ATA negotiations update
#1
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This is Erik Engdahl with your ATA VARS Message for Friday, July 29th.
There will be three items in this message:
#1. Negotiations Update
#2. MEC Changes
#3. SPC Event
Item #1. - Negotiations Update
Earlier today the MEC met via conference call with the Negotiating Committee,
our bankruptcy lawyer and our ALPA staff to discuss the status of our talks with
the Company regarding long-term contract changes. Unfortunately, we learned the
negotiations are not going well, and we may wind up going to an 1113 bankruptcy
hearing where the judge could impose his own set of contract terms and
conditions upon us. Let me explain how we got to where we are now, and where we
may be going next.
At the beginning of the week Al Terry and his negotiating team presented our
comprehensive contract proposal to the Company for review. Our negotiators spent
several weeks going over the CBA and ATA's operations with a fine-tooth comb,
looking for every opportunity to save ATA money WITHOUT reducing our
compensation and retirement. They identified millions of dollars in direct
savings through trip rigs, duty rigs, other scheduling improvements and
additional changes. Mark Kesling of the R&I Committee and Richard Pavel of
ALPA's R&I Department looked over the retirement, health care and CMPP portions
of the CBA. We thought we were working productively with the Company and looked
forward to their counterproposal.
Today the Company came back to our negotiators and essentially gave them a
demand that is virtually identical to the contract terms they asked for in May.
This was not a counterproposal, but a reiteration of the same requests they have
been making for months. The dollar value they seek to take from us is roughly
twice as much as what Al presented in the ALPA proposal, and they have not
budged from that original number, even though they cannot explain to us how that
dollar figure will actually help ATA survive... that is, they have not told us
how their proposal fits into the larger scheme of their business plan.
We are still willing to negotiate with the Company, up to and including August
10, the day they say they will file an 1113 motion if a TA is not reached. But
based on the Company's almost total unwillingness to compromise, we can only
assume that we are headed for bankruptcy court, perhaps as early as the week
after next. We are now focusing our efforts in two directions: negotiation and
litigation.
On the negotiation side, we have asked for a meeting next week with ATA's new
Chief Financial Officer, Frank Conway. We want to discuss a discrepancy in our
valuation of the proposals versus the company's, find out exactly how the
Company reached the dollar value it has set for concessions from us, and how our
giving that money will help them reorganize and become competitive. We are
already the lowest-cost carrier in the industry -- we demand to know how cutting
our compensation can possibly save the company when nothing is being done to
build up the revenue side of the house.
On the litigation side, our attorneys are preparing our arguments in advance of
the anticipated 1113 filing. We believe we have a good case. We have already
sacrificed far more than any other employee group, both in compensation and
furloughs. In terms of raw dollars we have already contributed more money to the
airline than Southwest has. Southwest received a 27 percent share of the airline
in exchange for its investment - what have we gotten back so far?
The clock is ticking and it looks as though the decision date is August 10. The
MEC and ALPA are prepared for whatever happens, and we will fight any effort to
further cut your pay, whether it is proposed by the Company or imposed by Judge
Lorch.
Item #2. - MEC Changes
Those of you in Council 97 should know by now that LEC 97 Chairman Capt. Kevin
Friel is resigning his position, effective August 1st. An LEC meeting will be
held in Indianapolis on August 11 to name an interim replacement and accept
nominations for a permanent captain's rep. Kevin has spent the last several
years working for this union at the LEC, MEC and committee levels, and we will
miss his energy and sound advice.
Council 98 Flight Engineer Rep Frank Thomas will also be missing from the MEC
for a while. Frank was recently diagnosed with cancer and will be undergoing
radiation and chemotherapy treatment at Stanford University Hospital. Please
join me in sending best wishes to Frank and his family, and I know we will all
be praying for his fast and complete recovery.
Item #3. - SPC Event
Capt. Seth Cooperman would like to announce the next Family Awareness event
hosted by the SPC Committee. The SPC will be sponsoring a get-together in
Phoenix at the end of August, probably either August 20th or 27th. The details
haven't been finalized, but we will have free food and family members will be
invited, just like the SPC barbecue we had the week before last in Chicago.
We'll give you more information once the planning has been completed.
That's it for this week. Have a great weekend, fly safe, and be sure to check
your voicemail and e-mail regularly for MEC updates.
