Bucking Bar

NOW THEREFORE, Delta has agreed to assist in facilitating a successful resolution of the negotiations for a new restructured Pinnacle pilot collective bargaining agreement by providing the benefits and commitments contained herein and subject to the following conditions:
1. Making Aircraft Commitments
a. Delta commits to maintain in the Delta Connection fleet (i.e., aircraft in service, in maintenance or operational spares) at Pinnacle no fewer than forty-one (41) jet aircraft certificated for operation in the United States for seventy-six (76) passenger seats and with a maximum gross takeoff weight of 86,000 pounds or less (“76-seaters”).
b. Delta commits to place and maintain in the Delta Connection fleet at Pinnacle the incremental forty (40) 76-seater deliveries above the total in the Delta Connection fleet as of December 1, 2012 (i.e., 76-seat aircraft numbers 154 through 193 in the Delta Connection fleet). For purposes of this provision, the transfer to Pinnacle of any 76-seater in the Delta Connection fleet at another Delta Connection carrier will offset on a one-for-one basis the commitment to deliver to and maintain at Pinnacle any of such incremental forty (40) 76-seater deliveries.
c. The commitments in Section 1.a.-b. will terminate and shall be of no further force or effect upon the earlier of:
i. the termination of the Delta Connection Agreement between Delta and Pinnacle (“Delta-Pinnacle DCA”), as may be amended from time to time, that governs the operation of the aircraft subject to Section 1.a.-b., in accordance with its terms so long as Pinnacle, or its successor, is not an affiliate (as defined in the Delta PWA) of Delta Air Lines, Inc.
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ii. the pilots in the service of Pinnacle Airlines Corp., or its successor, no longer being represented by ALPA, or
iii. the date six months following the amendable date of the new restructured Pinnacle pilot collective bargaining agreement currently being negotiated.
d. Delta will be excused from compliance with the provisions of Section 1.a.-b. in the event a circumstance over which the Company does not have control (as defined in the Delta PWA) is the cause of such noncompliance.
2. Establishing Enhanced Career Progression
The following provisions establish enhanced career progression for Pinnacle pilots to advance to employment at Delta. The provisions consist of three components: (1) a streamlined, one-day selection process in seniority order; (2) a structured opportunity to repeat the process in the event a pilot does not successfully complete the process on an initial attempt; and (3) a commitment by Delta to hire a minimum number of Pinnacle pilots until the process is exhausted.
a. Streamlined Selection Process (“SSP”) in Seniority Order. Delta will provide a streamlined, one-day selection process in seniority order to all Pinnacle pilots who are on the Pinnacle pilot seniority list on the effective date of the new restructured Pinnacle pilot collective bargaining agreement.
b. Eligibility for the SSP. When eligible to progress under the SSP, a Pinnacle pilot must:
i. meet Delta’s established objective hiring criteria and requirements in place at the time the interview is offered,
ii. request to participate in the SSP, in a procedure to be established by Delta in coordination with Pinnacle and the Association,
Note: an otherwise eligible Pinnacle pilot who does not request to participate in the SSP the first time it would have been offered to him may thereafter submit a request to participate prior to the date of exhaustion of Delta’s hiring commitment under Section 2.h.
iii. provide full access to Delta to his employment and training records from Pinnacle, Mesaba and/or Colgan Airlines,
iv. be on the Pinnacle pilot seniority list at the time the opportunity to participate in the SSP is offered and thereafter remain on the seniority list until the date the pilot actually participates in the SSP,
v. either:
1) hold a Captain position at Pinnacle, or
2) have previously held a Captain position on the Pinnacle, Mesaba or Colgan pilot seniority list and be on an approved leave of absence from Pinnacle and not have
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accepted employment as a pilot while on leave at any of the following U.S. air carriers: American, United, US Airways, Southwest, JetBlue, Alaska, Hawaiian, FedEx, UPS, Virgin America, or Spirit.
vi. not be under a training freeze under the Pinnacle-ALPA CBA, and
vii. complete all application forms, paperwork or other application processes required by Delta of other applicants.
