Relevance of 717 to SWA continues to diminish
#131
#132
What are the ways around merging the seniority lists when all the parties have agreed to binding arbitration?
Before you answer, maybe I can explain why I don't think it will go that way.
First, if all parties have agreed to eventually integrate the lists by arbitration, they can throw and arbitrator in a room who will eventually put a list together. He or she can listen to whoever wants to argue for the list to come together one way or the other, and whoever shows up will be heard, right?
Second, if a combined seniority list is produced by an agreed to arbitration process, what happens when an attempt is made to dismantle one of the separate operations and furlough a lot of pilots off one side -- effectively out of seniority?
Probably a suit against SWA and SWAPA -- injunctive relief against SWA, and depending on how their constitution is written in regards to membership, a hefty DFR suit against SWAPA. If it went down like that, I'm sure there would also be an assertion that SWA was trying to get around Bond/Mc Caskill as well.
How would a federal judge rule? Of course, this is the wild card. An assertion that Mc Caskill/Bond has been violated has never occurred, as far as I know. But, I will say that federal judges aren't really pre-disposed to go against the wishes of Congress. My guess is that it would probably wind up in a long legal battle. Just what the parties want (not really).
Finally, in my opinion, Garry Kelly knows all of this and is leaning on the AT pilots as had as he can, so as to get a negotiated settlement. Otherwise. when it gets to arbitration, it's all over. He will have to abide by the decision or face a long legal battle. Southwest didn't but Air Tran to dismantle it anyway.
I estimate that the chances of combining AT and SWA operations are pretty high.
#133
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,638
Unfortunately, many are assuming that an integrated seniority list MUST occur. While the odds may be small, there are ways around merging the seniority lists and there are ways to spin down Texas Sub, LLC without those assets being 'transferred' to Southwest.
As an example, Goldman Sachs could use a shell corporation - let's call it ScrewUAirAssets, LLC. ScrewUAirAssets could buy most/all of AirTran's assets from Texas Sub, LLC. Upon completion of that transaction, ScrewUAirAssets could turn around and lease any assets back to Southwest that they want. All the way down to lav pumpers. All of a sudden, a bunch of former AirTran/Texas Sub, LLC employees are out of a job.
I realize that a lot of people want to dismiss this as pure fantasy. But then answer me this - why did Southwest announce new service to ATL from LAS and PHX today? Looks like another not-so-subtle shot across the bow. Southwest Airlines Expands Atlanta Service With Two New Nonstop Destinations -- DALLAS, Sept. 5, 2011 /PRNewswire/ --
If, for some reason, Southwest doesn't integrate the AirTran employees, you can simply shrug your shoulders and say, 'Who would have ever thought that would have happened' and go back to your airline job.
As an example, Goldman Sachs could use a shell corporation - let's call it ScrewUAirAssets, LLC. ScrewUAirAssets could buy most/all of AirTran's assets from Texas Sub, LLC. Upon completion of that transaction, ScrewUAirAssets could turn around and lease any assets back to Southwest that they want. All the way down to lav pumpers. All of a sudden, a bunch of former AirTran/Texas Sub, LLC employees are out of a job.
I realize that a lot of people want to dismiss this as pure fantasy. But then answer me this - why did Southwest announce new service to ATL from LAS and PHX today? Looks like another not-so-subtle shot across the bow. Southwest Airlines Expands Atlanta Service With Two New Nonstop Destinations -- DALLAS, Sept. 5, 2011 /PRNewswire/ --
If, for some reason, Southwest doesn't integrate the AirTran employees, you can simply shrug your shoulders and say, 'Who would have ever thought that would have happened' and go back to your airline job.
#134
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Joined APC: Oct 2009
Posts: 224
AirTran does not have a Transition agreement. SWA and SWAPA have one.
AirTran has a Process Agreement. There are four signatories; two unions and two companies.
Why would anybody listen to you if you don't understand the mechanics of the situation ?
#135
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
Thanks for the comparison. Now, tell me, what negative impact did icahn and lorenzo have on Delta pilots? United pilots? American pilots?
I think it's also been pointed by others that icahn is not a valid comparison. There are more similarities to lorenzo, except that the pilots are being offered pay raises.
Seriously though - icahn? Do you know nothing about the pillaging of the company coffers he did at TWA? Have you never read the Caribou Agreement? Even after getting rid of him, icahn was skimming money off of every TWA ticket sold. If Dante were alive today, he would add a tenth level of Hell reserved exclusively for icahn.
As far as your use of the word, 'staple'. It's incorrect. To 'staple' a seniority list is to put an entire list below the other list. Like it or not, someone goes to the bottom of a SLI. I suppose the junior man on the NWA/DAL list was also 'stapled'????
But by YOUR definition of 'staple', I expect to be 'stapled' to the bottom of the CAL/UAL seniority list. So yes, I will sign on as (close to) the most junior FO.
