Just Another Cost Unit
posted on January 05, 2015 22:50
JUST ANOTHER COST UNIT
Mssrs. Parker and Kirby have defined the New Culture at the New American. I voted against LBFO3 (JCBA). If you have any self respect and are tired of getting kicked in the crotch by the same old management types, VOTE NO. If you like the offer, VOTE YES.
In Unity,
MIke
Posted in: New York
LGA Vice JCBA Update 5 Jan
posted on January 05, 2015 11:56
Board Approves Membership Ratification of JCBA:
LGA pilots, by now you have learned the outcome of the vote by the APA Board of Directors concerning the JCBA. While a large number of LGA pilots felt the actions of the Board to accept Management's JCBA proposal for membership ratification was the correct decision to make, it's important to say that many of you felt the Board should have pushed the process to arbitration. Over the last two months I explained why I believe a consensual and mutually agreed to negotiated contract would benefit both the pilots of APA and Mr. Parker. Considering the bright outlook our new Management frequently painted toward the importance of having support from both pilot groups during the restructuring of our airline, as the record profits continue to roll in each day, we shouldn't have to work very hard to enjoy the new culture that Mr. Parker had promised when APA gave him the keys to the airline. At this point, not only is that new culture allusive but for the most part it is nonexistent. Two weeks ago we presented a proposal to Mr. Parker and Mr. Kirby that we felt was reasonable and fit both the monetary and operational needs of the company – providing that mutually acceptable agreement we were all looking for. Mr. Kirby sent his response – “No” to all of our proposed items but here is another 4% in pay for the pilots and the rest of the employees. Obviously with record profits, money is not an issue. They are willing to pay us off but they want contractual changes for the money.
Unified Board:
Last Friday the BOD met again to discuss our current situation. We all know there had been a division within the BOD in our opinions on how best to move forward on behalf of the pilots of APA. With the best interests of the APA pilots in mind we put our differences aside and worked to craft a proposal that addressed a key issue important to all of our pilots – not flying 3 day trips for 11 hours of pay. We pulled a contractual piece from the current US Airways West contract concerning their “long-rate rig”. This requirement stipulates that any sequence with a layover of 24 hours or greater, that layover time will be treated as a duty period for pay and credit purposes worth up to 5:15 hours thereby giving them an average of 5:15 hours per day. We felt it was a simple solution to a problem that has been plaguing our pilots for too long. The company should have been familiar with the language. It already exists in the West contract, so the implementation would not require “reinventing the wheel”. The only amendment we made to the existing language was to reduce the layover time from 24 hours to 22 hours, capturing approximately 500 more sequences per year. By a 22-0 vote we sent this proposal to Mr. Kirby on Friday night. That night and on Saturday morning our negotiating team and Subject Matter Experts engaged with the company to review the proposal and tried to craft the exact language to capture our proposal and ensure both sides understood its impact. By late afternoon the company declined our proposal sighting the cost as the reason for their rejection. Our Economic, Financial and Analysis team put the value of the proposal at approximately $55 million per year verse the company’s estimate of approximately $80 million per year. Mr. Kirby had just told us last month that the JCBA outcome is not all about valuations. I guess that it true until it actually is about the valuations.
Why Did I Vote Yes:
Do not take this an endorsement of the proposal. I believe my job, as your representative, is to work on behalf of all the members of APA and be the voice for LGA. After communicating the positives and negatives of each path via our base blasts, teleconferences, a Domicile meeting and countless email, text and telephone conversations, the reality was it became apparent to me that the majority of those I spoke with from the LGA Domicile wanted to either “vote for” the last offer or at least wanted the proposal passed so they could “vote on” the offer. My job is to represent all the members. Furthermore, and most important, I believe had the Board rejected the offer the anger of the pilots would have been misdirected at the BOD and caused a greater erosion of any unity we would need to create and show the company our resolve. This would harm our ability to use our strength and make the appropriate changes to a negotiated outcome prior to an arbitrator’s decision. If the membership turns down the proposal it speaks volumes to indicate a greater level of dissatisfaction and a true indication that the “New Culture” doesn’t exist.