c. Elements of the SSP. Pinnacle pilots who participate in the SSP in seniority order will be exempted from the pilot candidate initial screening process that applies to other Delta pilot candidates. The content and schedule of the SSP may change from time to time subject to Delta’s determination but is anticipated to contain the testing and panel interview elements of Delta’s current “Day 1” pilot selection process, a review of a Pinnacle pilot’s employment and training records and potentially certain elements of Delta’s current “Day 2” interview process.
d. Repeat Opportunities to Participate in the SSP. An eligible Pinnacle pilot may be provided an opportunity to repeat the SSP if the pilot:
i. did not successfully pass any objective testing element of the selection process, or
ii. is potentially qualified to be provided with a conditional job offer but is not competitive with other applicants who had previously or are being provided with conditional job offers.
Such opportunity to repeat the SSP will only be afforded if the Pinnacle pilot maintains his eligibility as described above, requests to repeat the process and at least twelve months have passed since the previous date of participation in the SSP. A pilot who would otherwise be considered for a repeat opportunity will forfeit any such opportunity in the event he fails to request a repeat opportunity upon the exhaustion of the SSP, as set forth below.
e. Delta Hiring Commitment. Beginning the month following ratification of a new restructured Pinnacle pilot collective bargaining agreement, in each month in which Delta is offering new hire pilot positions, Delta will offer the lesser number of the following positions for employment to Pinnacle pilots:
i. one-third (1/3) of all available positions, apart from positions filled under LOA #9 and #10 of the Delta PWA (i.e., Compass and Mesaba Flow-Up) in effect as of December 1, 2012, or
ii.
2013 – 2016
2017
2018 & beyond
12
15
20
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Note one: the minimum number of available positions filled in Section 2.e.i. may be satisfied by offering positions to at least two-thirds (2/3) of such positions to Pinnacle pilots in seniority order under the SSP and one-third (1/3) to any eligible Pinnacle pilot. For example, if there are 30 available positions in a Delta new hire class apart from those filled by LOA #9 and LOA #10, seven (7) positions at a minimum would be filled by pilots under the SSP and three (3) may be filled by Pinnacle pilots selected outside the SSP.
Note two: the minimum number of available positions filled in Section 2.e.ii. may be satisfied by offering positions to Pinnacle pilots as follows:
2013 – 2016
2017
2018 & beyond
Minimum monthly # of eligible Pinnacle pilots for the SSP in seniority order
8
10
12
Potential monthly # of other Pinnacle pilots selected outside the SSP
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5
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f. Measurement of Compliance with Hiring Commitment. Delta’s compliance with the hiring commitment under Section 3 will be measured December 31, 2013 and each succeeding December 31 thereafter on the basis of the average number of Pinnacle pilots on the Pinnacle seniority list as of DOS who were offered employment in each month during the calendar year in which Delta offered new hire pilot positions apart from positions filled pursuant to LOA #9 and #10 of the Delta PWA. Any Pinnacle pilot who is offered employment but declines or otherwise fails to appear or delays appearance as scheduled for an assigned new hire class date will count towards compliance with the hiring commitment.
g. Forfeiture of Offer of Employment. A Pinnacle pilot who is offered employment by Delta under this Agreement but who thereafter fails to remain in continuous employment at Pinnacle until the date of his assigned release by Pinnacle will forfeit his offer of employment under this Agreement. Approved leaves of absence will be considered continuous employment for the purpose of this paragraph.
h. Exhaustion of Hiring Commitment. Delta’s hiring commitment under Section 3.e. will be exhausted and become null and void upon the date the most junior Pinnacle pilot on the seniority list as of the date of ratification of a new restructured Pinnacle pilot collective bargaining agreement is offered an opportunity to participate in the SSP in seniority order, provided, however, that any Pinnacle pilot who retains a repeat opportunity under Section 3.d. upon the date the hiring commitment is exhausted, or would obtain an opportunity to repeat the process within twelve (12) months of such date, will be afforded the opportunity to repeat the process upon his request. Such repeat opportunities will be scheduled at a minimum rate of 20 per month for the number of months in which Delta anticipates offering new hire pilot positions.
