in SFO the committee will continue its’ research of the different plans and attend a presentation from the West Coast
Pension Trust, to see if this plan should continue to be considered in any comparisons. The committee’s ultimate goal is to explore all options and share that information along with a recommendation, to the National System Negotiating Steering Committee, on benefit language to be incorporated into an opening proposal in Joint Collective Bargaining. Updates will follow the July meetings.
We Want to Hear from You
Do you have an idea or report you would like to see in the Mechanics Dispatch? Please contact your Chief Steward or Local BA with suggestions and ideas.
Furloughed Members Urged to Update Their Addresses.
Members on furlough are advised to keep their addresses current with the company while on layoff. It is predicted that there will be many movements this year and there have been several members that have been removed from the seniority list because old addresses were on file when notices were sent. If you are in touch with a furloughed member, please forward this information to them. Updates may be emailed to: ESC@united.com . The ESC will provide a fax number and ask members to send the address change accompanied with a signature.
Useful links
If you would like to see a link added to this list please contact Bob Fisher at: rcfisher7@yahoo.com Airline Mechanics Forum Airline Mechanics forum (This is a good place to discuss merger related items) The following Locals represent these respective cities: Boston Local 25 New York & Washington Local 210 Charleston & Atlanta Local 528 Miami & Orlando Local 769 Cleveland Local 964 Chicago Local 781 Houston, Dallas & New Orleans Local 19
On June 20th, the National Rank and File Seniority Integration Committee met in Newark to begin the work of integrating the three seniority lists. The committee was joined by Local rank and file committee members from several Locals as well as representatives from the International along with Mediator Ralph Berger and attorney Denis Duffey from the firm of Spivak Lipton. International Representative Clacy Griswold began the meeting with introductions. Mediator Berger then discussed an opinion letter from Spivak Lipton. It was Mr. Berger's opinion that since this was a merger of equals in the mechanics class and craft and that the consent decree from the sub United agreement would cover all members in the amalgamated agreement, then a date of hire seniority integration should occur for purposes of layoff and recall. Attorney Duffey, as coauthor of a legal opinion on the decree, explained the rationale used to come to the conclusion that the decree would apply to the combined list. Essentially, the new United will be a successor to Continental, CMI and the old United and the decree applies to successors. Much discussion occurred among the committee on the consent decree and its effects on seniority as well as several questions regarding procedures to amend or remove the decree. IBT attorney Ed Gleason explained the reasons why it would be impractical to attempt to amend or remove the decree. Each member of the national rank and file committee was given an opportunity to ask questions, share opinions, and suggest alternatives. Several issues were brought up including the disparity in premium seniorities, (i.e. inspectors and leads) as well as previous adjustments and how they were handled on each list and the need to work from lists that are accurate. At the end of the meeting, Clacy gave the committee an overview of what would transpire process wise for the national committee. First, the committee will ensure the accuracy of the list and will meet via conference call in two weeks to discuss progress made. Then, the committee will meet with the national steering committee to report progress and findings. In attendance for the National Rank and File Committee were: Jerry Davis (Local 19), Larry Bailey and Bill Horn (Local 210), Don Ramsey (Local 455), Steve Oggeri (Local 769), Scott Baroni (Local 781), Mark Gabriel (Local 856), Brad Himes (Local 964), Dion Cornelious, Moki Kim and Leigh Skilling (Local 986). In attendance for the Local Rank and File Committee were: Mike Bergen, Bob Clever,
Debra Hernandez and Craig Larson (Local 19), Paul Bacerra (Local 769) and Fred Wood (Local 986). Representing the Airline Division were: Clacy Griswold, Paul Alves, Bob Fisher and IBT Legal Counsel Ed Gleason along with Mediator Ralph Berger and Denis Duffey, from the law firm of Spivak- Lipton.
Benefits Review Committee Report
The benefits review committee met on June 5th & 6th at IBT Headquarters in Washington DC. The committee was accompanied by Hemant Berry, a benefits specialist with the IBT Benefits department, and pension analyst Peter Hardcastle from Cheiron. The committee worked on comparing and contrasting the medical benefits from both carriers to identify the differences in the plans, so the best of both plans can be identified. Different ideas where brought up on ways to control the premium costs, with further investigation into some wellness programs being needed. On Wednesday, June 6th Peter Hardcastle gave a presentation to the committee that explained the differences as well as the pros and cons of the different types of pension plans; Defined Benefit (DB), single payer and multi-employer, Defined Contribution (DC), as well as 401(k)'s and hybrid type plans. The committee will be determining what pension plan would be the best choice to recommend to the members. The committee reconvened in EWR on June 18th and 19th to continue working on opening proposals for Articles 10 and 11 as well as continuing discussions on what pension plan would serve the members best. The committee began a side-by-side comparison of plans, as it relates to benefit issues of the two Collective Bargaining Agreements (CBA’s) to identify the differences, similarities and changes that may be needed in each article. Although there is still much work to be done the committee has built a good foundation that they will continue to improve on. On Tuesday June 19th, the day started with an update, via conference call, from the company on the “wellness plans” they are examining. Research will be done to see if this is a valid way to keep premiums lower. The committee also received its first side-by-side pension comparison presentation by Jim Holland from Cherion. Side-by-side comparisons have been requested on all the different types of pension plans being investigated. This first presentation showed a comparison of the Continental Airlines Retirement Plan (CARP) and the Western Conference of Teamsters Pension Trust. The committee will update everyone as the different comparisons are completed and presented to them. After both presentations the committee continued its’ work on contract language proposals relating to benefits. The committee will reconvene in SFO during the same week as the National System Negotiating Steering Committee meetings. While in SFO the committee will continue its’ research of the different plans and attend a presentation from the West Coast
Pension Trust, to see if this plan should continue to be considered in any comparisons. The committee’s ultimate goal is to explore all options and share that information along with a recommendation, to the National System Negotiating Steering Committee, on benefit language to be incorporated into an opening proposal in Joint Collective Bargaining. Updates will follow the July meetings.
