Is the MOU perfect? No, of course not. But, our options are to accept the MOU as a bridge Transition Agreement to a JCBA or remain on LOA 93/C2004.
MOU Benefits:
- US Airways will bargain with USAPA and APA versus just APA to convert MOU/Term Sheet our new contract.
- US Airways will recognize USAPA as a CBA agent, exchange confidential/new contract information, reimburse USAPA for its expenses versus the union having to pay for its own expenses, and will provide our union information related to the merger as requested by USAPA.
- Dramatic pay increases and equal pay from Day 1, which will also increase retirement benefits.
- Improved aspects of Scope with Furlough and pay protection.
- Protect Hawaii and Shuttle flying.
- Proportional reductions.
- Reduce the time from DAL/UAL pay parity by 50% from 6 to 3 years for total cockpit costs for Compensation (pay rates, premiums, profit sharing, and per diem), Vacation, Retirement, and Health & Welfare.
- For West pilots 3-year bridge for STD coverage.
- Sick balance 1,000 hours. Pilots with over 1,000 hours retain the balance. Pilots will not accrue additional sick leave over 1,000 hours but can use the annual accrual or sick occurrences and sell sick leave back to the company.
- Improved E-190 Pay.
- Negotiations for a new contract begin on JCBA 4 year anniversary.
- Fleet protections: Establish two baselines with one for US and one for AA, total scheduled flying in a 12-month period proceeding the effective date with a widebody and narrowbody baseline. US ratio window for US mainline fleet is 5% or about 18 total East & West aircraft and 10% for widebody aircraft or about 3 or 4 aircraft. (I believe the downside risk of 18 total airplanes with pilots retirements would have minimal staffing problems).
- Minimum block hour protection.
- US & AA E-190 ratio split after 30th aircraft (20 already in US Airways' inventory).
- Eliminate Star Alliance, UAL and CAL code sharing and replace it with JetBlue, Hawaiian, Alasks, and Oneworld code sharing - The NAC said, "this is the holy grail of the merger."
- $40 million lump sum payment.
MOU Givebacks:
- Waive COC.
- LPPs
- Transition Agreement language on minimum fleet count and daily utilization.
Comments:
1.
COC - If the merger dies East pilots keep the COC. If merger proceeds who needs the COC? We will work for the largest airline in the world offering career job security, have significant MOU/JCBA/Pay Parity economic benefits; therefore, the COC will no longer be needed.
2.
LPPs - According to USAPA, "LPP Section 3 and 13 provide for the fair and equitable seniority integration and a specific time table for final and binding arbitration. However, 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."
Therefore, LPPs are no longer an issue because they have been incorporated into McCaskill-Bond; therefore, we now have to comply with federal law and LPPs should be taken off of the table. They exist in McCaskill-Bond.
3.
Transition Agreement language on minimum fleet count and daily utilization - This section is being adjusted with other scope protections including pay protection, a no furlough clause, minimum block hours and other fleet protections as described above.
In conclusion, the bottom line is this. All four NAC members, every USAPA legal adviser, and every USAPA financial adviser recommend we vote for this deal and that there will be no other MOU (could be minor changes negotiated next week on Force Majeure and the 17 pilots on furlough from the West).
And, according to USAPA "Pat Szymanski and Gary Hummel reaffirmed (based on a conversation between President Hummel and US Airways President Scott Kirby), that the Company had no intention of changing the provisions in paragraph 7 of the MOU concerning mainline, wide body, shuttle and Hawaii flying protections. Additionally Pat Szymanski reported that the Non-Disclosure Agreement (NDA) AMR sent to US Airways to protect sensitive AMR financial and other information included a prohibition against US Airways negotiating with APA over terms and conditions that apply to a potential merger, and that once US Airways signed the NDA it could be barred from further negotiations with APA and USAPA concerning the merger until the NDA expired."
Why? I believe the UCC will not permit any meaningful improvements to the MOU or they will vote for AMR's standalone plan.
Therefore, my decision is simple. Do we want the benefits of the MOU/merger and a front row seat at the JCBA table now or do we want to remain with LOA 93/C2004 as our contract for an indefinite period, which could be a long period of time? Thus, I will vote for the MOU TA and take the advice of the NAC and every USAPA financial and legal adviser.