General Lee
Well-known member
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- Aug 24, 2002
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This all via Guppiedriver from another thread:
Allied Pilots Association president Keith Wilson advised pilots Wednesday not to get too worked up yet about the issue of combining the seniority lists of US Airways and American Airlines after the proposed merger.
The reason: It’ll probably be a long time before the two sides get to that point.
“First off, take a deep breath, because the process of accomplishing the merger, achieving a joint collective bargaining agreement (JCBA), and achieving an integrated seniority list will be a long one,” Wilson told them in a hotline message. “We are probably at least 24 to 30 months away from resolving the issue of a combined seniority list.”
APA represents American Airlines pilots. The US Airline Pilots Association represents US Airways pilots.
Keep reading for Wilson’s discussion of the process and the history of seniority list integrations.
Seniority integration
I know that many of you are concerned about both the near- and long-term impact of a merger on your seniority and future career prospects. You are right to take this issue seriously. Seniority is the lifeblood of our profession, and that number on your HI-1 dictates everything from compensation to quality of life.
Rest assured that this is not something that your APA leadership took lightly when pursuing a merger with US Airways. With that in mind, I would like to make clear to you that despite what you may have heard on the line or read on C&R, this transaction provides an opportunity to make our profession here at American much more secure than the independent plan previously espoused by the current AA management team.
First off, take a deep breath, because the process of accomplishing the merger, achieving a joint collective bargaining agreement (JCBA), and achieving an integrated seniority list will be a long one. We are probably at least 24 to 30 months away from resolving the issue of a combined seniority list. Until that date, the memorandum of understanding (MOU) provides initial flying protections until fence provisions are established as part of the seniority list integration process. These MOU provisions include the following language:
– All existing AA aircraft, including orders and options, will be flown by current APA pilots.
– All existing US Airways aircraft, including orders and options, will be flown by — current USAPA pilots.
– US Airways pilots will fly the first thirty E-190 aircraft and starting with the 31st E-190 delivery, APA will receive two E-190 aircraft for every additional E-190 above thirty flown by US Airways pilots.
– BOS-LGA-DCA shuttle operations will be flown by current USAPA pilots, along with existing PHX-Hawaii flying.
– All trans-Pacific (Asia) flying will be performed by current APA pilots.
– Minimum block hour floors are established at both airlines to prevent the new company from drawing down either operation at the expense of the other.
– If either US Airways or American is hiring, furloughed pilots on either side may volunteer to fly for the other operation. Furlough protection will be provided to all pilots at both operations, who are senior to the most junior active pilot on the “effective date.”
Under the MOU, which will now become a merger transition agreement (MTA), we have built a foundation for a new JCBA. JCBA negotiations will begin after AMR’s plan of reorganization is approved and shortly after the corporation exits bankruptcy. The seniority integration process will begin at roughly the same time but, as outlined in the MOU/MTA, the seniority integration is intended to be finished after the JCBA is concluded, but no later than two years after exit from bankruptcy. Although we all would like to see a negotiated single seniority list rather than an arbitrated one, past pilot history has shown us that this is not very likely even in the best of circumstances. Because seniority is so important and so vigorously defended, in most cases it’s often simply a “bridge too far” to expect separate pilot groups to put aside their differing interests and accomplish an integrated list without a neutral arbitrator. In this case, it is unusually complicated when you consider the longstanding divisions and current litigation between “East” and “West” at US Airways, and the effect that this may have on the process. Accordingly, while the APA leadership looks forward to negotiations, we are planning on the assumption that the seniority lists may ultimately be integrated through arbitration under the McCaskill-Bond guidelines.
Many of you are concerned that, considering history, the outcome will be a “date-of-hire” seniority list that harms your career expectations. You can be sure that your leadership will determine the position that will best reflect the American Airlines pilots’ interests, and in that regard, a three-person arbitration panel should help to ensure a fair and balanced outcome. The APA Board of Directors has appointed a Seniority Integration Committee, supported by experienced counsel, and it is ready to carefully analyze the impact of the possible seniority integration methods in the specific circumstances of this case, including date-of-hire, length of service and ratio or other methods. Your APA Board of Directors will direct the Seniority Integration Committee to develop positions that best reflect our interests and career expectations.
