From: MEC Communications [mailto:ualmec-fastread@ames.alpa.org]
Sent: Friday, December 28, 2007 8:00 PM
Subject: MEC Legislative UpdateUAL-MEC Legislative Committee Update
December 28, 2007
Dear Fellow Pilot:
There are several items in the legislative area that need to be brought to your attention. One is a response to a question, two are updates on current legislative efforts, and one is a request from your Committee.
ALPA Input to Age 60 Legislation
There are some who have asked what ALPA has done to make the transition to the new retirement age better for the pilot group. While this issue has been discussed in several venues over the long road to the age change, I want to point out one important part of the process that would not have occurred if the original age change legislation (H.R. 1125 and S. 65) had become law without the ALPA sponsored “Oberstar†language. Simply put, every one of the many contractual changes required to comply with the new retirement age would have been implemented without pilot input or negotiations. The Company would have been free to make whatever changes they felt necessary to comply with the new law without any consultation with your elected representatives. This potential for abuse was averted by ALPA through the insertion of the requirement that each company must utilize the established structure (i.e., the Negotiating Committee and MEC) to make any changes resulting from the age change. If you are of the opinion that there are not many issues, think about the following: Age 59 by-pass bids, long term disability, loss of license insurance, medical insurance premiums and scheduling restrictions only to name a few. This is just a short list of some of the areas which are affected. Did you really want to give the Company the authority to make arbitrary changes to every item that now requires discussion?
The Akaka/Miller legislation (S 1270 and HR 2103)
These bills are very much alive. There is a perception out there that this legislation would only affect those pilots who retired at age 60 prior to December 13, 2007. ALPA Governmental Affairs interpretation of this legislation is that it would apply to ALL pilots whose pensions were terminated and turned over to the PBGC. This has NOT changed due to the retirement age change to 65. If this legislation is passed and signed into law, each affected pilot would be entitled to the full PBGC benefit upon retirement after age 60 even though he or she now has the option to continue flying to 65. Each of us paid for the lost retirement benefit and we should be able to retire at any point after age 60 with the full PBGC benefit that we are entitled to.
Due to your participation, there were almost 800 contacts made with Congressional Representatives via the Legislative Alert “CAPWIZ†program in November. This was up from about 60 in October. The vast majority of the increase came from zip codes around United pilot domiciles. Your support of these efforts helps in several ways and is appreciated.
The “Lost Retirement Savings act of 2007†(S. 2505 and H.R. 4061);
Sen. Maria Cantwell (D-Wash.) introduced the Senate version of this legislation just before the holiday recess. There are links in place in the “members only†section of the www.alpa.org website that will provide you with additional information. Look under “Legislation and Politics,†then “Pilot Related Legislation.†There will be a legislative alert program rolled out after the first of the year along with continued activity in Washington by members of your MEC Legislative Committee. We will continue to work with ALPA Government Affairs as well as the Delta MEC Legislative Committee to secure passage of this legislation in a timely fashion. As a reminder, this legislation would give pilots the option of rolling previously taxed proceeds of the stock claim sale and bond distribution into a Roth or traditional IRA.
UPPAC and ALPAPAC
It is extremely important to have all available tools when working to achieve legislative gains for our pilot group and profession. The most important assets we have are elected representatives who are willing to consider our position on issues of importance to us. UPPAC and ALPAPAC give us a means to support the campaigns of candidates who are willing to listen to the pilot point of view. There is never any guarantee that every vote will be in line with our desires, but if the door is open to the ALPA/Pilot perspective, we then have the opportunity to make our case. You can be sure that those who may oppose the pilot perspective will use whatever recourses they have to influence the debate. We simply must have all available tools to present our perspective. To this end, I request that every pilot seriously consider signing up for both UPPAC and ALPAPAC dues check-off. We need to be engaged in this arena. If you already participate, we thank you urge to you please consider any increase you can afford.
Regarding the retirement age issue, there have been some who decided to limit their support of UPPAC and/or ALPAPAC because of a feeling that the PAC funds were being used in a way that was detrimental to that individual’s personal position concerning the age change. I request that each pilot who feels this way and has decided to not support UPPAC and ALPAPAC reevaluate the current situation. The age change has now become law. The choice we all face now is whether to hold a grudge against our fellow pilots or our union, or move on, reunite and prepare for the many upcoming battles. I suggest that we need to work to become unified. We are a diverse group and will probably never agree on every issue. Lively debate is healthy and essential for any democratic organization and should be encouraged within our union. Even if we occasionally “agree to disagree†on a specific issue, I believe that we are unified in the desire to improve the airline piloting profession. There are others, outside of our group, who see any perceived lack of unity as an opportunity to diminish our profession. They are the opposition; your fellow pilot is not.
Fraternally,
Captain Jeff Greco
Chairman
UAL-MEC Legislative Committee
Pilots of Council 12:
The following press release was sent out this past evening from the White House Press Office:
Thursday December 13, 9:33 pm ET
WASHINGTON--(BUSINESS WIRE)--On Thursday, December 13, 2007, the President signed into law: H.R. 4343, the “Fair Treatment for Experienced Pilots Act,” which raises the mandatory retirement age from 60 years to 65 years for pilots serving on commercial passenger flights within the United States.
Here is the full text of H.R. 4343:
An Act
To amend title 49, United States Code, to modify age standards for pilots engaged in commercial aviation operations.
· Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
· This Act may be cited as the `Fair Treatment for Experienced Pilots Act'.
SEC. 2. AGE STANDARDS FOR PILOTS.
· (a) In General- Chapter 447 of title 49, United States Code, is amended by adding at the end the following:
`Sec. 44729. Age standards for pilots
· `(a) In General- Subject to the limitation in subsection (c), a pilot may serve in multicrew covered operations until attaining 65 years of age.
· `(b) Covered Operations Defined- In this section, the term `covered operations' means operations under part 121 of title 14, Code of Federal Regulations.
· `(c) Limitation for International Flights-
·
o `(1) APPLICABILITY OF ICAO STANDARD- A pilot who has attained 60 years of age may serve as pilot-in-command in covered operations between the United States and another country only if there is another pilot in the flight deck crew who has not yet attained 60 years of age.·
o `(2) SUNSET OF LIMITATION- Paragraph (1) shall cease to be effective on such date as the Convention on International Civil Aviation provides that a pilot who has attained 60 years of age may serve as pilot-in-command in international commercial operations without regard to whether there is another pilot in the flight deck crew who has not attained age 60.· `(d) Sunset of Age 60 Retirement Rule- On and after the date of enactment of this section, section 121.383(c) of title 14, Code of Federal Regulations, shall cease to be effective.
· `(e) Applicability-
·
o `(1) NONRETROACTIVITY- No person who has attained 60 years of age before the date of enactment of this section may serve as a pilot for an air carrier engaged in covered operations unless--·
o
§ `(A) such person is in the employment of that air carrier in such operations on such date of enactment as a required flight deck crew member; or·
o
§ `(B) such person is newly hired by an air carrier as a pilot on or after such date of enactment without credit for prior seniority or prior longevity for benefits or other terms related to length of service prior to the date of rehire under any labor agreement or employment policies of the air carrier.·
o `(2) PROTECTION FOR COMPLIANCE- An action taken in conformance with this section, taken in conformance with a regulation issued to carry out this section, or taken prior to the date of enactment of this section in conformance with section 121.383(c) of title 14, Code of Federal Regulations (as in effect before such date of enactment), may not serve as a basis for liability or relief in a proceeding, brought under any employment law or regulation, before any court or agency of the United States or of any State or locality.· `(f) Amendments to Labor Agreements and Benefit Plans- Any amendment to a labor agreement or benefit plan of an air carrier that is required to conform with the requirements of this section or a regulation issued to carry out this section, and is applicable to pilots represented for collective bargaining, shall be made by agreement of the air carrier and the designated bargaining representative of the pilots of the air carrier.
