AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
101ST REGULAR EXECUTIVE COUNCIL MEETING
January 15-17, 2008
SUBJECT
ALPA Support for AAA and AWA MECs and the Treatment of US
Airways Payments to ALPA Under the Transition Agreement
SOURCE
President John Prater
BACKGROUND INFORMATION
See Resolution.
FINAL RESOLUTION
1 WHEREAS both the AAA and AWA MECs have appointed steering
2 committee members to meet together, along with various other
3 committees and subject matter experts, to review all of the open issues
4 (pay, benefits, work rules, job security, career security, terms for
5 seniority implementation) and begin to devise solutions where possible,
6 and
7
8 WHEREAS the steering committees will work toward developing
9 comprehensive contract proposals that would be presented to the
10 respective MECs for review and approval, and
11
12 WHEREAS developing, negotiating and successfully ratifying a joint
13 contract for all US Airways pilots is the most important task that the
14 Association and its members are facing in today’s aviation market, and
15
16 WHEREAS, as stated by President Prater in a letter to the Chairmen
17 of the AAA and AWA MECs on January 11, 2008, “[t]he Association
18 commits to fully support these efforts with all the resources both
19 technical and financial that are necessary for the steering committee
20 members to oversee the development of a comprehensive contract
21 proposal for the joint negotiations that addresses the issues of both
22 pilot groups, including seniority implementation issues as well as pay,
23 work rules, benefits, and job security”, and
24
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25 WHEREAS the Executive Board in November 2006 approved a $2
26 million authorization from the Major Contingency Fund for joint strike
27 preparedness, communications and family awareness activities for the
28 AAA MEC and AWA MEC pursuant to a joint request “until such time
29 that a new contract is reached”, and
30
31 WHEREAS the Executive Council approved MCF budgets for the AAA
32 MEC and AWA MEC for activities supporting the joint negotiations
33 process for the October 1, 2006 – March 31, 2007, May 1, 2007 – July
34 31, 2007 and August 1, 2007 – September 30, 2007 periods, and
35
36 WHEREAS the Executive Council, at its September 2007 meeting
37 affirmed that the $2 million MCF allocation approved by the Executive
38 Board for the AAA and AWA MECs is only for strike preparedness,
39 communications and family awareness activities directly attributable
40 to joint contract negotiations, and, that upon resumption of the joint
41 negotiations process, the MECs should submit a new communications
42 plan and MCF budget under this current MCF allocation, and that the
43 application of such budget, as approved by the Executive Council, shall
44 be retroactive to the date of resumed joint negotiations, and
45
46 WHEREAS per Section IX.B of the Letter of Agreement between ALPA
47 and America West Holdings Corporation, America West Airlines, Inc.,
48 US Airways Group, Inc. and US Airways, Inc. (the “Airline Parties”)
49 dated September 23, 2005 (the “Transition Agreement”) the Airline
50 Parties agreed to provide $300,000 for each respective MEC “to help
51 defray Association costs associated with merger activities”, and that
52 each MEC “may distribute their portion of [these funds] to their
53 membership as they see fit or may use the funds to help defray
54 expenses, which would otherwise not be covered by the Airline Parties”,
55 and
56
57 WHEREAS the Transition Agreement provides that the referenced
58 funds are “payable to the Association following the submission and the
59 Airline Parties’ acceptance of a merged seniority list”, and
60
61 WHEREAS Section 60D 1d(1)(d) of ALPA’s Administrative Manual
62 establishes Grant and Loan Provisions regarding OCF funding,
63 including
64
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65 As a condition of granting and maintaining loan(s), the Executive
66 Council will require the MEC to develop and maintain a financial
67 and operating plan that shall include how the MEC will reduce
68 expenses, reduce and/or eliminate funding requirements from the
69 OCF and repay the loan”, along with granting the Executive
70 Council the authority to “require the MEC to levy an assessment
71 under Article IX, Section 7C of the Constitution and By-Laws, on
72 the members of that airline in an amount necessary to repay the
73 loan. (60D 1d(1)(d)(v))
74
75 The Executive Council may require the MEC to levy an
76 assessment under Article IX, Section 7C of the Constitution and
77 By-Laws, on the members of that airline in an amount necessary
78 to repay the loan. The Executive Council shall determine both
79 the effective date and the duration of the assessment. (60D
80 1d(1)(d)(vi))
81
82 The Executive Council may approve conversion of all or part of
83 the outstanding loan to a grant. (60D 1d(1)(d)(vii))
84
85
86 WHEREAS the merged seniority list was delivered to and accepted by
87 US Airways on December 19, 2007, and
88
89 WHEREAS ALPA has received the $600,000 payment from the
90 Company consistent with the terms of the Transition Agreement, and
91
92 WHEREAS the Association has provided substantial financial support
93 directly to the AAA and AWA MECs for merger-related activities from
94 September 2005 through November 2007, including funding from the
95 Operating Contingency Fund (“OCF”) and Major Contingency Fund
96 (“MCF”) as follows:
97
OCF MCF Total
AAA MEC $1,646,574 $325,536 $1,972,110
AWA MEC $791,833 $589,610 $1,381,443
98
99 and
100
101 WHEREAS due to the extensive and repeated need for OCF funding to
102 bring the respective MECs up to 90% of Current Quarter Income, the
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103 Executive Council, and the Executive Board for OCF allocations above
104 $250,000, have provided a portion of such funding in the form of loans,
105 with current loan balances of $821,669 and $254,051 for the AAA MEC
106 and AWA MEC, respectively,
107
108 THEREFORE BE IT RESOLVED that the Executive Council fully
109 supports the efforts of the AAA and AWA MECs through the recently
110 established steering committee process to develop comprehensive
111 contract proposals for joint contract negotiations to address seniority
112 implementation issues and improve contract standards for the benefit
113 of all US Airways pilots and all of our members, and
114
115 BE IT FURTHER RESOLVED that the Executive Council commits to
116 provide to each MEC up to $200,000 in funding in the form of grants
117 from the OCF Contingency Fund to enable each MEC to dedicate the
118 necessary resources to maximize the outcome of the steering committee
119 process, and
120
121 BE IT FURTHER RESOLVED that the Executive Council recommends
122 the AAA and AWA MECs work with the Communications Department,
123 the Vice President-Finance/Treasurer and its Strike Oversight Board
124 members to develop and submit a new communications plan and MCF
125 budget under the MECs’ current MCF allocation, and that the
126 application of such budget, as approved by the Executive Council, shall
127 be retroactive to the date of resumed joint negotiations, and
128
129 BE IT FURTHER RESOLVED that the Executive Council determines
130 that funds previously distributed from the OCF to each MEC in the
131 form of both grants and loans provided funding to “defray Association
132 costs associated with merger activities”, and
133
134 BE IT FURTHER RESOLVED that, since the AAA MEC and the AWA
135 MEC have outstanding OCF loan balances of $821,669 and $254,051,
136 respectively, as of December 1, 2007, the Executive Council, per Section
137 60D 1d(1)(d) of the Administrative Manual, requires that the $300,000
138 for each MEC, which has been received from the Airline Parties, shall
139 be credited to the AAA and AWA MEC accounts, respectively, and such
140 funds shall be used as follows:
141
142 1. Provide funding, if necessary, to bring the respective MEC to the
143 Current Quarter Income as of December 1, 2007 per ALPA’s
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