i. Termination of Hiring Commitment. The hiring commitment provisions of Section 3 will terminate if the aircraft commitments of Section 1 are terminated under Section 1.c.ii. under
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which the pilots employed by Pinnacle Airlines, or its successor, are no longer represented by ALPA.
j. Opportunity to Delay New Hire Class Start Date. Delta will provide Pinnacle pilots offered employment following completion of the SSP the same type of opportunity to delay entry into a new hire class date as is afforded other new hire pilots. The same type of opportunity may not mean the same result or length of available delay in each circumstance.
k. Pilots on Leaves of Absence. An eligible Pinnacle pilot on an approved leave of absence will be offered the ability to interview in seniority order. However, an offer of employment will not be extended under this Agreement unless and until the pilot is able to report for an assigned training date.
3. Funding of Enhanced Furlough Pay and Benefits
a. Delta will fund the furlough benefits contained in this Section 3 (and to be contained in the restructured Pinnacle pilot collective bargaining agreement) via a cost pass-through agreement with Pinnacle.
b. Pinnacle pilots eligible for benefits under this Section 3 (“Benefit Eligible Pilots”) are those pilots who are furloughed from active service at any time during the period starting after the effective date of this Agreement and ending at the end of the sixth full calendar month after the last CRJ-200 aircraft is removed from Pinnacle’s scheduled operation.
c. The enhanced furlough pay and benefits will include:
i. Enhanced Furlough Pay. Benefit Eligible Pilots with a 2013 furlough start date will receive three (3) months of minimum guarantee at the rate that was applicable to the Benefit Eligible Pilot during the month prior to the pilot’s effective date of furlough. Benefit Eligible Pilots with a 2014 or later furlough start date will receive one (1) month of minimum guarantee at the rate that was applicable to the Benefit Eligible Pilot during the month prior to the pilot's effective date of furlough. The payment shall be made at the time and subject to the conditions described in Section 3.c.viii.
ii. Extended Health Care Coverage. Access to Pinnacle health care coverage for Benefit Eligible Pilots and their eligible family members for the first three (3) months of furlough, at the rates applicable to active pilots.
1) After the first three (3) months of furlough, Benefit Eligible Pilots will have access to Pinnacle health care coverage for themselves and their eligible family members at COBRA rates for an additional fifteen (15) months or for such longer period as may be required by law.
2) Benefit Eligible Pilots may obtain the health care coverage referenced in this Section 3.c.ii. by making payment to Pinnacle at the appropriate rate in accordance with Pinnacle’s normal practices.
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iii. Accrued and Unused Vacation. Pinnacle will pay each Benefit Eligible Pilot’s accrued and unused vacation in their vacation bank as of the pilot’s effective date of furlough. The payment shall be made in accordance with Section 3.c.viii.
iv. Sick Bank Payout. Pinnacle will pay each Benefit Eligible Pilot his accrued and unused sick bank balance as of the pilot’s effective date of furlough (subject to a maximum payout of 450 hours). Such sick bank payouts will be paid in accordance with Section 3.c.viii.
v. Travel Privileges.
1) Benefit Eligible Pilots and their eligible family members will continue to receive NRSA travel privileges consistent with the privileges enjoyed by active pilots and their eligible pass riders except that, pursuant to standard interline travel agreements, no travel privileges will be available on carriers other than Delta Air Lines or Delta Connection carriers for any employee on any leave status. These travel privileges will be available for a period not greater than two years from the Benefit Eligible Pilot’s date of furlough or the date he is first offered recall from furlough by Pinnacle, whichever occurs first.
2) All travel privileges, including boarding priority, are subject to Delta’s policies in effect at the time of travel, which may change from time to time.
3) Benefit Eligible Pilots are responsible for the activation fee on their anniversary date.
vi. ATP and Type Rating. In the event a Benefit Eligible Pilot is qualified for but does not possess an ATP and type rating at the time of furlough, Pinnacle will make available an opportunity to obtain such rating within three (3) months following the date of furlough.
vii. Unemployment Compensation Claims. An unemployment compensation claim of any Benefit Eligible Pilot hereunder will not be challenged by Delta or Pinnacle. Delta and Pinnacle will comply with any information request required by a state agency.
