US Airways ALPA MEC Chairman's Message

USA320Pilot

Veteran
May 18, 2003
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Dear Fellow USaviation.com Message Board Participant,

I have been asked to limit the number of new topics that discuss ALPA issues. I am going to create no more than one ALPA topic per week since most of the communication revolves around the same subject. Today US Airways ALPA MEC Chairman Jack Stephan sent the following Chairman's message to all East pilots, which I believe is insigthful and accurate. Moreover, the vast majority of rank-and-file pilots agree with Jack's comments.

Regards,

USA320Pilot

US Airways MEC Chairman's Message - August 1, 2007

This is MEC Chairman Jack Stephan with a Chairman's message to the pilots for Wednesday, August 1st, 2007.

Last week, your MEC met in special session in Washington, DC with a full agenda. We planned this meeting at the conclusion of the joint meeting in DCA that involved the AWA MEC and ALPA International Officers, Executive Council and staff. Recall at that meeting, the Rice Committee kicked off their work as they tried to promote dialogue between the MECs in exploring consensual
approaches to career protections and success.

The MEC and I have told you from the very first day we received the Nicolau award, that your seniority, and vacating the award, will be our main focus. Since that infamous day, my Chairman’s Messages and Code-a-Phones have been replete with reports of our strategy sessions and meetings.

We have told you that we have been exploring all options, creatively investigating areas both inside and outside the proverbial box. Make no mistake, however, that we are in un-chartered waters. But as you so painfully know, we have chartered unfamiliar territory before. It has unfortunately become part of our legacy. I am pleased to report to you that through persistence and cooperation, the MEC has been successful in narrowing our options and unanimously passed a resolution that provides a path to achieve both seniority protections along with the most favorable economic returns—protections concerning the Nicolau Award and returns through collective bargaining. The resolution, which has been posted and emailed to you is a big step for our pilot group and demonstrates your MEC’s commitment to deliver these protections and returns.

The resolution is called "Equivalent Contract Negotiations," and endorses the concept of equivalent contracts (separate contracts of comparable value for US Airways and America West pilots), but with separate operations. These separate operations are to be permanent and will include preemptive contract language to assure that they are used during any future merger involving both the US Airways and America West pilots. With this resolution, the MEC authorizes the US Airways members of the Negotiating Committee (NC) to pursue an equivalent contract using all necessary ALPA resources, including the assistance of the Rice Committee.

The path that we embarked on after receiving the news of the Nicolau award is beginning to take shape. After a great deal of deliberations, the MEC designed this "separate operations" resolution to set both a foundation and a direction for advancing the cause for all US Airways pilots. Although we must remain flexible as the situation remains dynamic, we are now committed to a common path to success. We will also continue to pursue all litigation options.

As of today, it's been 673 days since September 27th, 2005, when your investment provided the resources that allowed US Airways’ departure from bankruptcy and the merger with America West. During this time, our decision to bankroll this company into survivability and profitability has culminated in six consecutive profitable quarters that is now funding lucrative executive
compensation packages and generous profit sharing checks to all employees, while still leaving US Airways a cash rich airline with over 3 billion dollars in the bank. The profitability road that we are on is squarely on the backs of the AAA pilots. And as the breakdown of the second quarter financials indicate, the AWA portion of the operation continues to show a loss. This makes it all the more disheartening to learn that the AWA MEC approached management and relayed that the "West pilots would be outraged if the East was granted parity." Such sentiment sinks to a level that is not representative of our profession or of unionism at its most basic form. The inescapable reality remains that we make less for doing the same job. And our bankruptcy-garnered wages continue to generate a stockpile of cash even during a period when our operation is at an all-time low.

On another matter related to equal pay for equal work, and equally as irritating, the AWA leadership continues to report to their pilots and other parties that we are not truthful in our communications to our pilots. I personally take exception to their claim. While I served you as Communications Chairman and while I have served you as MEC Chairman, your leadership has onsistently reported the good, the bad, and the ugly and we will continue to do just that. To suggest that your leadership is guilty of protecting you from the truth, reflects a mindset that “just doesn’t get it.†I hope you share the indignation of your elected representatives and your MEC Officers over this totally inappropriate accusation. We remain committed solely to the US Airways pilots and we work for you, period. As for the offhand comments of the AWA leadership, we will consider the source and we will refrain, as always, from commenting on their affairs. We will continue to be professional in all our communications.

Obviously, these issues will not be solved in hotel lobbies or crew vans. Please continue to treat your fellow pilots with respect and professional decorum. Our problems result from the Award, not with the AWA pilots. We will continue to handle your issues and your concerns in a professional manner, using every available resource and continuing to look under every stone for an improved path to success.

I ask that you give your leadership the opportunity to further develop our strategy and to employ our resources on your behalf. I certainly respect the sentiment on the line with regard to decertifying ALPA. I have always respected your right to determine your future, whether it be with ratifying agreements or determining who is best equipped to represent your interests. I simply ask that you give your MEC a chance to get further down the path we have chosen. We believe it is the best one that affords us the quickest path to financial gains as well as preserving your seniority. If we fail you, if we fail to deliver, the choice remains yours.

