FYI- McCaskill-Bond Federal Law

Chuck Schalk

Veteran
Nov 17, 2006
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The McCaskill-Bond Amendment
 
What is it? How did it come about? How does it affect us?
 
What is it?
Passed as part of the Consolidated Appropriations Act of 2008, the McCaskill-Bond
Amendment provides a process for achieving a “fair and equitable” seniority integration of
employee groups affected by the combination of two or more airlines.
The seniority integration procedures provided for in the Amendment are those found in Sections 3
and 13 of the Allegheny-Mohawk Labor Protective Provisions (LPPs). Imposed upon
Allegheny Airlines and Mohawk Airlines by the Civil Aeronautics Board (CAB) in 1971, the
LPPs governed the seniority integration of the employee groups when those two airlines merged in
1972 and were subsequently imposed on other mergers until the passage of the Airline
Deregulation Act of 1978. After that, the LPPs were no longer imposed by the federal
government. Nevertheless, unions generally negotiated for similar procedural safeguards
relating to merger-related seniority integration to be incorporated in their collective bargaining
agreements. As a shorthand, these contractual safeguards are frequently referred to as
Allegheny-Mohawk LPP’s Sections 3 and 13.
 
Section 3 of the LPPs provides that, where applicable, the carrier and the representatives of
the affected employee groups shall attempt to achieve through collective bargaining a “fair
and equitable” seniority integration. If the parties are not able to reach an agreement on a “fair
and equitable” seniority integration through negotiations, the dispute will be submitted to a
neutral arbitrator for a final and binding resolution.
 
Section 13 of the LPPs governs the arbitration process. An arbitrator will be selected by the
unions and the case is to be heard expeditiously. Each party will present its case to the arbitrator
and may call witnesses, including employees, industry experts, and financial analysts. After
completion of the case, the arbitrator will make the award – the new integrated seniority list. Per
the LPPs, the cost of the arbitration will be split between the parties.
How did it come about?
 
In 2001, American Airlines purchased TWA after this carrier had filed for bankruptcy. As part
of the bankruptcy process, TWA successfully demanded that the unions representing TWA
employees – including ALPA and the IAM – waive their contractual rights to seniority
integration in accordance with Allegheny-Mohawk LPP’s Sections 3 and 13. As a result, the
TWA pilots and flight attendants lost their right to demand the arbitration of an integrated
seniority list. Instead, the seniority lists that were imposed on these TWA employee groups were
largely the product of negotiations between American Airlines and its own unions.
In response to the perception that the seniority integration lists imposed on the TWA pilots and
flight attendants were unjust, Senator Claire McCaskill, the Democratic Senator from Missouri,
sponsored the current federal law that requires that the procedures of the Allegheny-Mohawk
LPPs Sections 3 and 13 be followed – except where the respective employee groups are
represented by the same union.
 
Exactly what does “seniority list integration” mean?
Quite simply it means the method by which the two seniority lists are combined into one. Prior to
negotiating over the integration of the seniority lists, each party must decide how they wish to see it
accomplished. There is no set way of doing it. Each group determines what is best for their group.
 
commonly used methods of list integration:
 
Date-of-Hire – Many people believe straight date-of-hire is the only fair way to merge the lists. It
is the only method that gives each employee credit for her/his entire career at an airline.
Under this method, one year at Airline X is no more or no less valuable than one year at
Airline Y.
 
DATE OF HIRE is the only fair way to combine seniority lists. No one can legitimately complain about DOH. The day that you are hired is what your seniority date is. No more, no less.
 
Rogue
 
But wait a darn minute here.
 
They were upgrading when I was hired, 3 years to Captain, so I should be a Captain in 3 years no matter what.
 
My Airlines stock was worth .03 more than yours 4 years ago at 1700 on Friday.  So My career expectations were far superior to your therefor I must be senior to you.
 
I was flying a 737-400 and you were only flying a 737-300 so you are definitely junior to me.
 
Not only that but we had 10 more aircraft than your little company, so I must be senior to you.
 
fr8tmastr said:
But wait a darn minute here.
 
They were upgrading when I was hired, 3 years to Captain, so I should be a Captain in 3 years no matter what.
 
My Airlines stock was worth .03 more than yours 4 years ago at 1700 on Friday.  So My career expectations were far superior to your therefor I must be senior to you.
 
I was flying a 737-400 and you were only flying a 737-300 so you are definitely junior to me.
 
Not only that but we had 10 more aircraft than your little company, so I must be senior to you.
My career expectations were to be a 767 line holding captain by the age of 45 and to win the Masters.....twice!
 
Date of hire has nothing to do with the McCaskill Bond Act [MBA].  The act only requires a process of fair and reasonable. If the case goes to arbitration, then the arbitrator rules on fairness. At Southwest/AirTran, an arbitrator ruled that southwest workers could have two years imputed on their seniority over AirTran workers, except AirTran workers who choose to stay in ATL.  This case was one dealing with ramp workers.  The TWU had argued for several more years, while the IAM argued, date of hire. 
 