viii. Payments. All payments provided by this Agreement will be paid to each Benefit Eligible Pilot in one lump sum, no later than thirty (30) days after the pilot’s effective date of furlough. Any amounts owed by the pilot to Pinnacle, including but not limited to uniform receivables and travel fees, will be deducted from the pilot’s last regular paycheck or from the pilot’s final payout under this paragraph 3.c.viii.
ix. Enhanced Furlough Pay and Benefit Dispute Resolution. Any disputes over matters owed to a pilot under this Section 3 that cannot be resolved within thirty (30) days after the dispute arises may be submitted for resolution by the System Board of Adjustment under the provisions of the Pinnacle – ALPA collective bargaining agreement.
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4. Longevity Transition Payments
a. Delta will fund Longevity Transition Payments contained in this Section 4 (and to be contained in the restructured Pinnacle pilot collective bargaining agreement) via a Delayed Draw Term Loan with Pinnacle.
b. Pinnacle pilots eligible for Longevity Transition Payments under this Section 4 (“Longevity Eligible Pilots”) are pilots on the Pinnacle Airlines Pilot Seniority List on the effective date of the restructured Pinnacle collective bargaining agreement except those pilots who are not in the craft or class of pilots.
c. Longevity Eligible Pilots will receive the Longevity Transition Payment specified below:
Longevity Year
(as of January 15, 2013)
Payment
1 $2000
2 $3000
3 $3000
4 $4000
5 $6000
6 $6000
7 $6000
8 $6000
9 $6000
10 $6000
11 $6000
12 $7000
13 $9000
14 $12000
15 $17000
16 $21000
17 $24000
18 $26000
19 $26000
20 or more $26000
d. The payments provided by this Section 4 will be paid to each Longevity Eligible Pilot in one lump sum no later than thirty (30) days after the occurrence of the effective date of the Plan of Reorganization in Pinnacle’s bankruptcy cases.
5. Effective Date of Bridge Agreement
a. The above aircraft and career progression commitments and funding of enhanced furlough and longevity transition benefits will become effective upon:
i. the ratification by the Pinnacle ALPA pilots of the restructured Pinnacle pilot collective bargaining agreement no later than 11:59pm EST January 15, 2013,
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ii. the entry in Pinnacle’s bankruptcy cases of a final, non-appealable order approving such restructured Pinnacle pilot collective bargaining agreement,
iii. satisfaction of all conditions precedent to Pinnacle drawing incremental term loans under its Senior Secured Super-Priority Debtor-in-Possession Credit Agreement,
iv. setting forth by the appropriate Association parties of an expedited process to obtain direction from Arbitrator Richard I. Bloch on the application of his award to the circumstances at Pinnacle in which CRJ-900 aircraft are being removed and added to the fleet and all CRJ-200 aircraft are being removed from the fleet. This process must request Arbitrator Bloch issue direction within 30 days following ratification of the collective bargaining agreement, and
v. agreement between Pinnacle and the Association to negotiate changes to the pilot collective bargaining agreement that reduce the projected training expenses to be incurred between the date of ratification and the cessation of 50-seat operations by no less than fifty percent (50%). If no agreement is reached on such changes by the later of sixty (60) days following ratification, or fifteen (15) days following receipt of direction from Arbitrator Bloch under Section 4.a.iv. of this Agreement, the Parties agree that a pilot’s rate of pay under the Pinnacle-ALPA Agreement will transition to the rate of the aircraft type for which he is training upon the first day of training until the final pilot training event related to the cessation of 50-seat operations has begun.
IN WITNESS WHEREOF, the Parties hereto have signed this Agreement this __ day of December, 2012.
FOR DELTA AIR LINES, INC. FOR THE AIR LINE
PILOTS ASSOCIATION
____________________________ ____________________________
Richard H. Anderson Captain Donald L. Moak
Chief Executive Officer President
FOR PINNACLE AIRLINES CORP. FOR THE PINNACLE MEC
____________________________ ________________________
John Spanjers Captain Tom Wychor
President Chairman
This Bridge Agreement requires a ratification deadline of January 15, 2013 as set forth in Section 5 above. If at any point in the process a new restructured pilot CBA is not ratified or approved by the Pinnacle MEC Negotiating Committee, the Pinnacle MEC or any other necessary party to Pinnacle’s Chapter 11 bankruptcy or necessary Association authority, this proposed Bridge Agreement is withdrawn.

