AWA MEC Chairman's Special Update - July 23, 2007
Fellow AWA Pilots:
First, I hope you are all having a safe and reasonably cool summer. I also hope that like me, you are finding (or trying to find) some time to get away with the family to alleviate some of the stress. It’s been a while since my last lengthy update on the status of the present position of the AWA pilot group in the big picture and my analysis of the events surrounding our current affairs, so buckle in for a long update.
Why the Slow Pace of Negotiations
The foremost question I hear from US Airways pilots (both East and West) is, “Why are negotiations taking so long?†Unfortunately, while I would truly like to place all the blame on management and say that their ineptitude has caused this problem, the reality is that the pilot leadership is equally to blame. If one remembers back to when we approached negotiations in phases—Phase 1 being the administrative sections, Phase 2 being the operational sections, and Phase 3 being the economic sections—we made tremendous progress during Phase 1. Most of those sections were administratively TA’d in a matter of two months, and while some may say that those sections were easier topics and therefore less time consuming, the reality is that during our last Section 6 negotiation with some of the same management people involved at the negotiating table then as we have now, we spent close to a month talking about Missing and Internment alone. Instead, I suggest that one needs to consider the negotiating schedule in late 2005 and early 2006, where we were working at almost a week on, week off pace. Most of those sessions occurred in PHX, which saved our MEC money and with time allotted for travel, we typically had eight full, productive days of negotiations each month. Management had their finance people and senior managers nearby to consult with, so we could usually make some progress in a fairly normal fashion.
This relatively normal negotiating schedule came to an abrupt end when management took away certain space positive travel rights provided to East union volunteers. The America West MEC supported the US Airways MEC in their outrage at management’s unilateral confiscation of a right that ALPA had not abused (we were told that the abuse came from vendors and other labor groups). However, as with any dispute, we expected that the East MEC would file a grievance and seek an expedited resolution. Instead, the East MEC passed a resolution prohibiting most of their volunteers from traveling to PHX for meetings with management. The end result was that the two East JNC members (who did have space positive travel privileges under the Transition Agreement) were barred from negotiating with management in PHX. To work around this problem, management agreed to continue negotiating provided we met at their consultant’s offices (the law firm of Ford and Harrison) in DCA, which has resulted in a much slower pace of only three days per month on average. Subsequently, after many months of negotiating at these offices, the East passed another resolution requiring negotiations to occur some place other than at these offices. While couched as outrage at the anti-union tactics of the Ford and Harrison law firm, one also wonders if it was not cover for the East MEC’s apparent strategy of delaying a joint contract to avoid implementation of the seniority list.
Having been a negotiator in years past, I clearly recall that you don’t make a lot of progress in three days of negotiations a month, as you are always trying to remember where you left off and can never really get that negotiating table rhythm going that leads to reaching agreements. With that said, the West MEC accepted this stance and slowed down the pace of negotiations as we believed a joint contract was the only way for us all to succeed and we wanted to stand shoulder-to-shoulder with our colleagues on the East as our fight was not against them, but against management.
Fast forward to May 2007. By now, we have received the Nicolau Award and are supposed to meet with the Company the last week of the month. We have already received management’s comprehensive proposal (that both sides admit is woefully inadequate on the pay and retirement side) and are requesting Mr. Kirby’s participation at that May session so that we can deliver a clear and unambiguous response as to where we believe his proposal fell short. Unfortunately, Mr. Kirby was not available, so the East pushed for a delay of that session, and it was eventually postponed over my objections and those of both our West JNC members. While I do not necessarily have a problem with occasionally postponing a negotiating session for good reason, the reality is that we had previously been faced with a request from the East MEC to take a three-month recess from negotiations in order to let the emotions subside following the Nicolau Award. While the West MEC clearly understood the basis for this request, we felt that all pilots could “heal†if we continued our normal, albeit slow, pace of negotiations, as it is in all our interests to achieve a new contract expeditiously. Instead, the East JNC canceled the session, which effectively gave their MEC the months off that they so desired, at the expense of all the US Airways pilots.
We saw Company representatives (including Mr. Kirby) on July 10-11 (again, we are only getting sporadic negotiating dates because of the travel embargo to PHX), which means that we wasted precious negotiating time that could have advanced us to the end game. That session went as expected, except that it has become obvious to all of us that we are truly caught in a conundrum. Before delving into this, I need to tell all US Airways pilots that the end game would be worth more pay and retirement, not to mention significantly improved work rules for the East pilots that would return them to a quality of life that they certainly deserve.
When I started this topic, I indicated that the pilot leadership was to blame as well. The America West MEC stands by our decision to support the US Airways MEC in punishing management’s bad behavior for unilaterally stripping the East of a negotiated right to positive space travel. However, we erred in not pushing the US Airways MEC harder in using their legal right to expedited arbitration to obtain a final, and timely determination. Had we asserted that position, it is my belief that we would all be working under a joint agreement today, or we certainly would have made more progress at the table since we would have had more sessions.
Where this stands currently is that the West MEC has pushed both the East MEC and management to reach common ground on space positive travel. The Company has responded with a proposal that is reasonable in my view albeit with some minor changes. We have yet to hear what the East MEC plans to do with management’s proposal. There seems to be some continued confusion as to where this LOA stands both with the company and with the AAA MEC.
America West Section 6 vs. JNC Talks
The second most frequent question that I receive about negotiations is, “If negotiations are taking so long for a joint contract, why don’t we go into our own Section 6 negotiations?†Clearly, we have the legal right to enter into Section 6 negotiations at any time as we properly served our notice last year (which incidentally, management accepted and agreed was properly reserved). However, the legal right and management’s response are two different things. What I mean by this is that while we can certainly enter into Section 6 negotiations, management can either frustrate these negotiations by doing the bare minimum (sort of like negotiating for three days per month) or they can ask the National Mediation Board to recess the talks as we should instead be working on a joint contract (as they did successfully with the AFA).
