9e / XJ Integration

[RJLoser]

Don't forget they need to get ride of the Colgan name and certificate...hence why they need Mesaba ans Pinnicle...imagaine if all the flying was under ONE airline and another Q400 crashes or this time passengers are on the plane when pilots decide to switch seats...with only one airline they have to backup

Impressive. Both spelling and tact.

 

[DoinTime]

The company doesn't want a fiasco like UsAirways or how the Frontier issues that are arising. The company will do what is best for the company, but they also understand that, that involves with dealing with union contracts.

Have you been paying attention to the nearly six years of pilot contract negotiations at PCL? They DO NOT understand that they have to deal with labor.

There will be two companies with one seniority list.

The bigger question is how many pilot contracts will there be and what kind of transportability there will be between company lines. The first TA at PCL had a holding company agreement that dictated combined seniority between PCL and other airlines owned by the holding company but it did not mandate a common contract or specify how one could get back and forth between company lines. I understand that this agreement is already locked in for the next TA.

 

[CptMurf]

Let's keep in mind that 9E DID NOT BUY XJ... Pinnacle Holdings bought XJ

Now, with that being said... XJ's contract has successership provisions for being bought and also for a transfer of a large portion of the fleet (>=40%).

In the being bought outright section. The purchaser must agree to and abid by the terms of our contract. XJ as a turboprop only operator will keep XJ's contract at a minimum. Which as a side note would make our Q-400 CAs higher paid than 9E's 200 CAs.

In the transfer of fleet section. It states our pilots will go with the aircraft.

So, mgmts. decision is to either
1. create one senority list with ALPA deciding integration
2. create two senority lists with integration with XJ-9E on one side and XJ-Colgan on the other.
It will be easier and cheaper to create one list.

Now as far as integration... I dunno. DOH screws 9E and Colgan guys. Percentage screws XJ and 9E guys. I'm sure there will be some multi-faceted formula to screw everyone. It's not fair unless no one is happy.

Lastly 9E contract... If I were a 9E negotiator, I would walk XJ's contract into the arbitrator and say "In an effort to streamline integration, we want this contract "as is", to include Dec. 10 snapbacks." This would aid combining us, and also give the company a 2 year window to get things straightened out. Negotiations would start next December.

 

[SEVEN]

...........

Let's keep in mind that 9E DID NOT BUY XJ... Pinnacle Holdings bought XJ

Now, with that being said... XJ's contract has successership provisions for being bought and also for a transfer of a large portion of the fleet (>=40%).

In the being bought outright section. The purchaser must agree to and abid by the terms of our contract. XJ as a turboprop only operator will keep XJ's contract at a minimum. Which as a side note would make our Q-400 CAs higher paid than 9E's 200 CAs.

In the transfer of fleet section. It states our pilots will go with the aircraft.

So, mgmts. decision is to either
1. create one senority list with ALPA deciding integration
2. create two senority lists with integration with XJ-9E on one side and XJ-Colgan on the other.
It will be easier and cheaper to create one list.

Now as far as integration... I dunno. DOH screws 9E and Colgan guys. Percentage screws XJ and 9E guys. I'm sure there will be some multi-faceted formula to screw everyone. It's not fair unless no one is happy.

Lastly 9E contract... If I were a 9E negotiator, I would walk XJ's contract into the arbitrator and say "In an effort to streamline integration, we want this contract "as is", to include Dec. 10 snapbacks." This would aid combining us, and also give the company a 2 year window to get things straightened out. Negotiations would start next December.

Well said Captain Murf.

 

[1.3XVso]

Let's keep in mind that 9E DID NOT BUY XJ... Pinnacle Holdings bought XJ

Now, with that being said... XJ's contract has successership provisions for being bought and also for a transfer of a large portion of the fleet (>=40%).

In the being bought outright section. The purchaser must agree to and abid by the terms of our contract. XJ as a turboprop only operator will keep XJ's contract at a minimum. Which as a side note would make our Q-400 CAs higher paid than 9E's 200 CAs.

In the transfer of fleet section. It states our pilots will go with the aircraft.

