Delta Pilots Association
12-13-2011, 10:37 AM
#6931
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,049
DPA Christmas Message
The DPA released its "Christmas Message" which included a NEWSFLASH:
Delta Pilots Association - DPA News - The Conflict of Interest: APA and ALPA ClearlyDefined
The DPA notes ALPA's "Conflict of Interest" then gets it exactly backwards with regard to the politics, the threats and the reality of ALPA's influence on APA negotiations.
It has been the APA's long standing position that American scope should return to:
As American Airlines approached bankruptcy, it began a spin off of American Eagle. Since Eagle's valuation as a Company depends entirely on the American Airlines Section 1, management's plan fell on its face as smarter folks began to realize that you can't IPO a company, then negotiate them out of business the very next day. Having the American contract open denied management of the money Delta raised just prior to bankruptcy by spining off ASA.
We know ALPA's play book. We have seen it in action at Eastern, US Air, United, Northwest and Delta. It works like this:
(1) ALPA presupposes that small jets are not capable of "mainline" style contracts.
(2) Best to remove the lower paying jets from the property, then limit their numbers by scope clauses which focus on "permitted" outsourcing.
(3) Use scope violations as "bargaining capital" to achieve unrelated contractual gains where feasible.
(4) Employ "no furlough" clauses as job protection to offset the loss of jobs inherent in the outsourcing agreements.
Die hard unionists realize that behind the valid logic of this strategy is the reality of selling of junior members' jobs and senior members' position. When they object they are shouted down with legal arguments which are mostly beyond their ability to evaluate accurately. This is how TWA got rolled (or better stated "rolled themselves") No Judge in any Court has ever invalidated a labor protection provision ... could they? ... maybe ... no one has pressed to test on the issue. Let me explain why.
ALPA's position is that mainline members benefit from outsourcing. The low pay, lack of unity (whipsaw), and loss of longevity help management to save money which hopefully results in greater profits to be shared with the preferred mainline members. Remember the word "savings" and "profits."
In ALPA's view, effective regional scope could harm mainline members. The more cut throat competition among the regional carriers the greater the potential profits which ALPA hopes to distribute among mainline pilots. Even if ALPA's statements in the press deliberately obsfucate the issue, their actions are clear. In every case during the last 13 years, ALPA has resisted attempts by regional carriers to bind their mainline carriers to their services.
My forecast is that the APA will roll over on scope and adopt a "Delta Style" Section 1. ALPA's role, which it has already accomplished to some degree, is to remove Eagle's hold on American's small jet flying. Management will then put that work out for competitive bid.
ALPA hopes the APA will be able to leverage that situation to improve the results in mainline bargaining.
P.S. I applaud the DPA's and Tim Caplinger's support for Toys for Tots. Certainly his heart is in the right place. If his head was in the right place, he would have my enthusiastic support.
To the extent that ALPA has a conflict of interest, they resolve it in our favor. As this goes forward, put together the changes in Eagle's scope and watch this at work. It will be management that does the really ugly stuff and who should get the blame, but when ALPA withdraws scope, there's nothing left to protect pilots.
Delta Pilots Association - DPA News - The Conflict of Interest: APA and ALPA ClearlyDefined
The DPA notes ALPA's "Conflict of Interest" then gets it exactly backwards with regard to the politics, the threats and the reality of ALPA's influence on APA negotiations.
It has been the APA's long standing position that American scope should return to:
“All flying performed by the Company, a subsidiary, or affiliate directly or indirectly controlled by the Company, or successor in interest, or flying performed on behalf of the Company as a result of any agreement to which the Company is a party or becomes a party, shall be performed by pilots named on the active American Airlines Pilots Seniority List.”
We know ALPA's play book. We have seen it in action at Eastern, US Air, United, Northwest and Delta. It works like this:
(1) ALPA presupposes that small jets are not capable of "mainline" style contracts.
(2) Best to remove the lower paying jets from the property, then limit their numbers by scope clauses which focus on "permitted" outsourcing.
(3) Use scope violations as "bargaining capital" to achieve unrelated contractual gains where feasible.
(4) Employ "no furlough" clauses as job protection to offset the loss of jobs inherent in the outsourcing agreements.
Die hard unionists realize that behind the valid logic of this strategy is the reality of selling of junior members' jobs and senior members' position. When they object they are shouted down with legal arguments which are mostly beyond their ability to evaluate accurately. This is how TWA got rolled (or better stated "rolled themselves") No Judge in any Court has ever invalidated a labor protection provision ... could they? ... maybe ... no one has pressed to test on the issue. Let me explain why.