When it became clear to the America West MEC that we were forced to take the summer off from joint negotiations, I was directed to meet with management and ascertain if they were willing to enter into earnest Section 6 negotiations with the America West pilots. Our team advised senior management that we could either: (a) keep everything already achieved during the joint negotiations process and finish that agreement solely for the America West pilots in about five weeks; or (B) make certain precision “tweaks†(pay, retirement, scope, scheduling) to our present contract in about the same timeframe. We did reiterate that our primary desire was to achieve a joint contract, but if that was unattainable because factions within the East MEC were hell-bent on frustrating the process for selfish purposes, then we wanted to take care of our own membership first by reaching a stand-alone contract by the end of the summer and worry about a joint contract later through a “bridge agreement.†This goes hand-in-hand with the thought that the West pilots are amendable now, and the East pilots will not be amendable until December 2009.
Unfortunately, while management shared our frustration in the protracted nature of the joint negotiations, they ultimately felt that the joint negotiations process was the best option for both pilot groups and the Company. Management also acknowledged a willingness to utilize the Transition Agreement provisions calling for a private mediator to assist the parties in reaching either a joint agreement or a separate operations/separate contracts LOA as a three-way mediated agreement. The US Airways MEC’s request for “parity†has met an equal or similar fate, that is to say that management is only interested in negotiating with both pilot groups to achieve a separate operations agreement that would operate the pilot groups separately, giving the East parity and throwing a few “bones†to the West pilots. Of course for the East MEC, a separate operations/contract agreement is somewhat desirable to some of their leaders (even though it would contain much less money and benefits than a joint contract) because they will continue to reap all the rewards of this merger without ever having to recognize the Nicolau Award.
The East MEC, having been less than completely truthful to their pilot group for so long about the true state of seniority talks and now having boxed themselves in with their outrageous communications to their pilot group about overturning the Nicolau Award, is actively pushing the separate operations option with management, ALPA National and anyone who will listen.
At issue is “attrition†and “growth†flying, the former of which the East feels it has sole claim despite the thousands of pages of transcripts and the Award that clearly explain why they do not have that sole claim because of rational career expectations; and more importantly, the fleet rationalization to all Airbus (except for a handful of B757s) will likely result in equal or slightly less domestic flying positions overall (i.e. there will be NO domestic growth flying), with the possibility of some international growth flying depending on the future status of airplane orders and routes, not to mention the impact of future mergers.
I want to reiterate that management has not denied us our legal rights to a Section 6 negotiation. However, the reality is that right now the NMB will support management’s desires, which so far, is for a joint contract. I truly believe, however, that if those factions within the US Airways MEC protract this negotiation much longer, we will be negotiating against a management team willing to talk to us in our Section 6 negotiation.
It is important however for all pilots, both East and West, to keep in mind that the number one stated strategy of the East MEC is to overturn the Nicolau Award, and failing that, ensure the Nicolau Award is never used in practical terms by continuing to delay negotiations, mislead their rank-and-file about the true dollar value of a joint contract and/or push for “solutions†like separate operations. I expect that the East MEC will continue to exercise this overturn/delay strategy in one form or another (even while some of their more “moderate†leaders seek to work with the Rice Committee) even though it will likely cost their pilots millions of dollars in lost income, retirement benefits and work rules. This overturn/delay strategy may even lead to the ultimate destruction of this or a subsequent union, and possibly even the dismantling and fragmentation of our new airline in the face of looming airline consolidation.
East Parity Proposal
As mentioned above, when it had come to our attention that the US Airways MEC directed their officers to contact management in order to obtain immediate contractual parity with us, we immediately ensured that management understood that the West pilots would be outraged if the East was granted parity while continuing to hold us hostage over the seniority list. The East claims they deserve parity because that is how it has always worked in the past. Of course what they forget to say is that it is coupled with a seniority award that is actually implemented!
While I don’t condemn the East for trying this approach, the reality is that like management’s response to our discussion on entering Section 6, management is not going to abandon the joint negotiating process until they believe that effort is completely futile because they really do need the synergies of a joint contract and operation. When management reaches that point, I have to believe that they will be ready to enter into Section 6 negotiations with us, and am fairly confident that it would not pass the US Airways Board or shareholder smell test for management to also bring the East pilots to parity with us, without achieving the true synergies of a joint contract. While I certainly don’t like this scenario as I truly believe that the East rank-and-file pilots, like us, are due for the sacrifices we have all made for this corporation, I do see this as a real outcome if joint negotiations fail and we enter into stand-alone Section 6 talks. But ultimately, if we fail, it will be because the East MEC did not continue working toward a joint contract established by the coast-to-coast plan.
As I have stated before, the question is whether the East’s angst over the seniority list is enough to sabotage a joint contract that provides reasonable pay raises for the West pilots, and huge pay raises and much better work rules for the East pilots. For example: while our reserve system could use a little work, I am here to tell you that it is miles ahead of the East system and what we had in Contract ‘95. East pilots on reserve and lineholders will get a tremendous boost from the implementation of West work rules.
But the East MEC tells us that they are supremely confident that their entire pilot group will vote any and all joint contracts down ALWAYS and FOREVER to avoid implementing the Nicolau Award. They say that there is “not enough money in the world to ratify a joint contract.â€
Interestingly, when I asked the East MEC if they would put that to the test and put a joint contract out to their rank-and-file pilots to let them look at the big picture and have their say at the ballot box, they were strangely silent. Now I have no desire to enter into their “let my daddy vote†political debates of AAA concessionary contracts past, but having been on both sides of debates over contract votes in my time, I have been and will always remain confident in the membership’s ability to wade through things and vote appropriately. I think any union leader who is afraid of how his/her membership will vote has no business leading a union. You do the best you can and then you let the members decide. As we have discovered, the pilot group may even vote it down a few times, or they may vote it in, but in today’s world of instant communication and diverse “third party†analysis, I have—and will always have—faith in our members to wade through the minutia, weigh the facts and make a decision in the best interests of themselves and their families.
