US Airways
August 8, 2005
US Airways Merger Update
To: All US Airways Mechanic and Related IAM Members
US Airways and America West Airlines have proposed a merger. It remains unclear at the present time when, or even if, the deal will be completed and what the full effects a merged carrier would have on employees. Information provided by the two companies thus far raises more questions than answers. However, some issues of concern to the membership can be addressed today.
If the merger is completed, US Airways would be the surviving carrier but America West’s corporate leadership is expected to manage the combined airline and the headquarters would be moved to Phoenix.
If the companies merge, the National Mediation Board (NMB) will determine whether the combined carriers constitute a single transportation system. Some of the criteria the NMB uses in determining single carrier status is the combination of published schedules, standardized uniforms and aircraft markings, centralized labor relations and management and overlapping ownership and Board of Directors. This process could take from a few weeks to several months after the final approvals of the merger.
Until such time as the NMB rules the combined airline is operating as a single carrier, US Airways and America West employees will operate separately represented by their current unions and working under their current respective labor contracts.
If the NMB rules that the merged carriers are a single transportation system, the Board should act in accordance with its prior decisions and certify the IAM because we have by far many more members. When the IAM is certified, our collective bargaining agreements will remain in effect for our current members and we will negotiate to bring America West workers under our agreement.
It is important to note that if another union can show sufficient interest from US Airways employees, which includes active and furloughed employees with recall rights, for representation election, the NMB may order an election. If there is an election and less than 50 percent of the combined group participates, including furloughed employees, then no union will be certified and Mechanic & Related workers at both airlines will have no collective bargaining agreement and become “at will†employees.
Therefore by signing a card requesting an election you could lose all union representation.
This recently happened to Fleet and Customer Service employees when Piedmont and Alleghany Airlines merged last year. Less than 50 percent of Teamster and Communication Workers of America members participated in the vote, and the employees of the combined airline now have no union and no contract.
This is a very serious matter.
There are several other facts to keep in mind if Teamster organizers solicit your support by asking you to sign a card authorizing an election.
When US Airways entered bankruptcy last year, its primary goal for reducing Mechanic & Related labor costs was to modify the IAM contract to mirror the Teamster-America West agreement. The Teamsters negotiated an America West contract outside of bankruptcy that is the industry’s benchmark for low wage, low benefit, and low security union agreements. The Teamsters poor performance at America West lowered the bar so much for the entire industry that your IAM negotiators refused to agree to US Airways’ Teamster-modeled proposals.
Additionally, under the IAM agreement the heavy maintenance America West currently subcontracts to a company in El Salvador would be brought in-house, adding an additional three tracks of maintenance, requiring the recall of 300-400 furloughed Mechanic & Related workers.
Ultimately accepted by the membership after the bankruptcy judge abrogated IAM contracts, your current IAM-US Airways agreement still provides significantly more job security than Teamster members have. The fact that US Airways has 9.1 Mechanic & Related employees per aircraft, compared to only 6.6 at America West, demonstrates the IAM’s superior scope and job security language in spite of two bankruptcies. If the America West employee-to-aircraft ratios were imposed at US Airways, 660 Mechanic & Related employees would lose their jobs.
The time frame for combining the two workforces is not yet known, but it also raises the question of seniority integration. The IAM’s policy on seniority integration is clear, consistent and unambiguous. The Machinists Union merges employee groups based on the individual’s date of entry into a particular classification on the merging carriers. In our opinion, this recognizes the seniority of employees at both airlines and is the only fair way for everyone involved.
Because America West Mechanics are generally less senior to their US Airways counterparts, the Teamsters are promoting a seniority integration scheme that would unfairly benefit their members to the disadvantage of IAM members.
The Teamsters have not put their seniority integration proposal in writing for fear of angering IAM members in the event of a representational election, but their allegiance is clearly to their current membership only.
The sacrifices you have made through two US Airways bankruptcies are significant. Only the Machinists Union will defend your investment and seniority throughout the proposed merger and beyond.
