Parker can merge but he lacks integration skills
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American, US Airways unions still have lots to settle
Posted Saturday, Feb. 23, 2013
By Andrea Ahles
[email protected]
The day American Airlines and US Airways announced their merger proposal, their union leaders smiled and shook hands with airline executives and one another.
Some union presidents, including those who represent American's pilots, flight attendants and ground workers, had advocated for a merger of the carriers for months, even signing conditional labor agreements with US Airways executives in April.
Others, such as US Airways' pilots and flight attendant leaders, got involved in the discussions later but willingly signed memorandums of understanding to help ease the integration.
But despite the hugs and good will exchanged when the merger was announced Feb. 13, challenges lie ahead for the unions. Seniority integration lists need to be crafted. Workers must decide which union they want to represent them in contract talks with the merged carrier.
"We're not going to see how amicable this merger is for a few more years, when the difficult questions come," said Gary Chaison, professor of labor relations at Clark University in Massachusetts.
And if the unions, along with airline management, can't solve these issues in a timely fashion, that could limit the financial benefits touted by AMR CEO Tom Horton and US Airways CEO Doug Parker.
"Union issues have to be put away if American is going to be successful going into the future," airline industry consultant Darryl Jenkins said.
AMR has 54,700 unionized workers. US Airways has 30,260.
Happy to work together
For the flight crew, nothing is more important in a merger than seniority.
The memorandums of understanding signed by the pilot and flight attendant unions outline how to discuss seniority. But the issue probably won't be decided for over a year.
"Nothing in an official capacity will occur until after the [National Mediation Board] does a ruling on single-carrier status and the representation issue is settled," Allied Pilots Association President Keith Wilson said the day after the merger announcement. "Then we'll go into the seniority integration after that."
The board didn't grant the merged United Continental single-carrier status until April 30, 2011, almost a year after that merger was announced. Its pilots agreed to a joint contract in December and are working on a seniority integration list.
Leaders at the Allied Pilots Association, which represents only American Airlines pilots, and the US Airline Pilots Association, also a one-carrier union, continue to discuss integration. Last week the two boards met in Fort Worth to talk with US Airways executives including Parker, who will lead the merged airline.
"The success of this merger will signify the cooperative effort of professional pilots and management working together. We are pleased to be working with our colleagues of the Allied Pilots Association who are also committed to seeing our new company succeed, and ensure a safe flight for our passengers each and every day," President Gary Hummel of the US Airline Pilots Assocation said when the merger was announced.
Like the pilots, flight attendants union leaders have reached out to each other to begin integration discussions.
"We've had a long relationship with the [Association of Flight Attendants] and we've committed to making this a smooth transition," President Laura Glading of the Association of Professional Flight Attendants said the day the merger was announced.
The Association of Flight Attendants, which represents attendants at US Airways and American Eagle, said the merger holds "great opportunities" for flight attendants.
"As full partners in the world's largest airline, we expect meaningful participation in its benefits," the union said in a statement. "We look forward to working with our colleagues at American in improving wages, benefits, work rules and retirement security for all Flight Attendants at the new American."
Another question that remains is which union will represent each work group after the merger. Airline analysts say American's unions are likely to prevail in representation elections held by the National Mediation Board, simply because those unions have significantly more members.
But the large industry-wide unions like the Association of Flight Attendants and the Air Line Pilots Association, which represents pilots at American Eagle and at US Airways' regional carriers, PSA and Piedmont, may compete for members.
"The big question for the pilots and the flight attendants is going to be how, in this big group, does it make sense for me to remain independent or to have a national union represent my interest," said Bill Swelbar, an airline researcher at the Massachusetts Institute of Technology.
A fight for the hearts
of mechanics
Not all the unions at American and US Airways have been cheering for a merger.
The International Association of Machinists and Aerospace Workers withheld its support for the merger, saying it wants new contracts instead for the 8,600 ground crew, mechanics and related workers it represents at US Airways.
