AWA ALPA MEC Hotline - May 4, 2007
Fellow AWA Pilots:
As most of you are aware, the MEC received the merged seniority list late last night under a directive by Chairman Nicolau to release the list at a specific time. That list and the decision is on the secure AWA MEC website and available for download.
The MEC is working with the Merger Committee and outside counsel and advisors to determine what the impact of all the conditions and restrictions will be and what effect and impact each of these conditions and restrictions will have on our 1865 pilots.
Clearly, I have concerns about this list. While on the surface it may appear to many that we prevailed in our ideas about the construction of the list, I will say that placing 517 AAA pilots on top of our Captain list is problematic. Add to this picture a potential change to Age 60 in the very near future (more on that in a bit), a potential third merger and/or industry downturn, and I start to worry.
I hate to be the wet blanket, but from prior experience, I know that this is just the start of a very long process to interpret and enforce the hearing board’s decision, and the pilots of America West pay me to look at and analyze that big picture. We will continue to analyze, interpret, defend and communicate to you as we learn more. Please remember that this merged list cannot be utilized by management until a joint contract is in place.
I would like to thank the Merger Committee and all the outside advisors. They worked their tails off for all AWA pilots, and they all deserve a big thank you.
JUMPSEAT & PASS TRAVEL
US Airways President Scott Kirby has promised that we will be able to participate in the east jumpseat IVR system that allows pilots to reserve the jumpseat seven days in advance on a first-come, first-served basis by June 2007.
I would prefer to see this done sooner; though we have been pushing very hard, we continue to get roadblocks from the IT department.
Additionally, we have been restricted unfairly from international jumpseats.
At one point, AWA was a leader in jumpseat rules and procedures and we would like to see that day once again. As a reminder, we requested that east pilots not be able to utilize the IVR system on west metal until both pilot groups have equal access to the reservation system. I, like you, am incensed that somehow this benefit was magically saved for east pilots even though they are now on our reservation system. Once again, the AWA pilot group has shown maturity and leadership in granting our east brothers and sisters equal access to our west jumpseats, while we continue to be delayed on getting the same equal access to east jumpseats by west pilots.
The other problem that exists with jumpseats is in LAS. Many airlines do not want to get CASS up and running in the new terminal in LAS and this has prevented many of our pilots from getting home in a timely manner. This is unacceptable. I am in the process of writing all the MEC chairmen whose airlines live in the terminal asking them to pressure their respective managements to get CASS working. With the next ALPA Board of Directors meeting scheduled in LAS in 2008, I intend to bring this issue up at ALPA’s Executive Board in May as a possible resolution that we should not be scheduling conferences in cities where our pilots cannot even jumpseat to get home.
Additionally, I have written a letter to the east and west AFA presidents (Mike Flores and Gary Richardson respectively) asking that we preserve the cabin jumpseat for all pilots after flight attendants (currently east and west pilots do not have access to east metal cabin jumpseats) and I would ask that all pilots remind our fellow flight attendants (east and west) about the importance of getting our fellow crewmembers home, especially on full aircraft as the summer season approaches. Currently the east AFA does not allow anyone but a flight attendant access to the cabin jumpseat. On the west, we have had a long tradition of maintaining that benefit for all crewmembers.
The pass travel change is in my opinion a decision that senior management made that is fundamentally flawed. It has had the effect of disadvantaging the entire America West workgroup and is a slap in the face of all that made America West Airlines a thriving example of the post-deregulation era in a time of many airline failures. It is interesting to note that American Airlines is a first come, first served carrier with a long history similar to US Airways. This was a “no brainer†and management flunked the decision-making process when it came to this issue. We have an arbitration scheduled for June 2007 and we will keep you apprised of the situation.
RETIREMENT AGE
At the risk of much hand wringing in my direction, I will bring up the FAA Age 60 mandatory retirement issue. We all know what a divisive issue this can be for all crewmembers. In light of the merged seniority list, I would ask that all pilots fill out their survey immediately so the MEC can have guidance in this regard. The FAA has issued a Notice of Proposed Rulemaking (NPRM) to rescind current age 60 retirement policy for 121 carriers. But there is an issue with respect to waivers for pilots as well. The FAA administrator mentioned waivers, but there appears to be no movement on this issue, although several pilots have petitioned the MEC and management to pursue waivers on their behalf.
