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Loren Steffy: Pilot issue has a bitter past

By LOREN STEFFY Copyright 2011 Houston Chronicle

Jan. 13, 2011, 9:10PM



We are just beginning to see the scope of the problem facing United Airlines as it tries to integrate Continental.
"Scope" is a clause, common in pilot union contracts, that defines who gets to do what flying. It has been at the root of some of the most contentious labor battles in the history of U.S. airlines, and it could pose a significant problem as United attempts to combine its workforce with Continental's.
Last month, an arbitrator ruled that United can't fly regional jets under the Continental name. The carrier wanted to move some 70-seat United Express jets to Continental's hubs in Houston, Newark and Cleveland later this year and operate them as Continental flights. Here's the problem: Continental's pilot contract specifies that only pilots for Continental can fly planes with more than 50 seats. That's why Continental Express doesn't fly 70-seat planes. The United pilots' contract allows its regional affiliates to operate larger aircraft.
Because the two carriers continue to operate separately, moving the United Express jets into Continental hubs and giving them a Continental reservation code was a violation of the pilots' scope clause, the arbitrator found.
It doesn't end there

The issue, though, is far from over.
The efforts to merge the two airlines' unions went to federal mediation last month. While that wasn't a big surprise, it also shows that negotiations aren't exactly going swimmingly.
Continental pilots were quick to praise the arbitrator's ruling, but their victory may be fleeting.
United will still fly the jets from those hubs; it will simply fly them under United's banner. In that, the airline saw a victory.
But both sides are dancing around the far bigger problem: the scope clause itself. Even though both airlines' pilots are represented by the same union, their scope clauses are different. Management will no doubt favor United's, which is more flexible. Continental pilots, seeing the threat of having their jobs outsourced to lower-paid regional affiliate pilots, are unlikely to yield.
Soon after the merger was announced last spring, Chief Executive Jeff Smisek told me one of the deal's big advantages was "fleet rationalization," which is airline jargon for matching up planes and routes efficiently so that the airline flies fewer empty seats.
Wrapped up in that drive for efficiency and profitability, though, is the issue of scope.
Root of the issue

It may seem insignificant, but scope clauses cut to the root of airline labor. In the late 1950s, as airlines began to switch from prop planes to jets, pilots saw the writing on the wall. A jet could fly across the country in half the time, which meant airlines would need half as many pilots. That fear inspired the airline labor movement, and modern scope clauses are a direct descendant of that concern.
Today, the worry is smaller jets operated by affiliates replacing flying by larger planes at the main carrier.
A particularly bitter scope dispute led to a sickout by pilots at American Airlines in 1999, after the carrier acquired Reno Air. American wanted to operate Reno as a separate carrier for a year or more, and pilots worried the carrier would shift flights to their lower-paid counterparts at Reno. They argued that operating Reno separately violated their scope clause. After a sickout that led to the cancellation of more than 6,600 flights and losses of $200 million and a court battle between the airline and its pilots union, American integrated Reno.
A stumbling block

The Continental dispute may not reach that fever pitch, but it clearly has become an impediment to merging the two pilot groups.
It probably won't keep the merger from being completed, but it could keep it from being as successful as Smisek hopes, especially if Continental pilots feel he's trying to balance the economics of the deal on their backs.
Loren Steffy is the Chronicle's business columnist. His commentary appears Sundays, Wednesdays and Fridays. Contact him at [email protected]. His blog is at http:/blogs.chron.com/lorensteffy.

dvhighdrive88

Decent article.

Well this is the root of the issue isn't it, even more so than other matters.

There's dozens of theories out there about what the eventual outcome will be however its difficult to say how (and if) scope will hash out.

Any leading outcomes anybody wish to share?

Boneman

The company continues to violate the SCOPE clause CO coded or not. They have replaced some CoEx flying with -170s and in several cases 737 flying have been usurped by 70 seaters. Although I applaud the steps already taken by CALALPA concerning this issue, in my opinion they have not gone far enough to stop this blatant violation of the CBA.

I have no crystal ball as to what the final outcome will be; however, the first TA will be a good indication of what we are up against.

Airhoss

You guys do realize that since Whiteford signed off on the 70 seat issue that 53% of our domestic flights are done by RJ's.

Pretty high price to pay for retention of your A-fund which was stolen anyway huh Paul?

We had just at 11,000 pilots on the property at the peak we now have just over half that number. D@MN right 737 flying will be replaced by big RJ's.

dosbo

All the more reason SCOPE must be the number one priority.

intrepidcv11

Large rj's have replaced 737 flying at UAL. At United-Continental Holdings large rj's will NOT replace 737 flying. The plague of large rj's Jeff gets as a result of this merger is as many as he will have. Perhaps our management is starting to smell that coming.

United Continental eyes new jets: analysts - MarketWatch

strfyr51

************************************************** ******
Announced today,(1/17/2011) the new UAL aircraft acquisition team is made up of Primarily CAL members except for the head man. I HOPE we'll be getting MORE 787's and hopefully we'll Not make the mistake of getting the Rolls Royce engines OR the A350.

dvhighdrive88

Seems it's made of United members. As I recall we merged and hopefully they're looking at buying not only wide bodies but narrow bodies that will ensure not only the return of 1437 furloughed pilots but the ascension of this airline to it's former greatness with properly compensated and motivated employees as it's engine. We are United in our endeavors from here on.

But that's just me.

Fritzthepilot

Two questions for you SAMC.

Cal has Rolls on their 75's, not sure about the rest of their fleet. Wouldn't it make sense to choose a common manufacturer be it either Rolls or Pratt?

How does the 777-300 compare as an interim replacement for the A-350?

luv757

You are correct, 757-200/300 are Rolls. Everything else is GE.