· `(g) Medical Standards and Records-
·
o `(1) MEDICAL EXAMINATIONS AND STANDARDS- Except as provided by paragraph (2), a person serving as a pilot for an air carrier engaged in covered operations shall not be subject to different medical standards, or different, greater, or more frequent medical examinations, on account of age unless the Secretary determines (based on data received or studies published after the date of enactment of this section) that different medical standards, or different, greater, or more frequent medical examinations, are needed to ensure an adequate level of safety in flight.·
o `(2) DURATION OF FIRST-CLASS MEDICAL CERTIFICATE- No person who has attained 60 years of age may serve as a pilot of an air carrier engaged in covered operations unless the person has a first-class medical certificate. Such a certificate shall expire on the last day of the 6-month period following the date of examination shown on the certificate.· `(h) Safety-
·
o `(1) TRAINING- Each air carrier engaged in covered operations shall continue to use pilot training and qualification programs approved by the Federal Aviation Administration, with specific emphasis on initial and recurrent training and qualification of pilots who have attained 60 years of age, to ensure continued acceptable levels of pilot skill and judgment.·
o `(2) LINE EVALUATIONS- Not later than 6 months after the date of enactment of this section, and every 6 months thereafter, an air carrier engaged in covered operations shall evaluate the performance of each pilot of the air carrier who has attained 60 years of age through a line check of such pilot. Notwithstanding the preceding sentence, an air carrier shall not be required to conduct for a 6-month period a line check under this paragraph of a pilot serving as second-in-command if the pilot has undergone a regularly scheduled simulator evaluation during that period.·
o `(3) GAO REPORT- Not later than 24 months after the date of enactment of this section, the Comptroller General shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report concerning the effect, if any, on aviation safety of the modification to pilot age standards made by subsection (a).'.· (b) Clerical Amendment- The analysis for chapter 447 of title 49, United States Code, is amended by adding at the end the following:
·
o `44729. Age standards for pilots.'.
Clearly, this Act is going to cause wide-ranging discussions amongst the pilot group at our airline and especially in a large domicile such as Council 12, which contains some of the oldest and youngest pilots at UAL. However, we must maintain an even keel at all times, with safety uppermost in our minds. As with other contentious issues we have faced over the last few years, this is a subject that may be best left alone and is certainly best level to straight and level flight at altitude if it is to be fodder for cockpit conversation.
That said, let us all understand where we are and from whence we came on this issue:
Almost two years ago, ICAO indicated that it was changing the world standard for pilot retirement age from 60 to 65 years of age. Over a year ago, they did that exact thing. A month before they made the change permanent, ALPA elected a new President who had said that he was personally in favor of the change, but that we needed to move slowly on the issue so that all pilots were educated on the issues. He set up a Blue Ribbon Panel and the FAA Administrator, after giving a speech in late January of this year, set up an Aviation Rulemaking Committee (ARC) composed of people from within the industry and aviation community, and with differing perspectives on the issue.
It appeared that the FAA had moved off its position of Age 60 in light of the ICAO decision and, possibly, the tacit agreement of the President of the Association. The issue was clearly contentious at all airlines and all levels of all airlines. It was also clear that ALPA’s decision-making ability on the issue was quite limited, to the point of exclusion, unless we were “inside the tent” to provide serious input.
In April 2007, the Executive Council decided that ALPA’s position should change and that we should embrace the change to Age 65 in order to be able to influence the language that was going to determine its mark up in Congress. ALPA was successful in that endeavor and was able to ensure there was no retroactivity (no return with seniority) and no increase in medical standards, pending further study.
Regardless of the perceived minor successes in influencing the legislation, some pilots feel betrayed by their union’s willingness to change it long-standing (since 1980) position on Age 60, specially given the up or down “vote” many felt had been cast in favor of the status quo. Some people felt ALPA had chosen to rely solely on data from a question that was quite leading in the direction of Age 65 in making their decision. In fairness, the issue was not black or white, yea or nay, but rather, (and I am paraphrasing) “what do you want us to do if the proposed changes are being made: attempt to influence the legislation or maintain our status quo position and not be included in the discussions?” That particular “grey area” was a minefield for the Association, as that was EXACTLY the position in which we were being placed. On that specific question, the majority of ALPA pilots wanted some influence on the proceedings, even though the majority of UAL pilots wanted the status quo.
So, December 13th, 2007 appears to be the day the normal retirement age for Part 121 pilots in the United States changed from 60 to 65. However, most pilots expected this day to come, perhaps not so quickly, but it is now here and we must deal with it rationally and professionally. We must not let ourselves be distracted from the most important issue we face as a United Pilot Group, which is restoration of our contract, to include significant changes in our pay, benefits and working conditions.
Based on the near term stagnation this legislation will present, and the massive savings in training and hiring costs the company will gain, we must ensure that we receive our due. What that entails is to be determined, but we must not waste this opportunity to address issues of importance to us all. I will leave further discussion of that particular issue to the MEC Officers, but it is something we must each contemplate, as we seek to form a unified vision of what we seek for the future.
Please look for further communications from your Officers on this and other important issues in the very near future. For now, though,
SAFETY, IN ALL THINGS, AT ALL TIMES.
Fraternally,
Captain Neil Swindells
Chairman, Council 12
Union Coalition at United Airlines Press Release
Union Coalition at United Airlines Demands Repayment with Airline’s 'Found Money'Chicago, Ill., November 27, 2007--The Union Coalition at United Airlines issued the following statement in response to an announcement by United concerning restructuring current credit agreements in hopes of pursuing “shareholder-oriented initiatives:”
“While searching for ways to pay down $350 million in debt and implementing an additional $500 million in ‘shareholder initiatives,’ United’s management has once again turned a blind eye toward its employees, the very people who saved this airline from extinction.
“The Union Coalition at United Airlines, representing the overwhelming majority of union-represented employees, is absolutely opposed to any transaction United may contemplate that is to the detriment of its workers. Employees have sacrificed billions of dollars in wages, pensions and degraded work rules as a result of United’s 39 month bankruptcy. Since emerging from bankruptcy, United has cut its total debt by billions while ignoring its employees. Should United Airlines undertake any transaction, employees must share in the gain from that process.
“Not a penny of the billions of dollars extracted from United’s employees during the airline’s bankruptcy has been repaid. Yet, management sees fit to reward shareholders with new initiatives without giving a passing thought of recognizing those who have sacrificed the most to return this airline to economic health.
“The Union Coalition at United Airlines is adamant that any undertaking by management earmarked toward rewarding shareholders must first recognize and compensate its employees. There is only one choice to make regarding use of the $500 million in ‘found money.’ Any gain from the ‘credit restructuring’ must be shared with the employees.
For management not to include employees in these new initiatives and the newfound value of an asset spin off is just another insult to every United employee.“No corporation with even a scintilla of soul or heart would ignore the catastrophic impact bankruptcy has on employees while focusing solely on shareholders, many of whom were mere bystanders as United savaged its employee contracts and eliminated tens of thousands of jobs. The time has long passed for United’s employees – a major stakeholder in United’s operation -- to stop being treated as hired hands. We will pursue every opportunity to protect affected employees and secure our rightful share of rewards.”
Combined, the coalition’s five labor unions represent more than 30,000 United employees.
United MEC Officers-Elect
Transition Update #6
November 7, 2007
THE REAL EARNINGS REPORT
“This morning, we are announcing our third quarter earnings, which are among the best in the industry across nearly every financial metric: profit, margin, cash flow and revenue... Our operating profit, excluding special items, was $589 million, up 93 percent from a year ago, for an operating margin of 10.7 percent, 5 points ahead of the margin we achieved last year…
"We delivered these results by driving fundamental improvements in our core business, both financially and operationally."