ALPA Executive Council Meeting #3
As you know, the ALPA Executive Council (EXCL) attended our joint session last week to discuss the US Airways MEC’s request to overturn the Nicolau Award. We have made it painfully clear to the EXCL that although the AWA pilot group and their leadership has been extremely patient and understanding with ALPA as they deal with their problems, at some point, they have to realize that they are being manipulated and sometimes you have to stand up for what is right and just; otherwise, this or any other union will crumble. We are a democratic union, governed by a Constitution and By-Laws and a Policy Manual. And just as the United States is a nation of laws, we must ensure that the laws of ALPA are followed as well, even under threats of succession and destruction.
I will tell you that I have never been prouder of the AWA MEC. Extreme pressure was brought to bear on our MEC to mitigate the Nicolau Award by ALPA staff, EXCL members and the Rice Committee in an effort to find an easier way out. The AWA MEC made it extremely clear that we understand a joint contract is the key to unlocking the Nicolau Award and were dedicated to finding a solution that would meet the ratification test on both properties, but we needed to ensure that the East MEC’s request to overturn the list was addressed by the EXCL in a forthright and proper manner and have been more than patient with all the players considering the delays.
Now that the EXCL has decided that, short of proof of fraud, the list is the list, it is critical that we buckle down to work and convince all rank-and-file pilots that decertifying ALPA is not in their best interest despite their frustrations. While we are fighting each other, we are literally allowing management to pocket millions of our hard-earned dollars.
East Lawsuit
I am not going to disclose our entire legal strategy in this letter because it is too widely disseminated and hope you appreciate that there are some strategic plans that we need to keep close to our vest. Rest assured that the MEC has been consulting with our outside counsel and with other legal minds in the industry to ensure we are covering all the bases.
Essentially, the East MEC filed suit in the equivalent of a state court and we have served notice upon ALPA that they are the proper defendants in this suit and must act to take over this case. Additionally, by delaying the presentation of the Award, the EXCL is causing a delay in the negotiations process since the Company informed both parties that it does not want to negotiate against themselves while the seniority dispute is ongoing.
Suffice it to say that we have received the training information from East upgrades and are currently running an economic analysis on it to determine if there is enough damage being done to AWA pilots to warrant the filing of our own lawsuit.
Decertification
Some on the East think that they are the first to come up with this idea (e.g. threatening ALPA with a decertification drive because they are upset over a policy, procedure or lack thereof), and even I am impressed with how far the East MEC is getting with the EXCL and ALPA staff with this threat. This is no doubt a threat; however, the playbook is out there. While I have no desire to waste millions of dollars and years trying to repave the same roads that others have done before us, I think that the AWA MEC made it clear to the US Airways MEC and ALPA—bring it on. No AWA pilot that I know of will participate in their drive, as I cannot think of a single AWA pilot who would sign a card for any union whose sole goal is to try and screw over the AWA pilot group.
Here is what I know of what a decertification will achieve at this time:
1) Extremely lengthy delays in any contract improvement for any US Airways pilots for years and years to come and ensuring that LOA 93 remains in effect until likely early 2012 based on a normal two-year negotiations cycle;
2) Possible delay of implementation (but NOT OVERTURNING) of the Nicolau Award;
3) Years of political upheaval, infighting and frustration for both pilot groups;
4) Whipsaw fight in which both pilot groups will potentially become the new CAL vs. EAL;
5) Millions of our dues and assessment dollars spent on lawsuits and countersuits; and
6) Leave the combined US Airways pilot group weaker and much more vulnerable to takeover, fragmentation or worse compared to a strong, unified pilot group with a good joint contract.
And this last point is probably the biggest threat; instead of possibly being a future acquirer or buyer of another airline, which would help protect all pilots on the Nicolau seniority list, we could end up being the airline that is acquired, fragmented or possibly even liquidated. The US Airways pilots who are intent on holding us all hostage with their decertification plans need a huge wakeup call. You may be safer with the Nicolau Award than without it and not even realize it. All I know is that Milestone, our outside investment bankers, were right on the money with their Delta merger prediction and also predicted that we had three to five years to get it “right†or we ourselves would be back in bankruptcy and possibly fragmentation bait—which may be good if you are one of the few pilots who make the cut, the rest are gone is the typical experience however.
I know from personal experience that trying to form your own union is not an easy task. I would hope that those in charge over there do them and their pilots a favor and try and be honest with their fellow pilots about the possible ramifications, delays, costs and hard work required in running your own union. Some of the communications that I have read by their decertification drive leaders are downright misleading and wrong based on my experience and our consultation with labor lawyers both inside and outside of ALPA. Even if they collect enough cards, the odds of getting pilots—who tend to be conservative in nature—to actually change representation in the face of so many unknowns is very difficult indeed, especially when they know they will be giving up millions of dollars and possibly placing themselves in harms way if industry consolidation heats up again as we expect. Who wants to be in another merger without a joint contract with a fledgling union with little scope and no political weight, while merging with UAL, CAL or someone else who will have the full weight of ALPA behind them?
The rank-and-file US Airways pilots need to know that the risks of decertification far outweigh the benefits. I don’t know of one ALPA pilot in the history of our union who probably has not been pissed off at ALPA over something at one time or another. Those who have read Flying the Line know that even ALPA’s founder had a huge falling out with the union he started at his dining room table. And like any organization, ALPA is certainly not without its flaws.