Sincerely,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRPERSON
August 8, 2005
US Airways Merger Update
To: All US Airways Mechanic and Related IAM Members
US Airways and America West Airlines have proposed a merger. It remains unclear at the present time when, or even if, the deal will be completed and what the full effects a merged carrier would have on employees. Information provided by the two companies thus far raises more questions than answers. However, some issues of concern to the membership can be addressed today.
If the merger is completed, US Airways would be the surviving carrier but America West’s corporate leadership is expected to manage the combined airline and the headquarters would be moved to Phoenix.
If the companies merge, the National Mediation Board (NMB) will determine whether the combined carriers constitute a single transportation system. Some of the criteria the NMB uses in determining single carrier status is the combination of published schedules, standardized uniforms and aircraft markings, centralized labor relations and management and overlapping ownership and Board of Directors. This process could take from a few weeks to several months after the final approvals of the merger.
Until such time as the NMB rules the combined airline is operating as a single carrier, US Airways and America West employees will operate separately represented by their current unions and working under their current respective labor contracts.
If the NMB rules that the merged carriers are a single transportation system, the Board should act in accordance with its prior decisions and certify the IAM because we have by far many more members. When the IAM is certified, our collective bargaining agreements will remain in effect for our current members and we will negotiate to bring America West workers under our agreement.
It is important to note that if another union can show sufficient interest from US Airways employees, which includes active and furloughed employees with recall rights, for representation election, the NMB may order an election. If there is an election and less than 50 percent of the combined group participates, including furloughed employees, then no union will be certified and Mechanic & Related workers at both airlines will have no collective bargaining agreement and become “at will†employees.
Therefore by signing a card requesting an election you could lose all union representation.
This recently happened to Fleet and Customer Service employees when Piedmont and Alleghany Airlines merged last year. Less than 50 percent of Teamster and Communication Workers of America members participated in the vote, and the employees of the combined airline now have no union and no contract.
This is a very serious matter.
There are several other facts to keep in mind if Teamster organizers solicit your support by asking you to sign a card authorizing an election.
When US Airways entered bankruptcy last year, its primary goal for reducing Mechanic & Related labor costs was to modify the IAM contract to mirror the Teamster-America West agreement. The Teamsters negotiated an America West contract outside of bankruptcy that is the industry’s benchmark for low wage, low benefit, and low security union agreements. The Teamsters poor performance at America West lowered the bar so much for the entire industry that your IAM negotiators refused to agree to US Airways’ Teamster-modeled proposals.
Additionally, under the IAM agreement the heavy maintenance America West currently subcontracts to a company in El Salvador would be brought in-house, adding an additional three tracks of maintenance, requiring the recall of 300-400 furloughed Mechanic & Related workers.
Ultimately accepted by the membership after the bankruptcy judge abrogated IAM contracts, your current IAM-US Airways agreement still provides significantly more job security than Teamster members have. The fact that US Airways has 9.1 Mechanic & Related employees per aircraft, compared to only 6.6 at America West, demonstrates the IAM’s superior scope and job security language in spite of two bankruptcies. If the America West employee-to-aircraft ratios were imposed at US Airways, 660 Mechanic & Related employees would lose their jobs.
The time frame for combining the two workforces is not yet known, but it also raises the question of seniority integration. The IAM’s policy on seniority integration is clear, consistent and unambiguous. The Machinists Union merges employee groups based on the individual’s date of entry into a particular classification on the merging carriers. In our opinion, this recognizes the seniority of employees at both airlines and is the only fair way for everyone involved.
Because America West Mechanics are generally less senior to their US Airways counterparts, the Teamsters are promoting a seniority integration scheme that would unfairly benefit their members to the disadvantage of IAM members.
The Teamsters have not put their seniority integration proposal in writing for fear of angering IAM members in the event of a representational election, but their allegiance is clearly to their current membership only.
The sacrifices you have made through two US Airways bankruptcies are significant. Only the Machinists Union will defend your investment and seniority throughout the proposed merger and beyond.
Sincerely,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRPERSON
