What will the next merger look like?
Dear USAirways Pilots,
As the various merger rumors grow stronger, and the current USAPA leadership prefers to continue its pursuit of the ever more elusive DOH list through the courts, rather than concentrate on getting a contract, it would behoove us to see what a future merger might look like, especially if we merge while still under our current contracts.
There are only three likely merger possibilities: American, Delta and, to a lesser degree, United. USAPA’s merger policy requires the union to pursue a DOH-based integration but the other pilot groups are not bound by this policy. A merger with Delta or United would mean a return to ALPA, which would be required to accept the Nicolau while the APA’s merger policy calls for a “staple” of the other pilot group. Both of these policies are incompatible with USAPA’s DOH merger policy so the matter would go to Binding Arbitration as per the McCaskill/Bond act. Of course, we don’t have to remind anybody what happened the last time the USAirways pilots went to Arbitration unwilling to move off DOH.
The last three Pilot Seniority List Arbitrations in recent history have favored slotted integrations based on aircraft size, with minimal fences and adjustments for employment status and career expectations while the negotiated seniority list integration between Southwest and Airtran (where similar size a/c were involved) relied heavily on hourly wage rates and projected career earnings.
Let’s look at Delta, which has 167 widebodies and 192 B757s compared to USAirways 16 and 34 respectively. Replicating the arbitrated integration method used in the Delta/Northwest merger by Arbitrator Bloch (who used a method almost identical to the one used by George Nicolau), this would result in about 476 DAL 747/777 Captain positions on top of the list, followed by a 7:1 integration of 896 DAL A330/76-300/400 Captain positions and 128 LCC A330 positions and a 6.3:1 integration of DALs 1316 757/767-300 Captain positions with USAirways’ 209 positions. Under this method, of the first 3025 positions, 2688 would go to Delta and only 337 (11.1%) to LCC pilots.
However, this is where things could get sticky. Delta Widebody FOs have a higher hourly wage than LCC Group II and West Captains. ($154/hr for 74/77 FOs and $146/hr for A330/76-400 FOs), The Delta merger committee can be sure to argue that all their 757/767 Captains should go ahead of the USAirways Captains, while the approximately 1,000 DAL widebody FOs should be slotted in with the 209 East Group II / West Captains in order to prevent a “windfall” for the LCC pilots. Obviously, it remains to be seen if an Arbitrator would agree with that line of reasoning, but should he/she decide to take wages and expected career earnings into consideration, it could lead to Group 1 Captains slotted in with Delta 757 FOs ($129/hr) while all USAirways FOs could end up below 5th year Delta narrowbody FOs ($111//hr for a 5th year B737 FO). That is how ridiculously underpaid this pilot group is, and the gap grows larger every day.
According to Mike Cleary’s statement at the last PHL Domicile Meeting, a merger with American is “a question of when, not if”. We’ll see. But……American’s fleet composition resembles that of Delta (120 Widebodies, 124 B-757s), and even after the bankruptcy wage cut recently proposed by AA management, their pay will still be significantly higher than ours. A slotted integration adjusted for pay rates would greatly benefit the American pilots, in the same way it would benefit the Delta pilots, even though under USAPA’s DOH merger policy close to 2000 Furloughed AA pilots would be put ahead of, or slotted in with, currently employed LCC pilots hired between 1999 and 2004.
Clearly, facing another merger while working under our current bankruptcy/ATSB limited contracts, will be a recipe for disaster for all the USAirways pilots. The importance of merging with a recent contract containing at least industry standard wages was illustrated by the Airtran pilots voting in a new contract just prior to entering SLI negotiations with Southwest, which greatly improved their bargaining positions because of increased career earnings projections.
In order to maximize our bargaining position in a possible merger, and help ensure a bright future for all USAirways pilots, it is essential that we move forward NOW, not “when the courts decide”, several years from now. Closing your eyes to the challenges facing us in the very near future, or hoping for “fragmentation” will ultimately doom every pilot on the property.
None of the other candidates have a plan for dealing with these challenges now, so the choice is simple. Vote Ferguson/Koontz/Holmes and protect your family’s future.