But is it really worth years of turmoil, whipsawing, being at the bottom of the economic ladder, and general misery and unhappiness, not to mention the actual work and risk to our careers involved with making such a change at this precarious time? Do we really want to be in another merger or fragmentation with an ALPA carrier with separate contracts, no scope to speak of, and a fledgling union that has little resources and much infighting with 2,200 active East pilots pitted against 1,700 active West pilots?
Speaking as a former organizer, I can tell you that it is not worth it. We are so close to a joint collective bargaining agreement that will provide East pilots with an extra $30,000 to $40,000 a year in some cases, not to mention much better work rules and many other benefits, I cannot believe that the majority of the US Airways pilots would prefer to hold themselves, the AWA pilot group and all of ALPA (since this is the lynchpin pattern industry bargaining comeback contract) hostage for years to come.
The sad part is that we may never know what the rank-and-file East pilots think in totality, because it is apparent to me that the East MEC doesn’t have the fortitude or strength to send ANY joint contract out to their pilot group for their consideration. After reading the East’s communications for the last three months, I am worried that no one in any leadership position over there has the ability to be fully open, truthful and honest with their pilots even when they are angry, hurt and demanding answers. I understand the reasons for anger and apathy on the East after losing their pensions and two rounds of concessionary contracts. And as I stated to the East MEC leaders two and half years ago, “I would never want any union brother or sister to go through what the AAA pilots have gone through.†But I cannot help wondering when the East rank and file will start holding their MEC leadership accountable. Heaven knows, the AWA pilot group certainly holds our guys accountable every six months like clockwork
I have spent many years doing ALPA work and have had my share of pilots who are either angry or happy with my decisions. That is the price you pay when you step up to the plate and swing at the ball. Sometimes you look for a walk; sometimes you swing for the fences; and sometimes you strike out. But you always keep trying because your pilots are depending on you. It is also called “leadership.â€
The East pilots are depending on their MEC for leadership, but instead of leadership, they are getting sold a false bill of goods that may only lead to disaster for their rank-and-file pilots. I can only hope that their membership is paying attention over there, and asking why their leadership team has led, and is leading them further into this dead-end box canyon.
West Staffing
First came flexing, then red flag trips, then voluntary vacation buybacks, and finally what can at best be termed “creative†junior assignments. To say that we have a staffing mess on our hands is probably an understatement. I have been (for months now) pushing management to look ahead into the future and ensure we have adequate pilots to staff the airline on the West.
I am happy to report that management will be putting a bid out for 49 new “West†captain positions in a few days. This is the first substantial bid since the merger was announced, and we went quickly and rapidly from a growing and vibrant post-deregulation airline that made it against all odds to “sharing the pain†with our East brothers and sisters by losing nearly 10 percent of our aircraft almost overnight after being in hiring and expansion mode. As something we also agreed to in an effort to help out our East ALPA brothers, furloughed AAA pilots can be recalled to AWA and retain their longevity and other benefits. We will see that happen very soon.
I think it is also valuable to point out that West attrition also exists since the East MEC is fond of claiming “their attrition.†Indeed, West attrition is probably more valuable compared to East attrition simply because our attrition includes mostly active line captain positions, while much of the east attrition is from the first officer ranks and the sick and disabled list. Regardless of the merger, much of the East attrition would be from those areas anyway and would provide little economic gain to any active pilot since many are not captain positions.
As a merged entity, our attrition is their attrition and vice versa. It is disingenuous of either pilot group to claim something for themselves that has not been properly established as a legitimate claim by any measure of reality. Do we really want to hold ourselves hostage over possibly 100 West pilots who want to go East and maybe 150 to 200 East pilots who want to come West? Won’t this all work out in the long run?
Ironically, I am probably one of the few AWA pilots who has been through a merger before that had pilots hired after me flying lines senior to me in the same domicile I was based in, and I know how it feels. I am probably one of the few West pilots who can empathize with the East and what some are feeling, but I got over it. Just like FedEx, NWA, and all the other pilot groups that have gone through mergers got through it. You accept things; you realize that you have a fight in common with your merger brothers and sisters—a fight that is with management to get yourself better benefits, pay and work rules—and you move on. Yes, seniority is important but it is NOT everything.
Conclusion
I recognize that this update is a bit of a “downer,†as it seems like all the pilots are suffering because of the highly emotional antics of a relatively small minority of pilots who seem intent on holding thousands of East and West pilots as economic hostages. I am hopeful that in the long run, the majority of the rank-and-file East line pilots will not accept too much more hijacking of the process to improve our pay, scope, benefits and work rules. In the meantime, stock the storm cellar with food, water and ammunition, and dig in for a long siege. This is truly going to be a marathon, not a sprint.
It would be helpful to have all West pilots encouraging our fellow East rank-and-file pilots to convince their East MEC to once again join with the West MEC and focus on fixing this long-running space positive dispute, get JNC talks on a steady track, and find a mutually acceptable and ratifiable joint contract that puts real dollars in all our pilots’ pockets, gives them much better work rules, and more importantly, protects us all in the face of industry consolidation.
It is time for all of us to move forward collectively through joint negotiations. We all know that further industry consolidation is looming. It strikes me that we all would be better off by securing a solid joint contract and getting management to start fixing our operational mess so that we can build a strong airline that can be a solid acquirer, rather than be sold in part or whole in a fire sale at some future date, or worse.
As always, fly safely and securely, remain professional and courteous to your fellow East and West crewmembers, and fly the contract.
Fraternally,
Captain John McIlvenna
AWA MEC Chairman
USA320Pilot comments: John NcIlvenna's letter is totally misleading regarding the US Airways pilot rank-and-file sentiment regarding a joint contract and the Nicolau Award. Nearly 500 hundred pilots went to Herndon to protest the Nicolau Award. That is an enormous turnout and clearly indicates McIlvenna is either dilusional or a flat out liar.