"We have been in contract talks for about two years, and we want contracts for our members before we discuss any merger-related issue with US Airways," Machinists union spokesman James Carlson said. He said members want wage increases and better health and retirement benefits.
The Machinists have not signed a memorandum of understanding. The union's counterpart representing American's mechanics and ground workers, the Transport Workers Union, has signed a a memorandum, but not all those mechanics are pleased with it or with the contract their union negotiated.
American's mechanics approved a concessionary contract in August by a margin of only 48 votes out of more than 9,500. In its memorandum of understanding with American, the union agreed to drop a profit-sharing agreement in the new contract for a 4.3 percent raise.
"We're missing a bunch of [the Machinists' current] contractual items," transport workers Local 565 President Gary Peterson said of his union's memorandum. "My guys would rather have [the union's International President] Jim Little go in and say we want what US Airways already has."
For example, US Airways mechanics have 10 holidays that earn double time, whereas American's mechanics have five holidays paying time and a half.
"That is just one of many contractual items that TWU members want back," said Peterson, who represents line mechanics at Dallas/Fort Worth Airport.
Complicating the mix are two other unions, the International Brotherhood of Teamsters and the Aircraft Mechanics Fraternal Association. Both are courting American mechanics in an effort to unseat the Transport Workers Union.
"American Airlines mechanics came to us and said, 'We want new representation,' and they have been working very hard since June of last year to make that a reality," Teamsters spokesman Chris Moore said. The Teamsters said this month that they have signed representation cards from a majority of mechanics at several maintenance stations in American's network, including a maintenance hangar at Dallas/Fort Worth Airport.
The National Mediation Board requires 50 percent of eligible employees in a work group to back a representation change before it will hold an election. Moore said the Teamsters are very close to that mark and expect an election before the board awards single-carrier status to American-US Airways.
The Teamsters are mounting a similar campaign at US Airways to unseat the Machinists, but Moore declined to comment on its progress.
The Transport Workers Union has started fighting back, sending mailers and brochures to its members contrasting its union with the Teamsters.
"If you really want to study Teamsters' representation in the aviation sector, buy a plane ticket to China, where most of United Airlines' aircraft are repaired," Little said. "In contrast, American Airlines repairs the bulk of its aircraft in-house and in the United States, and will continue to so under agreements reached by TWU with both AMR and US Airways."
While it is rare for workers to leave one union for another, airline analysts say it's easy to find disgruntled workers after a concessionary contract signed during bankruptcy.
"You're forced to participate and then you have sharks swimming around, pointing at the fact that you gave concessions," Swelbar said. "It's really an unfortunate circumstance for the TWU."
In the past decade, about 150,000 airline jobs have been eliminated, making union representation a big issue, he said. With tens of thousands of dues-paying members up for grabs, Swelbar said, he expects all the unions to campaign aggressively to represent pilots, flight attendants, mechanics and ground workers.
Andrea Ahles,
817-390-7631
Twitter: @Sky_Talk
Posted Saturday, Feb. 23, 2013
By Andrea Ahles
[email protected]
The day American Airlines and US Airways announced their merger proposal, their union leaders smiled and shook hands with airline executives and one another.
Some union presidents, including those who represent American's pilots, flight attendants and ground workers, had advocated for a merger of the carriers for months, even signing conditional labor agreements with US Airways executives in April.
Others, such as US Airways' pilots and flight attendant leaders, got involved in the discussions later but willingly signed memorandums of understanding to help ease the integration.
But despite the hugs and good will exchanged when the merger was announced Feb. 13, challenges lie ahead for the unions. Seniority integration lists need to be crafted. Workers must decide which union they want to represent them in contract talks with the merged carrier.
"We're not going to see how amicable this merger is for a few more years, when the difficult questions come," said Gary Chaison, professor of labor relations at Clark University in Massachusetts.
And if the unions, along with airline management, can't solve these issues in a timely fashion, that could limit the financial benefits touted by AMR CEO Tom Horton and US Airways CEO Doug Parker.
"Union issues have to be put away if American is going to be successful going into the future," airline industry consultant Darryl Jenkins said.
