American Airlines Pilot Seniority List Integration Committee witness Jalmer Johnson;;;
“America West is an airline historically was a low-cost, low-fare airline.
As a result, the America West-ALPA CBA and compensation was significantly below industry standard.”
“The CBA that was in effect at the time of the merger with US Airways and also in effect at the time of the merger with American -- because their (west pilot) previous compensation was so low, they avoided going through the huge concessionary phase that nearly all the other airlines had to go through from about 2002 to 2006.”
“The 2003 agreement did provide for (america west pilots) the modest raises and the increases in DC contributions I cite here. And as a result of the Transition Agreement between America West and US Airways, they did get some modest improvements in their compensation, their DC plan and profit sharing.
Q. And that 2003 CBA as amended remained in effect at the time American and US Airways merged?
A. Yes.”
“A. Well, I think it's just helpful to kind of track where these three carriers were relative to this industry average or industry standard. You can see that US Airways kind of at or above it until early 2000 -- or mid 2002. And then staying below it for the remaining ten years. America West always staying below it over the entire 12-year or 13-year period
And the outcome of that was having the lowest hourly pay rates in pilot compensation on particularly on the narrowbody airplanes from 2004 up to the point of this merger.
And US Airways West, as I indicate, they worked for a low-cost carrier. Their wages and compensation were low. And they have always been below industry standard. “
“Slide 99 shows US Airways West because there were fewer pre merger bid positions, and some of those bid positions, since they were Group 2 and Group 3 First Officer separately, and then Captains, were paid the same.”
“A. Right. So, again, just reiterating. The US Airways East pilots have the lowest
pilot hourly pay rates for among U.S. major airlines from 2004 to 2012.
US Airways West pilots were paid historically at the bottom of the industry. They had a very low level of DC plan contributions.