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Questions Raised by Congress over World Airways shutdown, upstreaming of cash
Several U.S. congressmen have sent a letter to U.S. Secretary of Labor Tom Perez regarding the misuse of cash that was to be used for employee health care costs by the employees of World Airways.
In the letter from Congressman George Miller (D-CA-11th) and co-signed by twelve fellow congressmen, Miller stated his concerns over the actions of Cerberus Business Finance and; “...that there may have been a misuse of plan assets or other breaches of fiduciary duties under the Employee Retirement Income Security Act (ERISA).” Of primary concern is that Cerberus retroactively cancelled health care coverage and retained the cash for its use instead of covering known employee health care costs, including those of a crewmember who contracted the H1N1 virus while flying military support missions. After being hospitalized for over a month and placed in a medically induced coma, the pilot found that over $2,000,000 of medical bills were unpaid as a result of Cerberus’ actions.
Congressman Miller and the co-signers are asking Secretary Perez to launch an investigation to determine if Cerberus violated ERISA or other laws.
To read the letter, click on the following link.
SWA Material Specialists Update
SWA Material Specialist Contract Negotiations continued in Dallas this past week. The Negotiating Committee, along with Local Union Business Agents and Airline Division Representation met outside of negotiations on August 25th and 26th to work on Article’s 5 (Hours of Service), Article 27 (Shift and Day Trades) and Article 8 (Field Service). Direct negotiations with the Company continued on August 27th. The Union, after much internal discussion, informed the Company that they would be holding with the last union proposals on Articles 8 and 27 and consider them tabled until the parties are further along in negotiations.
The Union also made a counter proposal on Article 5. No additional T/A’s were reached during the session.
The parties are working on scheduling dates for the next round of talks.
Airline Industry News
Airlines, Industry and Labor
Southwest Airlines is adding around 900 more parking spaces at Dallas Love Field ahead of the expiration of the Wright Amendment on Oct. 13.
JetBlue Airways is strengthening its presence in Orlando with a $40 million investment in its training facility that hosts company employees from around the country. JetBlue operates a 400-person call center at the site and has nearly completed a 200-room lodge on the campus.
Robert Isom, the chief operating officer of American Airlines, said the carrier expects to receive a single operating certificate in the second quarter of next year. Isom said the schedule gives American and its merger partner of US Airways time to ensure operations and policies "are all identical, mirror images at the time of single operating certificate."
American Airlines has stopped offering its flights through travel website Orbitz and will remove US Airways airfares from the site Sept. 1. Fliers who previously purchased tickets through Orbitz can still use them, but may only make changes directly through the airline.
Several U.S. airlines are adjusting their meal service to meet passenger demand for in-flight fare, writes blogger the Cranky Flier. "Frankly, what amazes me is the attention to detail when it comes to meals," he writes.
Major airlines are adding seats to the marketplace to meet the high demand for air travel. The carriers have been rewarded with higher passenger traffic and relatively few empty seats.
Today, Labor Day is a day marked with picnics and family, sports, the end of summer and students heading back to school and endless sales.
More importantly though, it is and should always be celebrated as the day we set aside to honor the social and economic achievements of American worker. While history debates who actually called for the first Labor Day, the end result is a day that stands as a testament to your fellow workers hard work and dedication to your craft.
On behalf of the Airline Division, we extend to you, your families and fellow Teamsters our best wishes for a Happy Labor Day. Our offices will re-open for regular business on Tuesday, September 2nd.
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Tuesday, September 2, 2014
Airline Division Week In Review August 31, 2014
Wednesday, August 27, 2014
Airline Division Week In Review - August 25, 2014
Piedmont Negotiations Update
Negotiations resumed on Monday, August 18. The negotiating committee used Monday as an internal day to review economic information worked up for the committee by their IBT economist based on input from the committee and to plan further discussions based on that information.
The week’s meetings with the Company were focused on discussions looking for ways to break the current logjam on economic issues. The union offered a number of suggestions to the company in the hopes that they would assist the company in moving forward and finding a settlement that would be fair for everyone.