AMR has 54,700 unionized workers. US Airways has 30,260.
Happy to work together
For the flight crew, nothing is more important in a merger than seniority.
The memorandums of understanding signed by the pilot and flight attendant unions outline how to discuss seniority. But the issue probably won't be decided for over a year.
"Nothing in an official capacity will occur until after the [National Mediation Board] does a ruling on single-carrier status and the representation issue is settled," Allied Pilots Association President Keith Wilson said the day after the merger announcement. "Then we'll go into the seniority integration after that."
The board didn't grant the merged United Continental single-carrier status until April 30, 2011, almost a year after that merger was announced. Its pilots agreed to a joint contract in December and are working on a seniority integration list.
Leaders at the Allied Pilots Association, which represents only American Airlines pilots, and the US Airline Pilots Association, also a one-carrier union, continue to discuss integration. Last week the two boards met in Fort Worth to talk with US Airways executives including Parker, who will lead the merged airline.
"The success of this merger will signify the cooperative effort of professional pilots and management working together. We are pleased to be working with our colleagues of the Allied Pilots Association who are also committed to seeing our new company succeed, and ensure a safe flight for our passengers each and every day," President Gary Hummel of the US Airline Pilots Assocation said when the merger was announced.
Like the pilots, flight attendants union leaders have reached out to each other to begin integration discussions.
"We've had a long relationship with the [Association of Flight Attendants] and we've committed to making this a smooth transition," President Laura Glading of the Association of Professional Flight Attendants said the day the merger was announced.
The Association of Flight Attendants, which represents attendants at US Airways and American Eagle, said the merger holds "great opportunities" for flight attendants.
"As full partners in the world's largest airline, we expect meaningful participation in its benefits," the union said in a statement. "We look forward to working with our colleagues at American in improving wages, benefits, work rules and retirement security for all Flight Attendants at the new American."
Another question that remains is which union will represent each work group after the merger. Airline analysts say American's unions are likely to prevail in representation elections held by the National Mediation Board, simply because those unions have significantly more members.
But the large industry-wide unions like the Association of Flight Attendants and the Air Line Pilots Association, which represents pilots at American Eagle and at US Airways' regional carriers, PSA and Piedmont, may compete for members.
"The big question for the pilots and the flight attendants is going to be how, in this big group, does it make sense for me to remain independent or to have a national union represent my interest," said Bill Swelbar, an airline researcher at the Massachusetts Institute of Technology.
A fight for the hearts
of mechanics
Not all the unions at American and US Airways have been cheering for a merger.
The International Association of Machinists and Aerospace Workers withheld its support for the merger, saying it wants new contracts instead for the 8,600 ground crew, mechanics and related workers it represents at US Airways.
"We have been in contract talks for about two years, and we want contracts for our members before we discuss any merger-related issue with US Airways," Machinists union spokesman James Carlson said. He said members want wage increases and better health and retirement benefits.
The Machinists have not signed a memorandum of understanding. The union's counterpart representing American's mechanics and ground workers, the Transport Workers Union, has signed a a memorandum, but not all those mechanics are pleased with it or with the contract their union negotiated.
American's mechanics approved a concessionary contract in August by a margin of only 48 votes out of more than 9,500. In its memorandum of understanding with American, the union agreed to drop a profit-sharing agreement in the new contract for a 4.3 percent raise.
"We're missing a bunch of [the Machinists' current] contractual items," transport workers Local 565 President Gary Peterson said of his union's memorandum. "My guys would rather have [the union's International President] Jim Little go in and say we want what US Airways already has."
For example, US Airways mechanics have 10 holidays that earn double time, whereas American's mechanics have five holidays paying time and a half.
"That is just one of many contractual items that TWU members want back," said Peterson, who represents line mechanics at Dallas/Fort Worth Airport.
Complicating the mix are two other unions, the International Brotherhood of Teamsters and the Aircraft Mechanics Fraternal Association. Both are courting American mechanics in an effort to unseat the Transport Workers Union.