Glenn Tilton, October 23, 2007 in announcing UAL Corporation's 3rd quarter earnings
While this is great news for shareholders and of course, our senior management group, it is nothing but disturbing news to the employees and especially the pilots. If you recall, during bankruptcy, our portion of the $2.56 Billion dollar annual labor cost savings demanded by management amounted to $1.1 Billion. Yes - - that’s $1.1 BILLION DOLLARS each and every year from 2003-2010. If one factors in these cost reductions to the present earnings parade you’ll see a dramatically different “earnings” story.
Remember what the pilots were forced to disgorge from their collective bargaining agreements during the bankruptcy process:
Pilots’ C2003 wage, benefit and work rule changes $ 1.1 Billion per year
Pilot’s contribution from A plan discontinuation $ 500 Million (2007)
Pilots’ C2005 average annual Savings from the Bankruptcy Exit $ 180 Million per year
Pilot Total $ 1.78 Billion for year 2007
or looked at from a different perspective
pilot contribution to quarterly earnings $ 445 Million
And let’s not forget the other labor groups’ contributions to these “earnings,, an additional $1.46 Billion per year or $365 Million per quarter.
Total quarterly labor contribution to earnings $ 810 Million
Let’s re-calculate UAL’s earnings taking into account the savings from our bankruptcy contracts:
Third Quarter
UAL Q3 Operating “earnings” $ 589 Million
Pilots’ C2003 wage, benefit reductions $ (275 Million)
A plan reduction $ (125 Million)
Pilots’ C2005 Bankruptcy Exit wage reduction $ ( 45 Million)
Other labor groups’ wage and benefit reductions $ (365 Million)
You do the math!
The next time Glenn Tilton or any other senior manager crows about UAL’s “earnings," realize that it has nothing to do with how they “...[drove] fundamental improvements in [their] core business, both financially and operationally." It has nothing to do with them managing their most key asset – the employees. Rather, it has everything to do with their ability to mine one asset and one asset only, your pocketbook! Without the draconian concessions wrought during bankruptcy, this management group has absolutely no idea how to run an airline.
Wall Street knows these people are not long term planners nor are they airline managers. They are nothing more than portfolio managers. Glenn admitted as much during the 3rd quarter analysts call, when he said: “We are identifying how to unlock the value associated with the portfolio of businesses such as Mileage Plus and our maintenance division." So we have to ask this latest group of carpet baggers, when did we stop being an airline and become, as one industry analyst put it “…a conglomerate of portfolio assets just ripe for the picking?” Is this why management wants to sell the maintenance center? Is this why management wants to spin-off and eventually sell the Mileage Plus program? Is this why management is looking for a dance partner? Maybe, this is why management has no interest in “managing” the airline?
Never forget that it is the employees who have suffered the most under this management group. Never forget that it is the employees who have toiled and continue to toil under draconian bankruptcy contracts. Never forget that it is the employees who are paying for the company’s earnings and management’s obscene bonuses. Never forget that it is the employees who are the true asset of this company.
And most importantly, NEVER FORGET that if any of the assets are picked, THE EMPLOYEES WILL DEMAND THEIR SHARE.
Leverage does not just show up, unannounced, on one’s doorstep. Unified pilots create leverage.
UNITY OF PURPOSE BRINGS POWER
THERE IS POWER IN UNITY
------------------------------
October 11, 2007
Note: To access most links contained in this Update, you must be logged onto the MEC website (www.alpa.org/ ual)
The MEC concluded its regularly scheduled meeting this week in downtown Chicago. This morning, in open session the MEC unanimously passed the following resolutions:
WHEREAS, numerous press reports have stated that United is considering partial spin-offs of Mileage Plus or the MOC, and
WHEREAS, assets integral to the value of United, if they are partially spun-off, should not be used to only enhance shareholder value but should be used to recognize the sacrifice and investment of the employees as well,
THEREFORE BE IT RESOLVED, that the UAL-MEC is adamantly opposed to any partial asset spin-off that does not have a component of return to the employees, and
BE IT FURTHER RESOLVED, that the Master Chairman is directed to use all available resources to aggressively pursue inclusion of the employees in any return derived from partial asset spin-off, and
BE IT FURTHER RESOLVED, that the Master Chairman is directed to aggressively pursue the amendment of ERISA section 4047, or other actions directly with the PBGC, so that the PBGC would be compelled to seek restoration of pension plans and fund them through the partial or complete asset sales of Mileage Plus or the MOC, or other similar transactions.
Also:
BE IT RESOLVED the UAL-MEC will enforce the MEC policy pertaining to Article VIII charges against those individual members that ignore, or purposely violate, ALPA policies or Officer directions with respect to interaction with UAL management.
The MEC adjourned at 10:30 this morning.
The Pilot to Pilot Program arrives in San Francisco next week on October 17th. Look for Pilot to Pilot volunteers in the San Francisco Flight Operations area and feel free to ask for current information on the activities of your union.
The MEC Strike Preparedness Committee announces:
An Informational Picketing Event
ONT Ontario International Airport
Los Angeles pilots and flight attendants have scheduled an informational picket event at Ontario Airport
THURSDAY -- October 18, 2007 @ 0930 AM
0930 - 1000 Meet & Brief in the Parking Lot across from the United Terminal
(West End of Terminal 2)
1000 -1200 Informational Picketing/Leafletin g in front of Terminal 2
1200 -1215 Police the area and terminate activities
Please let Capt. George Bowling know you'll attend via email at
picketont@alpa. org
(include your name and mobile phone number)
All Employees, Flight Attendants, Family and friends are encouraged to attend.
The uniform will be short sleeve shirts (no jackets) with hats.
The pilots of Kansas City have scheduled an Informational Picketing event at the Kansas City International Airport (MCI) on Monday, October 15, 2007. Let’s show our unity in KC! Please make an effort to attend.
Contact Rob Ravencamp by cell phone at (816) 686-8126 or via email at robbiev3@comcast. net if you plan to attend. Please include your name, cell phone number, and any questions you might have.
Schedule of events:
0715 – 0730 Meet at Starbucks across from UAL gates (Complimentary coffee provided).
0730 – 0750 Informational picketing briefing in Terminal A parking garage.
0800 – 1100 Informational picketing at MCI Terminal A
1130 – 1300 Lunch at Zona Rosa (152 hwy and I-29). Complimentary beverages will be available.
Family and friends are encouraged to attend. Informational leaflets will be distributed to the general public.
Uniform will be short sleeved shirts, jackets and hats. We will leave our jackets at the picketing briefing if weather permits. Please be in uniform while picketing. Parking is at your discretion. Either use employee parking or Terminal A short-term parking garage.
If you have any questions, please contact Rob Ravencamp at (816) 686-8126 robbiev3@comcast. net or Chuck Newton at (816) 668-7278 figav8r@aol. com.
************ ********* ********* ********* ********* ********* ********* ***
At the October meeting of the United MEC yesterday Retirement and Insurance Committee Chairman Marty Torres briefed the MEC on the first week’s activity concerning the new PDAP “AutoPilot†Funds. Captain Torres reported that $15.9 million flowed into these new funds in the first week and he stated that number is expected to grow significantly. The committee is targeting a March 1, 2008 date for closing the “balanced funds†and will communicate this information to the pilot group so that funds may be moved voluntarily prior to that date.
Central Air Safety Committee Chairman Captain Mary McMillan gave her final report to the MEC as CASC Chairman as she has assumed an ALPA National Safety Committee position. Captain Mc Millan thanked the MEC for its support of the CASC and reported that the committee is working toward a comprehensive fatigue mitigation policy with UAL management. The MEC thanked Captain Mc Millan for her service to the United pilots and wished her well in her ALPA National work on environmental issues.