I have asked the AWA MEC to review the current Age 60 resolution as it is dated. It was passed when we had four elected representatives as opposed to the six we currently have. It also was passed prior to the implementation of a 10 percent “B†plan and our “bridge plan.†I have asked our MEC members to bring a resolution to the floor of the next MEC meeting that can be debated to give the MEC chairman clear direction on Age 60 and also on asking for waivers for those pilots who are expected to reach 60 prior to the expected change being implemented.
This is a very controversial issue. We have asked this question on several Wilson Center polls and it has always been in favor of change to age 60, but only by a slim majority. It will be interesting to see if the outcome of the list changes the percentages at all.
AIRCRAFT ORDERS & OPEN SKIES
We do expect to hear shortly about an aircraft order. I am not a gambler, so I will not get into the Boeing versus Airbus debate. But I will say that management is only willing to buy domestic replacement aircraft—NOT aircraft for expansion. So be careful not to get too excited about an aircraft order. We know that seven B737-300s are slated to go away on the east and also five B757s on the east are slated to be replaced by A321s. Relatively speaking, there is little growth planned domestically in the near future—east or west.
Of course we expect some future widebodies to be included in this order, as well as some temporary A340s or similar aircraft if we move ahead with the China or other route authorities. Both MECs have told management that they expect only to negotiate A340 provisions at the table and not as an aside to negotiations.
Meanwhile, the other problems we face are potentially increased foreign and domestic carrier competition as DAL, CAL, NWA, Lufthansa and Air France/KLM are virtually salivating at the prospect of further globalization.
I am a little concerned that the Association suddenly backed off its hard line stance on opens skies as we currently have a deal that seems to benefit a small number of the aforementioned carriers. Additionally, a threat persists from Virgin America, who continues to try to get an operating certificate in the U.S. If Virgin succeeds, they will depress fares and profits, increase the pressure on already overtaxed airports, and eventually disappear or be merged, all in the name of making Richard Branson more money than he can spend currently.
Foreign ownership is a huge problem, and it will result in jobs and capital moving overseas to enrich Europeans at our expense. It is unacceptable to me that some politicians and industry leaders in our country would enable this outsourcing of a complete industry to occur. But then again, if it happens, it won’t be the first time an industry that once thrived in America almost completely disappears.
OPERATIONAL PROBLEMS
A few months ago, I wrote to US Airways Chairman and CEO Doug Parker to let him know that we were beginning to lose faith in his ability to run the operation. That letter never received a response. So now I am forced to say that we have lost complete faith in the operation and it is evident every day. The root of the problem really seems to be with labor—how do so many labor contracts remain unresolved? Also, I think it is safe to say that the morale of the normally easy-going America West employee group is completely shot. Bad decisions (like the pass travel method) are a very good way to alienate 12,000 employees all at once. Management’s counter of course is that they had a Hobson’s choice to alienate the other group.
The problem is that this decision should have been made as part of the merger itself and incorporated early on so both employee groups would have known what the policy was going to be upfront. Instead, they waited many months then delayed and sought ‘input’ before creating a policy that will end up being arbitrated by everyone.
Maybe we will get this right the next time we merge. In the meantime, we have received some very disturbing numbers regarding safety margins in our current operation. We want all of you to remember that safety is our number one priority. The America West Airlines certificate has been accident-free and we hope to keep it that way.
MERGER FUND
You will be hearing some more on this issue, as we have some of our usual financial problems bearing down on us. Since the start of this merger, the AWA MEC has spent approximately $600,000 out of its own MEC budget on the AWA MEC Merger Committee account code 75001. This includes flight pay loss, meals, hotel, per diem, etc. Of course we are glad to do it because we know how much it means to all of us, but we all have to pay for this and now the time has come.
