United MEC Merger Cmte letter
12-14-2006, 08:59 AM
#1
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Thread Starter
Joined APC: Feb 2005
Position: Dallas, Texas
Posts: 515
United MEC Merger Cmte letter
December 13, 2006
Dear Fellow United Pilot:
It has come to the UAL-MEC Merger Committee's attention that there are some serious misconceptions and blatant misstatements floating around concerning the seniority integration process should United merge with any other airline. Specifically, the suggestion has been made that the United Pilots would be better off if they were not in ALPA in the event of a merger.
Nothing could be further from the truth.
As we have said in our document that we published earlier entitled Merger
101, ALPA Merger and Fragmentation Policy governs in the event that ALPA
represents both pilot groups. ALPA's Merger and Fragmentation Policy
contains a detailed process, which ultimately leads to an integrated
seniority list, whether that seniority integration is achieved through
negotiations, mediation or in final and binding arbitration. The standard,
or test, contained in the policy provides that the lists are to be
integrated in a "fair and equitable" manner.
That "fair and equitable" test has been the ALPA standard for decades. It
finds its origins in the so-called "Labor Protective Provisions" ("LPPs"),
which the old Civil Aeronautics Board (CAB) historically imposed on carriers
as a condition of the merger. The last time the CAB modified their terms
was in the Allegheny-Mohawk merger, which occurred in 1971. Section 3 of
the LPPs required that the seniority lists of each class or craft of
employees be merged in a "fair and equitable manner." Section 13 of the
LPPs provided that, failing a consensual agreement between the two groups,
the dispute had to be arbitrated in a proceeding involving management and
the two employee groups.
ALPA designed its process, using the same LPPs test, as one limited to the
two pilot groups with the ultimate result then taken to management for
acceptance as part of a new, combined collective bargaining agreement.
Although management theoretically had the right to arbitrate under Section
13 the fairness of the list as presented by ALPA, this almost never happened
as management usually was only interested in ensuring that the integrated
list did not add significant costs to the operation.
Following the Airline Deregulation Act of 1978, the Department of
Transportation, which had taken over the role of the disbanded CAB in
reviewing airline mergers, served notice on carriers and labor organizations
that it intended to discontinue the historic practice of applying LPPs to
mergers, and that the parties should therefore negotiate such provisions if
they wanted their protections.
ALPA immediately made negotiation of LPPs a priority contract item and you
can find reference to what now are termed "contractual LPPs" in Sections 1-D
and 1-E of your Agreement. Among other things, they guarantee that United
pilots will have the protection of the Allegheny-Mohawk LPPs, including a
"fair and equitable" seniority integration in the event that United were to
be acquired by another carrier, or if United engaged in the sale of a
significant portion of its flying operations. United is contractually bound
to make a "fair and equitable" seniority integration a condition of any
transaction. It was a provision such as this in the Flying Tiger pilots'
agreement, which forced Federal Express and its pilots, who were not members of ALPA at that time, to engage in a seniority arbitration. In addition,
and even more remarkably, it was a provision such as this in the Western
Airlines Flight Attendant agreement which forced Delta and its non-union
Flight Attendants to engage in a seniority integration arbitration when
Delta bought Western.
The significant fact is that almost all ALPA carriers, including Continental
and Delta, have virtually identical language in their agreements. Even if
the United pilots were not represented by ALPA, because of these provisions
in the other pilot group's contract, we still would be required to engage in
a seniority integration arbitration under a "fair and equitable" standard if
we merged with either of these carriers. Simply stated, neither Continental
nor Delta could legally enter into an agreement with United without such a
guarantee for all pilots even if United's pilots were not in ALPA.
How, then, you might ask, did the American pilots avoid an arbitration with
the TWA pilots? The simple fact is that a court found at the time American
proposed to buy TWA that TWA was on the verge of liquidation. The TWA
pilots were told by American that they would have to waive their contractual
right to arbitration and accept the proposed seniority list, or no
transaction would take place. The TWA pilots elected to waive their
contractual rights and accept the only deal available in order to salvage at
least some of their careers. Obviously, that scenario does not apply to
United and any carrier with whom it may merge.
It is important to know the facts, and not blindly believe anything someone
puts on the wall or on a website in an attempt to mislead you. We hope this
explanation helps you assess some of the claims being advanced. To that
end, and to provide what you need to stay informed about mergers and
acquisitions, your UAL-MEC Merger Committee is compiling further information
and facts about seniority integrations - negotiated and arbitrated. We are
engaged in developing further educational materials that will be linked to
the UAL-MEC website. These resources will include past merger decisions,
the text of the Allegheny-Mohawk LPPs, and other Merger Committee documents.
Fraternally,
UAL-MEC Merger Committee
David A. Smith Brian Graver
Garth Thompson
Chairman Member
Alternate Member
Dear Fellow United Pilot:
It has come to the UAL-MEC Merger Committee's attention that there are some serious misconceptions and blatant misstatements floating around concerning the seniority integration process should United merge with any other airline. Specifically, the suggestion has been made that the United Pilots would be better off if they were not in ALPA in the event of a merger.
Nothing could be further from the truth.