So, mgmts. decision is to either
1. create one senority list with ALPA deciding integration
2. create two senority lists with integration with XJ-9E on one side and XJ-Colgan on the other.
It will be easier and cheaper to create one list.

Now as far as integration... I dunno. DOH screws 9E and Colgan guys. Percentage screws XJ and 9E guys. I'm sure there will be some multi-faceted formula to screw everyone. It's not fair unless no one is happy.

Lastly 9E contract... If I were a 9E negotiator, I would walk XJ's contract into the arbitrator and say "In an effort to streamline integration, we want this contract "as is", to include Dec. 10 snapbacks." This would aid combining us, and also give the company a 2 year window to get things straightened out. Negotiations would start next December.

I want you guys to head over this way already to show what balls are.

 

[MACH-TUCK]

O

Let's keep in mind that 9E DID NOT BUY XJ... Pinnacle Holdings bought XJ

Now, with that being said... XJ's contract has successership provisions for being bought and also for a transfer of a large portion of the fleet (>=40%).

In the being bought outright section. The purchaser must agree to and abid by the terms of our contract. XJ as a turboprop only operator will keep XJ's contract at a minimum. Which as a side note would make our Q-400 CAs higher paid than 9E's 200 CAs.

In the transfer of fleet section. It states our pilots will go with the aircraft.

So, mgmts. decision is to either
1. create one senority list with ALPA deciding integration
2. create two senority lists with integration with XJ-9E on one side and XJ-Colgan on the other.
It will be easier and cheaper to create one list.

Now as far as integration... I dunno. DOH screws 9E and Colgan guys. Percentage screws XJ and 9E guys. I'm sure there will be some multi-faceted formula to screw everyone. It's not fair unless no one is happy.

Lastly 9E contract... If I were a 9E negotiator, I would walk XJ's contract into the arbitrator and say "In an effort to streamline integration, we want this contract "as is", to include Dec. 10 snapbacks." This would aid combining us, and also give the company a 2 year window to get things straightened out. Negotiations would start next December.

I like it!!! Well said

 

[higney85]

Just for those to follow along here is XJ's section 1 as pertaining to this discussion. I pass no judgement but the language COULD have different interpretations depending on which group wants it to help them, how the company wants it to work, and how the MEC's can agree to have it work. Each group wants to protect themselves. I will also put up the LOA that has been thrown around the rumor mill. FWIW I can tell you that as right now there has been no official plan presented from the company on this issue but it will be coming in short order if I was a betting man.