Captain Mary Mc Millan, Chairman
Central Air Safety Committee
EAP Chairman Hal Schichtel gave his final report to the MEC on the work of his committee which is totally confidential but has produced very positive results for many pilots over the years of his service. Mr. Schichtel reported that there has never been a greater need for the EAP program as there is right now due to the stresses of the company’s bankruptcy and it’s related effects on our careers and families and urged the MEC’s continuing support. The MEC passed a unanimous resolution of gratitude for Hal Schichtel’s selfless work for the pilots of United Airlines and wished he and his wife the very best in his upcoming retirement.
Hal and Lori Schichtel
FOQA/ASAP Committee Captain Jim Smith reported on the restructuring of the Event Review Committee as a result of movement of his committee members. The committee is now up to full strength and working on updating the MOU (Memoradum of Understanding) governing the activities of the ERC.
System Schedule Committee Chairman Captain Jeff Nooger thanked the MEC for their support after more than 8 years of service. Captain Nooger stated that he has always attempted to seek and mentor the greatest talent for his committee and thanked his committee for their tireless service to their fellow pilots. Captain Nooger reported on recent pairing construction and vacancy bids and the company’s winter flying schedule. Captain Nooger reported the final statistics on the recall of furloughed pilots:
Captain Nooger also reported that the first new hire class was comprised of 19 pilots and the next new hire class which began on October 8th contains another 20 pilots. New hire classes are now planned for at least the next five weeks.
The MEC then began debate and action on over 30 agenda items.
One of the agenda items passed this morning included the following:
BE IT RESOLVED the MEC directs that the UAL-MEC Policy Manual be revised to include wording specifying that, although allowed in the Collective Bargaining Agreement, the UAL-MEC does not endorse the use of JRM/SRM as a manpower planning tool.
This agenda item was approved unanimously and final language was directed to be written for inclusion in the MEC Policy Manual at the January, 2008 MEC meeting.
Tuesday, during the regular meeting of the UAL-MEC, the members of the MEC unanimously elected 747-400 Captain Steve Wallach as MEC Chairman and ALPA Member of the UAL Board of Directors. The MEC also unanimously elected A-320 Captain Jeffrey Barath as MEC Vice-Chairman and A-320 Captain Joseph Genovese as MEC Secretary Treasurer.
The following pilots were elected to MEC Committee positions:
Ana Vegega – Chairman, Central Air Safety Committee
Bill Norteman- Member, Domestic Code Share Committee
Craig Korsgard – Chairman, EAP Committee
Jon Dudley – Vice-Chairman, EAP Committee
Tami Halloran – Member, EAP Committee
Jerry Schoofs – Chairman, Grievance Committee
Todd Insler – Vice-Chairman, Grievance Committee
Mark Wurtz – Member, Grievance Committee
Drew Wacker – Member, Grievance Review Panel
Steve Rothstein- Member, Grievance Review Panel
Brian Finley – Member, Grievance Review Panel
Dick Kane- Alternate Member, Grievance Review Panel
James Belton- Alternate Member, Grievance Review Panel
John Briggs- Chairman, Hotel Committee
Pete Pellegrino- Vice Chairman, Hotel Committee
Rick Cauich – Member, Hotel Committee
Mike Biesecker- Member, Hotel Committee
Jim Cowen – Member, Hotel Committee
Ray Stratton –Chairman, International Committee
Carolyn Pasqualino – Member, International Committee
Herb Hunter- Chairman, International Code Share Committee
Ron Abel- Member, International Code Share Committee
Bob Spadea – Chairman, Jumpseat Committee
Garry Kravit- Member, Jumpseat Committee
Jeff Greco- Chairman, Legislative Committee
Carlos Rodriguez- Member, Legislative Committee
Jim Mc Clellan – Member, Legislative Committee
Glen Gulliver- Chairman, Membership Committee
Jeff Cramer – Member, Membership Committee
Scott Batzel- Member, Membership Committee
David Smith- Chairman, Merger Committee
Garth Thompson-Member, Merger Committee
Jeff Ruark- Alternate Member, Merger Committee
Mindy Sanderson – Chairman, Parental Issues Committee
Judy Lee- Chairman, Professional Standards Committee
Kathi Hurst- Vice-Chairman, Professional Standards Committee
Ed Folsom- Chairman, Security Committee
Jeff Nooger, Chairman, System Schedule Committee
Heather Loomis- Chairman, Training Committee
Chuck Hogeman- Member, Training Committee
Steve Knopf- Member, Training Committee
Ron Maty- Member, Training Committee
Ken Redmond- Member, Training Committee
Doug Trotter- Member, Training Committee
Richard John- Member, Training Committee
Chris Bruce- Chairman, Uniform Committee
Kent Moffer-Vice- Chairman, Uniform Committee
The October MEC meeting was opened by Chairman Captain Mark Bathurst at 9:00 am at the W Hotel in downtown Chicago. Captain Bathurst reviewed the MEC election process which will take place after lunch tomorrow and the strict guidelines we must follow dictated by ALPA policy and Federal labor law. All MEC Officer positions, the ALPA Member of the Board of Directors and most MEC Committee positions are open for election.
Captain Bathurst reported on a number of national issues including the FAA reauthorization bill, the situation at US Airways and the organizing effort at SkyWest. Captain Bathurst encouraged all United pilots to actively engage the Sky West pilots at every opportunity on the benefits of ALPA membership.
Captain Bathurst recognized the contributions of Captains Wendy Morse, MEC Vice Chairman and Mike Hamilton, MEC Secretary/Treasurer . Commenting on the past four years, one of the significant events in our pilots’ lives was the June 2004 ATSB loan guarantee denial. That started the second round of bankruptcy negotiations, required by the bankruptcy court as necessary for exit. Without a doubt the last four years have been difficult in a way no one could forecast. The company exited bankruptcy on February 1st, 2006. Needless to say, there has been tremendous strain on all employees. Last year we re-activated the labor coalition. Important lines of communications have been established and he urged the new leadership to continue working with the coalition.
In closing Captain Bathurst stated, “Four years ago I stood before this body and talked about most of the same things I’m sure we’ll hear tomorrow:
Unity, common sense of purpose, common sense of direction, and high ethical standards so that our members can have faith in their union. An election is always a matter of choice, of decision, of belief. In the coming years, the world won’t be the same as we think we know it now. We’re all here for the same reason, the right reason: to provide the best representation for our pilots!.â€
“Recent contractual achievements on other properties sets the stage for others, including United. We can now leverage achievements rather than fight the sacrifices. Not only are we talking about our own ALPA unions, but we have a great opportunity to talk to the pilots of other pilot unions. Organizing is important for us to be THE pilots union. We are much stronger as we go out and talk to new pilot groups. “
At the end of his remarks, Captain Bathurst recognized ALPA National Communications Director Don Skiados for his many years of service to all ALPA pilots and, on behalf of the MEC and all United pilots, presented him with honorary gold and silver “battle star†ALPA pins.
ALPA Director of Communications Don Skiados (L) with
Captain Mark Bathurst, Chairman, UAL-MEC
MEC Vice Chairman Captain Wendy Morse presented her report which highlighted recent meetings with new System Chief Pilot Keith Rimer who she characterized as “firm, but fair.â€
MEC Secretary Treasurer Captain Mike Hamilton highlighted the financial condition of the Association and the MEC, and presented a number of ideas on how the United MEC could possibly save money in the future by cutting back on special meetings and closely monitoring flight pay loss.