Although the company indicated some movement, there was no movement on the largest monetary issues. The company is saying that Piedmont must be competitive with PSA and Envoy. After stating that they wished to reach agreement regardless of the talks with the pilots, the company is still adamant that the union cannot attain fair raises in rates because it would make the company uncompetitive with PSA and Envoy; two carriers that they do not compete with on routes or aircraft type.
No new dates have been scheduled for the next round of discussions.
TAMC Takes to the Hill Seeking Bi-Partisan Support on Key Issues
Members of the TAMC blitzed Capitol Hill on Monday August 18th. The team of seven, led by Chris Moore and Dave Saucedo with assistance from the Albertine Group, was able to complete seventeen meetings in support of the TAMC agenda. The meetings targeted specific members of the House Transportation and Infrastructure Committee, Subcommittee on Aviation and the Senate Committee on Commerce, Science and Transportation, Subcommittee on Aviation Operations, Safety and Security.
The meetings were hugely successful in generating bi-partisan support for the two agenda items; support for a single standard for drug testing at foreign repair stations that is equal to the drug abatement programs required of FAA Part 121 carriers in the U.S., and a moratorium on certification of any new repair stations, foreign or domestic, until the FAA can prove adequate oversight.
Union members Tom Reid, (Local 210 IAD), Ervin Cornovaca, (Local 210 EWR), Fred Lewelling, (Local 19 IAH), Brian Everhart, (Local 2727 SDF) and Steve Medved, (Local 769 MCO) were on hand to relate front line instances of poor quality outsourced maintenance.
The TAMC would like to extend their sincere thanks to the members, Locals and Airline Division for their continuing support of TAMC initiatives.
A full report along with the meeting schedule will be published in the October TAMC Newsletter.
Mediation Scheduled for Air India
Federal Mediator Jack Kane will begin mediation conferences in the Air India – IBT case beginning on August 27, 2014.
UAL Negotiations Update
August 19th through the 21st the parties met in Chicago under the direction of Federal Mediator Gerry McGuckin. On the 19th the parties were briefed by Mediator McGuckin on the negotiations process moving forward.
The parties then began the week by reviewing each party’s respective open items lists. A combined list of these open items and respective party positions was given to the mediator after this review. The parties then reviewed Articles line by line to ensure any new language accurately reflected what had been agreed to in previous sessions.
At the end of the week the parties TA’d final language on two Articles and reached agreement in principle on final language in 201 paragraphs and sub paragraphs covering nine other Articles. The Articles TA’d were: Board of Arbitration – (Article 20) and Apprentice Mechanics (Article 23).
The other Articles containing the finalized language paragraphs were Definitions (Article 2), Filling of Vacancies (Article 5), Reduction in Force (RIF) and Recall (Article 6), Holidays (Article 8), Field Trips (Article 12), Union Security (Article 18), Grievance Procedure (Article 19), General & Miscellaneous (Article 21) and Transportation (Article 22).
Mediator McGuckin was pleased with the work at the end of the week accomplished by the parties and thanked the negotiators for performing this very important step in the process. The progress made this week puts the parties in a much better position to begin passing comprehensive economic proposals in the next few sessions.
Negotiating sessions were scheduled for one week each month through year’s end in various locations, beginning with a short session at The National Mediation Board HQ in Washington, DC on September 11th and 12th. October’s sessions will be held in Chicago the 20th through the 24th with future locations to be determined. Tentatively the November session will be held during the week of the 17th and the December session will be held the week of the 8th.
Airline Industry News
Governmental and Regulatory
The Federal Aviation Administration approved the use of SafeRoute avionics for the Airbus A320. SafeRoute, which relies on ADS-B, received Supplemental Type Certification from the FAA.
The chairman of the Senate committee that oversees transportation issues called Monday for U.S. airlines to disclose how they inform customers about extra fees that are added to the cost of their flight tickets and how they protect information that is collected about passengers.
