ALPA Sends Mixed Messages On
Allegheny-Piedmont Merger
Aviation Daily02/06/2004
Approval of the conditions for a merger of US Airways' wholly owned regional carriers Allegheny and Piedmont Airlines is being stonewalled by the union representing both carriers -- the Air Line Pilots Association
(ALPA)-- with questions mounting about ALPA National's loyalties. US Airways announced plans to merge the carriers last month (DAILY, Jan. 15) and began meeting with labor groups. The carrier also said it would transfer some of Allegheny's assets and liquidate the rest if the regional didn't agree to the merger terms.
ALPA Master Executive Council leaders (MEC) from Allegheny received a final draft of the letter of agreement (LOA) for the merger last week that the MEC chairman was urged to sign or "US Airways would issues a press release the next day announcing the asset transfer of Allegheny to Piedmont," ALPA told Allegheny pilots in an update. Chairman Rick O'Leary said the MEC asked that he get a clarification of the conditions, and called a special meeting the next day.
The chairman got assurances from ALPA National that even though the MEC couldn't give 24 hours' notice, as required by ALPA by-laws, that "circumstances could be worked out with ALPA's legal staff," but those guarantees fell through. O'Leary signed the letter of agreement "at the direction of an ALPA representative," but that was later deemed non-binding.
ALPA set up another meeting of the Allegheny MEC Feb. 4 for formal ratification of the LOA, much to the chagrin of O'Leary. "I think that for your office to call a special meeting before the MEC has an opportunity to thoroughly examine its options raises the question of a potential conflict of interests," O'Leary told ALPA National. The meeting was still held, but no firm decisions about the LOA were made. Another session is scheduled Tuesday.
The LOA calls for Allegheny pilots to waive successorship and for ALPA to axe a grievance it filed against management for failing to follow through on a contract resolution requiring that all regional jets financed by US Airways be flown by wholly owned subsidiaries. PSA and MidAtlantic are currently the only carriers slated to fly the jets. These terms follow other concessions Allegheny pilots made in 2002, including giving up furlough protection and taking a 9.5% pay cut. -LR
Allegheny-Piedmont Merger
Aviation Daily02/06/2004
Approval of the conditions for a merger of US Airways' wholly owned regional carriers Allegheny and Piedmont Airlines is being stonewalled by the union representing both carriers -- the Air Line Pilots Association
(ALPA)-- with questions mounting about ALPA National's loyalties. US Airways announced plans to merge the carriers last month (DAILY, Jan. 15) and began meeting with labor groups. The carrier also said it would transfer some of Allegheny's assets and liquidate the rest if the regional didn't agree to the merger terms.
ALPA Master Executive Council leaders (MEC) from Allegheny received a final draft of the letter of agreement (LOA) for the merger last week that the MEC chairman was urged to sign or "US Airways would issues a press release the next day announcing the asset transfer of Allegheny to Piedmont," ALPA told Allegheny pilots in an update. Chairman Rick O'Leary said the MEC asked that he get a clarification of the conditions, and called a special meeting the next day.
The chairman got assurances from ALPA National that even though the MEC couldn't give 24 hours' notice, as required by ALPA by-laws, that "circumstances could be worked out with ALPA's legal staff," but those guarantees fell through. O'Leary signed the letter of agreement "at the direction of an ALPA representative," but that was later deemed non-binding.
ALPA set up another meeting of the Allegheny MEC Feb. 4 for formal ratification of the LOA, much to the chagrin of O'Leary. "I think that for your office to call a special meeting before the MEC has an opportunity to thoroughly examine its options raises the question of a potential conflict of interests," O'Leary told ALPA National. The meeting was still held, but no firm decisions about the LOA were made. Another session is scheduled Tuesday.
The LOA calls for Allegheny pilots to waive successorship and for ALPA to axe a grievance it filed against management for failing to follow through on a contract resolution requiring that all regional jets financed by US Airways be flown by wholly owned subsidiaries. PSA and MidAtlantic are currently the only carriers slated to fly the jets. These terms follow other concessions Allegheny pilots made in 2002, including giving up furlough protection and taking a 9.5% pay cut. -LR