ALPA Executive Vice President Captain Mark Seal reported on recent meetings concerning the US Airways merger situation. The situation is still fluid and there are a number of upcoming meetings which could materially affect the outcome of this contentious situation. After much debate, the Executive Council accepted the Nicolou decision and therefore, is bound to defend it. Captain Seal closed by also asking all of us to reach out to the Sky West pilots. Sky West management is trying very hard to keep them from receiving information and it behooves us all to provide the best information we can about the benefits of ALPA membership.
Representing Captain Jay Santiago, Chairman of the Professional Standards Committee was Chicago Captain Kathi Hurst, member of the Council 12 Professional Standards Committee. Captain Hurst reported that activity of the Professional Standards Committee had increased three fold over the past two years. The stresses of bankruptcy and fatigue have caused more interpersonal problems. The committee does all of its work under the cloak of confidentiality so our story is not widely known but there are a lot of good results from our work. The committee is always looking for more volunteers.
Following the lunch break Captain Jerry Schoofs reported on the status of a number of MEC grievances and settlements. Captain Schoofs was especially pleased to report the recent System Board award of $1.1 million to the United MEC for the value of benefits withheld by the company when determining flight pay loss. “This was a significant award and underscores the value of a strong grievance system,†Captain Schoofs stated in his remarks. He reported that the Grievance Committee has 25 System Board days on the schedule with numerous grievances to hear.
The committee is also working on getting a telephone “hotline†set up for contract questions. A number of volunteers are being trained and the project is nearing readiness.
July 2, 2007
Mr. Glenn Tilton
Chairman, President and Chief Executive Officer
United Airlines, Inc.
77 West Wacker Drive
Chicago , Illinois 60601
Dear Glenn :
At the June 13, 2007 Merrill Lynch Global Transportation Conference, United’s Chief Financial Officer Jake Brace announced that United management will propose paying several hundred million dollars to United shareholders at the end of this year. Mr. Brace repeated this pledge in last week’s interview with the Wall Street Journal. While you’ve mentioned the possibility of shareholder payments in the past, the Company’s aggressive media posturing indicates that you are ready to proceed down this road.
I am highly alarmed that you would propose to make a massive shareholder payoff in light of the problems I have previously cited, and reiterate in this letter. On behalf of all United pilots, I strongly urge you to reconsider this ill-advised course of action.
United is only 18 months removed from a cataclysmic bankruptcy. We are a highly leveraged company in a cyclical industry entering a difficult domestic revenue environment. Our corporate credit rating remains at B/B- (junk grade or worse). We are being outperformed by American, Continental, Delta and others by most financial measures. We contemplate giving away United flying to carriers such as Aloha. We operate on a bare bones non-aircraft capital expenditure budget after years of deferred spending. We are the only major airline without a fleet modernization plan. We rank poorly in customer satisfaction surveys. Our on-time performance is mediocre at best.
At the same time, based on my many conversations with my fellow union leaders, employee dissatisfaction with the current management team has reached its highest point – ever – and it continues to grow. Since my letter of May 29, 2007, hundreds of United pilots and other employees have expressed their anger and frustration with your failure to deliver on the promises of shared sacrifice, shared reward and management accountability. Your decision to reject out of hand my suggestion to move up contract negotiations has not helped. Your employees are disengaged, Glenn . They are desperate for a vision of the future and a leader who they can respect and follow. It is my belief that they increasingly do not enjoy working for United and they see little hope for improvement.
Under these circumstances, it is inconceivable that you would propose a massive shareholder payment. I believe the message this action will send to your employees is: you don’t care about employee engagement, alignment and morale enough to spend any money to improve our workplace; you aren’t interested in investing in the future of the airline; you can’t compete with our mainline peers; and finally you think it’s the “right thing to do” to pay off shareholders using the financial sacrifices of your employees.
United’s employees will regard this as another hard slap in the face. Did we really sacrifice our wages, our quality of life and our pensions so you could pay shareholders before investing in the employees, the airline and its future? Are the overlapping three circles of Employees, Customers and Investors you mention so frequently still equal in size? It seems they are not.
If you’re truly interested in building long-term value for United’s employees, customers and shareholders, there are obvious and much better uses of the Company’s cash:
· Invest in your employees. You can still fix this airline. There is no reason why United shouldn’t outperform every one of it peers. We have the strongest asset base, a great global network, the lowest unionized labor costs and the most loyal customers. But you will not succeed without the support – the enthusiastic support – of United’s more than 55,000 employees. Now is the time to make a meaningful investment in your employees by improving wages and working conditions and pledging to move up contract negotiations, as Continental and their pilots today jointly announced. If it’s the right thing for Continental to do, it’s the right things for United to do. An investment in your employees will “cost” the airline far less than a massive shareholder payment, and no other use of the Company’s cash could possibly pay higher dividends to United and its shareholders.
· Pay down debt. Despite bankruptcy, we remain among the most highly leveraged airlines in the world. The critical measure of our debt burden is the ratio of our net debt (including capitalized leases and cash reserves) to the reported cash we generate from operations (EBITDAR). By this measure we are far more leveraged than our network competitors, including those who did not benefit from resorting to Chapter 11, as shown in the graph to the (left). Things change quickly in the airline industry, and we need a much stronger balance sheet to weather the next inevitable downturn. We also need to be poised to grow the airline where and when we should. No management committed to the long-term health of United would consider returning cash to shareholders until substantially strengthening the balance sheet.
· Invest in the airline. Our annual budget for non-aircraft capital expenditures is less than 50% of what we need to modernize United after years of deferring critical capital projects. Through the 1990s, we regularly spent well over $1 billion each year on non-aircraft projects. The amount allocated to non-aircraft projects in the current budget simply won’t cut it in the race to capture and retain high-yield business passengers. Our systems are old and costly, our technology is tired and we are falling behind our competitors in the development of customer-facing products and services. Why not invest our cash to replace the failing Unimatic system that recently grounded the airline? Why not invest to provide better customer service tools? Why not invest to build solutions to the flight disruptions that plague the airline? The list is endless, but it does not include shareholder payments.
· Invest in the fleet and international growth. You tell us that United does not “need” to replace its fleet in the next several years and that domestic margins are not strong enough to justify domestic fleet expansion. Even so, why aren’t we investing a portion of our cash balance in additional wide-body aircraft to grow our profitable international operations? Delta continues to expand international flying (and international profits) with a weaker global network. Why can’t we? How is United going to stack up against the competition early in the next decade, when our competitors plan to operate super-efficient B-787s and A-350s and we’re stuck with an aging fleet? Even Delta is talking about ordering 125 next-generation aircraft. The available delivery dates for new aircraft are getting more distant. At some point, we need to demonstrate our resolve to compete in this industry by investing in the future.
Many United employees are substantial shareholders and we, too, are concerned about the erosion of shareholder value since bankruptcy exit. Our financial and sweat-equity investment in United demands your responsible investment in United’s employees and its balance sheet while modernizing the airline and demanding a management team that can get the job done. A shareholder dividend or stock buyback, by contrast, accomplishes nothing for United Airlines other than artificially propping up the share price for a few days or weeks. The Company’s employees cannot sit idly if you choose to squander our sacrifices and our future this way.
Sincerely,
Captain Mark Bathurst
Chairman, UAL-MEC
cc: UAL-MEC
United pilots
.
With a Special MEC Meeting Update for Friday, June 15, 2007, this is MEC Communications Chairman Steve Derebey.
Today's Update includes 4 items:
1. MEC Adopts 3 Resolutions
2. MEC Sends Strategic Plan On Contractual Improvements
3. MEC Conducting Fatigue and Safety Survey
4. Upcoming LEC Meetings
1. The United MEC concluded its two-day special meeting today, adopting the following three resolutions:
Resolution #1:
WHEREAS, United Airlines & Aloha Airlines have announced plans to enter into a new codeshare agreement, and
WHEREAS, our contract gives ALPA the right to propose labor protective provisions (LPPs ) before any such agreement is concluded,
THEREFORE BE IT RESOLVED, the UAL-MEC directs the Master Chairman to use appropriate resources to develop LPPs that protect United pilots' flying and jobs, and that such LPPs are promptly communicated to the Company.
