Scope: Did the BPR's MOU actions provide US Airways' employees even less Scope protection?
PHL Domicile Update: September 18, 2012: PHL Reps said, "Grievance Chairman Dave Ciabattoni provided an eye-opening review of the pertinent sections of both East and West contracts to include: Scope; Contingent Acquisition Rights (CARs); Code Share; relevant sections of LOA 84, LOA 93, Transitions Agreement; and Change of Control. Any and all of these may play a role in a merger going forward, and the education and the chance to ask questions were very helpful to the BPR. Both contracts contain specific protections for our pilots that are the result of years of bargaining history, and Chairman Ciabattoni offered us several examples of how to best utilize these protections in the coming months should the merger proceed."
Contingent Acquisition Rights (CARs): During the BPR's last meeting in Grievance Committee Chairman Dave Ciabbatoni's scope presentation he indicated regarding Contingent Acquisition Rights (CARs), which would require the company to pay us $250mil in a COC transaction, actually expired on June 30, 2012. His comment was we could probably get a good lawyer to win that for us.
Labor Protective Provisions (LPPs): USAPA's Communications Committee wrote a What's Up on the Line comment on June 20, 2012. The Committee said,"
Q –
What is the McCaskill-Bond Amendment?
A
– Unlike previous mergers, a merger with American would be governed by the
McCaskill-Bond Amendment. In 2007, U.S. Senators Claire McCaskill and Kit Bond secured a provision to the Senate’s omnibus spending bill that guarantees airline employees not already covered by some other arrangement (such as the Air Line Pilots Association Merger Policy) a process for integrating seniority. McCaskill-Bond incorporates sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions which require "integration of seniority lists in a fair and equitable manner" either through the agreement of the parties or, absent agreement, through binding impartial arbitration.
Q -
Then, what are the protections of sections 3 and 13 of the labor protective provisions?
A -
Sections 3 and 13 provide for the fair and equitable seniority integration and a specific time table for final and binding arbitration."
Change of Control Clause: IAM Loses US Airways-America West Merger Change of Control Clause - January 7, 2008
See Story:
http://local1781.org/US%20Airways%20-%20Arbitration%20Panel%20Denies%20Change%20in%20Co ntrol%20Grievance.htm
Arbitration Panel Denies Change in Control Grievance
To: All IAM Members Employed By US Airways
Dear Sisters and Brothers,
The System Board of Adjustment created to resolve the Machinist Union’s Change in Control grievance today issued its decision. The neutral arbitrator, Richard I. Bloch, sided with US Airways and denied the grievance.
Full Decision
The issues surrounding the grievance were very complex. Arguments to the System Board involved different interpretations of the contract language, bankruptcy law and Delaware corporate law (where US Airways is incorporated). The Machinists union received differing opinions from legal experts regarding our chances of ultimately prevailing in the grievance. Because the potential stakes were so high, however, we had to go forward with the case even if our chances of winning were slim. Yet, the IAM never viewed the Change in Control grievance as the solution to all the membership’s issues.
While the IAM fought for a favorable resolution of the grievance, we simultaneously worked to reach negotiated transition agreements to improve pay, benefits and working conditions for all IAM-represented employees. Even winning the Change in Control arbitration would not have addressed pay inequities between East and West employees, fair seniority integration, job security improvements, and better and more secure pensions. Our bargaining efforts resulted in a tentative agreement for Fleet Service that, although ultimately rejected by the membership, would have significantly improved wages and job security in exchange for withdrawing the Change in Control grievance for Fleet Service employees.
Traditional Railway Labor Act bargaining is not scheduled to begin until late 2009 when the current East agreements become amendable. With the National Mediation Board having ruled that both East and West employee groups are combined under a single carrier, any efforts to reach an agreement that does not cover both groups would be fruitless and impractical. Only the current transition negotiations for the combined groups can achieve any gains prior to traditional negotiations, which won’t start until nearly two years from now.
Airline industry conditions, and the situation at US Airways in particular, have deteriorated in the last year, and those conditions could be even worse when traditional bargaining begins. The America West-US Airways merger presented a unique opportunity to address many of the membership’s issues prior to the amendable dates in our agreements, and that window still exists, but the bargaining environment is changing daily.
Therefore, in an attempt to improve the financial and working conditions of IAM members, direct negotiations with US Airways will resume. District 141 will return to the bargaining table January 22, 23 and 24 2008 and District 142 will continue bargaining January 29, 30 and 31, 2008.
Full membership solidarity is essential for the IAM to succeed in this bargaining. East and West, Fleet and Maintenance – we must all be united in our common goal of retrieving what was taken from us and making a career at US Airways a long-term, profitable endeavor.
Sincerely and fraternally,
S.R. (Randy) Canale
President & Directing General Chairman
District Lodge 141
Tom Higginbotham
President & Directing General Chairman
District Lodge 142
LOA 96 Transition Agreement Minimum Hulls/Block Hours: The APA-US Airways Term Sheet has a provision for APA to become our union, which could happen without a vote, and provides a specific time line for APA to negotiate a JCBA. This negotiation could eliminate our minimum block hours/hulls and without MOU protections adversely hurt our pilot group since we are no longer have the MOU TA guaranteed seat at the joint negotiating table.
USA320Pilot comments: How ironic it would be if the pilots do not obtain a pay raise when the merger closes, they may lose all of their Scope protections, they may have lost their MOU pay protection, they may have lost their MOU no furlough clause, and APA could negotiate US Airways' pilot's next contract and force it upon East and West pilots that could eliminate their Scope, which could adversely effect our pilot group -- especially the junior/younger pilots. And, oh by the way, Roland Wilder indicated without the MOU economic increases the pilots could obtain a very bad seniority integration with APA when the Arbitrator compares our contracts, which would be LOA93/C2004 vs. APA's Term Sheet.
Would MOU contractually required pay protection, a no furlough clause, and US Airways having fleet flexibility that could boost pre-merger US Airways widebody flying, in exchange for the LOA 96 minimum block hours/hulls, LPPs (that are covered by the McCaskill-Bond amendment), non existent CARs, and the CoC (that would make an acquisition of US Airways by AMR probably cost prohibitive), been a good MOU horse trade?