ALPA's position is that mainline members benefit from outsourcing. The low pay, lack of unity (whipsaw), and loss of longevity help management to save money which hopefully results in greater profits to be shared with the preferred mainline members. Remember the word "savings" and "profits."
In ALPA's view, effective regional scope could harm mainline members. The more cut throat competition among the regional carriers the greater the potential profits which ALPA hopes to distribute among mainline pilots. Even if ALPA's statements in the press deliberately obsfucate the issue, their actions are clear. In every case during the last 13 years, ALPA has resisted attempts by regional carriers to bind their mainline carriers to their services.
My forecast is that the APA will roll over on scope and adopt a "Delta Style" Section 1. ALPA's role, which it has already accomplished to some degree, is to remove Eagle's hold on American's small jet flying. Management will then put that work out for competitive bid.
ALPA hopes the APA will be able to leverage that situation to improve the results in mainline bargaining.
P.S. I applaud the DPA's and Tim Caplinger's support for Toys for Tots. Certainly his heart is in the right place. If his head was in the right place, he would have my enthusiastic support.
To the extent that ALPA has a conflict of interest, they resolve it in our favor. As this goes forward, put together the changes in Eagle's scope and watch this at work. It will be management that does the really ugly stuff and who should get the blame, but when ALPA withdraws scope, there's nothing left to protect pilots.
Last edited by Bucking Bar; 12-13-2011 at 11:06 AM.
12-13-2011, 10:53 AM
#6932
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,049
As a supplement to the above post, From the Dallas Morning News:
pilot union negotiators have warned American Eagle pilots that pilot costs will have to come down if American Eagle is to keep its contract to fly for American Airlines. American Airlines and parent AMR are in the process of spinning off American Eagle as a separate company owned by AMR shareholders. American has been open in saying that the deal eventually will allow it to buy capacity from the lowest bidder, whether it's American Eagle or someone else.
In the update from the Air Line Pilots Association negotiating committee, the committee says it is trying to get a contract that provides job security for pilots and an opportunity for American Eagle to grow, as American Eagle discusses an "air services agreement" [ASA] with American.
But, the negotiating committee added:
In the update from the Air Line Pilots Association negotiating committee, the committee says it is trying to get a contract that provides job security for pilots and an opportunity for American Eagle to grow, as American Eagle discusses an "air services agreement" [ASA] with American.
But, the negotiating committee added:
"Now let's not dance around what this means: a longer-term and more robust ASA will not come to us for free. AA is demanding that Eagle guarantee market-rate feed in exchange for guaranteed flying. "Because the pilots make up the majority of Eagle's current cost disparity, the ability to guarantee market-rate feed falls largely within the pilots' control. Said plainly, the company is demanding concessions in return for the job security we desire.
"With this in mind, the Negotiating Committee has some ideas for ways to meet the company's stated objectives while minimizing the impact on the pilots. This does not mean, however, that a concession-free deal is achievable, and there is no point in pretending otherwise.
"What remains to be seen is whether we are able to reach a deal that will capture an appropriate level of pilot job security at a price worth paying."
"With this in mind, the Negotiating Committee has some ideas for ways to meet the company's stated objectives while minimizing the impact on the pilots. This does not mean, however, that a concession-free deal is achievable, and there is no point in pretending otherwise.
"What remains to be seen is whether we are able to reach a deal that will capture an appropriate level of pilot job security at a price worth paying."
12-13-2011, 10:59 AM
#6933
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,049
And more documentation from ALPA:
The big question is what will be the Air Services Agreement with American and will it be enforceable?
So in conclusion:
• Job Protection/Furlough Protection
Job protections for American Eagle pilots are also secured. During the first five years, in the event American Eagle management changes any agreed-to tenets of the ASA with American Airlines without ALPA's consent, then our agreement immediately triggers the protection of the number of Captain and First Officer jobs necessary to staff our air services agreement. If, after the first five years, American Eagle management changes any agreed-to tenets of the ASA with American Airlines without ALPA's consent, that will trigger the furlough protection of every American Eagle pilot on property at the time. The original ASA filed in the Form 10 had no such provision.
• Incentivized Flow Package
A financial bridge will be enacted which will allow Eagle pilots to transition to other mainline carriers, including AA, with minimal, if any, loss in take-home pay.
The company will offer, at the pilot's option, either a "make whole" loan or a lesser cash grant. Pilots who elect the loan option will have the first three years of interest paid by the company. The amount for which a pilot qualifies will vary based on his Eagle pay and the mainline carrier's first year pay at the time of his transfer. The pilot will be able to draw up to 67% of the total amount in the first year, up to 83.5% of the total amount in year two, and the remainder in year three. No principle payments will be due during the first three years. Following the three-year draw period, a pilot will have seven years to repay the loan. The interest rate will be adjusted quarterly to reflect prime plus 3.5% during the seven year repayment period.
