It has taken about 5 months for the parties to negotiate a second TA and to complete membership voting.
US Airways entered the NDA merger discussions with a 60-90 day communication black out period, which is expected to have a merger in principal announced or the two companies will cease consensual M&A talks. This announcement should occur between around November 1 through December 1. If an agreement in principal to merge is announced it could take another 45-60 days beyond the NDA exclusive merger negotiating period for Judge Lane to confirm a merger POR, which could happen in Q1 2013 or probably no later than February 15.
It appears it's unlikely US Airways and the AFA JNC will reach another TA prior to the merger POR being confirmed by the bankruptcy court, if the corporate combination proceeds.
The APFA's Term Sheet requires the union to file a single carrier petition with the NMB as soon as practicable after the Effective Date of the POR, where it is expected APFA will become the union for all of the F/As of the combined companies (AA, US Airways East, & US Airways West F/A's) because the AA F/A's have the voting majority. With their voting majority AA's F/A's could negotiate and decide the next contract for US Airways' F/A's.
Furthermore, the APFA Term Sheet provides a timeline for a JCBA. Specifically, shortly after the NDA black out period ends the parties will have 60 days to negotiate a JCBA. If the parties faile to reach an agreement an arbitrator will decide the outstanding aspects of the JCBA within 30 days. The F/A's wil lthen have the opportunity to vote on the JCBA and if the agreement is not ratified, it will go to a 3-member board of arbitration and a final and binding decision will rendered within 60 days.
Therefore, it appears US Airways' F/A's have only delayed getting a new contract. In addition, the rank-and-files "no vote" decision could have adverse effects on US Airways' F/A's seniority if AMR and US Airways execute a corporate combination. In their January 25 message every member of the US Airways & AWA MECs and the JNC said, "With the airline industry consolidating, locking in the improvements and protections contained in this TA is imperative."
Why? Because if a merger between AMR and US Airways proceeds US Airways' F/A's are not guaranteed DOH. And, a new federal law is now in place called the McCaskill-Bond amendment to the Omnibus Spending Bill because AA's F/A's and APFA stapled the TWA AFA F/A's to the bottom of the combined seniority list in their merger.
For more information on McCaskill-Bond click here:
http://afaonevoice.o...NAL for WEB.pdf
Furthermore, APA said, "
AFA Q&A - www.ourafa.org - Merger Page"
Q. Wouldn’t we be better off if waited for the merger and had our change in control snapbacks kick in?
A. No. There are at least a couple of issues here. First, we don’t know if there will be a merger, or if there is, what it will look like – who the surviving management will be. And the longer we wait for a wage increase, the longer it will take to ever catch up. Second, the language in the contract in Section 30.O states in the event of a change in control the “Flight Attendant wage rates will snap back to the rates in effect on June 30, 2002.” The wage rates in effect on June 30, 2002 were $43.93. As you can see, we are better off with the $47.15 wage increase in the TA than with the East contract language.
Q. We keep dancing around the seniority issue with a possible merger with American. Where do we stand? Date of hire or fair and equitable? If we are slotted we could be in the bottom half or bottom 4th of the seniority list which in an economic downturn, we would be more likely to be laid off–that what worries me.
A. There’s no dancing. The AFA Constitution and Bylaws clearly affirms support for date of hire. Also, the two unions have put out a joint statement pledging to work together on integration issues, including seniority. Keep in mind that “fair and equitable” refers to a process and “date of hire” is one of the processes that is fair and equitable – the two are not mutually exclusive. Also, we have scope and LPPs to protections in the East contract which would be extended to cover West FAs if the TA passes.
Q. Did you get apfa to agree not to screw us over in reference to seniority like they have done to everyone else over the years?
A. Without commenting on your premise, the AFA and the AFPA released a joint statement on August 30, 2012. It is posted on the AFA website. The two unions have been discussing the consequences of a potential merger and have agreed to cooperate for the benefit of the FAs. Additionally, the McCaskill-Bond Amendment now governs airline mergers and provides that if different unions represent Flight Attendants, seniority integration must be done in a fair and equitable manner.
Q. Why isn’t DOH in a merger included in scope?
A. The short answer is that a contract between the AFA and US Airways cannot be binding upon a third party. Section 1.D states that the AFA merger policy applies if both Flight Attendant groups are represented by AFA. The AFA Constitution and Bylaws is the controlling document and references DOH.
In conclusion, by voting "no" the F/As may have just placed their seniority at risk if they enter "final and binding" seniority integration arbitration, which is now governed by federal law, by having their current contract's economics compared to the APFA Term Sheet in front of the Board of Arbitration.
How ironic it could be that US Airways' F/As next contract could be negotiated by a surrogate negotiating committee with a negative seniority decision for US Airways' F/As decided by an Arbitrator because of today's TA rejection by the rank-and-file.