Black Swan
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ALPA lost a 44 million dollar damage trial to a group of United pilots last year and agreed to settle. As large as that amount is, that is chump change to the 600 million the TWA pilots are asking for. I think the MDA pilots are seeking into the hundreds of millions as well.
WEBSITE UPDATE 11-12-09
ALPA SETTLES LAWSUIT WITH SENIOR UNITED PILOTS
During the United bankruptcy the United MEC reached an agreement with United, part of which was, that United would issue $550 million in notes to be distributed to active United pilots to compensate them, in part, for the loss of the “United Airlines Pilots Defined Benefit Pension Plan (A Plan).” The method of allocating the notes to the active pilots was left to the United MEC.
The MEC ultimately decided to allocate the notes to the active pilots based upon their expected vested A Plan benefit at age 60. The effect of this allocation was that junior pilots received more of the funds than if the allocation were based upon each pilot’s vested benefit at the time of the plan termination.
A group of senior active pilots filed a “Class Action Lawsuit” on behalf of the more senior pilots alleging that the MEC and the Air Line Pilots Association (ALPA) had violated their “Duty of Fair Representation (DFR)” by using this allocation method.
The lawsuit was heard in Federal District Court in Chicago. ALPA filed motions opposing discovery requests made by the attorneys representing the “Class” and ALPA also filed motions to have the class action suit dismissed. The judge ruled in favor of the class members in all of these actions.
ALPA has reached a settlement of $44 Million with the representatives of the class to settle the lawsuit. This is the largest dollar amount of any settlement made by ALPA in the history of the union. The settlement agreement contains standard language that neither party admits any wrong doing as part of the settlement.
This settlement will only apply to pilots who were active United pilots as of January 1, 2005. It will not apply to any pilot who was retired as of the January 1, 2005, date. The distribution formula is rather complex, but in general, the settlement funds will go to the more senior active pilots.
On another matter, the United Retired Pilots Benefit Protection Association (URPBPA) has not received any further update from the Pension Benefit Guarantee Corporation as to when they will be issuing the “Final Determination Letters” to retired United pilots.
Interesting article. ALPA has strayed all over the map with seniority integrations, starting with the monkeying by the UAL pilots who sought to machinate the best out outcome for THEMSELVES. Now we have huge problems, and DFR after DFR they are involved with. DOH is the gold standard, and works. Every other group at LCC went DOH, and there are no problems. The ALPA deal? An ABORTION. The Assn of Flight Attendants puts ALPA to shame.