MB prevents stapling. If you go to arb, you never know what you are going to receive.
Cheers.
 
"TWA successfully demanded that the unions representing TWA
employees – including ALPA and the IAM – waive their contractual rights to seniority
integration in accordance with Allegheny-Mohawk LPP’s Sections 3 and 13. As a result, the
TWA pilots and flight attendants lost their right to demand the arbitration of an integrated
seniority list. Instead, the seniority lists that were imposed on these TWA employee groups were
largely the product of negotiations between American Airlines and its own unions."
 
Hey pilots, sound familiar?
History does try to repeat itself.
 
PullUp said:
"TWA successfully demanded that the unions representing TWA
employees – including ALPA and the IAM – waive their contractual rights to seniority
integration in accordance with Allegheny-Mohawk LPP’s Sections 3 and 13. As a result, the
TWA pilots and flight attendants lost their right to demand the arbitration of an integrated
seniority list. Instead, the seniority lists that were imposed on these TWA employee groups were
largely the product of negotiations between American Airlines and its own unions."
 
Hey pilots, sound familiar?
History does try to repeat itself.
 
If seniority integration is delayed due to the court battle, APA pilots and East pilots continue to capture all the attrition on their seniority lists while the West pilots capture their own attrition on their own list.  The fight has just started, and it could go on for a long time.   It is what it is.  
 
The APA will our bargaining agent and will be in control of the process. It's clear that is what USAPA fears.


Fort Worth-based American Airlines Group and the Allied Pilots Association have urged a federal court to deny a request by the union representing pilots with US Airways to have a seniority integration plan for the newly merged airline be determined by federal arbitration.

The Fort Worth Star-Telegram reported that American said in a court filing Friday that a memorandum of understanding reached last year with the Allied Pilots and the US Airline Pilots Association spells out a process for determining an integrated seniority list.

The company seeks to put a stop, once and for all, to USAPAs bad-faith behavior in trying to escape the provisions of the MOU regarding seniority integration for the pre-merger US Airways and pre-merger American pilot groups, American said in its filing, according to the Star-Telegram.
Earlier this month, The US Airline Pilots Association filed a lawsuit in federal court asking for an arbiter to decide on the process.

American Airlines (Nasdaq: AAL) contends that the agreement specifies that any arbitration needed to resolve a seniority integration dispute should be held after the company and its pilots have reached a new contract.
The Allied Pilots Association, which represents pilots at American, said it expects that it will be named the legal bargaining unit for all the pilots at the merged airline. It asked the court to rule that only it can determine whether any US Airline Pilots Association members can participate in seniority integration, the Star-Telegram said.

US Airways Labor Unions Unhappy with American Merger Process

Labor unions at US Airways will meet with CEO Doug Parker and senior management April 29 to discuss concerns and critical issues that remain unresolved since the merger of US Airways and American Airlines in December.

When Parker and his team pulled off the $11 billion deal, endorsed by pilots and flight attendants at American, the combination to create the worlds largest airline appeared to have the blessing of labor at both companies.


But four months later, five US Airways unions say they arent happy with the way things are going.

Leaders for the flight attendants, pilots, machinists, fleet service, mechanical, dispatchers and simulator engineers, wrote Parker this month that they were proud to have supported a merger but now expect management to move forward immediately to keep its commitments to all of its employees and make this the best airline in the world.

The issues include job security, seniority, compensation, scope, benefits, and working conditions, the letter said.

American Airlines spokesman Todd Lehmacher said, We want to work together to reach joint collective bargaining agreements with all our unions agreements that will benefit the employees of American and US Airways equally.

The April 29 meeting is a regularly-scheduled quarterly meeting that Parker hosts with union presidents from American and US Airways. The meetings follow each quarterly earnings report.

Read MoreSpirit Airlines Was the Most Complained-About U.S. Airline 5 Years in a Row
In July 2012, unions for more than 30,000 US Airways employees formed a coalition to coordinate issues related to a potential merger. At the time, six unions were in contract negotiations or mediation some for as many as seven years, the letter said. Many US Airways employees had suffered from airline consolidation that too often had been advanced at the expense of airline workers.

The letter outlined specific problems:

Contract talks with Transport Workers Union Local 544, representing instructors and simulator engineers, have been put on the back burner.

US Airways dispatchers, in TWU Local 545, earn 25 percent less and work six weeks more than American dispatchers.

Mechanics and fleet service workers, represented by the International Association of Machinists (IAM), were in negotiations pre-merger, then ignored by labor relations while it negotiated with stand-alone American employees. The IAM has asked the National Mediation Board to be released from contract talks, triggering a 30-day cooling off period, and potential strike.

Customer service agents, jointly represented by the Communications Workers of America and the Teamsters, said, The vendors working for American are encroaching on our work at some locations and forcing the association to file grievances.

US Airways pilots said the airlines labor relations personnel have failed to implement the required work rules and contractual provisions to bring equality to the pilots of US Airways, the letter said.