Airlines, Industry and Labor
Airlines, Industry and Labor
United Airlines is whipping up a new menu for first-class passengers on shorter flights. Passengers in premium seating on flights of at least 800 miles will receive fresh meals instead of prepackaged snacks.
According to Airlines for America, U.S. airlines improved their net profit margin in the first half of 2014. During the first six months of the year, airlines reported a 5% net profit margin, compared to 2.1% in the same period of 2013.
Boeing's plan to increase production of its 737 aircraft has drawn praise from some analysts. "In emerging markets, there is huge demand for aircraft of all sizes, and that trend is going to be present for years to come," said Jim Corridore, an analyst at S&P Capital IQ.
US Airways flew a Boeing 737 aircraft for the last time on Tuesday, saying goodbye to the iconic plane that has been part of the carrier's fleet for 30 years. Southwest Airlines and Alaska Airlines are the only U.S. carriers still flying the 737 Classic.
Boeing could further boost production for its best-selling 737 aircraft, experts say. Boeing produces 42 737 aircraft per month, and some analysts predict that could be eventually ramped up to 60 aircraft per month. By 2017, Boeing already announced plans to increase production to 47 aircraft per month.
Mechanics Dispatch - August 25, 2014
Negotiations Update
On August 19th through the 21st the parties met in Chicago under the direction of Federal Mediator Gerry McGuckin. On the 19th the parties were briefed by Mediator McGuckin on the negotiations process moving forward.
The parties then began the week by reviewing each party’s respective open items lists. A combined list of these open items and respective party positions was given to the mediator after this review. The parties then reviewed Articles line by line to ensure any new language accurately reflected what had been agreed to in previous sessions.
At the end of the week the parties TA’d final language on two Articles and reached agreement in principle on final language in 201 paragraphs and sub paragraphs covering nine other Articles. The Articles TA’d were: Board of Arbitration – (Article 20) and Apprentice Mechanics (Article 23).
The other Articles containing the finalized language paragraphs were Definitions (Article 2), Filling of Vacancies (Article 5), Reduction in Force (RIF) and Recall (Article 6), Holidays (Article 8), Field Trips (Article 12), Union Security (Article 18), Grievance Procedure (Article 19), General & Miscellaneous (Article 21) and Transportation (Article 22).
Mediator McGuckin was pleased with the work at the end of the week accomplished by the parties and thanked the negotiators for performing this very important step in the process. The progress made this week puts the parties in a much better position to begin passing comprehensive economic proposals in the next few sessions.
Negotiating sessions were scheduled for one week each month through year’s end in various locations, beginning with a short session at The National Mediation Board HQ in Washington, DC on September 11th and 12th. October’s sessions will be held in Chicago the 20th through the 24th with future locations to be determined. Tentatively the November session will be held during the week of the 17th and the December session will be held the week of the 8th.
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
The following Locals represent these respective cities:
Boston Local 25
New York & Washington Local 210
Charleston & Atlanta Local 528
Miami, Ft. Lauderdale Tampa & Orlando Local 769
Cleveland Local 964
Chicago Local 781
Houston, Dallas & New Orleans Local 19
Phoenix Local 104
Seattle, Portland, Los Angeles, Hawaii & Guam Local 986
San Francisco Local 856/986
Denver Local 455
Monday, July 28, 2014
Airline Division Week In Review - July 27, 2014
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Court Rules in Favor of Allegiant Air Pilots, Local 1224
This past Tuesday, the U.S. District Court in Nevada granted a preliminary injunction in favor of the Allegiant Air pilots represented by the International Brotherhood of Teamsters Airline Division and its Local 1224.
U.S. District Court Judge Andrew P. Gordon issued the decision granting the injunction, finding that Allegiant Air had violated the Railway Labor Act by unilaterally changing the status quo as it existed when the Teamsters commenced bargaining with Allegiant Air for a first Teamsters collective bargaining agreement.
