AA pilot contract now officially ABROGATED
#21
Bracing for Fallacies
Joined APC: Jul 2007
Position: In favor of good things, not in favor of bad things
Posts: 3,543
#24
2nd Circuit Court of Appeals:
This dispute between the Association of Flight Attendants (“AFA”) and Northwest Airlines (“Northwest”) is situated in a peculiar corner of our law more evocative of an Eero Saarinen interior of creative angularity than the classical constructions of Cardozo and Holmes. Northwest, under the protection of Chapter 11 of the Bankruptcy Code and with the bankruptcy court's imprimatur, has rejected the collective-bargaining agreement that until recently governed its relationship with the AFA and imposed new terms and conditions of employment upon its flight attendants. The AFA does not wish to accede to these terms and conditions of employment and threatens a work stoppage unless Northwest agrees to terms and conditions that are more favorable to the flight attendants.
The District Court for the Southern District of New York (Victor Marrero, Judge ) issued a preliminary injunction precluding the AFA and its members from engaging in any form of work stoppage. It held that any such work stoppage would cause irreparable harm and, at this juncture, violate the Railway Labor Act. On this basis, the district court concluded that the Norris-LaGuardia Act did not deprive it of jurisdiction to issue the injunction.
We agree, but for substantially different reasons than those advanced by the district court. We hold that Section 2 (First) of the Railway Labor Act forbids an immediate strike when a bankruptcy court approves a debtor-carrier's rejection of a collective-bargaining agreement that is subject to the Railway Labor Act and permits it to impose new terms, and the propriety of that approval is not on appeal.
Full case:
IN RE: NORTHWEST AIRLINES CORPORATION, Docket Nos.
This dispute between the Association of Flight Attendants (“AFA”) and Northwest Airlines (“Northwest”) is situated in a peculiar corner of our law more evocative of an Eero Saarinen interior of creative angularity than the classical constructions of Cardozo and Holmes. Northwest, under the protection of Chapter 11 of the Bankruptcy Code and with the bankruptcy court's imprimatur, has rejected the collective-bargaining agreement that until recently governed its relationship with the AFA and imposed new terms and conditions of employment upon its flight attendants. The AFA does not wish to accede to these terms and conditions of employment and threatens a work stoppage unless Northwest agrees to terms and conditions that are more favorable to the flight attendants.
The District Court for the Southern District of New York (Victor Marrero, Judge ) issued a preliminary injunction precluding the AFA and its members from engaging in any form of work stoppage. It held that any such work stoppage would cause irreparable harm and, at this juncture, violate the Railway Labor Act. On this basis, the district court concluded that the Norris-LaGuardia Act did not deprive it of jurisdiction to issue the injunction.
We agree, but for substantially different reasons than those advanced by the district court. We hold that Section 2 (First) of the Railway Labor Act forbids an immediate strike when a bankruptcy court approves a debtor-carrier's rejection of a collective-bargaining agreement that is subject to the Railway Labor Act and permits it to impose new terms, and the propriety of that approval is not on appeal.
Full case:
IN RE: NORTHWEST AIRLINES CORPORATION, Docket Nos.
#25
Actually, the "NFL" tactic could work, if the pilots were willing to resign. How could the courts hold the APA responsible for that action, if decertified? Admittedly, a new union drive would have to held after BK.
GF
GF
#26
The #'s just don't seem to add up
MIT's labor data shows, in 2011 AA spent $58.5K/pilot in pensions and benefits. Of that $58.5K, roughly $15.4K is from the B plan (mean AA pilot salary is $140K, B plan is 11%).
While the math to value the A plan is beyond my math skills, I'd imagine the A plan savings would be pretty substantial, given the implied costs of an A plan. For simplicities sake, let's very conservatively value the frozen A plan @ another $15.4K/pilot (same value as the B plan).
The international override averages $5/hr per pilot, or about 3% of the hourly rate ($5/777CA @ $205/hr + MD-80 FO @ $110/hr). So, there's another $2K/pilot in savings when the override goes away, since only 1/2 the pilots get the override.
So, just by freezing the A plan, eliminating the B plan, and eliminating the international override, AA saves around $33K/pilot, or 75% of the savings needed to get to the $44K/pilot needed.
AA pilots, just by losing those 3 items, are, using EXTREMELY conservative #'s, getting $27.7K in benefits per pilot, and only need to give back an additional $9K/pilot.
The sum of ALL rest of the cuts so far announced (including HUGE scope losses) are only going to yield $9K in savings per pilot, only 25% of the cost savings needed "to survive"? Call me a skeptic.
#28
Most likely a temp court injunction against the APA and every individual AA pilot.. However, any disruption would most likely spook the UCC, and subsequently result in TH being put out to pasture..
#29
Line Holder
Joined APC: Jul 2008
Posts: 80
What happens if AA pilots simply don't show up for work for say...a week? What happens then? Jail?
#30
Gets Weekends Off
Joined APC: Nov 2010
Position: B777 x2 furloughed from United
Posts: 180
work action
Calling for work action could be illegal and cost the union millions. It got several pilots at other airlines into big trouble.
When I returned to United after my first furlough Glenn Tilton said if you don't like it quit. But has was laughing, because he knew he would win as no one would.
He was absolutely right. You may not be allowed to get others to call in sick, and you may not be allowed to strike. But there is nothing to stop pilots en-mass in quitting. Yes it would take enormous courage, and a leap of faith.
But if a significant number did at AMR or many other airlines. The government would stand up and take notice. Only then will they start to address the real problems. They cannot simply find that number of pilots to replace you all in a year.
20,000+ quitting on the same day would be awesome. I know it will never happen.
When I returned to United after my first furlough Glenn Tilton said if you don't like it quit. But has was laughing, because he knew he would win as no one would.
He was absolutely right. You may not be allowed to get others to call in sick, and you may not be allowed to strike. But there is nothing to stop pilots en-mass in quitting. Yes it would take enormous courage, and a leap of faith.
But if a significant number did at AMR or many other airlines. The government would stand up and take notice. Only then will they start to address the real problems. They cannot simply find that number of pilots to replace you all in a year.
20,000+ quitting on the same day would be awesome. I know it will never happen.
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