C. Successorship
1. This Agreement shall be binding upon any successors,
assigns, administrators and executors of the Company (a
“Successor”) unless and until changed in accordance with
the provisions of the Railway Labor Act, as amended. For
purposes of this paragraph, a Successor shall be defined
as an entity which acquires all or substantially all of the
equity and/or assets of the Company (in a single or
multi-step transaction within a rolling twelve (12) month
period) (a “Successorship Transaction”).
2. Neither the Company nor its parent will conclude any
agreement for a Successorship Transaction unless the
Successor agrees in writing, as an irrevocable condition of
the Successorship Transaction, to assume and be bound
by the Agreement, to recognize the Association as the
representative of the pilots, and to employ pilots on the
Mesaba System Seniority List in accordance with the
provisions of the Agreement.
3. Subject to applicable securities and other laws and
regulations, the Company or its parent will provide the
Association with the details of and material agreements
1.2
related to its obligation pursuant to paragraph C.2. above in
a timely manner. The Association shall keep such
information and documents confidential pursuant to a
mutually agreeable confidentiality agreement, provided that
such information and documents may be reviewed by its
advisors and may be used in any proceeding brought to
compel compliance with or seek remedy for violation of the
provisions of this Paragraph C.
D. Transfer of Company Aircraft
1. If the Company or its parent sells, transfers, or disposes of
over forty percent (40%) of the aircraft in the Company’s
fleet (in a single transaction or multi-step transaction within
a rolling twelve (12) month period) as a going concern to an
air carrier, directly or indirectly, the Company or its parent
will, as a condition of the sale, require the purchaser to offer
employment to those pilots assigned to that portion of the
fleet at the time of the sale.
2. The provisions of this paragraph D. shall not apply to (i) the
return of aircraft to the lessor, sublessor, or sub-sublessor
of such aircraft, (ii) retirement of aged aircraft in the
ordinary course of business, (iii) a transfer made at the
direction of a party who has an ownership, leasehold, or
security interest in the aircraft and over which the Company
or its parent has no control, (iv) a transfer in which the
Company or its parent does not receive any direct or
indirect compensation from the transferee for the value of
the aircraft, and (v) any transfer in a bankruptcy, insolvency,
or other similar proceeding.
3. Subject to applicable securities and other laws and
regulations, the Company or its parent will provide the
Association with the details of and material agreements
related to its efforts pursuant to paragraph D.1. above. The
Association shall keep such information and documents
confidential pursuant to a mutually agreeable confidentiality
agreement, provided that such information and documents
may be reviewed by its advisors and may be used in any
proceeding brought to compel compliance with or seek
remedy for violation of the provisions of this paragraph D.
E. Merger Protections
1. In the event of any merger of the Company with another
airline, acquisition of the Company by another airline, or
acquisition by the Company of another airline, which affects
the seniority rights of pilots on the Mesaba Airlines Pilots’
1.3
Seniority List, provisions will be made for the integration of
seniority lists in a fair and equitable manner including,
where applicable, agreement through collective bargaining
between the carriers and the representatives of the pilot
groups affected. In the event of failure to agree, the dispute
may be resolved in accordance with Section 13 of the
Allegheny-Mohawk Labor Protection Provisions, except that
the integration of the seniority lists of the respective pilot
groups shall be governed by the Association Merger Policy
if both pre-transaction pilot groups are represented by the
Association.
2. Single Collective Bargaining Agreement Where Applicable
a. Upon announcement of any transaction which is
intended to result in the consolidation of the Company
with another airline, the Company and the Association
will promptly enter into negotiations for an appropriate
interim fence agreement, if necessary, pending
completion of the combined collective bargaining
agreement and an integrated seniority list. Pending
completion of the combined collective bargaining
agreement and an integrated seniority list, but for not
longer than twelve (12) months from the closing of the
transaction, (i) the aircraft (including all orders and
options to purchase aircraft) and operations of each
pre-transaction airline shall remain separate and shall
not be transferred between the pre-transaction airlines,
and (ii) there shall be no furlough of pilots.
b. Where the Company is the surviving entity and the
Association is the surviving representative from such
transaction, then, to the extent permitted by law, the
combined collective bargaining agreement shall be this
Agreement and the negotiations that take place shall
be limited to those necessary to transition the acquired
or merged carriers’ pilots to this Agreement. If
negotiation of such transition issues is not concluded
in thirty (30) days following the closing of the
transaction, the parties will submit their outstanding
issues to neutral arbitration for final and binding
decision, and such decision shall be rendered within
thirty (30) days of the close of the hearing unless the
parties agree otherwise in writing. If there is a
representation dispute pending at the National
Mediation Board, arbitration shall be held in abeyance
until a determination has been issued by the NMB.

 

[higney85]

Here is the rumored LOA.