Conversely, the AWA MEC Merger Fund, which is reserved for expenditures on outside merger consultants exclusively, has been well preserved and rightly so. Additionally, the AWA MEC agreed to deposit the $300,000 from the Transition Agreement into the merger fund and we expect to have some substantial monies left over in that fund which we will need to protect us against possible future challenges, including legal fees for our outside consultant that we will need to likely use when we get to the post merger world for interpretations resulting from the seniority list and any conditions and restrictions associated with that list.
But we are winding down, and the AWA MEC, which was able to do some financial maneuvering to tighten our belts last year, finds itself financially challenged once again. To get our budget righted, we are planning to change the merger fund policy to allow funds from the merger fund be submitted to the MEC to pay ONLY for those expenditures in 2007 from the Merger Committee account code 75001, to get us above the MEC account break even level.
The MEC has been very clear that we do not want the merger fund to become a slush fund for our MEC account, and we all very much respect and appreciate the job that the Merger Fund Management Committee has done with regard to managing our original $500 investment in that fund.
Given the new merged list and the large number of conditions and restrictions in the list, it is likely that we will expend a great deal of money on hearings to defend and interpret that list every time a vacancy or displacement bid comes out in the future. We will have to factor these needed funds into our thinking.
NEGOTIATIONS
Management is planning to give us a comprehensive economic proposal on May 8. We had expected to meet with both MECs and come up with a counterproposal by the end of May, but the east MEC cancelled the internal meetings we had scheduled to discuss our counters.
The current estimate is that we have nearly 150 items open on this contract. A lot of items are smaller issues. While we have no interest in letting those smaller issues fall off the table, we have no doubt that management would like for that to happen.
I think that the May 8 offer will be west book plus a few percentage points—enough to garner some interest but clearly not enough for us. The May 8 “Kirby Proposal†will be an effort by management to try and get us closer to a deal, but I believe that it is really designed to go directly to the pilots (mostly the east pilots) to put pressure on us to close the deal. But with the list out, I think all bets are off. Now, more than ever before, is a time to show unity, resolve and a single purpose of getting a good contract. The list is the list is the list, and we need to focus on what we have control over.
But I will say at my own risk that I do not expect to achieve SWA contract wages. This is mainly because I don’t want what is contained in the rest of their contract. Minimum rest of eight hours, very few work rules, and a life of junior assignment is what you all would have to offer up to get those rates, and I have no intention of doing that to this pilot group. There is a saying that the grass (and life) always seems a little greener on the other side of fence, even though it is not necessarily so. But I do think that there is a payscale that is substantially better than ours that is achievable and represents a substantial improvement or par with most of our competitors. The key is your definition of “substantial.†I know that most of our pilots are reasonable and will define this as better than the expected offer of west book plus three to five percent but less than SWA. That is where our opening rate line was drawn and we expect to negotiate a fair rate in line with the industry and the profitability of this corporation. That is how management defined their profit sharing and bonus programs, and I fail to see why we should do anything less or different.
The AWA MEC is very focused on ensuring that we get a contract that is fair and represents the needs of our pilots. We have no interest in sending out a contract for you to consider if we think it will not ratify. On the other hand, I do ask you all to be patient and understand that this is a complex negotiation that requires a lot of bargaining—both internally with the AAA MEC and externally with management. This is not an easy process and it is fraught with many challenges. We are trying to meet all those challenges and come up with a set of solutions that you can all consider. Additionally, in light of the recent cancellations of joint MEC meetings by the east MEC in May, I have asked our MEC members to consider all the alternatives to this joint process. The bottom line is that we have a fiduciary responsibility to negotiate a good faith contract for the AWA pilot group who should be nearly one year into Section 6 negotiations at this point.
While we may not always agree on every aspect of the contract proposals or eventual outcome, it is critical that we try and not make this process personal. All of your volunteers are trying their level best to ensure that your interests are well represented and that you be unified behind your volunteers as we get on the final track to a contract. Failure to unify at this critical junction is not an option we can afford and it will lead to disaster. This MEC is dedicated to protecting the interests of the AWA pilot group and we will leave no potential solution unexamined in our quest to ensure you receive the best possible representational product.