Bear in mind that date-of-hire is not the only way to integrate seniority lists, and in recent years has not even been a common method. The last arbitrated date-of-hire integrated seniority list arose out of the 1986 Northwest/Republic merger. In that case, the arbitrator found that the date-of-hire list could be fair and equitable only with 20-year fences between the two pilot groups. The result was 20 years of arbitrated disputes over what the award meant and how it applied. It was, therefore, generally considered to have been an operational disaster. Since the Northwest/Republic arbitration, the paradigm has shifted in favor of integrated lists based on ratios reflecting the number of jobs and other equities “brought to the merger” by each group, with fences applied for as long as necessary to keep the operation fair until the integrated list can operate fairly by itself. Career expectations at each carrier along with fleet disposition and future delivery schedules are among the important factors in constructing such a list.
While each merger and subsequent seniority integration is unique in its own way, the recent integrations at Delta/Northwest and soon-to-be United/Continental illustrate this decision-making methodology.
By now you should also understand that those things that make a merger with US Airways especially compelling from a business perspective (including strong, viable hubs and the near-complete lack of route overlap between the two route networks) also make this merger more attractive from a pilot’s perspective.
Again, we are at the beginning of a long process. While there will undoubtedly be some bumps in the road in the operational integration of the two airlines — and there will no doubt be disagreements between pilot groups and between pilots and management — those who are forecasting an “Armageddon” scenario are ignoring the success stories in recent merger history and/or have another agenda in mind. Under new management, the new American Airlines has the opportunity to change the broken culture that we have suffered under and compete on a level playing field with Delta and United. And that means a secure future for all pilots.
Wow. Looks like a 3 member arbitration panel will have to finish the AA/US SLI within 2 years from BK exit. So, the East/West stuff will have to be finished prior to that, and we all know a binding award is just that, BINDING. Oh, this is gonna get good. The Easties are surrounded, by F-AWA pilots and their NIC award, and the APA which has the clear majority of pilots. Interesting times ahead.
Also, I didn't know AA would get E190s after 30 flown by USAir? So the APA gets to fly E190s too? I thought they had A319/20/21 orders and some 738s too, besides some 773s. Hmmmmm.
Bye Bye---General Lee
Allied Pilots Association president Keith Wilson advised pilots Wednesday not to get too worked up yet about the issue of combining the seniority lists of US Airways and American Airlines after the proposed merger.
The reason: It’ll probably be a long time before the two sides get to that point.
“First off, take a deep breath, because the process of accomplishing the merger, achieving a joint collective bargaining agreement (JCBA), and achieving an integrated seniority list will be a long one,” Wilson told them in a hotline message. “We are probably at least 24 to 30 months away from resolving the issue of a combined seniority list.”
APA represents American Airlines pilots. The US Airline Pilots Association represents US Airways pilots.
Keep reading for Wilson’s discussion of the process and the history of seniority list integrations.
Seniority integration
I know that many of you are concerned about both the near- and long-term impact of a merger on your seniority and future career prospects. You are right to take this issue seriously. Seniority is the lifeblood of our profession, and that number on your HI-1 dictates everything from compensation to quality of life.
Rest assured that this is not something that your APA leadership took lightly when pursuing a merger with US Airways. With that in mind, I would like to make clear to you that despite what you may have heard on the line or read on C&R, this transaction provides an opportunity to make our profession here at American much more secure than the independent plan previously espoused by the current AA management team.
First off, take a deep breath, because the process of accomplishing the merger, achieving a joint collective bargaining agreement (JCBA), and achieving an integrated seniority list will be a long one. We are probably at least 24 to 30 months away from resolving the issue of a combined seniority list. Until that date, the memorandum of understanding (MOU) provides initial flying protections until fence provisions are established as part of the seniority list integration process. These MOU provisions include the following language:
– All existing AA aircraft, including orders and options, will be flown by current APA pilots.
– All existing US Airways aircraft, including orders and options, will be flown by — current USAPA pilots.
– US Airways pilots will fly the first thirty E-190 aircraft and starting with the 31st E-190 delivery, APA will receive two E-190 aircraft for every additional E-190 above thirty flown by US Airways pilots.
– BOS-LGA-DCA shuttle operations will be flown by current USAPA pilots, along with existing PHX-Hawaii flying.