In just the last two days I have seen that process begin. The membership knows our proposal to the company was reasonable, fits our operational needs, and is not a great expense to the company; especially during these times of record profits! Not only is it a reasonable offer, it is in line with Industry Standard, and I repeat, it is currently part of the US Airways West contract. Our total pilot costs would still be below Delta and United! The swell of anger, mistrust, and disappointment should be conveyed to your Chief Pilots. Let them know how you feel Mr. Parker and Mr. Kirby value the pilots of the world’s largest airline. Parker and Kirby have the chance to make this great, but like past management, they are being short sighted and failing to realize the value of an engaged and enthusiastic pilot group!
As always, the strength comes from the members!
What’s Next:
I encourage you to read and review everything available about the two options in front of you. As pilots it is in our DNA to maintain control, analyze the situation, and then take appropriate action. Your Domicile Reps will provide all the material you need to make an informed and qualified decision. We will accomplish this through any of the following: Domicile meetings, Family Awareness meetings, Teleconferences or making ourselves available in operations. We both want to make it clear – this will not be an LBFO sales job!We will make sure you understand that arbitration will not give management the contractual changes they want and need, as well as the monetary risks associated with rejection. Think hard about the changes contained in management’s proposal and how they will affect you over the next 5+ years as AA implements PBS, a new reserve system, and a new TTOT system. Discuss these options with your fellow pilots, reach out to Mike or myself and take the time to make sure you understand what you are signing. There is a lot to consider. I know the money is attractive. I was hired in 1992 and have lived through some very difficult times including the “decade of despair.” Remember; it is not always just about money.
This is your union, your contract, your future, and your choice!
1. Kirby’s Proposal:
1. Management responded to our proposal by increasing their pay offer in-line with our “pay option #1” – adding more than $600 million to the value of the package on the table (a 50% increase).
2. Extend the expiration date to 1 January 2020
3. Use of local “acclimated” time to be used to determine FAR 117 duty day limits (“acclimation” would require a minimum 36-hour layover)
4. Elimination of international and domestic divisions
5. Tighten reporting requirements for short call reserve pilots
6. No “Calendar Day” Duty Rig – Maintain FDP
7. No adjustment to A-321 pay
8. No repair to our Long Term Disability program
9. Cadillac Tax adjustment in 2018 effecting our Medical Benefits
10. 2 years of LOS for our returned furloughed pilots
11. Increase allowable limits on withholding pilots from a new bid status to 1 year
12. Allow middle-of-the night recurrent landing simulator sessions
Accepting their offer would also lock in a list of minor improvements agreed to over the last few months, many of which are necessary for the merger of the two companies anyway
2. Arbitration:
What does the arbitration path look like and what can happen?
The arbitration jurisdiction set up by the MOU explicitly limits the arbitrators to crafting provisions “consistent with” our current contract. Management’s list of demands all constitute changes to our current contract, which by definition, means that they are “inconsistent” with our current contract and outside of the arbitrator’s jurisdiction to grant. Just as we witnessed with the Flight Attendant arbitration process when they asked the arbitrators to add items to the process, they were denied.
Furthermore and just as important, the arbitration panel is explicitly charged with crafting the implementation schedule of integrating Legacy USAir pilots into our current contract. Given management’s reluctance and inability to implement and integrate pilots under a contract signed 2 years ago, it is my belief that an arbitration award setting specific timelines is something management will seek to avoid.
No one can predict with certainty whether management’s inability to obtain what they want through arbitration, the desire to avoid specific implementation requirements, combined with the other factors inherent in a continued confrontation will be enough to compel them to address our concerns. I think our goals and expectations are reasonable, justifiable, and achievable. However, the only way we can succeed with this path is if the membership rejects management’s “offer” and declares with a unified voice that they are committed to achieving the goals we established at the beginning of this process. This is the time where the membership will have to choose for themselves between accepting a proposal that does not meet all their expectations, or to reject the proposal and take the risks needed to improve the deal.
Big pay rates mean little if you are on the road an unable to enjoy them.
Stand by for the dates, times and venues. We will provide you the information you need to make a decision for your future.
In Unity,
R Scott
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