Resolution #2:
WHEREAS, at least one press article has stated that Aloha Airlines CEO Banmiller has speculated that Aloha Airlines may receive United 737s, andWHEREAS, the UAL-MEC considers any possibility of aircraft transfer to any other airline extremely detrimental to its pilots,
THEREFORE BE IT RESOLVED, the UAL-MEC directs the Master Chairman to express to UAL Corporation's Board of Directors and United Airlines' Senior Management the extreme displeasure, frustration and anger any transfer of United aircraft to another carrier or air transportation company would trigger among all United pilots, and
BE IT FURTHER RESOLVED, the UAL-MEC directs the Master Chairman to use all available resources to resist any transfer of United aircraft.
Resolution #3:
WHEREAS, ALPA and United Airlines negotiated the 777 Crew Rest Facility Letter of Agreement with the explicit understanding that it was tied to the Line Guarantee and LCO Pay Rig Letter of Agreement, and
WHEREAS, on February 21, 2007 the MEC ratified the 777 Crew Rest Facility Letter of Agreement also with the understanding that it was tied to the Line Guarantee and LCO Pay Rig Letter of Agreement, which was not ratified by the membership, and
WHEREAS, the Company, by making public statements about the cost of the Line Guarantee & LCO Pay Rig Letter of Agreement, improperly interfered in the ratification process and materially influenced the outcome, and
WHEREAS, the Company has not itself complied with its commitment with respect to the implementation of the 777 Crew Rest Facility Letter of Agreement,
THEREFORE, BE IT RESOLVED, that the UAL-MEC hereby rescinds its ratification of the 777 Crew Rest Facility Letter of Agreement;
BE IT FURTHER RESOLVED, that the UAL-MEC directs the Master Chairman not to sign said Letter of Agreement, and
BE IT FUTHER RESOLVED, that the UAL-MEC directs the MEC Grievance Committee to expedite the filing of a grievance seeking to enforce the provisions of Letter of Agreement 01-01, 777 Over 12-Hour Flights.
2. Today the United MEC unanimously endorsed the MEC Strategic Plan Contractual Improvements for the pilots of United Airlines. The Strategic Plan was emailed to all pilots this afternoon, and has been posted on the MEC website under the "What's New" banner.
Click Here to read the Strategic Plan.
3. The UAL-MEC is very concerned about pilot fatigue and its potential impact on the operation of our airline. To that end, we have developed a web-based "UAL-MEC Safety and Fatigue Survey" in which we encourage all eligible active United pilots to participate. Please take the time to fill out the survey and give us your views. As in all polling we conduct, your responses are anonymously collected and never individually identified. The survey is conducted by the Wilson Center for Public Research, which conducts all polling for the MEC. Your MEC thanks you for taking the time to give us your feedback.
To participate in the survey:
https://www.ballotpoint.com/SPALPA
In the upper left you will see "ID:" and "PWD:"
* For "ID:" Use your ALPA Member ID.
* The "PWD:" Use your Employee number.
Then follow the menu prompts. If you would like detailed login instructions they are as follows:
* Click the button titled "Login"
* Along the left you will see "View Surveys" Click on that item.
* In the middle of the screen you will see a box listing the survey titled: "UAL-MEC Safety and Fatigue Survey."
* Click on the "Request Survey" button to start your survey.
If you have difficulty accessing the survey, please e-mail mailto:survey@alpa.org.
).
4. Upcoming LEC Meetings
--Council 57 (LAX): 10 a.m., Friday, June 22, Proud Bird Restaurant, 11022 Aviation Blvd., Los Angeles, Calif. Directions: The restaurant is located just south of the approach end of LAX Runway 25L. To reach the restaurant from any LAX terminal, take the "B" bus from the lower level in front of the terminal to Parking Lot B.
--Council 11 (DCA): 10 a.m., Wednesday, July 11, ALPA Headquarters, Herndon, Va.
"Count Me In!!!"
Since its inception in December of last year, the SPC has been asking for your help in its quest to take on a management team intent on getting its way at our families' expense. The Committee has asked you to put aside political differences with your fellow pilots. It asked you to look beyond single issues. It asked you to stand up shoulder-to-shoulder with your fellow pilots and reclaim our rightful place as a major stakeholder in our airline.
An overwhelming number of your brothers and sisters have stepped up and said, "Count Me In." Click Here to see the list of those who are ready to, together, take back our profession and to fix our contract NOW!!
There is still time for you to join your brother and sister pilots in unifying against the greed and indifference demonstrated by our airline's upper management team. Send an email to StrikeUAL@alpa.org and say, "Count Me In!!!" (Be sure you include your name, domicile and ALPA number
From: MEC Communications <ualmec-fastread@ames.alpa.org
Reply-To: ualames@alpa.org
To: "ualmec-fastread" <ualmec-fastread@ames.alpa.or
The following letter from MEC Chairman Captain Mark Bathurst was sent to United CEO Glenn Tilton today:
May 29, 2007
Mr. Glenn Tilton
Chairman, President and Chief Executive Officer
United Airlines
77 W. Wacker Dr.
Chicago, IL 60601
Dear Glenn:
As Chairman of the United Master Executive Council of the Air Line Pilots Association, I write to express my deep concern about the future of our company and the deteriorating relationship between the management and employees of United Airlines.
In September of 2002, you arrived to save this company from a jumble of failed programs and failed managers. Over the next four years, you said to anyone and everyone: "Things cannot stay the same. We all have to
sacrifice. We need the tools to change. We have to change. We have to do better and get better at everything we do." The rules of engagement in bankruptcy gave the employees little choice in the matter. We sacrificed - we provided you with the tools you asked for - so you could change our company. "Shared sacrifice" became your mantra.
Four and half years later, and 15 months out of bankruptcy, where are we now? We are not in a good place. Let's face it: United currently lags behind its peers by most measures. Our operating margin is among the
worst of the network carriers. Our operating costs are still not where they should be - despite the lowest-cost labor contracts in the network industry. Our revenue performance last quarter was unacceptable. We are the only network carrier without a new aircraft order and seemingly, without a vision for the future. United consistently ranks at or near the bottom of airline quality surveys by institutions such as the University of Michigan. To compound matters, labor relations are at their lowest point in years and getting worse.
Why? Why do American and Continental do a better job than United at managing revenue? Why do American's non-labor costs remain lower than ours? Why is Delta expanding its international reach every month
while we can't make our international operations work as well as others?
Why are we reducing mainline domestic flying - and shifting United routes to United Express or code share partners such as Aloha - while our competitors are enhancing their domestic systems? Why are we hearing
rumors concerning the sale of aircraft to Aloha (if you believe Aloha's Chief Executive Officer) when we've heard nothing from United? What happened to our ability to compete in the marketplace with United
pilots flying United aircraft? It seems to many employees that management has given up -- that they are content to muddle along in the middle of the pack, collecting their stock and limping through the next several
years in a fog of mediocrity.
From where the pilots sit, this growing sense of lost opportunity resonates throughout every aspect of the company every employee conversation, every flight and every day. The employee survey results reported on Skynet, as bad as they were, are just the tip of the iceberg. The hundreds of employees, not just pilots, who showed up at
the UAL shareholder meeting to demonstrate their anger with management were not symptomatic of a "vocal minority." They are fully representative of their peers across employee groups and divisions.
Most United employees are gravitating toward a deeply cynical view of management: You demanded sacrifice, and we gave it. You took your reward at a level higher than other airline managements exiting from
bankruptcy, and we will be left with what--the mess?