LETTER OF AGREEMENT No. 6
between
MESABA AVIATION, INC.,
EXPRESS AIRLINES I, INC.,
and
THE AIR LINE PILOTS
in the service of
MESABA AVIATION, INC.
and
in the service of
EXPRESS AIRLINES I, INC.,
as represented by
AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
THIS LETTER OF AGREEMENT is made and entered in accordance with the
provisions of the Railway Labor Act, as amended, by and between Mesaba Aviation, Inc. and
Express Airlines I, Inc. (hereinafter referred to as Mesaba and Express, respectively), and the air
line pilots in the service of Mesaba and Express, as represented by the Air Line Pilots
Association, International (hereinafter referred to as the “Association”).
W I T N E S S E T H:
WHEREAS, there is growth ongoing of Minneapolis domicile flying performed by
Mesaba, and
WHEREAS, there is a reduction in the amount of Minneapolis domicile flying performed
by Express, and
WHEREAS, there are qualified Express pilots who may wish to become employed as
pilots with Mesaba,
THEREFORE, BE IT RESOLVED THAT qualified pilots on the Express Pilots’ System
Seniority List will be permitted to become employed as pilots with Mesaba, under the following
terms and conditions:
A. MESABA VACANCY PREFERENCES
1. Notwithstanding provisions of Section 10 (Filling of Vacancies) of the collective
bargaining agreement between Express and the Association that became effective
March 1, 1996, to the contrary, (hereinafter referred to as the “Express Agreement”),
Express will post a Notice of Mesaba Vacancies on the bulletin boards in MEM and MSP
for ten (10) days. The posting will include the following information:
A.18
a. Thirty (30) SF-340 Captain vacancies with Mesaba available for assignment
initially by up to twenty (20) MSP domicile SF-340 Captains (as of August 1,
1997) and by up to ten (10) MSP domicile J-31 Captains (as of August 1, 1997).
If fewer than 20 MSP SF-340 Captains apply for the available positions with
Mesaba, then the unfilled position(s), up to 20 total, will be granted to MEM SF-
340 Captain(s). If fewer than 10 MSP J-31 Captains apply for the available
positions with Mesaba, then the unfilled position(s), up to 10 total, will be granted
to MEM J-31 Captain(s).
b. A Captain position with Mesaba requires 3,000 hours total time and 1,500 hours
multi-engine time, fulfillment of federally mandated hiring requirements, and
possession of an ATP. Mesaba shall conduct face-to-face interviews with the
selected Express Captains and First Officers (“interviewees”), and the Mesaba
MEC will have one representative present at such interviews. In the event an
interviewee does not successfully complete the interview, then Mesaba will
advise the Mesaba MEC Chairman and Express Chairman, or their designees, of
the reason(s) for the failure. Upon the election of the interviewee, and after a
reasonable interval to consult with the MEC Chairmen, a second interview shall
be conducted. If the second interview results in a denial of employment by
Mesaba, then the vacancy will be offered to another Express pilot who
preferenced the vacancy and is selected according to the criteria in this Letter of
Agreement.
c. Twenty-five (25) First Officer vacancies with Mesaba available for assignment
initially by MSP domicile First Officers (as of August 1, 1997). Any remaining
First Officer vacancies, up to twenty-five (25) total, will be granted without
regard to domicile.
d. The Mesaba First Officer vacancies will have an effective date of hire of
August 1, 1997. Express and Mesaba will cooperate to efficiently process the
release from Express and employment of those pilots with Mesaba, so as to avoid
any interruption of pay for such pilots. The pilots that are employed by Mesaba
will be recorded as voluntarily resigning from Express upon successful
completion of training at Mesaba.
e. The closing date for submitting preference requests will be the tenth day after the
Notice of Vacancy has been posted.
f. Final selections shall be posted on the closing date for bidding.
g. Final selections shall be determined within Express equipment, status, and
domicile with the seniority of the requesting pilots, notwithstanding
provisions of Section 14 (Seniority) of the Express Agreement to the contrary.
A.19
h. On the closing date for bidding, Express will provide Mesaba, Mesaba MEC, and
the Express MEC with the results of the preference requests, which shall contain a
ranking of all Express pilots who submitted preference requests.
i. Mesaba shall provide bid cards to be distributed to selected Express pilots so that
such pilots may participate in each vacancy bid published by Mesaba. The first
ten (10) Captain and ten (10) First Officer slots in the December 1997 class shall
be reserved for Saab qualified pilots. Thereafter, Express pilots will be provided
with bid cards and attend class in order of seniority by seat, but without regard to
equipment.