"American Airlines mechanics came to us and said, 'We want new representation,' and they have been working very hard since June of last year to make that a reality," Teamsters spokesman Chris Moore said. The Teamsters said this month that they have signed representation cards from a majority of mechanics at several maintenance stations in American's network, including a maintenance hangar at Dallas/Fort Worth Airport.
The National Mediation Board requires 50 percent of eligible employees in a work group to back a representation change before it will hold an election. Moore said the Teamsters are very close to that mark and expect an election before the board awards single-carrier status to American-US Airways.
The Teamsters are mounting a similar campaign at US Airways to unseat the Machinists, but Moore declined to comment on its progress.
The Transport Workers Union has started fighting back, sending mailers and brochures to its members contrasting its union with the Teamsters.
"If you really want to study Teamsters' representation in the aviation sector, buy a plane ticket to China, where most of United Airlines' aircraft are repaired," Little said. "In contrast, American Airlines repairs the bulk of its aircraft in-house and in the United States, and will continue to so under agreements reached by TWU with both AMR and US Airways."
While it is rare for workers to leave one union for another, airline analysts say it's easy to find disgruntled workers after a concessionary contract signed during bankruptcy.
"You're forced to participate and then you have sharks swimming around, pointing at the fact that you gave concessions," Swelbar said. "It's really an unfortunate circumstance for the TWU."
In the past decade, about 150,000 airline jobs have been eliminated, making union representation a big issue, he said. With tens of thousands of dues-paying members up for grabs, Swelbar said, he expects all the unions to campaign aggressively to represent pilots, flight attendants, mechanics and ground workers.
Andrea Ahles,
817-390-7631
Twitter: @Sky_Talk
AANOTOK
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Then I guess it's best to keep the gun out of Cheney's hands!
E,
I stand corrected. I stand with the pilots union as not liking his work because it tends to be biased towards management, like you most of the time.
Of all his recent mouthing off about pilots, especially productivity, he never addressed that APA was well on it's way to making improvements that addressed it nor the issue with the current aging pilot force using more vac, sick leave, max pay than his beloved LCC carriers. He was and is a tool for a purpose used by management. He would also rail against the Scope Clause like the rest of the parrots and blame the pilots, but would never address the fact that the pilots offered low-ball pay to fly the RJ's while other employee groups refused to budge.
I always liked the brutal honestly of Crandall and Baker, and a few others. Swelbar isn't even close.
eolesen
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Of course I have a bias towards management -- just as you have one towards labor. Doesn't mean that we're wrong or right all the time.
And don't take this as an endorsement of Swelbar. I tend to read his stuff with a grain of salt, just as I do anything by Mike Boyd, Vaughn Cordle, Bob Herbst, or Bob Mann. They all have their axes to grind; some are better than others at muting that.
And don't take this as an endorsement of Swelbar. I tend to read his stuff with a grain of salt, just as I do anything by Mike Boyd, Vaughn Cordle, Bob Herbst, or Bob Mann. They all have their axes to grind; some are better than others at muting that.
Agreed on the analysts. Who was the one that reported his breakfast meeting with Horton, even discussed his omlette? Instead of the distraction of food and a restaurant, 60 minutes of tough questions would have been far better. Horton picked the venue because from what i've seen in the past, he'd fold like a cheap suit in a tough venue.
I'm surely not perfect of course on the bias thing, just most of the time
I'm surely not perfect of course on the bias thing, just most of the time
OP
snapthis
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Regardless what the analysts say, Parker is going to have his hands full with unresolved issues from various labor groups. US Airways pilots have unresolved issues from the previous merger which are coming to a head just as he attempts another merger.
Case in point:
From Cactuspilot.com
Saturday, 23 February 2013 17:17 |
On Wednesday, February 20, 2013, USAPA filed a 38-page “Motion to Expedite” with the Ninth Circuit Court of Appeals in the company’s Declaratory Judgment (DJ) case. (Click here to view.)