In August 2012, following an NMB election and certification, the Teamsters replaced an in-house association as the Allegiant pilots' bargaining representative. The Allegiant Air pilots claimed in their lawsuit that since they began negotiations with the company as members of the Teamsters, the management of Allegiant had unilaterally changed numerous terms and provisions of the “Pilots Work Rules Agreement” (PWR) that had been negotiated and agreed to by management and the pilots’ prior in-house representative. The Teamsters and Allegiant pilots asserted that those changes amounted to violations of the RLA's “status quo” requirements.
Judge Gordon determined that Allegiant Air had voluntarily recognized the prior, in-house association as the pilots' representative and had negotiated and reached agreements with it covering the pilots' compensation and work rules. He also found that the in-house association was a "representative" within the meaning of the RLA, and that the agreements it secured on behalf of the pilots through its negotiations with Allegiants' senior executive and managers under the PWR established a RLA status quo that could not be unilaterally changed while collective bargaining for the new agreement was underway. The Teamsters and Allegiant have been engaged in negotiations since December, 2012.
Finding for the pilots and the union, the court concurred that among the unilateral changes by Allegiant Air to the PWR were alterations to the lost medical program for pilots who became ill or disabled, the elimination of pay protections for members involved in various committees beneficial to the company including those involving airline safety, changes to the leave of absence provisions in cases of birth or adoption and replacing seniority-based monthly line bidding with a preferential bidding system (“PBS”).
In his written decision requiring Allegiant Air to restore the status quo, Gordon found that "the IBT has established a high likelihood of success on its RLA claims and its breach of contract claim" and that, "...the IBT will probably prevail on at least some of its claims that Allegiant has violated the status quo, which would amount to a breach of the PWR." He also noted that, "the public also has an interest in "effective collective bargaining" to "maintain industrial peace." Allegiant was ordered to immediately reinstate the loss of medical program, comply with the parental leave policy in the PWR, and address the scheduling issues created by the unilateral implementation of PBS.
Commenting on the ruling, the Allegiant pilots Executive Council Chairman, First Officer Cameron Graff, said, "the court's decision strongly supports and validates our position and rejects the company's after-the-fact claims that AAPAG was not a 'representative' and the Pilot Work Rules Agreements were not 'agreements' within the meaning of the RLA. The court recognized the company's claims for what they were and ruled in our favor. Tuesday’s court's decision is an important decision and it clearly favors the pilots.” Noting that the company had already filed an appeal, Graff went on to say, “While the company has already filed an appeal to the 9th Circuit Court of Appeals, we are confident that the appeals court will uphold Judge Gordon's decision."
Captain Daniel Wells, President of Teamsters Local 1224, agreed with First Officer Graff. Captain Wells stated, "Judge Gordon's decision very clearly and forcefully compels the company to honor its word and the agreements that it made with the pilots as reflected in the PWR. As President of Local 1224, I take the responsibility to negotiate in good faith with our contracted companies very seriously and I hope that in light of the court’s ruling that Mr. Gallagher will reconsider his approach to negotiations.”
Informed of the decision, Airline Division Director David Bourne said, “I congratulate the leadership and pilots of Allegiant Air and the leadership of Local 1224 on this important legal victory. It needs to be clearly understood that the pilots did nothing wrong and that there was no reason for the actions that Allegiant Air management took. We came to Allegiant at the pilots request and have always maintained that an open and cordial process that respects each party’s positions and needs, believing this is the best way to achieve everyone’s goals in an agreement.
We will always be open to discussions that work for the good of all. We are dedicated to defending rights and working conditions for our members and working with management for a positive relationship that benefit everyone,” he concluded.
NetJets Technicians and Related
Negotiations resumed this week with the Union passing a counter proposal on Article 29 – (Field Service). The Company also passed counter proposals on Articles 20 – (Training), Article 25 – (Sick Leave) and Article 32 – (Hours of Service). Additionally, the Negotiating Committee worked on Article 31 – (Seniority).
The Union and the Company will be working to set dates for the next round of talks.
Airline Industry News
Governmental and Regulatory
U.S. airlines hired 385,619 workers in May, a 1.1% increase over May 2013 and the highest level since September 2012, according to the Transportation Department.
