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Dec 2012 / Jan 2013 US Pilots Labor Discussion

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mrbreeze said:
WSJ atricle:

AMR Corp.'s AAMRQ -9.00%American Airlines and US Airways Group Inc. LCC -0.81%are nearing a tentative deal on how their pilots would be treated in a potential merger, a crucial step toward determining whether the two airlines will combine when the former emerges from bankruptcy proceedings next year, said people close to the discussions.

The talks, which include airline executives, as well as representatives of AMR's creditors committee and both airlines' pilots unions, have been under way in Dallas for more than a week, with a goal of reaching an agreement before AMR's board meets Jan. 9, one person said. Meetings have been held on weekends and some sessions have run until midnight as the parties try to hammer out terms and assess the costs, the people said. Talks are expected to continue next week, said one person.

American's unionized flight attendants said on Thursday that they, too, had been invited to join the discussions, which are expected to turn to integrating other workers at some point.

There are a raft of complicated issues to be sorted out. They include reconciling tentative contract terms American pilots reached with US Airways on how they would be treated in a merger with the contract American pilots ratified with their company in recent weeks. Other issues include determining how to create a seniority list that would combine the pilot groups, whether differences between the two unions would go to binding arbitration and whether the pilots, or just their union leaders, would get to vote on any new terms.

Until American and its creditors have a clearer picture of pilot labor costs and work rules, discussions on how to split stock in a merger and how much the new airline would be worth are on hold, the people said. They cautioned that the negotiations could be delayed because of the complexity of issues, for example, which pilots would handle certain kinds of flights in a combined airline.

A tentative pact outlining labor terms for pilots is critical for American creditors weighing whether the Fort Worth, Texas-based airline should merge with US Airways or exit bankruptcy as an independent company. Even if negotiators agree on terms for pilots soon, a decision on a merger could take time. American's bondholders, including a host of hedge funds, could sign confidentiality agreements as soon as the start of next year that would let them negotiate merger terms and decide how they would like the airline to exit bankruptcy. Under bankruptcy law, creditors must approve any path American takes.

American's bondholders are becoming more influential. To better sway American's bankruptcy proceedings, an ad hoc group of bondholders is close to teaming up with creditors holding AMR-backed bonds that were issued by municipalities for airport improvements, the people said. Together they hold at least $2 billion in debt, putting them in a position to effectively block any bankruptcy-exit proposal from American, the people said. Among others, the ad hoc bondholders include J.P. Morgan Securities JPM -1.08%and Litespeed Management LLC, while the muni-bondholders include Blackrock Inc., BLK -1.45%Nuveen Investments and OppenheimerFunds.

American has reached concessionary labor contracts with all of its unionized groups that will save the company nearly $1 billion in annual costs, so its labor expenses in a stand-alone reorganization plan are now known. A U.S. Bankruptcy Court judge on Wednesday approved the new American pilots contract, which was approved by a majority of the aviators on Dec. 7.

AMR filed for bankruptcy protection 13 months ago. Its creditors pressured American to consider a combination with US Airways as a serious alternative to its preferred stand-alone plan. So the two carriers in September began exploring a merger.

US Airways, in hot pursuit of a marriage all year, sent a merger proposal to American and its creditors committee in mid-November suggesting American creditors should own 70% of a combined company and US Airways shareholders 30%. US Airways proposed the merged carrier be run by its chief, Doug Parker.

Last spring, the three largest unions at American threw their support behind a merger and agreed to conditional labor terms that would govern them should the combination become AMR's bankruptcy-exit plan. US Airways pilots also have signaled their support for a combination, as they would receive big raises just by being brought up to American's current pay levels. But there are pilots on both sides who oppose a merger, fearing they would lose seniority, and a group of about 30 senior American pilots recently went public with their dissent through a blog.

AMR executives have suggested to creditors and in negotiations with US Airways that there are grave risks associated with trying to bring together labor groups, and that newly won cost savings could be jeopardized. They also have focused on rancor within the ranks of US Airways pilots that has prevented that group from achieving a single seniority list or new labor contract since US Airways merged with America West Airlines in 2005.