Glenn, we have reached a crossroads, an inflection point in the lifecycle of United Airlines. You can either take bold, dramatic steps now to reverse the decline or stand by and watch things continue to
deteriorate. What can you do? I have three basic suggestions:
* First, meet with the leaders of the six unions, and
representatives of the salaried and management employees. Listen to
our concerns. Engage us constructively. Since consolidation seems to be
high on the list of the plausible, negotiate agreements that ensure
cooperation and provide appropriate protections to your employees if
we do have to march down the consolidation path.
* Second, demand a management team that can get the job done.
When will United hold its managers accountable? American,
Continental, Delta - even US Airways - have brought in managers that perform
quarter after quarter. It appears that our managers do best at making
excuses. The current management team has had their shot with every employee
sacrifice needed to make United better. We gave you the tools you
said you needed. It's time to reassess.
* Third, open negotiations for new labor agreements on August
1, 2007 with the goal of putting new agreements in place for every union
by February 1, 2008 - the second anniversary of our emergence from
Chapter
We will jointly declare that day as a new beginning for the new
United. Why not? What should we be afraid of? I strongly urge you
to consider the following: last week, the Chief Executive Officer of
Continental Airlines reached out to the ALPA MEC Chairman at
Continental and offered to talk about opening pilot contract negotiations a full
18 months ahead of the December 31, 2008 amendable date. The world did
not end. To the contrary, Wall Street continues to value Continental at a 25% or
better premium to United. I think Continental clearly understands labor relations
in the 21st Century. Do we?
Now is the time to save our company. You came here in 2002 with the
respect and goodwill of your employees. You asked us to sacrifice and
we stuck by you through a terrible 39 months in Chapter 11. You said
that you would change the company for the better. Employees from all
divisions are looking to you for hope, any hope, that their sacrifice
and sweat equity have not been for naught.
It's not too late to respect and recognize the most important part of United Airlines: the people who, day in and day out, make our airline fly. We've done our part. It's now up to you. I look forward to your response.
Sincerely,
Captain Mark Bathurst
Chairman, UAL-MEC
Cc: UAL-MEC
United pilots
AA pilots propose 30.5 percent raise
May 13, 2007
By TERRY MAXON / The Dallas Morning News
tmaxon@dallasnews. comAmerican Airlines Inc. pilots proposed Thursday that they get a 30.5 percent increase in pay rates on May 1, 2008, 5 percent raises the next two years and a signing bonus.
"Other American Airlines stakeholders have already recovered their investment in our airline's turnaround," said Ralph Hunter, president of the Allied Pilots Association. "It is time for our pilots to begin doing the same."
This is the first substantive proposal on pay since pilots and American managers began contract talks last September at the airline's request.
"Therefore, we've reached the point where we believe we have to do something to jumpstart the real negotiations, " said Drew Keith, the union's industry analyst.
Mr. Keith said the cost of a 30.5 percent increase would be about $450 million to $460 million a year before any contractual changes to increase productivity. American can also lower its costs by expanding and bringing in new pilots at the bottom of the pay scale, he said.
In addition, the union is seeking a 15 percent signing bonus to cover the period between July 21, 2006, the date American asked to begin negotiations, and May 1, 2008, the date the union is seeking to have an amended contract go into force. Mr. Keith estimated the cost of the bonus at around $400 million.
American's response
American, which was given the proposal at midday Tuesday, responded with a noncommittal statement.
"Like everything that is proposed during negotiations, APA's pay demands will be brought to the table for full discussion and a robust review by the bargaining team," American spokeswoman Sue Gordon said.
"It's common knowledge that we have a considerable labor cost disadvantage compared to other airlines, so we'll need to balance any proposal that affects our competitive position against this fact," she said. "We also recognize that our pilots are concerned about achieving competitive total compensation. "
The pay proposal comes two weeks after executives and other key employees were given stock shares worth $150 million or more. The airline has not disclosed the total number of shares distributed, but said the nearly 900 participants shared in about 5 million shares.
The executive stock program has mobilized the airline's unions, who collectively agreed to $1.6 billion in pay cuts, benefit reductions and other concessions in 2003 when American was fighting to avoid bankruptcy.
On April 18, the date the stock awards were finalized, hundreds of American pilots marched on corporate headquarters. Flight attendants rallied at AMR headquarters the week before that, then walked picket lines at a number of airports April 17.
Union officials said Thursday that shareholders in AMR Corp., parent of American, have been rewarded by a sharp rise in AMR's share prices, and executives have seen their compensation skyrocket through the shares given them.
'Fair and reasonable'
Put together, those events demonstrate that AMR's crisis is over, and that it's time for employees to also share in the airline's recovery, they said.
"We honestly believe that it's fair and reasonable and very easily justifiable, " pilot Scott Shankland said. "We've laid it out on the table. We've said this is what we know our pilots expect. It's a reasonable proposal, especially compared to the way they [American's executives] have been acting like pigs at the trough."
The pilots calculated the 30.5 percent raise by taking their pay rates prior to the 2003 givebacks and adjusting them by the rate of the consumer price index.
In 2003, their pay rates were cut more than 23 percent, and are still more than 11 percent below the pre-cutback rates.
While pilots and other employees want to recover their concessions, American has to contend with lower-cost competitors.
American is facing a competitive landscape where many of its competitors, including large rivals United Airlines Inc., Delta Air Lines Inc., Northwest Airlines Inc. and US Airways Group Inc., did go into bankruptcy court and lowered their labor costs even more than American did.
According to American, its unit costs for labor (cost per airplane seat flown per mile) were 3.2 cents in fourth quarter 2006, compared with 2.6 cents for Southwest Airlines Co. and Continental Airlines Inc. and 2.5 cents for United.
Info Picketing At UAL Shareholders Meeting
Thursday, May 10
The UAL Shareholders Meeting begins at 1030 on May 10, but we are asking everyone to meet at Plumbers Hall at 1340 W. Washington Blvd. in Chicago between 0800 and 0830 for coffee, juice, bagels, donuts and a quick briefing on the day’s activities. Picketing will commence around 0930. For those driving to Plumbers Hall we encourage carpooling as parking is limited to 50 spots in their lot and street parking which is available in the neighborhood at that time of the morning. Bus transportation will be provided from Plumbers Hall to and from the Field Museum. If 0830 at Plumbers Hall is too early you can meet everyone on the south side of the Field Museum.
We encourage family members to make a day of it on the museum campus while their pilots picket. Food and refreshments will be provided during picketing and immediately afterwards at Plumbers Hall. We expect the day’s events to be finished no later than 1600, but we urge those who cannot stay for the entire day’s agenda to join us for as much of the day’s events as possible.
Please sign up for picketing by including your name, phone number, email address, the number of people in your party in an email to, pilotsunited@yahoo.com so we can have an accurate head count. Also, indicate whether you would like a ride on one of the buses leaving from either ORD or the MEC Office (free parking is available) to and from Plumbers Hall.Where: Plumbers Hall @ 1340 W. Washington Blvd in Chicago. Bus transportation will be provided back and forth between Plumbers Hall and the Field Museum, 1400 S. Lake Shore Dr., where we will be picketing.
Dress: Uniforms with jackets, hats and raincoats (depending on the forecast).
United Pilots Picket At SFO (The Daily Journal of San Mateo, Calif.)
Pilots for United Airlines conducted informational picketing yesterday at San Francisco International Airport to highlight the excesses of the airlines’ management. The airlines’ management continues to gut pilot’s health insurance and pension plans, while it increases the compensation packages for the executive leaders who led the company into bankruptcy in 2002, according to the pilots association. The airline still hasn’t reversed the pay cuts that pilots took to save the company from liquidation. United Airlines filed for bankruptcy in December 2002, and at the time it was the sixth largest bankruptcy filing by any U.S. company. It received a $3 billion loan from JPMorgan Chase & Co. and Citigroup Inc. and emerged from bankruptcy on Feb. 1, 2006, after three years and 51 days.