Alternatively, and in lieu of the loan outlined above, a pilot may take a one-time cash grant. The amount of the cash grant is based on the amount of interest the company would have otherwise paid had the pilot taken the loan option.
Job protections for American Eagle pilots are also secured. During the first five years, in the event American Eagle management changes any agreed-to tenets of the ASA with American Airlines without ALPA's consent, then our agreement immediately triggers the protection of the number of Captain and First Officer jobs necessary to staff our air services agreement. If, after the first five years, American Eagle management changes any agreed-to tenets of the ASA with American Airlines without ALPA's consent, that will trigger the furlough protection of every American Eagle pilot on property at the time. The original ASA filed in the Form 10 had no such provision.
• Incentivized Flow Package
A financial bridge will be enacted which will allow Eagle pilots to transition to other mainline carriers, including AA, with minimal, if any, loss in take-home pay.
The company will offer, at the pilot's option, either a "make whole" loan or a lesser cash grant. Pilots who elect the loan option will have the first three years of interest paid by the company. The amount for which a pilot qualifies will vary based on his Eagle pay and the mainline carrier's first year pay at the time of his transfer. The pilot will be able to draw up to 67% of the total amount in the first year, up to 83.5% of the total amount in year two, and the remainder in year three. No principle payments will be due during the first three years. Following the three-year draw period, a pilot will have seven years to repay the loan. The interest rate will be adjusted quarterly to reflect prime plus 3.5% during the seven year repayment period.
Alternatively, and in lieu of the loan outlined above, a pilot may take a one-time cash grant. The amount of the cash grant is based on the amount of interest the company would have otherwise paid had the pilot taken the loan option.
• The air services agreement (ASA) with American Airlines will guarantee American Eagle its entire jet fleet for five years. The original ASA promised only two years. As American spins off American Eagle, American is keeping AE's jets and related debt.
• American Eagle/ALPA will have "right of first refusal" if American Airlines opens up commuter flying out of San Juan, Puerto Rico.
"This means that if AA were to place all or a portion of Eagle's SJU operation out for bid, Eagle would have the final say, allowing it to match and secure that bid."
• A "right of first refusal" for flying done by half of the 36-aircraft ATR-72 fleet.
• American Eagle/ALPA will have "right of first refusal" if American Airlines opens up commuter flying out of San Juan, Puerto Rico.
"This means that if AA were to place all or a portion of Eagle's SJU operation out for bid, Eagle would have the final say, allowing it to match and secure that bid."
• A "right of first refusal" for flying done by half of the 36-aircraft ATR-72 fleet.
- American no longer bound to keep Eagle as an only provider of regional lift
- Eagle pilots promised jobs under a yet to be determined Air Service Agreement, which includes a lot of airplanes American Airlines has already stated an intent to park during bankruptcy.
- Eagle pilots get a "flow through to no where" with loan provisions which have to be repaid
12-13-2011, 02:06 PM
#6934
Gets Weekends Off
Joined APC: Feb 2009
Position: right for a long, long time
Posts: 2,642
So in conclusion:
- American no longer bound to keep Eagle as an only provider of regional lift
- Eagle pilots promised jobs under a yet to be determined Air Service Agreement, which includes a lot of airplanes American Airlines has already stated an intent to park during bankruptcy.
- Eagle pilots get a "flow through to no where" with loan provisions which have to be repaid
12-13-2011, 04:48 PM
#6936
Gets Weekends Off
Joined APC: Nov 2011
Posts: 107
12-13-2011, 05:02 PM
#6937
Gets Weekends Off
Joined APC: Feb 2009
Position: right for a long, long time
Posts: 2,642
12-13-2011, 05:09 PM
#6938
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,049
12-13-2011, 05:11 PM
#6939
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 12,049
Exactly ... if there is a "Conflict of Interest" and we're losing (as the DPA claims) then we should see just how well "the other side" is doing.
I'm much happier here, represented by ALPA, than if I were there, represented by ALPA.
I'm much happier here, represented by ALPA, than if I were there, represented by ALPA.
12-13-2011, 05:43 PM
#6940
The Brown Dot +1
Joined APC: Jun 2009
Position: 777B
Posts: 7,775
Bar;
I think the point is that ALPA doesn't do a good job no matter who they are representing. In this case American Eagle.
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