 

[higney85]

B. SENIORITY AND LONGEVITY
1. Selected pilots will be assigned seniority positions and become eligible for compensation
and benefits with Mesaba, notwithstanding provisions of the Mesaba Agreement to the
contrary, including but not limited to Sections 3 (Compensation), 7 (Vacations), 22
(Seniority), and 28 (Retirement) under the following terms and conditions:
a. Selected SF-340 Captains will receive seniority credit at Mesaba for their Express
seniority on a one-for-two basis, and selected J-31 Captains will receive seniority
credit for their Express seniority on a one-for-three basis. After August 1, 1997,
seniority will accrue on a one-for-one basis.
(i) Any MEM domicile pilot placed on the preference list will receive
seniority credit based on the applicable ratio above, unless that ratio
results in a seniority position more favorable than the relative seniority
position of the most senior unfilled position among the MSP based pilots.
In that case, the pilot will occupy the position of the most senior pilot who
did not submit a request. For example, if all of the most senior MSP SF-
340 Captains request to transfer to Mesaba except pilot seniority number
5, the most senior MEM SF-340 Captain will assume the seniority credit
that MSP SF-340 Captain number 5 would have received, or his own ratio
seniority position, whichever is numerically higher.
b. Each selected Captain will be deemed to have completed his probationary period,
and will not be subject to the provisions of Section 22 A. of the Mesaba
Agreement.
c. The selected First Officers will be awarded seniority dates of August 1, 1997 at
Mesaba, and shall be ranked consistent with their relative seniority at Express.
Each selected First Officer will be deemed to have completed his probationary
period at Mesaba, and will not be subject to the provisions of Section 22.A. of the
Mesaba Agreement, provided that he has spent 365 days in the active service of
Express. If not, he shall serve out the remainder of his probationary period at
Mesaba.
A.20
d. Selected SF-340 Captains will receive longevity credit at Mesaba for their
Express longevity on a one-for-two basis. Selected J-31 Captains will receive
longevity credit for their Express longevity on a one-for-three basis. First Officers
will begin to receive longevity credit commencing on the vacancy effective dates
as provided in A.1.d. above.
e. The provisions of Section 22.B. (Seniority General) of the Mesaba Agreement
shall be applicable to each selected pilot consistent with the following: Subparagraph
B.1. will be applicable as modified by paragraph B.1.a. above. A
selected Captain shall be eligible to hold an award to AVRO Captain after every
pilot on the Mesaba Pilots’ System Seniority List as of July 31, 1997 has
sufficient seniority to have been awarded an AVRO Captain position.
C. COMPENSATION
1. Selected SF-340 Captains will be compensated at the applicable hourly rates for the SF-
340 equipment type and Years in Service which appear in the Section 3.A. table of the
Mesaba Agreement or at the pilot’s then applicable Express hourly rate (“red circle
rate”), whichever is greater. A pilot will be paid at the red circle rate until such time as
the applicable Mesaba hourly rate is greater. Years in Service shall be computed by
crediting Express longevity on a one-for-two basis through August 1, 1997, and on a onefor-
one basis thereafter. Selected J-31 Captains will be compensated based on the
applicable hourly rates for the J-31 equipment type in the Express Agreement until
completion of IOE at Mesaba, and thereafter at the applicable SF-340 Captain hourly
rates which appear in the applicable Section 3.A. table of the Mesaba Agreement. Years
in Service shall be computed by crediting Express longevity on a one-for-three basis
through August 1, 1997, and on a one-for-one basis thereafter.
2. Selected First Officers will be compensated at the applicable hourly rate in the Express
Agreement until such time as they complete IOE at Mesaba, and thereafter at the
applicable hourly rate for the position they hold.
D. BENEFITS
1. For purposes of Vacation entitlement and accruals, selected pilots will be entitled to bid
vacation in calendar year 1999 in accordance with their accrued longevity under the
terms of this Agreement. A selected pilot will be granted time off without pay in calendar
year 1998 for the same period of time as he could have bid as vacation at Express, and
shall receive vacation pay in a lump sum for accrued vacation hours upon resignation
from Express. Express shall provide to Mesaba the accrued vacation of each transferring
pilot.
2. For purposes of the Company 401(k) Savings Plan, selected pilots will be entitled to
participate upon completion of IOE at Mesaba. For purposes of entitlement to Company
match percentage pursuant to Section 28 of the Mesaba Agreement, selected pilots with
at least one (1) year of service with Express will be deemed to have completed one (1)
A.21