Some union people fret that if the parties can't reach a memorandum of understanding soon, American will be able to point to labor dysfunction and enhance the chances that its stand-alone exit plan would be accepted by creditors, said one person. "We need to sew up an interim MOU to make a compelling argument to AMR's board," this person said. "It's crunch time."
Click to expand...

This is the perfect opportunity for those on both sides of this seniority issue to make Parker finally come out and make a stand on what list he is willing and going to take.
 
Time for DUI to pay if he wants to play, seniority integration, scope, change of control, far from a done deal! My suggestion, walk away and when DUI wants to pay the "EAST PILOT GROUP" up front for keeping his conquest of CEO of the world's largest airline alive so be it, other than that, back to your sandcastle DUI called PHXTASYLAND! When the "REAL MONEY SHOWS UP!" Tell them your going to need bond money!
 
Black Swan said:
This is the perfect opportunity for those on both sides of this seniority issue to make Parker finally come out and make a stand on what list he is willing and going to take.
Click to expand...

It's up to Parker now? He's always said that it's a pilot issue. Of course, then he went to see Judge Silver, who basically agreed with him. It's a pilot issue.
 
Black Swan said:
This is the perfect opportunity for those on both sides of this seniority issue to make Parker finally come out and make a stand on what list he is willing and going to take.
Click to expand...

McCaskill-Bond, the law, established federal binding arbitration... but it also provides for the parties to come to a consensual agreement on their own...

Who is to say that both paths to SLI, under McCaskill-Bond, are not equally binding????

Hmmm.
 
signals said:
Many others besides the pilots oppose the merger.
So what's your point?
Click to expand...
Point? Who said anyone needs to have a point?

Boy you guys are slow on the uptake. I'm just following Claxy's format of dropping links and making pointless quotes for effect. I guess it works.
 
Black Swan said:
This is the perfect opportunity for those on both sides of this seniority issue to make Parker finally come out and make a stand on what list he is willing and going to take.
Click to expand...
Hummel already knows. They're going to maintain radio silence to the last second. The second APA is the new union and USAPA is thrown on the trash heap of history... Where it belongs, the Nic will be set in stone. It will all happen simultaneously. The East will be dumbstruck....as per normal when reality clashes with their world view. They'll sue everybody they can think of in total futility. There is no cause of action, it's over.
 
Metroyet said:
Hummel already knows. They're going to maintain radio silence to the last second. The second APA is the new union and USAPA is thrown on the trash heap of history... Where it belongs, the Nic will be set in stone. It will all happen simultaneously. The East will be dumbstruck....as per normal when reality clashes with their world view. They'll sue everybody they can think of in total futility. There is no cause of action, it's over.
Click to expand...
Other than it can't legally be done.
 
MUTATIS MUTANDIS said:
Time for DUI to pay if he wants to play, seniority integration, scope, change of control, far from a done deal! My suggestion, walk away and when DUI wants to pay the "EAST PILOT GROUP" up front for keeping his conquest of CEO of the world's largest airline alive so be it, other than that, back to your sandcastle DUI called PHXTASYLAND! When the "REAL MONEY SHOWS UP!" Tell them your going to need bond money!
Click to expand...

Typical east moron.

Last time your tried manufacturing your own leverage you ended up with an injunction. And before that it was LOA93.

Just STFU.
 
Metroyet said:
Hummel already knows. They're going to maintain radio silence to the last second. The second APA is the new union and USAPA is thrown on the trash heap of history... Where it belongs, the Nic will be set in stone. It will all happen simultaneously. The East will be dumbstruck....as per normal when reality clashes with their world view. They'll sue everybody they can think of in total futility. There is no cause of action, it's over.
Click to expand...
Nice Flamebait try, The single carrier status won't happen overnight, besides this deal is , FAR, FAR from over!
 
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