US Airways filed a “Notice of Appeal” on December 31, 2012 and they have until the end of March to file. Will US Airways follow through with an appeal? The MOU makes the DJ case almost irrelevant as its claim was submitted on the premise of a “Hobson’s choice” – If the company did not negotiate with USAPA for a seniority scheme other than the Nicolau Award under Section 6 of the RLA, then they would be faced with a possibility of a strike versus being sued by the West pilots for not using the legitimately arbitrated seniority solution. Now, there is only one side of the “Hobson’s choice” - be sued by West pilots for aiding and abetting USAPA for not honoring the arbitrated Nicolau Award going forward.
USAPA’s filing contains many of the same tired arguments that were first considered and addressed by George Nicolau. But we find the following pair of statements to be incriminating. USAPA's very first sentence reads:
“Defendant-Appellee US Airline Pilots Association (“USAPA”) is the exclusive bargaining representative for all pilots employed by Plaintiff-Appellant US Airways, Inc. (“US Airways).”
Then, on Page 4, USAPA states:
“USAPA...has repeatedly sought to engage the former America West Pilots and the West Pilot Class in substantive discussions to resolve the seniority dispute.”
How can USAPA exclusively represent US Airways Pilots and simultaneously negotiate with West Pilots? The answer is simple: They Can’t. When attempting to negotiate with West Pilots, USAPA defaults to what it has always done - representing just the East Pilots. This immediately places USAPA in violation of its legal obligation as the exclusive bargaining representative of all US Airways pilots. The second statement is an admission that USAPA is violating its DFR by not representing West pilots.
Gary Hummel claims in his latest “President’s Message” that West Pilots will attempt to delay or stop the merger. If so, this is only a consequence of USAPA's failing to provide, “...[t]he West Pilots a union that will not abrogate the Nicolau Award without a legitimate purpose.” We would like nothing better than to avoid court altogether but the West Pilot Class, as represented by our legal firm, will use all means at its disposal to defend our seniority rights. We continue to expect the company and USAPA to honor the obligations created in the 2005 America West/US Airways merger.
With the recent MOU ratification along with the merger announcement, there are substantial legal activities now occurring to defend the West pilots’ Seniority rights.
Leonidas LLC
Case in point:
From Cactuspilot.com
Saturday, 23 February 2013 17:17 |
On Wednesday, February 20, 2013, USAPA filed a 38-page “Motion to Expedite” with the Ninth Circuit Court of Appeals in the company’s Declaratory Judgment (DJ) case. (Click here to view.)
US Airways filed a “Notice of Appeal” on December 31, 2012 and they have until the end of March to file. Will US Airways follow through with an appeal? The MOU makes the DJ case almost irrelevant as its claim was submitted on the premise of a “Hobson’s choice” – If the company did not negotiate with USAPA for a seniority scheme other than the Nicolau Award under Section 6 of the RLA, then they would be faced with a possibility of a strike versus being sued by the West pilots for not using the legitimately arbitrated seniority solution. Now, there is only one side of the “Hobson’s choice” - be sued by West pilots for aiding and abetting USAPA for not honoring the arbitrated Nicolau Award going forward.
USAPA’s filing contains many of the same tired arguments that were first considered and addressed by George Nicolau. But we find the following pair of statements to be incriminating. USAPA's very first sentence reads:
“Defendant-Appellee US Airline Pilots Association (“USAPA”) is the exclusive bargaining representative for all pilots employed by Plaintiff-Appellant US Airways, Inc. (“US Airways).”
Then, on Page 4, USAPA states:
“USAPA...has repeatedly sought to engage the former America West Pilots and the West Pilot Class in substantive discussions to resolve the seniority dispute.”
How can USAPA exclusively represent US Airways Pilots and simultaneously negotiate with West Pilots? The answer is simple: They Can’t. When attempting to negotiate with West Pilots, USAPA defaults to what it has always done - representing just the East Pilots. This immediately places USAPA in violation of its legal obligation as the exclusive bargaining representative of all US Airways pilots. The second statement is an admission that USAPA is violating its DFR by not representing West pilots.