First, if all parties have agreed to eventually integrate the lists by arbitration, they can throw and arbitrator in a room who will eventually put a list together. He or she can listen to whoever wants to argue for the list to come together one way or the other, and whoever shows up will be heard, right?
If your competent legal help is ALPO and Dan Katz going against Freund, I'd be concerned if I were you. But that's just my assessment based on past performance.
#136
Gets Weekends Off
Joined APC: Jun 2007
Position: CA
Posts: 1,207
Andy,
What are the ways around merging the seniority lists when all the parties have agreed to binding arbitration?
Before you answer, maybe I can explain why I don't think it will go that way.
First, if all parties have agreed to eventually integrate the lists by arbitration, they can throw and arbitrator in a room who will eventually put a list together. He or she can listen to whoever wants to argue for the list to come together one way or the other, and whoever shows up will be heard, right?
Second, if a combined seniority list is produced by an agreed to arbitration process, what happens when an attempt is made to dismantle one of the separate operations and furlough a lot of pilots off one side -- effectively out of seniority?
Probably a suit against SWA and SWAPA -- injunctive relief against SWA, and depending on how their constitution is written in regards to membership, a hefty DFR suit against SWAPA. If it went down like that, I'm sure there would also be an assertion that SWA was trying to get around Bond/Mc Caskill as well.
How would a federal judge rule? Of course, this is the wild card. An assertion that Mc Caskill/Bond has been violated has never occurred, as far as I know. But, I will say that federal judges aren't really pre-disposed to go against the wishes of Congress. My guess is that it would probably wind up in a long legal battle. Just what the parties want (not really).
Finally, in my opinion, Garry Kelly knows all of this and is leaning on the AT pilots as had as he can, so as to get a negotiated settlement. Otherwise. when it gets to arbitration, it's all over. He will have to abide by the decision or face a long legal battle. Southwest didn't but Air Tran to dismantle it anyway.
I estimate that the chances of combining AT and SWA operations are pretty high.
What are the ways around merging the seniority lists when all the parties have agreed to binding arbitration?
Before you answer, maybe I can explain why I don't think it will go that way.
First, if all parties have agreed to eventually integrate the lists by arbitration, they can throw and arbitrator in a room who will eventually put a list together. He or she can listen to whoever wants to argue for the list to come together one way or the other, and whoever shows up will be heard, right?
Second, if a combined seniority list is produced by an agreed to arbitration process, what happens when an attempt is made to dismantle one of the separate operations and furlough a lot of pilots off one side -- effectively out of seniority?
Probably a suit against SWA and SWAPA -- injunctive relief against SWA, and depending on how their constitution is written in regards to membership, a hefty DFR suit against SWAPA. If it went down like that, I'm sure there would also be an assertion that SWA was trying to get around Bond/Mc Caskill as well.
How would a federal judge rule? Of course, this is the wild card. An assertion that Mc Caskill/Bond has been violated has never occurred, as far as I know. But, I will say that federal judges aren't really pre-disposed to go against the wishes of Congress. My guess is that it would probably wind up in a long legal battle. Just what the parties want (not really).
Finally, in my opinion, Garry Kelly knows all of this and is leaning on the AT pilots as had as he can, so as to get a negotiated settlement. Otherwise. when it gets to arbitration, it's all over. He will have to abide by the decision or face a long legal battle. Southwest didn't but Air Tran to dismantle it anyway.
I estimate that the chances of combining AT and SWA operations are pretty high.
The process agreement lays out the steps to be taken toward an ISL. First, direct negotiations between the two unions, then mediated sessions and then an arbitrated list if it goes that far. There is no language that compels SWA to implement an arbitrated list. M/B only applies IF the groups are integrated. The process agreement only lays out the path to an arbitrated list, but has absolutely no teeth to compel that list to be enforceable UNTIL SWA decides to combine the operations.
These are the legal realities of the situation. If you want to argue that SWA will not fully realize the financial benefits of this acquisition unless the operations are merged, that might be a discussion worth having. But to argue there is no legal option for SWA to choose not to integrate the two is simply not accurate.
In the end SWAPA or ALPA will not play a part in the decision SWA makes as to it's options concerning IF AND WHEN they combine the operations. If you seriously believe that SWA does not understand what its options are in all scenarios concerning this matter, then you truly understand absolutely nothing about how Southwest conducts itself as a business entity.
#137
Do you have a copy of this agreement? I've tried to get a copy. I've even called Southwest investor relations. No luck. PM me; I'll give you an e-mail address that you can send it to. I'd like to read the agreement.
Again, you're assuming that there are no loopholes in the agreement. I read SL8. It's brutally one sided and screws over AirTran pilots. It does not guarantee SLI. SWAPALuv
OK, I can see you're expecting arbitration to happen. I would expect someone like The Vampire Squid (Goldman Sachs) to buy all assets prior to any arbitration occurring. The Vampire Squid doesn't do this stuff on the cheap so there's a little bit of leverage for AirTran pilots. But it's not much.