Fellow AWA Pilots:
First, I hope you are all having a safe and reasonably cool summer. I also hope that like me, you are finding (or trying to find) some time to get away with the family to alleviate some of the stress. It’s been a while since my last lengthy update on the status of the present position of the AWA pilot group in the big picture and my analysis of the events surrounding our current affairs, so buckle in for a long update.
Why the Slow Pace of Negotiations
The foremost question I hear from US Airways pilots (both East and West) is, “Why are negotiations taking so long?†Unfortunately, while I would truly like to place all the blame on management and say that their ineptitude has caused this problem, the reality is that the pilot leadership is equally to blame. If one remembers back to when we approached negotiations in phases—Phase 1 being the administrative sections, Phase 2 being the operational sections, and Phase 3 being the economic sections—we made tremendous progress during Phase 1. Most of those sections were administratively TA’d in a matter of two months, and while some may say that those sections were easier topics and therefore less time consuming, the reality is that during our last Section 6 negotiation with some of the same management people involved at the negotiating table then as we have now, we spent close to a month talking about Missing and Internment alone. Instead, I suggest that one needs to consider the negotiating schedule in late 2005 and early 2006, where we were working at almost a week on, week off pace. Most of those sessions occurred in PHX, which saved our MEC money and with time allotted for travel, we typically had eight full, productive days of negotiations each month. Management had their finance people and senior managers nearby to consult with, so we could usually make some progress in a fairly normal fashion.
This relatively normal negotiating schedule came to an abrupt end when management took away certain space positive travel rights provided to East union volunteers. The America West MEC supported the US Airways MEC in their outrage at management’s unilateral confiscation of a right that ALPA had not abused (we were told that the abuse came from vendors and other labor groups). However, as with any dispute, we expected that the East MEC would file a grievance and seek an expedited resolution. Instead, the East MEC passed a resolution prohibiting most of their volunteers from traveling to PHX for meetings with management. The end result was that the two East JNC members (who did have space positive travel privileges under the Transition Agreement) were barred from negotiating with management in PHX. To work around this problem, management agreed to continue negotiating provided we met at their consultant’s offices (the law firm of Ford and Harrison) in DCA, which has resulted in a much slower pace of only three days per month on average. Subsequently, after many months of negotiating at these offices, the East passed another resolution requiring negotiations to occur some place other than at these offices. While couched as outrage at the anti-union tactics of the Ford and Harrison law firm, one also wonders if it was not cover for the East MEC’s apparent strategy of delaying a joint contract to avoid implementation of the seniority list.
Having been a negotiator in years past, I clearly recall that you don’t make a lot of progress in three days of negotiations a month, as you are always trying to remember where you left off and can never really get that negotiating table rhythm going that leads to reaching agreements. With that said, the West MEC accepted this stance and slowed down the pace of negotiations as we believed a joint contract was the only way for us all to succeed and we wanted to stand shoulder-to-shoulder with our colleagues on the East as our fight was not against them, but against management.
Fast forward to May 2007. By now, we have received the Nicolau Award and are supposed to meet with the Company the last week of the month. We have already received management’s comprehensive proposal (that both sides admit is woefully inadequate on the pay and retirement side) and are requesting Mr. Kirby’s participation at that May session so that we can deliver a clear and unambiguous response as to where we believe his proposal fell short. Unfortunately, Mr. Kirby was not available, so the East pushed for a delay of that session, and it was eventually postponed over my objections and those of both our West JNC members. While I do not necessarily have a problem with occasionally postponing a negotiating session for good reason, the reality is that we had previously been faced with a request from the East MEC to take a three-month recess from negotiations in order to let the emotions subside following the Nicolau Award. While the West MEC clearly understood the basis for this request, we felt that all pilots could “heal†if we continued our normal, albeit slow, pace of negotiations, as it is in all our interests to achieve a new contract expeditiously. Instead, the East JNC canceled the session, which effectively gave their MEC the months off that they so desired, at the expense of all the US Airways pilots.
We saw Company representatives (including Mr. Kirby) on July 10-11 (again, we are only getting sporadic negotiating dates because of the travel embargo to PHX), which means that we wasted precious negotiating time that could have advanced us to the end game. That session went as expected, except that it has become obvious to all of us that we are truly caught in a conundrum. Before delving into this, I need to tell all US Airways pilots that the end game would be worth more pay and retirement, not to mention significantly improved work rules for the East pilots that would return them to a quality of life that they certainly deserve.
When I started this topic, I indicated that the pilot leadership was to blame as well. The America West MEC stands by our decision to support the US Airways MEC in punishing management’s bad behavior for unilaterally stripping the East of a negotiated right to positive space travel. However, we erred in not pushing the US Airways MEC harder in using their legal right to expedited arbitration to obtain a final, and timely determination. Had we asserted that position, it is my belief that we would all be working under a joint agreement today, or we certainly would have made more progress at the table since we would have had more sessions.
Where this stands currently is that the West MEC has pushed both the East MEC and management to reach common ground on space positive travel. The Company has responded with a proposal that is reasonable in my view albeit with some minor changes. We have yet to hear what the East MEC plans to do with management’s proposal. There seems to be some continued confusion as to where this LOA stands both with the company and with the AAA MEC.
America West Section 6 vs. JNC Talks
The second most frequent question that I receive about negotiations is, “If negotiations are taking so long for a joint contract, why don’t we go into our own Section 6 negotiations?†Clearly, we have the legal right to enter into Section 6 negotiations at any time as we properly served our notice last year (which incidentally, management accepted and agreed was properly reserved). However, the legal right and management’s response are two different things. What I mean by this is that while we can certainly enter into Section 6 negotiations, management can either frustrate these negotiations by doing the bare minimum (sort of like negotiating for three days per month) or they can ask the National Mediation Board to recess the talks as we should instead be working on a joint contract (as they did successfully with the AFA).