Gary Hummel claims in his latest “President’s Message” that West Pilots will attempt to delay or stop the merger. If so, this is only a consequence of USAPA's failing to provide, “...[t]he West Pilots a union that will not abrogate the Nicolau Award without a legitimate purpose.” We would like nothing better than to avoid court altogether but the West Pilot Class, as represented by our legal firm, will use all means at its disposal to defend our seniority rights. We continue to expect the company and USAPA to honor the obligations created in the 2005 America West/US Airways merger.
With the recent MOU ratification along with the merger announcement, there are substantial legal activities now occurring to defend the West pilots’ Seniority rights.
Leonidas LLC
johnny kat
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I'm going to cry foul on the assessment of the the F/A situation. First of all the f/a's of US enjoy much greater duty rigs, sceduling options, vacation days and other perks that aren't available to the AA f/as'. The only thing that US f/as' are at a disadvantage on is the hourly pay rate, which is currently in the process of being voted on for the 3rd time. All of the advantages that the US f/as' have are very desirable to the APFA f/a group at AA and may very well become the base line for a new contract with the new AA.
Also, I have heard that APFA itself is in financial trouble and may very well seek to become a merged union with the AFA/CWA.
So, Swelbar's article seems a little bogus.
Also, I have heard that APFA itself is in financial trouble and may very well seek to become a merged union with the AFA/CWA.
So, Swelbar's article seems a little bogus.
eolesen
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That's funny -- I'd heard AFA/CWA was in financial trouble...
I suspect AA's got a pretty good handle on the cost side of their contract. All those duty rigs, perks, etc. you like from the US contract have a cost attached to them. If US doesn't know those costs, AA will be more than willing to tell them.
I suspect AA's got a pretty good handle on the cost side of their contract. All those duty rigs, perks, etc. you like from the US contract have a cost attached to them. If US doesn't know those costs, AA will be more than willing to tell them.
OP
snapthis
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US Airways could not finish a merger Parker initiated in 2005. If the pilot integration which was never completed was a problem, how do you think things are going to go with American?
From the US Airways pilot forum. Good luck APA
end_of_alpa, on 28 February 2013 - 06:28 AM, said:
"Agreed. We will NOT be limiting our argument to DOH in the arbitration. We made tat mistake with the West. We can be integrated with BETTER than DOH over the APA pilots. The gloves come off and APA pilots should go beneath US Airways pilots.
Looking forward to the arbitration."
From the US Airways pilot forum. Good luck APA
end_of_alpa, on 28 February 2013 - 06:28 AM, said:
"Agreed. We will NOT be limiting our argument to DOH in the arbitration. We made tat mistake with the West. We can be integrated with BETTER than DOH over the APA pilots. The gloves come off and APA pilots should go beneath US Airways pilots.
Looking forward to the arbitration."
OP
snapthis
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The term rational and USAPA are mutually exclusive.
I've been warning of troubled waters ahead. I think that is their desire but it is not discussed openly. Now there is a hornets nest of East on East bickering on the US Airways pilot forum.
I think the poster, Jaime let the cat out of the bag.
It's going to be a long day for him.
OP
snapthis
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I called it correctly. East on East violence.
Cleanup on isle 5.
Walmartgreeter, on 28 February 2013 - 07:49 AM, said:
You are a real ass for starting this. We have enough problems with our prior merger, why come here and stir the pot on the new one? At least give our NAC and Merger Committees a chance to do things differently. Our arguments with APA will be made at the table, all of them. We don't need your bile here when you have nothing to do with that process. You coming here with this trash talk, and Leo waving the "here we come to sue you all" banner. Not much different.
Greeter
Cleanup on isle 5.
Walmartgreeter, on 28 February 2013 - 07:49 AM, said:
You are a real ass for starting this. We have enough problems with our prior merger, why come here and stir the pot on the new one? At least give our NAC and Merger Committees a chance to do things differently. Our arguments with APA will be made at the table, all of them. We don't need your bile here when you have nothing to do with that process. You coming here with this trash talk, and Leo waving the "here we come to sue you all" banner. Not much different.
Greeter
