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Old 01-26-2009, 06:50 PM
  #31  
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Here is the full letter from our union President:

Join Date: Sep 2008
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Carl's Blog
STRAIGHT TALK FROM YOUR PRESIDENT
Fellow pilots,

As you know I brought the BoD in this week for an unscheduled meeting. The purpose of the meeting was to discuss in detail negotiating developments on the most significant section in our contract, Section I. Section I is our scope language. Fundamentally it is the most important section in our contract because it defines our work and any exceptions allowed to it. Without strong, solid scope language our contract is worthless. Our goal during this section 6 has been to strengthen our current language and build protections in place in areas where necessary. One of those places was code share. You may recall that scope and codeshare was the first section tackled by our Negotiating Committee. It was first at the Company's request. Typically this section is the last to be negotiated due to its contentious nature. In a twist of fate it will be not only the first section tackled, it will be the last. Permit me to explain.

Our NC agreed to tentative language in the fall of 2007. On three separate occasions following that agreement the Company has re-opened Section I with new proposals while negotiations continued on other areas of the contract. On each occasion, SWAPA has renegotiated new language with better protections including stronger language for our pilot group. It is important to remember that the current contract scope language, including SL 32 (dealing with code share) is in effect. The main provision in SL 32 is a growth requirement of 5% averaged annually through 2010. The Company has been in compliance with the growth requirements of SL 32 since membership approval. If you have read the Company's earnings release today you clearly saw where our CEO announced zero planned growth for 2009 and 2010. That news is a significant setback for our pilot group. The Company will take delivery of 9 new aircraft in 2009 and as of this writing will retire older classic aircraft to end the year with 535 aircraft, down from 537 in 2008. Additionally, 2010 and 2011 delivery schedules have been modified with 2010 now down to 10 aircraft delivery. Unfortunately, the Company is planning 10 retirements in 2010.

On Tuesday CEO Gary Kelly met with the BoD for over three hours. When he arrived at SWAPA approximately 25 of our pilots greeted him in uniform encouraging him to "do the right thing" on code share. This grass roots show of support was a surprise to not only our CEO but your BoD. This event was not organized by SWAPA but is greatly appreciated. I am very pleased that these pilots took time out of their day to come down and show their support for SWAPA. This kind of support by our pilots may become more widespread in the weeks and months ahead if we are unable to reach an agreement with the Company. You have shared your willingness to participate in a member rally and other union activities to show member resolve. It's great to know that the support is there. We may be calling on all of you in the days ahead.

In his conversation with the BoD Gary shared his views on credit markets, fuel developments, revenue initiatives, customer service issues, the economic picture and the outlook for growth for the next two years. He further stated that the Company will not meet the 5% growth requirement included in SL 32 and current language that has been negotiated. Technically the Company is still in compliance with SL 32 but will not be on January 1, 2010 if the plans for 2009/2010 hold true. Our NC is currently assessing our options including opportunities created by this development. Zero growth is never a good thing for a Company. If the Company does not grow, our costs will increase due to higher average labor costs across all employee groups and lower aircraft utilization. Unfortunately the economic outlook is grim. All of our consultants are predicting a worsening economy in the next 6-9 months followed by a modest improvement in 4Q09. 2010 is largely an unknown due to the impact of any economic stimulus.

The impact to our bargaining is acute. We are near the end of a very long contract negotiation with only a few items open. Our NC is working on final language in several areas including scheduling issues recently resolved. And the Company has once again asked to re-open Section I. So it appears that Section I was not only the first section negotiated, it will be the last. And that's the way it should be. It's the most important section and we must get it right. It's about protecting our jobs and we will not be rushed. Your patience and support is greatly appreciated by our team.

