AirTran MEC Rejects SLI proposal
#292
He may not be a 14 year old boy, and he is definitely a successful leader, but he is clearly not pleased with the recent turn of events. Here are a few quotes from his most recent communication to SWA and AT pilots:
"I am writing you today to let you know my thoughts on the ALPA MEC decision not to put the proposed agreement out to a vote"..."I was disappointed that the ALPA MEC chose to reject the offer. In my opinion,
the preferred way to a fair and equitable solution is through negotiation, not arbitration. All Pilots should have their say in their future. Since a negotiated agreement has not been reached, despite our best efforts, we will continue to consider all other options, in addition to arbitration. Our decision will be based on what is best for our People, our business, and our Culture. As the first of our next steps, we have withdrawn our economic offer of support for the SLI package. Due to the worsened economic environment this summer, coupled with the fact that the SLI can no longer be expedited, we cannot afford the previous offer"..."We made clear that if an expedited agreement could not be reached, we would revaluate our plan in light of worsening economic conditions"..."Simply put, reevaluating the integration plan is mandatory in this economic climate"..."AirTran has been bought and is now owned by Southwest"..."The Company certainly made a generous economic offer to facilitate the seniority list"..."That said, we now find ourselves with a stalled economic recovery, a cloudy outlook for air travel, and 40 percent higher (and record) energy costs. Those realities cannot be ignored."
"I am writing you today to let you know my thoughts on the ALPA MEC decision not to put the proposed agreement out to a vote"..."I was disappointed that the ALPA MEC chose to reject the offer. In my opinion,
the preferred way to a fair and equitable solution is through negotiation, not arbitration. All Pilots should have their say in their future. Since a negotiated agreement has not been reached, despite our best efforts, we will continue to consider all other options, in addition to arbitration. Our decision will be based on what is best for our People, our business, and our Culture. As the first of our next steps, we have withdrawn our economic offer of support for the SLI package. Due to the worsened economic environment this summer, coupled with the fact that the SLI can no longer be expedited, we cannot afford the previous offer"..."We made clear that if an expedited agreement could not be reached, we would revaluate our plan in light of worsening economic conditions"..."Simply put, reevaluating the integration plan is mandatory in this economic climate"..."AirTran has been bought and is now owned by Southwest"..."The Company certainly made a generous economic offer to facilitate the seniority list"..."That said, we now find ourselves with a stalled economic recovery, a cloudy outlook for air travel, and 40 percent higher (and record) energy costs. Those realities cannot be ignored."
#295
Line Holder
Joined APC: Aug 2009
Posts: 53
Media: What was your reaction to the ALPA MEC's decision not to send the agreement out to a vote by members?
Kelly: "Well, first of all, I'm appreciative of all the hard work that has gone into a seniority list integration agreement between the Southwest pilots and the AirTran pilots. In fact, it is unprecedented that we actually were able to come to an agreement in principle among the company and the two pilot unions.
"The Southwest pilot union had unanimously approved the deal to send it out for a vote. I was disappointed last week that the ALPA MEC chose not to send it out, in effect rejected that deal.
"So at this point we'll move forward. There is a process agreement in place that allows for mediated sessions and then ultimately binding arbitration if we merge the two airlines. We're going to take a step back and evaluate all of our operations.
"We had a very generous offer economically on the table. So we have pulled that offer. Now, it's just a different environment with the economy and also with very high fuel prices. We'll just consider all options and ultimately we'll do what's best for the Southwest Airlines' culture as well as the Southwest Airlines business."
Media: So the financial sweeteners are no longer on the table? You won't initially participate in mediation?
Kelly: "Correct. Obviously if asked, we'll join the mediated sessions. We can't improve upon what was offered. In fact, at this point I don't feel comfortable, since we don't have a deal, I don't see any reason ... well, we pulled the offer."
Media: What was the annualized cost of what Southwest offered to get the deal?
Kelly: "Well, it was certainly tens of millions of dollars in 2012, and annualized it would obviously be more than that. That's my best estimate off the top of my head."
Media: Does this push back the timetable for getting a single operating certificate that covers both Southwest and AirTran?
Kelly: "No. They're separate issues. All of that will have to be coordinated with the FAA. But in other words, as you well know, this is a multi-month if not multi-year conversion process.
"The target date for the single operating certificate is March 1. Well, we were not going to have one airline at that point, as you guys know. It really has no bearing. What this does is it will slow down the integration process and perhaps change the integration process.
"We were willing to put some money on the table to get an expedited seniority list, and since we have not been able to do that, well, it just gives us an opportunity to reconsider how we want to move forward."
Kelly: "Well, first of all, I'm appreciative of all the hard work that has gone into a seniority list integration agreement between the Southwest pilots and the AirTran pilots. In fact, it is unprecedented that we actually were able to come to an agreement in principle among the company and the two pilot unions.
"The Southwest pilot union had unanimously approved the deal to send it out for a vote. I was disappointed last week that the ALPA MEC chose not to send it out, in effect rejected that deal.
"So at this point we'll move forward. There is a process agreement in place that allows for mediated sessions and then ultimately binding arbitration if we merge the two airlines. We're going to take a step back and evaluate all of our operations.
"We had a very generous offer economically on the table. So we have pulled that offer. Now, it's just a different environment with the economy and also with very high fuel prices. We'll just consider all options and ultimately we'll do what's best for the Southwest Airlines' culture as well as the Southwest Airlines business."
Media: So the financial sweeteners are no longer on the table? You won't initially participate in mediation?
Kelly: "Correct. Obviously if asked, we'll join the mediated sessions. We can't improve upon what was offered. In fact, at this point I don't feel comfortable, since we don't have a deal, I don't see any reason ... well, we pulled the offer."
Media: What was the annualized cost of what Southwest offered to get the deal?
Kelly: "Well, it was certainly tens of millions of dollars in 2012, and annualized it would obviously be more than that. That's my best estimate off the top of my head."
Media: Does this push back the timetable for getting a single operating certificate that covers both Southwest and AirTran?
Kelly: "No. They're separate issues. All of that will have to be coordinated with the FAA. But in other words, as you well know, this is a multi-month if not multi-year conversion process.
"The target date for the single operating certificate is March 1. Well, we were not going to have one airline at that point, as you guys know. It really has no bearing. What this does is it will slow down the integration process and perhaps change the integration process.
"We were willing to put some money on the table to get an expedited seniority list, and since we have not been able to do that, well, it just gives us an opportunity to reconsider how we want to move forward."
#299
I'm still holding out some hope for mediation. Reason?
The mediator of course! He's not just a potted plant, he actually plays a part in the negotiation.
I think in this case the mediator and lead arbitrator are the same person, so what they say or don't say in mediation will be taken as some indication of the direction they're leaning when they have the hammer in their hands.
The mediator of course! He's not just a potted plant, he actually plays a part in the negotiation.
I think in this case the mediator and lead arbitrator are the same person, so what they say or don't say in mediation will be taken as some indication of the direction they're leaning when they have the hammer in their hands.
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