United Workers To Picket For ShareholdersWhen UAL Corp. shareholders gather Thursday in Chicago for their first meeting in five years, they may have to cross a picket line of United Airlines flight attendants and pilots. The unions have been railing against an estimated $40 million compensation package provided to UAL Chief Executive Officer Glenn Tilton, which was revealed in a March federal filing. The pilots are determined to express their concerns before the shareholders. “While the pilots of United Airlines have been quietly and safely delivering our passengers to their destinations, current airline management has gutted our families’ financial security by terminating our pension plan and slashing our pay by an average of 50 percent,” said Dave Kelly, spokesman for the Air Line Pilots Association.
United Airlines pilots reject tentative deal
By Paul Merrion
April 20, 2007
(Crain’s) — Pilots at United Airlines firmly rejected a tentative deal to ease possible shortages of flight crews during the busy summer travel season.Voting more than 2-to-1 against a tentative agreement reached by management and union leaders, pilots set the stage for hard bargaining to win back pay and benefit cuts they took to help pull United out of bankruptcy last year.
“The message you've sent is clear: While contractual improvements are critical, you are through providing this management relief in any way, shape or form,” Capt. Steve Dereby, communications chairman of the Air Line Pilots Assn. at United, said in a message to pilots Friday.
The agreement would have given United more scheduling flexibility and allowed senior pilots to fly more hours per month. In exchange, pilots would have won a higher minimum number of guaranteed hours of flying time each month and elimination of a lower pay structure and other cost-saving provisions for junior pilots who fly for United’s low-fare Ted subsidiary.
While the agreement was not expected to increase or decrease United’s overall costs, it became controversial because many pilots viewed it as a lopsided deal that would reduce jobs and time off for pilots.
Some pilots also viewed the deal as a missed opportunity to gain leverage over United this summer, because it would have helped the company cope with a potential shortage of pilots that they believe will cause flights to be canceled or delayed.
Related story:
COUNCIL 34 VICE CHAIRMAN’S REPORT
April 2007
Pilots of Council 34,
Most of you are aware that I was one of the six members of the MEC that voted not to accept or endorse the tentative agreement. I have been asked why I voted NO; and my report for this month will explain that vote, as well as my personal opposition to this agreement. First though, let me again share the first couple of paragraphs from last month’s report.
“This management group’s future vision for us includes dramatic increases in international code sharing, ever increasing domestic code sharing-direct or indirect, a dramatic reduction in short haul and narrow body flying-and the outsourcing of virtually all nonessential labor. Their definition of ‘nonessential’ does not coincide with ours.
This management group is operating on a 15-20 year strategic game plan designed to dramatically reduce or minimize our labor force, our overall fleet size, and our wages and benefits…Step by step, this management group is methodically maneuvering us in a seemingly logical strategic direction of their design that is totally counter to our objectives. Each step will reinforce the logic and inevitability of the succeeding steps. Their answer to our complaints will always be, “It is only logical and realistic in light of the marketplace in which we compete. With each passing year these people will continue to structure that “marketplace” such that it validates their arguments.”
As you recall, these were not my words but were written in 1997 by then Council 57 Chairman, Perry Cockreham, and they have proved to be absolutely true. As Perry predicted then, we have lost much of our international flying to STAR Alliance partners, RJs now do an obscene amount of the domestic flying we used to do, and our pay and benefits have been drastically reduced.
So how does this fit in with my opposition to this tentative agreement? Simple. This agreement is management’s next step in their “strategic plan” to maneuver us in the “seemingly logical strategic direction of their design” as part of their 15-20 year plan. This “step” in their plan is about getting fewer pilots to fly more, with less flexibility and less time off. Let me say that again, just a little louder in case anyone missed it: THIS AGREEMENT IS ABOUT GETTING FEWER PILOTS TO FLY MORE, WITH LESS FLEXIBILITY AND LESS TIME OFF!!!
The negotiating committee and the SSC will dispute that and will even give examples of how it is not true. I’m afraid my glasses don’t have the same rose tint that theirs do, though. They are paying too much attention to what management says they WILL do, and not enough attention to what this agreement says management CAN do. Here’s an example: Management has told the negotiating committee that by increasing the PBS line construction floor from 65 to 75 they will “even out the flying” and keep the average line value the same by reducing the number of hours flown in the higher time lines. But management CAN add the 10 hours of flying to the lower value lines, keep the higher value lines the same, and reduce the total number of lines.
Then, those pilots who used to be lineholders will be pushed down onto reserve…until management realizes they don’t need these reserves and gets rid of them, either through surpluses or furloughs. That is what management CAN do under this agreement, and it is what we must consider when we decide whether or not to vote for it.
Here’s another example: We’re all being told the “line guarantee” part of the agreement is a huge “get” for us. It is, but not that huge. And for all those pilots who think when they lose their flying they’ll just get paid for it and go home, guess again. Another part of this agreement significantly expands the rules for reassignment including daily short-call reserve for line-holders under 20-F-1-a-2 and allows the company to take a day off away from you without ever restoring it. Who do you think is better at manipulating these kinds of changes, us or the company?
Management is saying if we vote this agreement down there will be no more negotiations. OF COURSE THEY ARE SAYING THIS! What else would they say? Anyone think they’d say “we really hope you vote for this agreement, but if you don’t then let’s talk some more”. When you buy a car do you offer $20,000 but tell the salesman if that’s not enough you’re willing to talk some more? No, you say that’s the final offer, take it or leave it and walk out the door. Management said the same thing during the talks on the mid-term wage adjustment in ’97 and the MEC believed them. How many days did it take to get a better agreement after the pilots had the courage to vote it down through the Membership Ratification process?
Something else management is saying is they don’t need our help to get through the summer and can fly the schedule just fine. GEEZ, is anyone stupid enough to believe this? They’ve told us that for the last few years, and summer melt downs have become normal ops. We are already seeing gross numbers of cancellations due to no crews and it’s only April.
But the most disgusting thing that management is telling us, and shame on any member of our union who believes it, is that we have no leverage. This pilot group has all the leverage it is willing to make, and from what I’ve seen we are willing to make a great deal of it. All we need is the leadership of our union to guide us on how to use this leverage once it is created.
This agreement is manpower negative. It will cost us jobs, plain and simple; to say otherwise is fuzzy math. It is all about more productivity, fewer pilots, more time at work, less time at home, and whatever else is hidden in it that we won’t see until the grievances start piling up. Former Council Chairmen, negotiating committee members, and IRC coordinators have all come out against this agreement because they see how it fits in with management’s plan. These are men who’ve been there, done that, and have the battle stars to prove it, as well as the scars that go along with it. They have the wisdom and experience that only come from having been here before, and need to be listened to when they tell us not to repeat history.
And that, my friends, is why I oppose this agreement and why I voted not to accept or endorse it.
Fraternally,
Mike Holman
Council 34 Vice Chairman
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Forwarded by Jay Heppner
C-34 Communications
jay@heppner.com
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The next regular scheduled Council 34 Meeting will be conducted on April 13, 2007 at the San Francisco Airport Westin Hotel located just south of the San Francisco International Airport. The meeting will begin at 1000. Transportation is available from the airport to the hotel via hotel transportation. Parking is gratis for the day of the meeting with a validation stamp provided by the council officers.
Visit the C34 website at https://crewroom.alpa.org/UAL034/DesktopDefault.aspx?tabid=2496&tabindex=99 (ALPA sign-in required)
Please do not reply directly to this email. It will not be received. Instead, send replies directly to me, your Council officers, or committee members.