We Want to Hear from You
Do you have an idea or report you would like to see in the Mechanics Dispatch? Please contact your Chief Steward or Local BA with suggestions and ideas.
Furloughed Members Urged to Update Their Addresses.
Members on furlough are advised to keep their addresses current with the company while on layoff. It is predicted that there will be many movements this year and there have been several members that have been removed from the seniority list because old addresses were on file when notices were sent. If you are in touch with a furloughed member, please forward this information to them. Updates may be emailed to: ESC@united.com . The ESC will provide a fax number and ask members to send the address change accompanied with a signature.
Useful links
If you would like to see a link added to this list please contact Bob Fisher at: rcfisher7@yahoo.com Airline Mechanics Forum Airline Mechanics forum (This is a good place to discuss merger related items) The following Locals represent these respective cities: Boston Local 25 New York & Washington Local 210 Charleston & Atlanta Local 528 Miami & Orlando Local 769 Cleveland Local 964 Chicago Local 781 Houston, Dallas & New Orleans Local 19
Monday, June 25, 2012
Airline Division Week In Review June 24, 2012
Airline Industry News
Governmental and Regulatory
The FAA’s announced delay for implementation of stricter pilot training and experience rules has outraged the families who lost loved ones in the crash of Colgan 3407…Interim FAA Chief Michael Huerta made his case to be named the full time FAA chief on Thursday
Airline and Industry
A bankruptcy judge has postponed a ruling on whether to void contracts between American Airlines and its unions. Judge Sean Lane will rule June 29.
Southwest Airlines and AirTran Airways mechanics this week approved a proposal for creating a single seniority list. The airlines' customer service agents, customer support and service employees and stock clerks are still negotiating seniority agreements.
Boeing predicts strong demand for its 747-8 from overseas markets. "We see a big market to the Middle East and Asia. There are a lot of discussions going on in those places," said Tony Simpson of Boeing Capital Corp.
Columnist Mitchell Schnurman says Doug Parker, the CEO of US Airways, is continuing on his quest for a merger with American Airlines. "With Parker and US Airways, you can't rule out anything, and that's part of their appeal. These are the upstarts who have changed the conversation, the risk-takers who want to change the game," writes Schnurman.
Fred Smith, the founder and CEO of FedEx, said the air freight business "is not growing." Smith says FedEx will unveil a program in October to cut costs.
"If Comair’s 50-seaters are parked and either the CRJ900s or CRJ700s are used in two-for-one deal with other contract carriers, Comair could be unviable as a carrier," says a source. Delta did not offer a comment on Comair's future…Tom Horton, the CEO of AMR Corp., has asked a bondholder group to consider a stand-alone plan for American Airlines before a merger plan proposed by US Airways, sources say. The bondholders hold $700 million of debt for AMR Corp., which filed for bankruptcy in November.
The three largest unions at American Airlines support a merger with US Airways…The Allied Pilots Association, which represents pilots at American Airlines, have declined to send the carrier's latest offer to members for a vote.
Governmental and Regulatory
The FAA’s announced delay for implementation of stricter pilot training and experience rules has outraged the families who lost loved ones in the crash of Colgan 3407…Interim FAA Chief Michael Huerta made his case to be named the full time FAA chief on Thursday
Airline and Industry
A bankruptcy judge has postponed a ruling on whether to void contracts between American Airlines and its unions. Judge Sean Lane will rule June 29.
Southwest Airlines and AirTran Airways mechanics this week approved a proposal for creating a single seniority list. The airlines' customer service agents, customer support and service employees and stock clerks are still negotiating seniority agreements.
Boeing predicts strong demand for its 747-8 from overseas markets. "We see a big market to the Middle East and Asia. There are a lot of discussions going on in those places," said Tony Simpson of Boeing Capital Corp.
Columnist Mitchell Schnurman says Doug Parker, the CEO of US Airways, is continuing on his quest for a merger with American Airlines. "With Parker and US Airways, you can't rule out anything, and that's part of their appeal. These are the upstarts who have changed the conversation, the risk-takers who want to change the game," writes Schnurman.
Fred Smith, the founder and CEO of FedEx, said the air freight business "is not growing." Smith says FedEx will unveil a program in October to cut costs.
"If Comair’s 50-seaters are parked and either the CRJ900s or CRJ700s are used in two-for-one deal with other contract carriers, Comair could be unviable as a carrier," says a source. Delta did not offer a comment on Comair's future…Tom Horton, the CEO of AMR Corp., has asked a bondholder group to consider a stand-alone plan for American Airlines before a merger plan proposed by US Airways, sources say. The bondholders hold $700 million of debt for AMR Corp., which filed for bankruptcy in November.
The three largest unions at American Airlines support a merger with US Airways…The Allied Pilots Association, which represents pilots at American Airlines, have declined to send the carrier's latest offer to members for a vote.
Monday, June 18, 2012
Seniority Integration Committee Members To Meet In EWR
On Wednesday, June 20th, our seniority integration committee chairman, Brad Himes, will be traveling to Newark to meet with the other seniority integration committee chairs. This will be the first meeting where the panel, made up of 5 members from sCAL, 5 from sUAL, and 1 from Air Mic, will have a chance to discuss the integration of the seniority lists. I will update this blog as information about the meeting become available.
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