CK
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Old 01-26-2009, 09:29 PM
  #32  
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Originally Posted by 4 Fan Trashcan
Will the new contract have a provision for required growth? Especially considering the ruckus that the Volaris & WestJet codeshare caused?
We already have a provision for growth called SL32. Average of 5% of growth annually in order to codeshare. Company won't be in compliance with it beginning of 2010, but I can bet you the codeshare won't stop. Our union leaders are deciding what actions to take. I'm betting it's going to be no action.
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Old 01-27-2009, 07:04 AM
  #33  
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Originally Posted by C17MooseDriver
We already have a provision for growth called SL32. Average of 5% of growth annually in order to codeshare.
If the company won't be in compliance here, do you think SWAPA will make them sweeten the deal in terms of pay/schedule/retirement?
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Old 01-27-2009, 07:17 AM
  #34  
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Do I think the union should do something? Yes, will they, I duobt it. The best thing the pilots can do (on the contract) is a NO vote if it has code share in it. I will not sell out the junior guys for a 2% pay raise for a contract that has no growth involved!

I know you guys and gals are happy to be swimming in the pool, but if we continue the way we are going pretty soon some of you will drown!
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Old 01-27-2009, 08:58 AM
  #35  
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Originally Posted by ACEFLYERSWA
Do I think the union should do something? Yes, will they, I duobt it. The best thing the pilots can do (on the contract) is a NO vote if it has code share in it. I will not sell out the junior guys for a 2% pay raise for a contract that has no growth involved!

I know you guys and gals are happy to be swimming in the pool, but if we continue the way we are going pretty soon some of you will drown!
Very true, but it is nice to know you guys are thinking of us already.

Thanks
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Old 01-27-2009, 09:41 AM
  #36  
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Originally Posted by ACEFLYERSWA
Do I think the union should do something? Yes, will they, I duobt it. The best thing the pilots can do (on the contract) is a NO vote if it has code share in it. I will not sell out the junior guys for a 2% pay raise for a contract that has no growth involved!

I know you guys and gals are happy to be swimming in the pool, but if we continue the way we are going pretty soon some of you will drown!
I completely agree!.

Unfortunately, reading our SWAPA forums, I believe there are guys (severe Kool-Aid drinkers) who would sellout regarding codeshare. This isn't Herbs company anymore.
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Old 01-27-2009, 09:48 AM
  #37  
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Originally Posted by ACEFLYERSWA
I know you guys and gals are happy to be swimming in the pool, but if we continue the way we are going pretty soon some of you will drown!
Thanks for keeping us in mind. It'll work out, it's just going to take a lot longer than anybody (you, us, and the company) wanted.
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Old 02-09-2009, 06:53 AM
  #38  
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A few quotes from our CEO:


But growth flattened during the fourth quarter of last year, and Kelly said Southwest will shrink by more than 4 percent in 2009. Any growth plans are suspended indefinitely.


Kelly said he has no plans to lay off employees. But he wouldn’t rule out using voluntary buyouts or early retirements to reduce Southwest’s work force if necessary.
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Old 02-09-2009, 07:31 AM
  #39  
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Originally Posted by ACEFLYERSWA
A few quotes from our CEO:


But growth flattened during the fourth quarter of last year, and Kelly said Southwest will shrink by more than 4 percent in 2009. Any growth plans are suspended indefinitely.


Kelly said he has no plans to lay off employees. But he wouldn’t rule out using voluntary buyouts or early retirements to reduce Southwest’s work force if necessary.
A 4% shrink translates into about 20 to 24 airplanes less. That's about 200 to 250 pilots. I think a furlough is coming at SWA, your're right it's not Herb's airline anymore, Mr. Kelly has turned into American Airlines. Going to be a a few new Captains going back to the FO seat from the way it looks.
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Old 02-09-2009, 08:29 AM
  #40  
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Originally Posted by River6
A 4% shrink translates into about 20 to 24 airplanes less. That's about 200 to 250 pilots. I think a furlough is coming at SWA, your're right it's not Herb's airline anymore, Mr. Kelly has turned into American Airlines. Going to be a a few new Captains going back to the FO seat from the way it looks.
Facts please. Or is this just conjecture on your part? I'm sure the junior FO's would love to hear what you know.

SWA is one of the only airlines around that hasn't declared bankruptcy or taken a taxpayer bailout. Yes, hard times are here for everyone....but if SWA is hurting, what about everybody else??

I'm playing the odds that SWA will still be standing when everything is said and done. Pretty sure the rest of the guys in the pool and the junior FO's feel the same way.
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