Erik Engdahl, MEC Chairman
# # #
Rusty Ayers, MEC Communications Specialist
There will be three items in this message:
#1. Negotiations Update
#2. MEC Changes
#3. SPC Event
Item #1. - Negotiations Update
Earlier today the MEC met via conference call with the Negotiating Committee,
our bankruptcy lawyer and our ALPA staff to discuss the status of our talks with
the Company regarding long-term contract changes. Unfortunately, we learned the
negotiations are not going well, and we may wind up going to an 1113 bankruptcy
hearing where the judge could impose his own set of contract terms and
conditions upon us. Let me explain how we got to where we are now, and where we
may be going next.
At the beginning of the week Al Terry and his negotiating team presented our
comprehensive contract proposal to the Company for review. Our negotiators spent
several weeks going over the CBA and ATA's operations with a fine-tooth comb,
looking for every opportunity to save ATA money WITHOUT reducing our
compensation and retirement. They identified millions of dollars in direct
savings through trip rigs, duty rigs, other scheduling improvements and
additional changes. Mark Kesling of the R&I Committee and Richard Pavel of
ALPA's R&I Department looked over the retirement, health care and CMPP portions
of the CBA. We thought we were working productively with the Company and looked
forward to their counterproposal.
Today the Company came back to our negotiators and essentially gave them a
demand that is virtually identical to the contract terms they asked for in May.
This was not a counterproposal, but a reiteration of the same requests they have
been making for months. The dollar value they seek to take from us is roughly
twice as much as what Al presented in the ALPA proposal, and they have not
budged from that original number, even though they cannot explain to us how that
dollar figure will actually help ATA survive... that is, they have not told us
how their proposal fits into the larger scheme of their business plan.
We are still willing to negotiate with the Company, up to and including August
10, the day they say they will file an 1113 motion if a TA is not reached. But
based on the Company's almost total unwillingness to compromise, we can only
assume that we are headed for bankruptcy court, perhaps as early as the week
after next. We are now focusing our efforts in two directions: negotiation and
litigation.
On the negotiation side, we have asked for a meeting next week with ATA's new
Chief Financial Officer, Frank Conway. We want to discuss a discrepancy in our
valuation of the proposals versus the company's, find out exactly how the
Company reached the dollar value it has set for concessions from us, and how our
giving that money will help them reorganize and become competitive. We are
already the lowest-cost carrier in the industry -- we demand to know how cutting
our compensation can possibly save the company when nothing is being done to
build up the revenue side of the house.
On the litigation side, our attorneys are preparing our arguments in advance of
the anticipated 1113 filing. We believe we have a good case. We have already
sacrificed far more than any other employee group, both in compensation and
furloughs. In terms of raw dollars we have already contributed more money to the
airline than Southwest has. Southwest received a 27 percent share of the airline
in exchange for its investment - what have we gotten back so far?
The clock is ticking and it looks as though the decision date is August 10. The
MEC and ALPA are prepared for whatever happens, and we will fight any effort to
further cut your pay, whether it is proposed by the Company or imposed by Judge
Lorch.
Item #2. - MEC Changes
Those of you in Council 97 should know by now that LEC 97 Chairman Capt. Kevin
Friel is resigning his position, effective August 1st. An LEC meeting will be
held in Indianapolis on August 11 to name an interim replacement and accept
nominations for a permanent captain's rep. Kevin has spent the last several
years working for this union at the LEC, MEC and committee levels, and we will
miss his energy and sound advice.
Council 98 Flight Engineer Rep Frank Thomas will also be missing from the MEC
for a while. Frank was recently diagnosed with cancer and will be undergoing
radiation and chemotherapy treatment at Stanford University Hospital. Please
join me in sending best wishes to Frank and his family, and I know we will all
be praying for his fast and complete recovery.
Item #3. - SPC Event
Capt. Seth Cooperman would like to announce the next Family Awareness event
hosted by the SPC Committee. The SPC will be sponsoring a get-together in
Phoenix at the end of August, probably either August 20th or 27th. The details
haven't been finalized, but we will have free food and family members will be
invited, just like the SPC barbecue we had the week before last in Chicago.
We'll give you more information once the planning has been completed.
That's it for this week. Have a great weekend, fly safe, and be sure to check
your voicemail and e-mail regularly for MEC updates.
Erik Engdahl, MEC Chairman
# # #
Rusty Ayers, MEC Communications Specialist
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