Airlines, Industry and Labor
United Airlines has repeatedly put workers at Newark Liberty International Airport in danger of being injured by falls or by falling objects and other workplace hazards, the federal Occupational Safety and Health Administration said.
Delta Air Lines will supply a Trainer, Pa., refinery with crude oil for five years in a deal the airline signed with Texas midstream firm, Bridger LLC. Under the deal, Delta will supply a third of the refinery's daily capacity. The airline uses the jet fuel the refinery produces.
With the addition of higher-capacity Boeing 737-800s and lower fuel costs, Southwest Airlinesmay be poised to release robust second-quarter earnings, say some analysts. In addition, the airline saw a 2.4% annual rise in second-quarter traffic and higher unit revenues.
Boeing already is hard at work on its 787-10 Dreamliner, even as it begins delivery of the 787-9, and has scheduled test flights for 2017.
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Tuesday, July 22, 2014
Airline Division Week In Review - July 21, 2014
Teamsters Aviation Mechanics Coalition Recommends Single Standard for Drug Testing Programs for Foreign and Domestic Repair Stations
The Teamsters Aviation Mechanics Coalition (TAMC) called for the implementation of a single standard of drug testing for airline mechanics in its comments submitted Wednesday to the FAA on its proposed rulemaking, (Docket No. FAA-2012-1058), for required drug testing at foreign repair stations.
In its comments, TAMC recommended that all authorized individuals that perform safety-sensitive maintenance on commercial carriers at both foreign and domestic repair stations be subject to a single standard of drug and alcohol testing.
“The TAMC has taken the position that in order to maintain consistent safety standards in a global economy and regardless of where safety-sensitive maintenance functions are performed, a single standard of aviation maintenance safety must be achieved,” said Chris Moore, chairman of TAMC, in the comments. “If we in the United States believe that certain drugs and the use of alcohol are a threat to aviation safety, we must ensure that anyone performing safety-sensitive maintenance is held to the same standards.”
“When it comes to aviation safety we cannot afford to leave anything to chance,” said Teamsters Airline Division Director Capt. David Bourne. “Standardizing drug and alcohol testing across the industry both at domestic and foreign repair stations just makes sense. The flying public and every man and woman that works in the airline industry deserves nothing less to ensure every aircraft is safe – on the ground and in the air.”
SWA Material Specialist Update
SWA Material Specialist Contract Negotiations continued in Dallas this past week. The Negotiating Committee, Local Union Business Agents and Airline Division Representatives met outside of negotiations on July 14th and 15th to work on Article 5 (Hours of Service) and Article 8 (Field Service).
Direct negotiations with the Company continued on July 16th. The company made a counter proposal on Article 4. The company and the union also made multiple passes on Articles 5 and 8 with no TAs being reached.
Dates are under discussion for the next round of talks.
Airline Industry News
Governmental and Regulatory
In the wake of the apparent downing of Malaysia Airlines MH17 over Ukraine, the Federal Aviation Administration has issued a Notice to Airmen prohibiting U.S. carriers from flying over the eastern part of that country. The new direction expands the area prohibited to U.S. airlines in April, when the FAA ordered them to avoid the Crimean region of Ukraine and adjacent areas of the Black Sea and the Sea of Azov.
The Federal Aviation Administration last week proposed new standards for flight simulators used to train pilots. Those standards will include replicating the kind of stall that occurred in February 2009 as air speed slowed dangerously and Capt. Marvin D. Renslow took the exact opposite action the situation required. As a consequence, Flight 3407 plummeted to the ground, crashing into a house and killing all 49 people on board, including Renslow, and one person in the house.
Airlines, Industry and Labor
Southwest Airlines reported 28.8% more passenger activity at Reagan National Airport in Washington, D.C., in May on a year-over-year basis. The carrier recently picked up slots at DCA, and plans to eventually expand to 44 daily flights from the airport.