High percentage is still less than 100%. But you're not going to get hurt if things go wrong so I can see your point of view. No need to discuss the downsides to AirTran pilots.
Personally, I think there has been plenty of discussion of the possible downside for Air Tran pilots. In fact, it seems to be to the point where the only things that are being considered as options for them are two different downsides. Downside #1. - Accept a horrible seniority integration, or Downside #2 - Lose you job.
Part of the discussion should be focused on other options for the Air Tran pilots. Take note that just because one doesn't have skin in the game doesn't mean one can't give good advice.
#138
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,544
So SW is in the position to avoid integrating the pilot groups, yet if DL ends up with 717's they will be forced to furlough 1000 DL pilots because ALPA policy requires an immediate home for 1000 AT pilots, even if aircraft are a 1 for 1 swap and even if they go through a third party first? And while SW can get around the entire merger if they want to with third parties and holding company tricks, DL is iron clad bound to take 1000 AT pilots no matter what if DL ends up with their 717's over a several year period? Right.
#139
Gets Weekends Off
Joined APC: Jun 2007
Position: CA
Posts: 1,207
So SW is in the position to avoid integrating the pilot groups, yet if DL ends up with 717's they will be forced to furlough 1000 DL pilots because ALPA policy requires an immediate home for 1000 AT pilots, even if aircraft are a 1 for 1 swap and even if they go through a third party first? And while SW can get around the entire merger if they want to with third parties and holding company tricks, DL is iron clad bound to take 1000 AT pilots no matter what if DL ends up with their 717's over a several year period? Right.
I will say this, SL9 or the LOA or the AIP, whatever you want to call it, definitely had furlough protection written into it. All furloughs would have been on a one for one basis from SWA and AT. Now that that deal is off the table we revert back to SL8 which is now a portion of our CBA and includes robust protections for SWA pilots. It states:
Section 6: Transition Job Security Protections
6-A. Furlough.
(i) In accordance with Section 1.C.1. of the SWAPA CBA, no pilot on the SWAPA Master Seniority list will be
furloughed prior to Complete Operational Merger.
(ii) Unless prohibitive conditions beyond the control of Southwest occur, to include extreme economic conditions, no Southwest Pilot will be placed on furlough during the first year following Complete Operational Merger.
#140
I can agree that "...the chances of combining AT and SWA operations are pretty high..." But the reasons are financial, not because the airline is compelled to do so by M/B-A/M or the process agreement. No legal entity can force SWA to combine the operations. AT is a wholly owned subsidiary and SWA can and will operate them the way they see fit.
The process agreement lays out the steps to be taken toward an ISL. First, direct negotiations between the two unions, then mediated sessions and then an arbitrated list if it goes that far. There is no language that compels SWA to implement an arbitrated list. M/B only applies IF the groups are integrated. The process agreement only lays out the path to an arbitrated list, but has absolutely no teeth to compel that list to be enforceable UNTIL SWA decides to combine the operations.
These are the legal realities of the situation. If you want to argue that SWA will not fully realize the financial benefits of this acquisition unless the operations are merged, that might be a discussion worth having. But to argue there is no legal option for SWA to choose not to integrate the two is simply not accurate.
In the end SWAPA or ALPA will not play a part in the decision SWA makes as to it's options concerning IF AND WHEN they combine the operations. If you seriously believe that SWA does not understand what its options are in all scenarios concerning this matter, then you truly understand absolutely nothing about how Southwest conducts itself as a business entity.
The process agreement lays out the steps to be taken toward an ISL. First, direct negotiations between the two unions, then mediated sessions and then an arbitrated list if it goes that far. There is no language that compels SWA to implement an arbitrated list. M/B only applies IF the groups are integrated. The process agreement only lays out the path to an arbitrated list, but has absolutely no teeth to compel that list to be enforceable UNTIL SWA decides to combine the operations.
These are the legal realities of the situation. If you want to argue that SWA will not fully realize the financial benefits of this acquisition unless the operations are merged, that might be a discussion worth having. But to argue there is no legal option for SWA to choose not to integrate the two is simply not accurate.
In the end SWAPA or ALPA will not play a part in the decision SWA makes as to it's options concerning IF AND WHEN they combine the operations. If you seriously believe that SWA does not understand what its options are in all scenarios concerning this matter, then you truly understand absolutely nothing about how Southwest conducts itself as a business entity.
I do not believe that SWA will be legally compelled to combine its operations with Air Tran.
I do believe that if an arbitrated list is produced and SWA subsequentally decides to furlough pilots from either side, out of seniority from that list, there will be:
1.) Lawsuits against SWA and SWAPA
2.) A legal attempt to keep SWA from furloughing, &
3.) A legal play for the court to evaluate if Mc Caskill/Bond has been violated.
None of which SWA wants, so they will abide by the arbitrators decision......
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