Our plan needs a chance to work, so I ask that you give your elected reps a chance to make our plan work for you before making any decisions on your form of representation. I ask that you stay onboard and join our fight to protect our seniority and to correct the wrongs of our B-Scale wage system. Much remains to be done and we’ll need you and the benefits of a unified pilot group, as well as a stable representational foundation to be successful.

I ask you again to stick with each other; continue to follow our “Three Pronged Approach.†It remains an indispensable part of our strategy and there will be more to come. And as always, fly safe and thanks for listening.
 
And as the breakdown of the second quarter financials indicate, the AWA portion of the operation continues to show a loss.

Tell Jack or someone to post were the average joe can read this "breakdown" of financials. Earnings are now combined in every statement I've come across.
 
Tell Jack or someone to post were the average joe can read this "breakdown" of financials. Earnings are now combined in every statement I've come across.


AWA’s Results of Operations
For the second quarter of 2007, AWA’s operating revenues decreased to $902 million from $981 million in the same period in 2006. Operating loss was $25 million in the second quarter of 2007, compared to operating income of $61 million in the second quarter of 2006.

US Airways Group’s Results of Operations
In the three months ended June 30, 2007, we realized operating income of $289 million and income before income taxes of $271 million. Included in these results is $23 million of net gains associated with fuel hedging transactions.

This I copy/pasted from the 2nd quarter report.

A320 Driver
 
If America West is not making money, does it mean they should fly more of the Eastern routes?
 
Jack Stephan said: “The MEC and I have told you from the very first day we received the Nicolau award, that your seniority, and vacating the award, will be our main focus.â€

USA320Pilot comments: The overwhelming majority of US Airways pilots will do anything, I mean to prevent the Nicolau Award from being implemented, which is their right. Moreover, the East pilots never have to agree to a joint contract.

Jack Stephan said: “’Equivalent Contract Negotiations," and endorses the concept of ‘equivalent contracts (separate contracts of comparable value for US Airways and America West pilots), but with separate operations. These separate operations are to be permanent and will include preemptive contract language to assure that they are used during any future merger involving both the US Airways and America West pilots.â€

USA320Pilot comments: I believe this approach outside of Section 6 negotiations is the only way the AWA pilots will see contract improvements. The benefits of this strategy, which is he only strategy now permitted by the US Airways MEC, maintains all of the pre-merger career expectation for both the East and West pilots, which I believe is fair, and provides for contract improvements.

Jack Stephan said: “And as the breakdown of the second quarter financials indicate, the AWA portion of the operation continues to show a loss.â€

US Airways’ second quarter financial report said:

AWA’s Results of Operations - For the second quarter of 2007, AWA’s operating revenues decreased to $902 million from $981 million in the same period in 2006. Operating loss was $25 million in the second quarter of 2007, compared to operating income of $61 million in the second quarter of 2006.

US Airways Group’s Results of Operations - In the three months ended June 30, 2007, we realized operating income of $289 million and income before income taxes of $271 million. Included in these results is $23 million of net gains associated with fuel hedging transactions.

Jack Stephan said: “This makes it all the more disheartening to learn that the AWA MEC approached management and relayed that the "West pilots would be outraged if the East was granted parity." Such sentiment sinks to a level that is not representative of our profession or of unionism at its most basic form.â€

USA320Pilot comments: I find it incredible that the AWA pilots and their MEC would be outraged that another pilot group wants a pay raise. What does this say about the AWA MEC, their character? I support the effort of the AWA pilots to obtain a pay raise through Section 6 negotiations.

Jack Stephan said: “On another matter related to equal pay for equal work, and equally as irritating, the AWA leadership continues to report to their pilots and other parties that we are not truthful in our communications to our pilots. I personally take exception to their claim. While I served you as Communications Chairman and while I have served you as MEC Chairman, your leadership has onsistently reported the good, the bad, and the ugly and we will continue to do just that. To suggest that your leadership is guilty of protecting you from the truth, reflects a mindset that “just doesn’t get it.†I hope you share the indignation of your elected representatives and your MEC Officers over this totally inappropriate accusation.â€

USA320Pilot comments: The lack of integrity and character of the AWA MEC and their Chairman is only “pouring gasoline on a fire†and is increasing the resolve of the US Airways pilots to never let the Nicolau Award proceed. The AWA MEC is creating such a toxic relationship with the East pilots that it could create permanent damage to the West pilots and the entire business entity. If there is anything I cannot stand it is a lack of character and integrity.

Regards,

USA320Pilot
 
Doug won't give you seperate Contracts nor will you get Seperate Operations.

One word Answer:

SYNERGIES!
 
. If there is anything I cannot stand it is a lack of character and integrity.