When it became clear to the America West MEC that we were forced to take the summer off from joint negotiations, I was directed to meet with management and ascertain if they were willing to enter into earnest Section 6 negotiations with the America West pilots. Our team advised senior management that we could either: (a) keep everything already achieved during the joint negotiations process and finish that agreement solely for the America West pilots in about five weeks; or (B) make certain precision “tweaks†(pay, retirement, scope, scheduling) to our present contract in about the same timeframe. We did reiterate that our primary desire was to achieve a joint contract, but if that was unattainable because factions within the East MEC were hell-bent on frustrating the process for selfish purposes, then we wanted to take care of our own membership first by reaching a stand-alone contract by the end of the summer and worry about a joint contract later through a “bridge agreement.†This goes hand-in-hand with the thought that the West pilots are amendable now, and the East pilots will not be amendable until December 2009.
Unfortunately, while management shared our frustration in the protracted nature of the joint negotiations, they ultimately felt that the joint negotiations process was the best option for both pilot groups and the Company. Management also acknowledged a willingness to utilize the Transition Agreement provisions calling for a private mediator to assist the parties in reaching either a joint agreement or a separate operations/separate contracts LOA as a three-way mediated agreement. The US Airways MEC’s request for “parity†has met an equal or similar fate, that is to say that management is only interested in negotiating with both pilot groups to achieve a separate operations agreement that would operate the pilot groups separately, giving the East parity and throwing a few “bones†to the West pilots. Of course for the East MEC, a separate operations/contract agreement is somewhat desirable to some of their leaders (even though it would contain much less money and benefits than a joint contract) because they will continue to reap all the rewards of this merger without ever having to recognize the Nicolau Award.
The East MEC, having been less than completely truthful to their pilot group for so long about the true state of seniority talks and now having boxed themselves in with their outrageous communications to their pilot group about overturning the Nicolau Award, is actively pushing the separate operations option with management, ALPA National and anyone who will listen.
At issue is “attrition†and “growth†flying, the former of which the East feels it has sole claim despite the thousands of pages of transcripts and the Award that clearly explain why they do not have that sole claim because of rational career expectations; and more importantly, the fleet rationalization to all Airbus (except for a handful of B757s) will likely result in equal or slightly less domestic flying positions overall (i.e. there will be NO domestic growth flying), with the possibility of some international growth flying depending on the future status of airplane orders and routes, not to mention the impact of future mergers.
I want to reiterate that management has not denied us our legal rights to a Section 6 negotiation. However, the reality is that right now the NMB will support management’s desires, which so far, is for a joint contract. I truly believe, however, that if those factions within the US Airways MEC protract this negotiation much longer, we will be negotiating against a management team willing to talk to us in our Section 6 negotiation.
It is important however for all pilots, both East and West, to keep in mind that the number one stated strategy of the East MEC is to overturn the Nicolau Award, and failing that, ensure the Nicolau Award is never used in practical terms by continuing to delay negotiations, mislead their rank-and-file about the true dollar value of a joint contract and/or push for “solutions†like separate operations. I expect that the East MEC will continue to exercise this overturn/delay strategy in one form or another (even while some of their more “moderate†leaders seek to work with the Rice Committee) even though it will likely cost their pilots millions of dollars in lost income, retirement benefits and work rules. This overturn/delay strategy may even lead to the ultimate destruction of this or a subsequent union, and possibly even the dismantling and fragmentation of our new airline in the face of looming airline consolidation.
East Parity Proposal
As mentioned above, when it had come to our attention that the US Airways MEC directed their officers to contact management in order to obtain immediate contractual parity with us, we immediately ensured that management understood that the West pilots would be outraged if the East was granted parity while continuing to hold us hostage over the seniority list. The East claims they deserve parity because that is how it has always worked in the past. Of course what they forget to say is that it is coupled with a seniority award that is actually implemented!
While I don’t condemn the East for trying this approach, the reality is that like management’s response to our discussion on entering Section 6, management is not going to abandon the joint negotiating process until they believe that effort is completely futile because they really do need the synergies of a joint contract and operation. When management reaches that point, I have to believe that they will be ready to enter into Section 6 negotiations with us, and am fairly confident that it would not pass the US Airways Board or shareholder smell test for management to also bring the East pilots to parity with us, without achieving the true synergies of a joint contract. While I certainly don’t like this scenario as I truly believe that the East rank-and-file pilots, like us, are due for the sacrifices we have all made for this corporation, I do see this as a real outcome if joint negotiations fail and we enter into stand-alone Section 6 talks. But ultimately, if we fail, it will be because the East MEC did not continue working toward a joint contract established by the coast-to-coast plan.
As I have stated before, the question is whether the East’s angst over the seniority list is enough to sabotage a joint contract that provides reasonable pay raises for the West pilots, and huge pay raises and much better work rules for the East pilots. For example: while our reserve system could use a little work, I am here to tell you that it is miles ahead of the East system and what we had in Contract ‘95. East pilots on reserve and lineholders will get a tremendous boost from the implementation of West work rules.
But the East MEC tells us that they are supremely confident that their entire pilot group will vote any and all joint contracts down ALWAYS and FOREVER to avoid implementing the Nicolau Award. They say that there is “not enough money in the world to ratify a joint contract.â€
Interestingly, when I asked the East MEC if they would put that to the test and put a joint contract out to their rank-and-file pilots to let them look at the big picture and have their say at the ballot box, they were strangely silent. Now I have no desire to enter into their “let my daddy vote†political debates of AAA concessionary contracts past, but having been on both sides of debates over contract votes in my time, I have been and will always remain confident in the membership’s ability to wade through things and vote appropriately. I think any union leader who is afraid of how his/her membership will vote has no business leading a union. You do the best you can and then you let the members decide. As we have discovered, the pilot group may even vote it down a few times, or they may vote it in, but in today’s world of instant communication and diverse “third party†analysis, I have—and will always have—faith in our members to wade through the minutia, weigh the facts and make a decision in the best interests of themselves and their families.