Fraternally,
Captain John McIlvenna
Chairman, AWA Master Executive Council
Fellow AWA Pilots:
As most of you are aware, the MEC received the merged seniority list late last night under a directive by Chairman Nicolau to release the list at a specific time. That list and the decision is on the secure AWA MEC website and available for download.
The MEC is working with the Merger Committee and outside counsel and advisors to determine what the impact of all the conditions and restrictions will be and what effect and impact each of these conditions and restrictions will have on our 1865 pilots.
Clearly, I have concerns about this list. While on the surface it may appear to many that we prevailed in our ideas about the construction of the list, I will say that placing 517 AAA pilots on top of our Captain list is problematic. Add to this picture a potential change to Age 60 in the very near future (more on that in a bit), a potential third merger and/or industry downturn, and I start to worry.
I hate to be the wet blanket, but from prior experience, I know that this is just the start of a very long process to interpret and enforce the hearing board’s decision, and the pilots of America West pay me to look at and analyze that big picture. We will continue to analyze, interpret, defend and communicate to you as we learn more. Please remember that this merged list cannot be utilized by management until a joint contract is in place.
I would like to thank the Merger Committee and all the outside advisors. They worked their tails off for all AWA pilots, and they all deserve a big thank you.
JUMPSEAT & PASS TRAVEL
US Airways President Scott Kirby has promised that we will be able to participate in the east jumpseat IVR system that allows pilots to reserve the jumpseat seven days in advance on a first-come, first-served basis by June 2007.
I would prefer to see this done sooner; though we have been pushing very hard, we continue to get roadblocks from the IT department.
Additionally, we have been restricted unfairly from international jumpseats.
At one point, AWA was a leader in jumpseat rules and procedures and we would like to see that day once again. As a reminder, we requested that east pilots not be able to utilize the IVR system on west metal until both pilot groups have equal access to the reservation system. I, like you, am incensed that somehow this benefit was magically saved for east pilots even though they are now on our reservation system. Once again, the AWA pilot group has shown maturity and leadership in granting our east brothers and sisters equal access to our west jumpseats, while we continue to be delayed on getting the same equal access to east jumpseats by west pilots.
The other problem that exists with jumpseats is in LAS. Many airlines do not want to get CASS up and running in the new terminal in LAS and this has prevented many of our pilots from getting home in a timely manner. This is unacceptable. I am in the process of writing all the MEC chairmen whose airlines live in the terminal asking them to pressure their respective managements to get CASS working. With the next ALPA Board of Directors meeting scheduled in LAS in 2008, I intend to bring this issue up at ALPA’s Executive Board in May as a possible resolution that we should not be scheduling conferences in cities where our pilots cannot even jumpseat to get home.
Additionally, I have written a letter to the east and west AFA presidents (Mike Flores and Gary Richardson respectively) asking that we preserve the cabin jumpseat for all pilots after flight attendants (currently east and west pilots do not have access to east metal cabin jumpseats) and I would ask that all pilots remind our fellow flight attendants (east and west) about the importance of getting our fellow crewmembers home, especially on full aircraft as the summer season approaches. Currently the east AFA does not allow anyone but a flight attendant access to the cabin jumpseat. On the west, we have had a long tradition of maintaining that benefit for all crewmembers.
The pass travel change is in my opinion a decision that senior management made that is fundamentally flawed. It has had the effect of disadvantaging the entire America West workgroup and is a slap in the face of all that made America West Airlines a thriving example of the post-deregulation era in a time of many airline failures. It is interesting to note that American Airlines is a first come, first served carrier with a long history similar to US Airways. This was a “no brainer†and management flunked the decision-making process when it came to this issue. We have an arbitration scheduled for June 2007 and we will keep you apprised of the situation.
RETIREMENT AGE
At the risk of much hand wringing in my direction, I will bring up the FAA Age 60 mandatory retirement issue. We all know what a divisive issue this can be for all crewmembers. In light of the merged seniority list, I would ask that all pilots fill out their survey immediately so the MEC can have guidance in this regard. The FAA has issued a Notice of Proposed Rulemaking (NPRM) to rescind current age 60 retirement policy for 121 carriers. But there is an issue with respect to waivers for pilots as well. The FAA administrator mentioned waivers, but there appears to be no movement on this issue, although several pilots have petitioned the MEC and management to pursue waivers on their behalf.