Bucking Bar

Really?

I'm saying Lee Moak that is the negotiation Lee Moak authorized. My opinion is Lee Moak was wrong to do so.

I support MEC autonomy. I am fighting for the right of Delta Reps to be in the room representing Delta pilots.

Check Essential

The CMR pilots never had a contract with Delta Air Lines. Their management did.

That's the distinction. And it is crucial.

Sink r8

Maybe the interpretation of Section 1A. I always thought the Delta pilots were the exclusive agent that Delta deals with. I see permitted flying in section 1 but I don't see other permitted pilot groups.

And while it's not in our contract, the meet-and-confer procedure was possibly violated, And certainly revealed as flawed. It seems to me we should no longer be bound by it.

In either case, I think this issue will be best cleared with some straightforward accounting of what happened. Maybe that's a little premature. In that case, it could be spelled out more clearly that the MEC hasn't had a chance to review this, but it will do so at the next regular meeting. When is the next MEC meeting anyway?

Sink r8

For all I know, that's exactly what happened. It really could be that simple.

Bucking Bar

That's what some Reps are thinking and it is very dangerous to our union ....

"They did not follow the rules they did not like, so we won't either"

That's anarchy.

Those rules exist to resolve conflicts of interest within our union BEFORE our union sits down at the table with management.

The central argument of the DPA is valid without those rules.

We want our conflicts resolved within our union, not at the Courthouse. Further, the Admin Manual language was the resolution of a class action lawsuit and ALPA is now in breach of that settlement agreement. That is not my dog in this fight, but I fully expect ALPA will be back in Court over this.

Bucking Bar

T O'M communicated the status. The Delta MEC was not notified.

( ... and that would have been the easy fix. One day meeting with the NC and the Delta MEC added to the signature block ... why they did not do that is beyond me ... who knows ? )

But, now that it is out there, it simply must be fixed for the Delta MEC to maintain any appearance of relevance.

Sink r8

Great question. I asked myself the same thing. As a result, I'm not certain that I want to be fully invested in this issue. But, as you said, there is probably a problem with the meet and confer provisions of the ALPA policy. If it was not respected, there should be a remedy, for instance removing our responsibilities to meet and confer in return.

Perhaps an even better question than what we would have done had we been at the table, is simply why we were not at the table in the first place? Do we not have a special relationship going?

One interesting angle on this is that we may actually be helping the company at no cost to us. The permitted flying has not increased as a result of this TA. However, it has made it easier for Delta to deal with a DCI carrier, potentially at a lower cost. Perhaps we are doing them a favor, for another favor in return? Ironically, this helps Delta potentially whipsaw two carriers, but does not necessarily harm the Delta pilots. At least not now.

We must also not forget that these discussions, while not very important with respect to Pinnacle, might be very important when it comes to Virgin Atlantic.

JungleBus

The ALPAoids here claiming that DALPA had no interest in these negotiations and didn't mind not even being notified are hilarious. They're actually making an argument for ALPA's irrelevance, as well as basically admitting that constructive engagement is a failed experiment as DALPA, despite all the flexibility it has shown the company, still has no power to do anything beyond enforce the letter of the contract.

Bucking Bar

Sink,

You "get it." But, without Section 40 mainline carriers can not remain inside ALPA.

If express carriers can leverage ALPA's representational exclusivity to bid on mainline flying then the mainline carriers have to leave.

We must make ALPA National follow the damn rules and we have to follow them too, or leave ALPA.

... and your point about Alaska, Virgin, ASA (really any airline) is exactly right.

Further, I submit the senior attorney that got us into this mess needs to retire.