Regards,

USA320Pilot


Well you must be one self-hating SOB... Would agreeing to binding arbitration and then backing out of your agreement because you 'don't like the result' be an example of a lack of character and integrity??? I think so. You and your ilk are pathetic...
 
USA320Pilot comments: I find it incredible that the AWA pilots and their MEC would be outraged that another pilot group wants a pay raise. What does this say about the AWA MEC, their character? I support the effort of the AWA pilots to obtain a pay raise through Section 6 negotiations.

Pardon me, but two thoughts immediately strike me:

1. What pay raise are you speaking of? East accepted (yes, accepted) a contract not too long ago that doesn't become amenable until 2010. Live with what you negotiated.

2. Weren't you one of the main proponents of that contract at that point in time? Didn't you opine that it was better to negotiate concessions then possibly be unemployed? Don't you now have what you wanted?

Jack Stephan said: “On another matter related to equal pay for equal work, and equally as irritating, the AWA leadership continues to report to their pilots and other parties that we are not truthful in our communications to our pilots. I personally take exception to their claim. While I served you as Communications Chairman and while I have served you as MEC Chairman, your leadership has onsistently reported the good, the bad, and the ugly and we will continue to do just that. To suggest that your leadership is guilty of protecting you from the truth, reflects a mindset that “just doesn’t get it.â€￾ I hope you share the indignation of your elected representatives and your MEC Officers over this totally inappropriate accusation.â€￾

USA320Pilot comments: The lack of integrity and character of the AWA MEC and their Chairman is only “pouring gasoline on a fireâ€￾ and is increasing the resolve of the US Airways pilots to never let the Nicolau Award proceed. The AWA MEC is creating such a toxic relationship with the East pilots that it could create permanent damage to the West pilots and the entire business entity. If there is anything I cannot stand it is a lack of character and integrity.

Regards,

USA320Pilot

Lack of integrity? What a pile. Tell me, which party to an agreement to submit a dispute to binding arbitration for full and final settlement of the outstanding issues presented to an arbitration panel is refusing to accept the result? Just what the hell do you expect the West guys to do, let you steamroller them after they tried, and failed, to negotiate a compromise that East would not accept? Give me a break.
 
If America West is not making money, does it mean they should fly more of the Eastern routes?

Doug should sell off the west side. That way the westies wont have to put up with the easties anymore and the airline can make some real cash instead of carrying a money loser.
 
IIRC, there was something in the results statement that said that some HP-generated income is being reflected on the
US side of the ledger. This obviously lowers the Wests income and inflates the East. Must be some accounting thing.
 
Outside of bankruptcy, I've never heard of that. Could you give an example of how that might play out?
A320 Driver
Sure. Think of any collective bargaining relationship -- under either the NLRA or the RLA -- where the two parties (employer and union/employees) have an obligation to bargain.

The union says, "Nope. Not gonna agree to ANYthing the employer proposes, unless it meets with my [unreasonable] precondition(s), and I will not budge one inch from my precondition(s). I will simply refuse to agree with anything the other side proposes, indefinitely, and hold up the progress of the company. I will stand here with my arms crossed and my eyes closed and not budge one inch, forever."

Guess what. At some point, an impasse is reached, and the company gets to impose terms. (Yes, it takes a little longer to get to that point under the RLA compared to the NLRA, but the basic principle is the same: a union cannot simply refuse to bargain indefinitely.) Part of those terms will undoubtedly include the Nicolau award because at some point the company will have to implement SOME sort of merged seniority list in order to completely merge operations. The only list they will dare to implement will be the Nicolau award because if anyone points to the company as "unfarily" implementing any sort of list as some sort of anti-union move, what better defense will it have than to point to the list that went all the way to arbitration pursuant to ALPA's merger policy and say, "Hey, we are only implementing the list THE UNION came up with."

It is even worse for the union in the current East pilot situation. There, you have a situation where the employer is not the cause of the East's problems. The East's union (whoever it is by then) can't say, "We're only being unreasonable because THE COMPANY is being unreasonable." It is purely an internal union issue of how two unionized parties will combine a seniority list. The employer has nothing to do with it. That will make it even less likely a court or administrative agency (NMB) will say it is "unfair" for the employer to implement its terms. This is especially so considering, ironically, the company will most likely be proposing and implementing IMPROVEMENTS to the current East / LOA93 contract.

Additionally, the company can point to commitments by East where that East has agreed to negotiate with the company in good faith to obtain a joint contract.

Let me anticipate your next argument: once the employer reaches the point where it has the right to impose terms, the union has the right to strike. Very true (outside of bankruptcy, as you mentioned). Here, though, ironically and as discussed above, the terms the company will be imposing will likely be BETTER than what East is currently working under. The question will then be, How many East pilots will be willing to strike if the company implements BETTER terms than what they already work under?

The East is truly delusional if it thinks it can hold up the operational merger and the implementation of the Nicolau list indefinitely under these facts.
 

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