I am trying find opinions on different ways to fairly bridge the seniority lists between the two airlines. I am also interested in how other Airline mergers have proceeded.
Things to consider:
1. Southwest purchased Airtran. (Airtran sold the airline for 1.4 billion but really 3.4 billion w/ debt)
2. This is a buyout not a merger.
3. Southwest (SWA) mechanics make $12 - $15 dollars more per hour.
4. SWA Mechanics top out at 5 years not 10 years like Airtran.
5. Many Southwest mechanics spent 1-3 years on waiting lists after being hired with Southwest before finally actually starting. Airtran zero wait.
6. SWA matches 7.2 percent on 401k. Airtran 2 percent.
7. SWA has 6 more paid holidays a year than Airtran.
8. SWA job security.
9. SWA has great relationship with employees.
10 SWA insurance premiums are very inexpensive $50-60 dollars evrey pay period.
* If any of my facts are incorrect feel free to educate me.
On paper SWA mechanics have every thing to lose and Airtran mechanics everthing to gain.
Some options for bridging senority.
1. All Airtran mechanics start below all SWA mechanics with payscale determined buy years of Airtran service.
2. Blend in Airtran mechanics based on hire date.
3. Split Airtrans seniority in half then blend in SWA seniority list.
4. Bridge first Airtran Mechanics by hire date skip 2-3 SWA mechanics and insert next Airtran Mechanic on seniority list.
Congress has set guidlines under the Allegheny-Mohawk merger on how labor intergration should occur between two merger airlines. The key words it uses is "fair and equitable manner”. It does not specify any other set rules or how to determine or exactly what is fair and equitable. Which should be fair and equitable for both Airlines. This is also used for a Merger. Which technically SWA and Airtrab is not a merger.
Labor Protective Provisions and the Allegheny-Mohawk
Merger
Labor Protective Provisions (LPPs) were routinely applied by the Civil Aeronautics Board
(CAB) in the 1950s and 1960s in airline mergers. The LPPs were formalized as a set of
standards in the board’s 1972 order in the merger of Allegheny and Mohawk airlines.5 That
order granted several protections for employees adversely affected by an airline merger. The
protections included a monthly displacement allowance for employees whose compensation was
reduced, a dismissal allowance for employees who lost their job, reimbursement for relocation
expenses, and compensation for other losses suffered as a direct result of the merger. In
addition, the Allegheny-Mohawk order required that seniority systems be integrated in a “fair
and equitable manner” and provided mediation and arbitration to resolve disputes over LPPs.
The LPPs, however, required that any adverse impact had to be the result of the merger. Further,
the “fair and equitable” standard was generally regarded to have been met if the procedure
(rather than the outcome) was fair.
Things to consider:
1. Southwest purchased Airtran. (Airtran sold the airline for 1.4 billion but really 3.4 billion w/ debt)
2. This is a buyout not a merger.
3. Southwest (SWA) mechanics make $12 - $15 dollars more per hour.
4. SWA Mechanics top out at 5 years not 10 years like Airtran.
5. Many Southwest mechanics spent 1-3 years on waiting lists after being hired with Southwest before finally actually starting. Airtran zero wait.
6. SWA matches 7.2 percent on 401k. Airtran 2 percent.
7. SWA has 6 more paid holidays a year than Airtran.
8. SWA job security.
9. SWA has great relationship with employees.
10 SWA insurance premiums are very inexpensive $50-60 dollars evrey pay period.
* If any of my facts are incorrect feel free to educate me.
On paper SWA mechanics have every thing to lose and Airtran mechanics everthing to gain.
Some options for bridging senority.
1. All Airtran mechanics start below all SWA mechanics with payscale determined buy years of Airtran service.
2. Blend in Airtran mechanics based on hire date.
3. Split Airtrans seniority in half then blend in SWA seniority list.
4. Bridge first Airtran Mechanics by hire date skip 2-3 SWA mechanics and insert next Airtran Mechanic on seniority list.
Congress has set guidlines under the Allegheny-Mohawk merger on how labor intergration should occur between two merger airlines. The key words it uses is "fair and equitable manner”. It does not specify any other set rules or how to determine or exactly what is fair and equitable. Which should be fair and equitable for both Airlines. This is also used for a Merger. Which technically SWA and Airtrab is not a merger.
Labor Protective Provisions and the Allegheny-Mohawk
Merger
Labor Protective Provisions (LPPs) were routinely applied by the Civil Aeronautics Board
(CAB) in the 1950s and 1960s in airline mergers. The LPPs were formalized as a set of
standards in the board’s 1972 order in the merger of Allegheny and Mohawk airlines.5 That
order granted several protections for employees adversely affected by an airline merger. The
protections included a monthly displacement allowance for employees whose compensation was
reduced, a dismissal allowance for employees who lost their job, reimbursement for relocation
expenses, and compensation for other losses suffered as a direct result of the merger. In
addition, the Allegheny-Mohawk order required that seniority systems be integrated in a “fair
and equitable manner” and provided mediation and arbitration to resolve disputes over LPPs.
The LPPs, however, required that any adverse impact had to be the result of the merger. Further,
the “fair and equitable” standard was generally regarded to have been met if the procedure
(rather than the outcome) was fair.