– All trans-Pacific (Asia) flying will be performed by current APA pilots.
– Minimum block hour floors are established at both airlines to prevent the new company from drawing down either operation at the expense of the other.
– If either US Airways or American is hiring, furloughed pilots on either side may volunteer to fly for the other operation. Furlough protection will be provided to all pilots at both operations, who are senior to the most junior active pilot on the “effective date.”
Under the MOU, which will now become a merger transition agreement (MTA), we have built a foundation for a new JCBA. JCBA negotiations will begin after AMR’s plan of reorganization is approved and shortly after the corporation exits bankruptcy. The seniority integration process will begin at roughly the same time but, as outlined in the MOU/MTA, the seniority integration is intended to be finished after the JCBA is concluded, but no later than two years after exit from bankruptcy. Although we all would like to see a negotiated single seniority list rather than an arbitrated one, past pilot history has shown us that this is not very likely even in the best of circumstances. Because seniority is so important and so vigorously defended, in most cases it’s often simply a “bridge too far” to expect separate pilot groups to put aside their differing interests and accomplish an integrated list without a neutral arbitrator. In this case, it is unusually complicated when you consider the longstanding divisions and current litigation between “East” and “West” at US Airways, and the effect that this may have on the process. Accordingly, while the APA leadership looks forward to negotiations, we are planning on the assumption that the seniority lists may ultimately be integrated through arbitration under the McCaskill-Bond guidelines.
Many of you are concerned that, considering history, the outcome will be a “date-of-hire” seniority list that harms your career expectations. You can be sure that your leadership will determine the position that will best reflect the American Airlines pilots’ interests, and in that regard, a three-person arbitration panel should help to ensure a fair and balanced outcome. The APA Board of Directors has appointed a Seniority Integration Committee, supported by experienced counsel, and it is ready to carefully analyze the impact of the possible seniority integration methods in the specific circumstances of this case, including date-of-hire, length of service and ratio or other methods. Your APA Board of Directors will direct the Seniority Integration Committee to develop positions that best reflect our interests and career expectations.
Bear in mind that date-of-hire is not the only way to integrate seniority lists, and in recent years has not even been a common method. The last arbitrated date-of-hire integrated seniority list arose out of the 1986 Northwest/Republic merger. In that case, the arbitrator found that the date-of-hire list could be fair and equitable only with 20-year fences between the two pilot groups. The result was 20 years of arbitrated disputes over what the award meant and how it applied. It was, therefore, generally considered to have been an operational disaster. Since the Northwest/Republic arbitration, the paradigm has shifted in favor of integrated lists based on ratios reflecting the number of jobs and other equities “brought to the merger” by each group, with fences applied for as long as necessary to keep the operation fair until the integrated list can operate fairly by itself. Career expectations at each carrier along with fleet disposition and future delivery schedules are among the important factors in constructing such a list.
While each merger and subsequent seniority integration is unique in its own way, the recent integrations at Delta/Northwest and soon-to-be United/Continental illustrate this decision-making methodology.
By now you should also understand that those things that make a merger with US Airways especially compelling from a business perspective (including strong, viable hubs and the near-complete lack of route overlap between the two route networks) also make this merger more attractive from a pilot’s perspective.
Again, we are at the beginning of a long process. While there will undoubtedly be some bumps in the road in the operational integration of the two airlines — and there will no doubt be disagreements between pilot groups and between pilots and management — those who are forecasting an “Armageddon” scenario are ignoring the success stories in recent merger history and/or have another agenda in mind. Under new management, the new American Airlines has the opportunity to change the broken culture that we have suffered under and compete on a level playing field with Delta and United. And that means a secure future for all pilots.
Wow. Looks like a 3 member arbitration panel will have to finish the AA/US SLI within 2 years from BK exit. So, the East/West stuff will have to be finished prior to that, and we all know a binding award is just that, BINDING. Oh, this is gonna get good. The Easties are surrounded, by F-AWA pilots and their NIC award, and the APA which has the clear majority of pilots. Interesting times ahead.
Also, I didn't know AA would get E190s after 30 flown by USAir? So the APA gets to fly E190s too? I thought they had A319/20/21 orders and some 738s too, besides some 773s. Hmmmmm.
Bye Bye---General Lee
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