I have asked the AWA MEC to review the current Age 60 resolution as it is dated. It was passed when we had four elected representatives as opposed to the six we currently have. It also was passed prior to the implementation of a 10 percent “B†plan and our “bridge plan.†I have asked our MEC members to bring a resolution to the floor of the next MEC meeting that can be debated to give the MEC chairman clear direction on Age 60 and also on asking for waivers for those pilots who are expected to reach 60 prior to the expected change being implemented.
This is a very controversial issue. We have asked this question on several Wilson Center polls and it has always been in favor of change to age 60, but only by a slim majority. It will be interesting to see if the outcome of the list changes the percentages at all.
AIRCRAFT ORDERS & OPEN SKIES
We do expect to hear shortly about an aircraft order. I am not a gambler, so I will not get into the Boeing versus Airbus debate. But I will say that management is only willing to buy domestic replacement aircraft—NOT aircraft for expansion. So be careful not to get too excited about an aircraft order. We know that seven B737-300s are slated to go away on the east and also five B757s on the east are slated to be replaced by A321s. Relatively speaking, there is little growth planned domestically in the near future—east or west.
Of course we expect some future widebodies to be included in this order, as well as some temporary A340s or similar aircraft if we move ahead with the China or other route authorities. Both MECs have told management that they expect only to negotiate A340 provisions at the table and not as an aside to negotiations.
Meanwhile, the other problems we face are potentially increased foreign and domestic carrier competition as DAL, CAL, NWA, Lufthansa and Air France/KLM are virtually salivating at the prospect of further globalization.
I am a little concerned that the Association suddenly backed off its hard line stance on opens skies as we currently have a deal that seems to benefit a small number of the aforementioned carriers. Additionally, a threat persists from Virgin America, who continues to try to get an operating certificate in the U.S. If Virgin succeeds, they will depress fares and profits, increase the pressure on already overtaxed airports, and eventually disappear or be merged, all in the name of making Richard Branson more money than he can spend currently.
Foreign ownership is a huge problem, and it will result in jobs and capital moving overseas to enrich Europeans at our expense. It is unacceptable to me that some politicians and industry leaders in our country would enable this outsourcing of a complete industry to occur. But then again, if it happens, it won’t be the first time an industry that once thrived in America almost completely disappears.
OPERATIONAL PROBLEMS
A few months ago, I wrote to US Airways Chairman and CEO Doug Parker to let him know that we were beginning to lose faith in his ability to run the operation. That letter never received a response. So now I am forced to say that we have lost complete faith in the operation and it is evident every day. The root of the problem really seems to be with labor—how do so many labor contracts remain unresolved? Also, I think it is safe to say that the morale of the normally easy-going America West employee group is completely shot. Bad decisions (like the pass travel method) are a very good way to alienate 12,000 employees all at once. Management’s counter of course is that they had a Hobson’s choice to alienate the other group.
The problem is that this decision should have been made as part of the merger itself and incorporated early on so both employee groups would have known what the policy was going to be upfront. Instead, they waited many months then delayed and sought ‘input’ before creating a policy that will end up being arbitrated by everyone.
Maybe we will get this right the next time we merge. In the meantime, we have received some very disturbing numbers regarding safety margins in our current operation. We want all of you to remember that safety is our number one priority. The America West Airlines certificate has been accident-free and we hope to keep it that way.
MERGER FUND
You will be hearing some more on this issue, as we have some of our usual financial problems bearing down on us. Since the start of this merger, the AWA MEC has spent approximately $600,000 out of its own MEC budget on the AWA MEC Merger Committee account code 75001. This includes flight pay loss, meals, hotel, per diem, etc. Of course we are glad to do it because we know how much it means to all of us, but we all have to pay for this and now the time has come.