Everybody seems to think everything is rosy, and thats not true, said Capt. James Ray, spokesman for the US Airways pilots union, referencing the labor problems. The pilots have a contract, but the company is dragging its feet on implementing some sections of the contract.

Several other employee groups dont have a contract and are very frustrated, Ray said. The IAM [mechanics] are prepared to strike if they cannot settle their contract soon.

Separately, the US Airways pilots union in March filed a lawsuit asking for a federal arbitrator to decide how the seniority lists of American and US Airways pilots will be integrated. Seniority is key to routes, pay, schedules, and aircraft flown.

The US Airways pilots union wants the parties to use a process in a federal law, known as McCaskill-Bond, to decide how to integrate pilot seniority. McCaskill-Bond was passed by Congress in 2007, after American purchased Trans World Airlines (TWA). TWA pilots were placed toward the bottom of the seniority list and were later furloughed during an economic downturn.

US Airways pilots want a voice in how seniority is decided. Their concern is that Americans Allied Pilots Association could be named the bargaining agent for all pilots at both airlines before a seniority agreement is reached.


(
c)2014 The Philadelphia Inquirer. Distributed by MCT Information Services.

US Airways pilots want a voice? You'll have domicile reps under the APA.

I've got news for you James Ray, you don't speak for America West pilots.
 
Phoenix said:
 
If seniority integration is delayed due to the court battle, APA pilots and East pilots continue to capture all the attrition on their seniority lists while the West pilots capture their own attrition on their own list.  The fight has just started, and it could go on for a long time.   It is what it is.  
 
Very interesting thought. Knowing that if this seniority battle is held up in court for a few years could certainly be a motivation of the APA to argue Judge Silver was right. Even if they know her position is wrong (which I believe their lawyers do), they can just play dumb and meanwhile capture ALL their attrition and keep ALL their flying. Seems like a good strategy...
 
As far as the company opposing us getting the seniority integration settled sooner rather than later, I have to wonder why? I know it's outlined in the MOU that way, and still wonder why it was written that way in the MOU. Management has said they want all this to happen quickly so they can truly integrate the workforce and capture all the synergies that come with that. I would think if the seniority is done, that brings them that much closer to true integration. The only thing left would be a joint contract, and that also has a fast-track timetable defined in the MOU. The company just needs pilots to fly airplanes. I doubt they care who they are or which side they came from.
 
I think any delay only serves to allow the APA and the East to capture their own attrition. I'm good with waiting... :)
 
algflyr said:
 
Very interesting thought. Knowing that if this seniority battle is held up in court for a few years could certainly be a motivation of the APA to argue Judge Silver was right. Even if they know her position is wrong (which I believe their lawyers do), they can just play dumb and meanwhile capture ALL their attrition and keep ALL their flying. Seems like a good strategy...
 
As far as the company opposing us getting the seniority integration settled sooner rather than later, I have to wonder why? I know it's outlined in the MOU that way, and still wonder why it was written that way in the MOU. Management has said they want all this to happen quickly so they can truly integrate the workforce and capture all the synergies that come with that. I would think if the seniority is done, that brings them that much closer to true integration. The only thing left would be a joint contract, and that also has a fast-track timetable defined in the MOU. The company just needs pilots to fly airplanes. I doubt they care who they are or which side they came from.
 
I think any delay only serves to allow the APA and the East to capture their own attrition. I'm good with waiting... :)
 
 
I am not so sure the company really believes full and quick seniority list integration is all that necessary to profits.... urgency is always a strategy of negotiations, much more than a strategy of profits per se.  Let's not forget that the company made RECORD profits last year, without full integration of the pilot groups for over fiver years running.  
 
I agree with patience,  what's the rush. :D
 
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Phoenix said:
 
 
I am not so sure the company really believes full and quick seniority list integration is all that necessary to profits.... urgency is always a strategy of negotiations, much more than a strategy of profits per se.  Let's not forget that the company made RECORD profits last year, without full integration of the pilot groups for over fiver years running.  
 
I agree with patience,  what's the rush. :D
The Maintenance and related groups are independent between the TWU and the IAM.  Our group needs to be one bargaining unit for us to move forward. It will not work any other way. We want to intergrate as soon as possible and bargain as one unit.
 
Well the IAM doesnt feel the way you do Chuck.
 
They want a new PMUS CBA, not wait several more years for a JCBA.
 
And the the IAM CBA is better than what you are working under at AA, except your pay is higher.
 
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700UW said:
Well the IAM doesnt feel the way you do Chuck.
 
They want a new PMUS CBA, not wait several more years for a JCBA.
 
And the the IAM CBA is better than what you are working under at AA, except your pay is higher.
You are short sighted in your thinking.  Unfortunately, the company will not entertain an agreement with the IAM and will only drag out the process until next negotiations. We are only wasting time counting on the company and the IAM.
 
And you did such a great job at AA?
 
US is still a separate company and still two work groups.
 
The IAM is in Section 6 Negotiations and is waiting  for a release, they are going before the NMB on April 30th and May 1st.
 
If you are so sure of what is going to happen, can you tell us the Powerball winning numbers too?
 

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