ALPA Executive Council Meeting #3
As you know, the ALPA Executive Council (EXCL) attended our joint session last week to discuss the US Airways MEC’s request to overturn the Nicolau Award. We have made it painfully clear to the EXCL that although the AWA pilot group and their leadership has been extremely patient and understanding with ALPA as they deal with their problems, at some point, they have to realize that they are being manipulated and sometimes you have to stand up for what is right and just; otherwise, this or any other union will crumble. We are a democratic union, governed by a Constitution and By-Laws and a Policy Manual. And just as the United States is a nation of laws, we must ensure that the laws of ALPA are followed as well, even under threats of succession and destruction.
I will tell you that I have never been prouder of the AWA MEC. Extreme pressure was brought to bear on our MEC to mitigate the Nicolau Award by ALPA staff, EXCL members and the Rice Committee in an effort to find an easier way out. The AWA MEC made it extremely clear that we understand a joint contract is the key to unlocking the Nicolau Award and were dedicated to finding a solution that would meet the ratification test on both properties, but we needed to ensure that the East MEC’s request to overturn the list was addressed by the EXCL in a forthright and proper manner and have been more than patient with all the players considering the delays.
Now that the EXCL has decided that, short of proof of fraud, the list is the list, it is critical that we buckle down to work and convince all rank-and-file pilots that decertifying ALPA is not in their best interest despite their frustrations. While we are fighting each other, we are literally allowing management to pocket millions of our hard-earned dollars.
East Lawsuit
I am not going to disclose our entire legal strategy in this letter because it is too widely disseminated and hope you appreciate that there are some strategic plans that we need to keep close to our vest. Rest assured that the MEC has been consulting with our outside counsel and with other legal minds in the industry to ensure we are covering all the bases.
Essentially, the East MEC filed suit in the equivalent of a state court and we have served notice upon ALPA that they are the proper defendants in this suit and must act to take over this case. Additionally, by delaying the presentation of the Award, the EXCL is causing a delay in the negotiations process since the Company informed both parties that it does not want to negotiate against themselves while the seniority dispute is ongoing.
Suffice it to say that we have received the training information from East upgrades and are currently running an economic analysis on it to determine if there is enough damage being done to AWA pilots to warrant the filing of our own lawsuit.
Decertification
Some on the East think that they are the first to come up with this idea (e.g. threatening ALPA with a decertification drive because they are upset over a policy, procedure or lack thereof), and even I am impressed with how far the East MEC is getting with the EXCL and ALPA staff with this threat. This is no doubt a threat; however, the playbook is out there. While I have no desire to waste millions of dollars and years trying to repave the same roads that others have done before us, I think that the AWA MEC made it clear to the US Airways MEC and ALPA—bring it on. No AWA pilot that I know of will participate in their drive, as I cannot think of a single AWA pilot who would sign a card for any union whose sole goal is to try and screw over the AWA pilot group.
Here is what I know of what a decertification will achieve at this time:
1) Extremely lengthy delays in any contract improvement for any US Airways pilots for years and years to come and ensuring that LOA 93 remains in effect until likely early 2012 based on a normal two-year negotiations cycle;
2) Possible delay of implementation (but NOT OVERTURNING) of the Nicolau Award;
3) Years of political upheaval, infighting and frustration for both pilot groups;
4) Whipsaw fight in which both pilot groups will potentially become the new CAL vs. EAL;
5) Millions of our dues and assessment dollars spent on lawsuits and countersuits; and
6) Leave the combined US Airways pilot group weaker and much more vulnerable to takeover, fragmentation or worse compared to a strong, unified pilot group with a good joint contract.
And this last point is probably the biggest threat; instead of possibly being a future acquirer or buyer of another airline, which would help protect all pilots on the Nicolau seniority list, we could end up being the airline that is acquired, fragmented or possibly even liquidated. The US Airways pilots who are intent on holding us all hostage with their decertification plans need a huge wakeup call. You may be safer with the Nicolau Award than without it and not even realize it. All I know is that Milestone, our outside investment bankers, were right on the money with their Delta merger prediction and also predicted that we had three to five years to get it “right†or we ourselves would be back in bankruptcy and possibly fragmentation bait—which may be good if you are one of the few pilots who make the cut, the rest are gone is the typical experience however.
I know from personal experience that trying to form your own union is not an easy task. I would hope that those in charge over there do them and their pilots a favor and try and be honest with their fellow pilots about the possible ramifications, delays, costs and hard work required in running your own union. Some of the communications that I have read by their decertification drive leaders are downright misleading and wrong based on my experience and our consultation with labor lawyers both inside and outside of ALPA. Even if they collect enough cards, the odds of getting pilots—who tend to be conservative in nature—to actually change representation in the face of so many unknowns is very difficult indeed, especially when they know they will be giving up millions of dollars and possibly placing themselves in harms way if industry consolidation heats up again as we expect. Who wants to be in another merger without a joint contract with a fledgling union with little scope and no political weight, while merging with UAL, CAL or someone else who will have the full weight of ALPA behind them?
The rank-and-file US Airways pilots need to know that the risks of decertification far outweigh the benefits. I don’t know of one ALPA pilot in the history of our union who probably has not been pissed off at ALPA over something at one time or another. Those who have read Flying the Line know that even ALPA’s founder had a huge falling out with the union he started at his dining room table. And like any organization, ALPA is certainly not without its flaws.