year of service with Mesaba. If a selected pilot has less than one (1) year of service with
Express, that pilot’s service time with Express will be credited for the purpose of
computing eligibility for participation in the 401(k) Savings Plan and eligibility for the
Company match. With respect to vesting, selected pilots will be deemed to have accrued
longevity commencing on their effective date of hire by Mesaba (August 1, 1997). In
addition, Mesaba agrees to permit selected pilots to “roll over” their existing 401(k)
accounts from Express upon their enrollment in the 401(k) Savings Plan.
3. For purposes of entitlement to Health and Dental Insurance Plans at Mesaba, selected
pilots will be entitled to enroll upon completion of IOE at Mesaba, with no waiting
period, and with no potential loss of benefits attributable to a pre-existing condition.
Benefit participation levels will be determined by the pilot’s actual date of hire by
Mesaba.
4. It is the intent of the parties that in computations of entitlement to benefits not
specifically considered in this Letter, selected pilots will be treated as having longevity
credit based upon the completion of IOE at Mesaba, except that selected pilots will
receive credit for their prior Express service in the calculation of retiree pass benefits. For
the purpose of calculating duration of a selected pilot’s medical leave at Mesaba, the
pilot’s longevity as provided in paragraph B.1.d. and e. will apply.
E. GENERAL
1. A selected award pilot will not be required to pay any application fees or for any part of
any training costs nor be required to sign any training contract as a condition of
employment with Mesaba.
2. Mesaba will purchase a full uniform for any Express pilot who accepts employment as a
pilot with Mesaba.
F. RESOLUTION OF DISPUTES
Any disputes regarding the interpretation or application of this Letter, or the
interpretation or application of the corresponding provisions of the collective bargaining
agreement between Mesaba and the Association that became effective June 1, 1996, or the
interpretation or application of the corresponding provisions of the collective bargaining
agreement between Express and the Association that became effective March 1, 1996, as it
relates to the subject matter of this Letter of Agreement, shall be resolved under the provisions of
Sections 20 and 21 of the then effective collective bargaining agreement between Mesaba and
the Association. However, any dispute concerning the selection process or results of the Mesaba
vacancies granted by Express, or any prior employment issues not directly related to this Letter
of Agreement, will be heard and decided by the Express System Board of Adjustment. Any pilot
who wishes to challenge the result of the selection process, except for the interview at Mesaba,
must file a written grievance within seven (7) calendar days of the posting of the results of the
selection process, in accordance with the provisions of Section 21 of the Express Agreement.
Any grievance not filed within this time limit shall be deemed untimely. Prior to any grievance
A.22
heard by the System Board, the parties will discuss the grievance in an effort to resolve the
dispute. Any grievance on the bid process or results thereof will be accorded expedited handling
such that a final decision, with a neutral presiding, will be rendered within thirty (30) days of the
filing of the grievance. Parties to this Letter shall be entitled to appear by designation of their
representative, and present evidence and witnesses to the System Board. The parties agree that
they will adhere to and be bound by the decision and award of the System Board, and, that the
System Board shall be authorized to award a make whole remedy, in its discretion, as a remedy
for violation(s) of this Letter. Prior to convening the System Board to hear any dispute, the
parties shall be advised of the dispute by copy of the Letter of Submission, and notification of the
hearing date(s). The costs of the System Board shall be shared equally by the Association and the
participating Company(ies).

 

[higney85]

and the last part....

G. RECIPROCAL AGREEMENT
In the event that a transaction such as the one which gave rise to this Letter of Agreement
occurs in the future, where such transaction involves in a net loss of pilot positions at Mesaba
and a net gain of pilot positions at Express, it is hereby agreed that the parties shall enter into a
Letter of Agreement to provide for the transfer of Mesaba pilots to Express, under terms and
conditions no less favorable than the terms and conditions of this Letter of Agreement.
This Letter of Agreement shall become effective upon signing by the President of the
Association, retroactive to the date of signing, and shall remain in full force and effect through
the later of:
1. the amendable date of the then current collective bargaining agreement between Mesaba
and the Association, or
2. fifteen (15) years from the date of signing of this Letter of Agreement.
Signed this 26th day of November, 1997.