As we have said in our document that we published earlier entitled Merger
101, ALPA Merger and Fragmentation Policy governs in the event that ALPA
represents both pilot groups. ALPA's Merger and Fragmentation Policy
contains a detailed process, which ultimately leads to an integrated
seniority list, whether that seniority integration is achieved through
negotiations, mediation or in final and binding arbitration. The standard,
or test, contained in the policy provides that the lists are to be
integrated in a "fair and equitable" manner.
That "fair and equitable" test has been the ALPA standard for decades. It
finds its origins in the so-called "Labor Protective Provisions" ("LPPs"),
which the old Civil Aeronautics Board (CAB) historically imposed on carriers
as a condition of the merger. The last time the CAB modified their terms
was in the Allegheny-Mohawk merger, which occurred in 1971. Section 3 of
the LPPs required that the seniority lists of each class or craft of
employees be merged in a "fair and equitable manner." Section 13 of the
LPPs provided that, failing a consensual agreement between the two groups,
the dispute had to be arbitrated in a proceeding involving management and
the two employee groups.
ALPA designed its process, using the same LPPs test, as one limited to the
two pilot groups with the ultimate result then taken to management for
acceptance as part of a new, combined collective bargaining agreement.
Although management theoretically had the right to arbitrate under Section
13 the fairness of the list as presented by ALPA, this almost never happened
as management usually was only interested in ensuring that the integrated
list did not add significant costs to the operation.
Following the Airline Deregulation Act of 1978, the Department of
Transportation, which had taken over the role of the disbanded CAB in
reviewing airline mergers, served notice on carriers and labor organizations
that it intended to discontinue the historic practice of applying LPPs to
mergers, and that the parties should therefore negotiate such provisions if
they wanted their protections.
ALPA immediately made negotiation of LPPs a priority contract item and you
can find reference to what now are termed "contractual LPPs" in Sections 1-D
and 1-E of your Agreement. Among other things, they guarantee that United
pilots will have the protection of the Allegheny-Mohawk LPPs, including a
"fair and equitable" seniority integration in the event that United were to
be acquired by another carrier, or if United engaged in the sale of a
significant portion of its flying operations. United is contractually bound
to make a "fair and equitable" seniority integration a condition of any
transaction. It was a provision such as this in the Flying Tiger pilots'
agreement, which forced Federal Express and its pilots, who were not members of ALPA at that time, to engage in a seniority arbitration. In addition,
and even more remarkably, it was a provision such as this in the Western
Airlines Flight Attendant agreement which forced Delta and its non-union
Flight Attendants to engage in a seniority integration arbitration when
Delta bought Western.
The significant fact is that almost all ALPA carriers, including Continental
and Delta, have virtually identical language in their agreements. Even if
the United pilots were not represented by ALPA, because of these provisions
in the other pilot group's contract, we still would be required to engage in
a seniority integration arbitration under a "fair and equitable" standard if
we merged with either of these carriers. Simply stated, neither Continental
nor Delta could legally enter into an agreement with United without such a
guarantee for all pilots even if United's pilots were not in ALPA.
How, then, you might ask, did the American pilots avoid an arbitration with
the TWA pilots? The simple fact is that a court found at the time American
proposed to buy TWA that TWA was on the verge of liquidation. The TWA
pilots were told by American that they would have to waive their contractual
right to arbitration and accept the proposed seniority list, or no
transaction would take place. The TWA pilots elected to waive their
contractual rights and accept the only deal available in order to salvage at
least some of their careers. Obviously, that scenario does not apply to
United and any carrier with whom it may merge.
It is important to know the facts, and not blindly believe anything someone
puts on the wall or on a website in an attempt to mislead you. We hope this
explanation helps you assess some of the claims being advanced. To that
end, and to provide what you need to stay informed about mergers and
acquisitions, your UAL-MEC Merger Committee is compiling further information
and facts about seniority integrations - negotiated and arbitrated. We are
engaged in developing further educational materials that will be linked to
the UAL-MEC website. These resources will include past merger decisions,
the text of the Allegheny-Mohawk LPPs, and other Merger Committee documents.
Fraternally,
UAL-MEC Merger Committee
David A. Smith Brian Graver
Garth Thompson
Chairman Member
Alternate Member
12-14-2006, 10:35 AM
#3
Banned
Joined APC: Apr 2006
Position: FO dhc-6
Posts: 523
"It has come to the UAL-MEC Merger Committee's attention that there are some serious misconceptions and blatant misstatements floating around concerning the seniority integration process should United merge with any other airline."
I think what they meant to say was " it has come to our attention that several fellow united pilots are starting a move to ditch ALPA and form an in house union, and here is propaganda to stop that"
I think what they meant to say was " it has come to our attention that several fellow united pilots are starting a move to ditch ALPA and form an in house union, and here is propaganda to stop that"
12-14-2006, 05:08 PM
#4
AAmerican Way for AA Pay
Joined APC: Oct 2005
Position: B-737 Pilot
Posts: 1,617
What they meant to say was "TWA pilots got screwed because we let ALPA serve up their seniority on a platter to AA/APA, and that's why they're all out of a job, and that won't happen here...". Trust me, ALPA will SELL UAL pilots OUT, if it is in their best interest----just like they did TWA's pilots.
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