But is it really worth years of turmoil, whipsawing, being at the bottom of the economic ladder, and general misery and unhappiness, not to mention the actual work and risk to our careers involved with making such a change at this precarious time? Do we really want to be in another merger or fragmentation with an ALPA carrier with separate contracts, no scope to speak of, and a fledgling union that has little resources and much infighting with 2,200 active East pilots pitted against 1,700 active West pilots?
Speaking as a former organizer, I can tell you that it is not worth it. We are so close to a joint collective bargaining agreement that will provide East pilots with an extra $30,000 to $40,000 a year in some cases, not to mention much better work rules and many other benefits, I cannot believe that the majority of the US Airways pilots would prefer to hold themselves, the AWA pilot group and all of ALPA (since this is the lynchpin pattern industry bargaining comeback contract) hostage for years to come.
The sad part is that we may never know what the rank-and-file East pilots think in totality, because it is apparent to me that the East MEC doesn’t have the fortitude or strength to send ANY joint contract out to their pilot group for their consideration. After reading the East’s communications for the last three months, I am worried that no one in any leadership position over there has the ability to be fully open, truthful and honest with their pilots even when they are angry, hurt and demanding answers. I understand the reasons for anger and apathy on the East after losing their pensions and two rounds of concessionary contracts. And as I stated to the East MEC leaders two and half years ago, “I would never want any union brother or sister to go through what the AAA pilots have gone through.†But I cannot help wondering when the East rank and file will start holding their MEC leadership accountable. Heaven knows, the AWA pilot group certainly holds our guys accountable every six months like clockwork
I have spent many years doing ALPA work and have had my share of pilots who are either angry or happy with my decisions. That is the price you pay when you step up to the plate and swing at the ball. Sometimes you look for a walk; sometimes you swing for the fences; and sometimes you strike out. But you always keep trying because your pilots are depending on you. It is also called “leadership.â€
The East pilots are depending on their MEC for leadership, but instead of leadership, they are getting sold a false bill of goods that may only lead to disaster for their rank-and-file pilots. I can only hope that their membership is paying attention over there, and asking why their leadership team has led, and is leading them further into this dead-end box canyon.
West Staffing
First came flexing, then red flag trips, then voluntary vacation buybacks, and finally what can at best be termed “creative†junior assignments. To say that we have a staffing mess on our hands is probably an understatement. I have been (for months now) pushing management to look ahead into the future and ensure we have adequate pilots to staff the airline on the West.
I am happy to report that management will be putting a bid out for 49 new “West†captain positions in a few days. This is the first substantial bid since the merger was announced, and we went quickly and rapidly from a growing and vibrant post-deregulation airline that made it against all odds to “sharing the pain†with our East brothers and sisters by losing nearly 10 percent of our aircraft almost overnight after being in hiring and expansion mode. As something we also agreed to in an effort to help out our East ALPA brothers, furloughed AAA pilots can be recalled to AWA and retain their longevity and other benefits. We will see that happen very soon.
I think it is also valuable to point out that West attrition also exists since the East MEC is fond of claiming “their attrition.†Indeed, West attrition is probably more valuable compared to East attrition simply because our attrition includes mostly active line captain positions, while much of the east attrition is from the first officer ranks and the sick and disabled list. Regardless of the merger, much of the East attrition would be from those areas anyway and would provide little economic gain to any active pilot since many are not captain positions.
As a merged entity, our attrition is their attrition and vice versa. It is disingenuous of either pilot group to claim something for themselves that has not been properly established as a legitimate claim by any measure of reality. Do we really want to hold ourselves hostage over possibly 100 West pilots who want to go East and maybe 150 to 200 East pilots who want to come West? Won’t this all work out in the long run?
Ironically, I am probably one of the few AWA pilots who has been through a merger before that had pilots hired after me flying lines senior to me in the same domicile I was based in, and I know how it feels. I am probably one of the few West pilots who can empathize with the East and what some are feeling, but I got over it. Just like FedEx, NWA, and all the other pilot groups that have gone through mergers got through it. You accept things; you realize that you have a fight in common with your merger brothers and sisters—a fight that is with management to get yourself better benefits, pay and work rules—and you move on. Yes, seniority is important but it is NOT everything.
Conclusion
I recognize that this update is a bit of a “downer,†as it seems like all the pilots are suffering because of the highly emotional antics of a relatively small minority of pilots who seem intent on holding thousands of East and West pilots as economic hostages. I am hopeful that in the long run, the majority of the rank-and-file East line pilots will not accept too much more hijacking of the process to improve our pay, scope, benefits and work rules. In the meantime, stock the storm cellar with food, water and ammunition, and dig in for a long siege. This is truly going to be a marathon, not a sprint.
It would be helpful to have all West pilots encouraging our fellow East rank-and-file pilots to convince their East MEC to once again join with the West MEC and focus on fixing this long-running space positive dispute, get JNC talks on a steady track, and find a mutually acceptable and ratifiable joint contract that puts real dollars in all our pilots’ pockets, gives them much better work rules, and more importantly, protects us all in the face of industry consolidation.
It is time for all of us to move forward collectively through joint negotiations. We all know that further industry consolidation is looming. It strikes me that we all would be better off by securing a solid joint contract and getting management to start fixing our operational mess so that we can build a strong airline that can be a solid acquirer, rather than be sold in part or whole in a fire sale at some future date, or worse.
As always, fly safely and securely, remain professional and courteous to your fellow East and West crewmembers, and fly the contract.
Fraternally,
Captain John McIlvenna
AWA MEC Chairman
USA320Pilot comments: John NcIlvenna's letter is totally misleading regarding the US Airways pilot rank-and-file sentiment regarding a joint contract and the Nicolau Award. Nearly 500 hundred pilots went to Herndon to protest the Nicolau Award. That is an enormous turnout and clearly indicates McIlvenna is either dilusional or a flat out liar.