Conversely, the AWA MEC Merger Fund, which is reserved for expenditures on outside merger consultants exclusively, has been well preserved and rightly so. Additionally, the AWA MEC agreed to deposit the $300,000 from the Transition Agreement into the merger fund and we expect to have some substantial monies left over in that fund which we will need to protect us against possible future challenges, including legal fees for our outside consultant that we will need to likely use when we get to the post merger world for interpretations resulting from the seniority list and any conditions and restrictions associated with that list.
But we are winding down, and the AWA MEC, which was able to do some financial maneuvering to tighten our belts last year, finds itself financially challenged once again. To get our budget righted, we are planning to change the merger fund policy to allow funds from the merger fund be submitted to the MEC to pay ONLY for those expenditures in 2007 from the Merger Committee account code 75001, to get us above the MEC account break even level.
The MEC has been very clear that we do not want the merger fund to become a slush fund for our MEC account, and we all very much respect and appreciate the job that the Merger Fund Management Committee has done with regard to managing our original $500 investment in that fund.
Given the new merged list and the large number of conditions and restrictions in the list, it is likely that we will expend a great deal of money on hearings to defend and interpret that list every time a vacancy or displacement bid comes out in the future. We will have to factor these needed funds into our thinking.
NEGOTIATIONS
Management is planning to give us a comprehensive economic proposal on May 8. We had expected to meet with both MECs and come up with a counterproposal by the end of May, but the east MEC cancelled the internal meetings we had scheduled to discuss our counters.
The current estimate is that we have nearly 150 items open on this contract. A lot of items are smaller issues. While we have no interest in letting those smaller issues fall off the table, we have no doubt that management would like for that to happen.
I think that the May 8 offer will be west book plus a few percentage points—enough to garner some interest but clearly not enough for us. The May 8 “Kirby Proposal†will be an effort by management to try and get us closer to a deal, but I believe that it is really designed to go directly to the pilots (mostly the east pilots) to put pressure on us to close the deal. But with the list out, I think all bets are off. Now, more than ever before, is a time to show unity, resolve and a single purpose of getting a good contract. The list is the list is the list, and we need to focus on what we have control over.
But I will say at my own risk that I do not expect to achieve SWA contract wages. This is mainly because I don’t want what is contained in the rest of their contract. Minimum rest of eight hours, very few work rules, and a life of junior assignment is what you all would have to offer up to get those rates, and I have no intention of doing that to this pilot group. There is a saying that the grass (and life) always seems a little greener on the other side of fence, even though it is not necessarily so. But I do think that there is a payscale that is substantially better than ours that is achievable and represents a substantial improvement or par with most of our competitors. The key is your definition of “substantial.†I know that most of our pilots are reasonable and will define this as better than the expected offer of west book plus three to five percent but less than SWA. That is where our opening rate line was drawn and we expect to negotiate a fair rate in line with the industry and the profitability of this corporation. That is how management defined their profit sharing and bonus programs, and I fail to see why we should do anything less or different.
The AWA MEC is very focused on ensuring that we get a contract that is fair and represents the needs of our pilots. We have no interest in sending out a contract for you to consider if we think it will not ratify. On the other hand, I do ask you all to be patient and understand that this is a complex negotiation that requires a lot of bargaining—both internally with the AAA MEC and externally with management. This is not an easy process and it is fraught with many challenges. We are trying to meet all those challenges and come up with a set of solutions that you can all consider. Additionally, in light of the recent cancellations of joint MEC meetings by the east MEC in May, I have asked our MEC members to consider all the alternatives to this joint process. The bottom line is that we have a fiduciary responsibility to negotiate a good faith contract for the AWA pilot group who should be nearly one year into Section 6 negotiations at this point.
While we may not always agree on every aspect of the contract proposals or eventual outcome, it is critical that we try and not make this process personal. All of your volunteers are trying their level best to ensure that your interests are well represented and that you be unified behind your volunteers as we get on the final track to a contract. Failure to unify at this critical junction is not an option we can afford and it will lead to disaster. This MEC is dedicated to protecting the interests of the AWA pilot group and we will leave no potential solution unexamined in our quest to ensure you receive the best possible representational product.
Fraternally,
Captain John McIlvenna
Chairman, AWA Master Executive Council