American Airlines has eliminated its fuel hedges, adopting a policy from US Airways. "Just like any insurance, you figure out what the cost of that insurance is," said CFO Derek Kerr. "And our belief has been that because of the volatility of fuel, the cost of the insurance far outweighs the benefit of that insurance."
Alaska Air Group put out a brief 8-K filing Monday saying that Glenn S. Johnson, president of its regional unit, Horizon Air Industries, plans to retire Sept. 1. That includes his job as executive vice president of Alaska Air Group.
Mechanics Dispatch - July 21, 2014
UAL GE/Facilities Maintenance Committee Meets
On Tuesday, July 15th the national GSE and Facilities committee representing sub United mechanics met in Houston. The meeting started at 8am and continued through the day with a working lunch as there were many topics discussed.
The committee sat down with Rob Walker of Corporate Real Estate to discuss what has transpired with the awarding of contracts around the system. The committee pressed Walker with the need to be involved early in the process of facility overhauls to ensure the scope of the projects does not violate the scope of the collective bargaining agreement. The company agreed that using LOA 25 of the sUAL agreement would be an effective tool in overseeing this work. As a result the local committees will be working with the local CRE contacts to ensure the CBA is adhered to properly.
The committee also discussed the current state of facilities maintenance and the challenges that lie ahead. Due to reporting to airport operations for a very long time, many things were neglected including training and staffing. The company shared its plan with the committee to move the facilities maintenance group forward. The company plans to increase training and implement tools similar to fleet focus that is currently used in the GSE shops. Fleet focus led to an increase in manpower at many stations and has also shown areas that the company needed to improve. It is believed that using this approach will be a benefit to the membership.
Other items discussed were the Chelsea facilities, Field Trips, LAX and EWR facilities reviews as well as the BAQ list.
At the end of the meeting it was determined that the sCO GSE/Facilities group should join in the next session. The next meeting should occur in the fall of this year. The committee members in attendance for this session were Ken Meidinger- Local 455, Allen Cosides - Local 210, Scott Baroni - Local 781, Greg Sullivan - Local 986 (SFO) and Dion Cornelious - Local 986 (LAX).
Joining the committee were Jay Koreny - Local 210 and Bob Fisher from the IBT.
TAMC Submits Comments on FAA Drug Testing Requirements at Foreign MRO’s
In comments submitted to the FAA today, the TAMC called for a single standard for drug testing programs for both foreign and domestic repair stations. The TAMC is recommending that all authorized individuals that perform safety-sensitive maintenance on commercial carriers at both foreign and domestic repair stations be subject to a single standard of drug and alcohol testing.
“The TAMC has taken the position that in order to maintain consistent safety standards in a global economy and regardless of where safety-sensitive maintenance functions are performed, a single standard of aviation maintenance safety must be achieved,” said Chris Moore, chairman of TAMC, in the comments.
“If we in the United States believe that certain drugs and the use of alcohol are a threat to aviation safety, we must ensure that anyone performing safety-sensitive maintenance is held to the same standards,” said Moore.
Chris Moore Interviewed on “The Union Edge”
Following the release of the comments to the FAA, International Rep Chris Moore was interviewed by Charles Showalter on The Union Edge on July 17th. The complete interview can be found hereunder the title Teamsters Push FAA To Drug Test. The interview starts at the 5:10 minute mark and ends at the 14:45 minute mark. Please take the time to listen to this interview and share it with your friends and family.
More information about The Union Edge can be found here.
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
The following Locals represent these respective cities:
Boston Local 25
New York & Washington Local 210
Charleston & Atlanta Local 528
Miami, Ft. Lauderdale Tampa & Orlando Local 769
Cleveland Local 964
Chicago Local 781
Houston, Dallas & New Orleans Local 19
Phoenix Local 104
Seattle, Portland, Los Angeles, Hawaii & Guam Local 986
San Francisco Local 856/986
Denver Local 455
Monday, July 14, 2014
The Cranky Flier - Blaming United's Problems On Continental Is Exactly The Problem
An interesting article from a blogger. You can read the article here.
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