Change of Control Award
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brokenwrench
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January 7, 2008
File: USA-18
2008-6
Arbitration Panel Denies Change in Control Grievance
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. The full decision is available at www.iam141.org and www.iamdl142.org.
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,
Tom Higginbotham S. R. (Randy) Canale
PDGC PDGC
DISTRICT LODGE 142 DISTRICT LODGE 141
TH:tf
cc: R. Roach, Jr.
S. Pantoja
T. Brickner
District 142 Executive Board
opeiu #320
POST ON ALL IAM BULLETIN BOARDS
File: USA-18
2008-6
Arbitration Panel Denies Change in Control Grievance
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. The full decision is available at www.iam141.org and www.iamdl142.org.
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,
Tom Higginbotham S. R. (Randy) Canale
PDGC PDGC
DISTRICT LODGE 142 DISTRICT LODGE 141
TH:tf
cc: R. Roach, Jr.
S. Pantoja
T. Brickner
District 142 Executive Board
opeiu #320
POST ON ALL IAM BULLETIN BOARDS
YVINTERN
Veteran
In other words...I call horsecrap.
Jester
Veteran
Just as I called it months ago as the IAM had lousy arguments.... now can we end this BS and might the IAM work on getting West some parity?
"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."
I guess not....
So fumes Jester
mike33
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- 1,128
[Jester
This is the kind of quote that really irritates me.
" 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."
What negotiator would make a statement like that. I don't need to hear, that you might think, the company might have the upper hand. Just help me believe that you know what ur doing and that you know how to do it. I and alot of people pay good money for that !!
This is the kind of quote that really irritates me.
" 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."
What negotiator would make a statement like that. I don't need to hear, that you might think, the company might have the upper hand. Just help me believe that you know what ur doing and that you know how to do it. I and alot of people pay good money for that !!
mike33
Veteran
- Joined
- Nov 7, 2007
- Messages
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mike33
Veteran
- Joined
- Nov 7, 2007
- Messages
- 2,252
- Reaction score
- 1,128
did anyone really think the CIC would go for the employees, Dougweiser is gonna drink tonight like never before.. that is after a huge bonus finds its way to him.....
from the update
"Traditional Railway Labor Act bargaining is not scheduled to begin until late 2009 when the current
East agreements become amendable"
this sums it up for the west, no mention of how the west is fought for, the west contract is up and sec 6 should have been on going to force the company to bargain. it just tells you what the IAm thinks of the underlings paying their "nice"salary
from the update
"Traditional Railway Labor Act bargaining is not scheduled to begin until late 2009 when the current
East agreements become amendable"
this sums it up for the west, no mention of how the west is fought for, the west contract is up and sec 6 should have been on going to force the company to bargain. it just tells you what the IAm thinks of the underlings paying their "nice"salary
