ALPA National on J4J and the U T/A

metrofo

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July 31, 2002
By Fax and U.S. Mail (Fax No. 410-877-7236)
Captain Reza Ostadali
MEC Chairman
Allegheny Airlines MEC
Air Line Pilots Association, International
2041 Garden Drive
Forest Hill, MD 21050
Re: Your Letter of July 22, 2002 (US Airways Restructuring Agreement)

Dear Reza:

In reference to your letter of July 22, you need not attempt to advise me on the principles of trade unionism. Nor should you presume that the tentative US Airways Restructuring Agreement (“TA”) benefits the US Airways pilots at the expense of the US Airways Express pilots when the facts are completely to the contrary.

We held an information meeting for leadership of the wholly-owned US Airways Express ALPA
groups last week; unfortunately, no Allegheny representative saw fit to attend. Had you done so, you would have learned some important facts about the TA.


The TA will cost the US Airways pilots an average of $465 million per year for six
and one-half years, compared to the estimated base case of $1.4 billion in annual
average pilot costs. This is a reduction of over 33% in annual pilot costs, without
even considering the effects of further downsizing of the airline. The downsizing
already has cost the US Airways pilots heavily in terms of jobs lost and reductions in
category and bid status.
The TA eliminates the no-furlough clause, the current minimum-block-hour clause,
and the ALPA grievance concerning these issues. As a result, the TA permits US
Airways to maintain nearly 1100 US Airways pilots in furlough status.
The TA further permits US Airways to reduce its fleet from the current 315 aircraft to
275 (245 if there is a bankruptcy filing). As a result, up to another 900 pilots are
exposed to furlough.
The TA authorizes US Airways to operate an additional 395 Small Jets in US Airways Express operations (an increase from the currently-authorized 70 to 465).
This authority applies whether or not US Airways files for bankruptcy. As a result,the US Airways Express Small Jet Fleet can be nearly twice the size of the mainline
fleet. Under the present agreement, the mainline fleet was nearly six times the size of
the Small Jet fleet.
These dramatic and unprecedented mid-term contract changes are all designed with the primary purpose of enabling US Airways Group, Inc. to secure a loan guarantee from the ATSB, without which neither US Airways nor any of the wholly-owned Express operators have any chance of surviving, either inside or outside of bankruptcy.

Even if the Allegheny MEC decides not to negotiate a restructuring agreement, the TA may save Allegheny and the jobs of the Allegheny pilots; without the TA, those jobs are at risk.

If the Allegheny MEC chooses to take part in the restructuring program, the Allegheny MEC can also participate in other opportunities made available by the TA, as follows:
Allegheny pilots will have a right to be hired at MidAtlantic Airways (MDA)
in seniority order based on the existing integrated seniority list of the wholly-owned
US Airways Express pilots, following the furloughed US Airways
pilots and ahead of any new-hires.
No MDA probation period will be required for US Airways pilots or pilots
from wholly-owned Express operators.
MDA pilot longevity for pay and benefit purposes for pilots from US
Airways or wholly-owned Express carriers will be based on longevity with
the originating carrier plus MDA length of service.
The MDA opportunities will include the Large SJs, classified as aircraft
configured for up to 76 seats.
MDA will agree to an ALPA contract, with terms no less favorable than
the average of ACO, CALEX, and CMR.
The contract will include advanced protections for merger, fragmentation, and change-of-control.
Allegheny pilots will be entitled to flow through to new-hire US Airways pilot
positions, in seniority order based on the integrated wholly-owned seniority
list.
Unlike the previous flow-through proposal presented to management some
years ago, but not agreed to by management, there is no limited “ratio” between flow-through and new-hire positions. Management has agreed to the new flow-through as part of the TA.
US Airways may place a large number of Small Jets above the existing
authority for 70 SJs at participating carriers, where the pilots will have the opportunity for 50% of the additional SJ positions.
While this is a smaller percentage than many Express pilots would prefer, the number of SJ opportunities that the TA creates in the Express system is several times as great as the existing number.
The Allegheny pilots and the Allegheny MEC must decide whether there are risks associated with participating in the restructuring program, including the additional SJ opportunities, and, if so, whether the benefits of participation outweigh the risks. The decision to participate in the
restructuring plan is entirely voluntary with each pilot group. Whether or not the Allegheny pilots participate, however, if the TA goes into effect, the dramatic sacrifices of the US Airways pilots will benefit all of US Airways Group and the pilots of the wholly-owned Express carriers. Hence, contrary to your uninformed accusations, the TA furthers the career goals of all pilots within US Airways Group. I hope this letter clears up any
misunderstandings.
Yours truly,
Duane E. Woerth, President
cc: Chris Beebe, MEC Chairman, US Airways
Paul Templeton, MEC Chairman, Piedmont
Steve Toothe, MEC Chairman, PSA
Executive Council
All Allegheny Pilots
 

surplus1

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If O'Reilly didn't have it sewed up, this guy would be great for the "no spin zone".

Hogwash.
 

Mad-dasher

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Why does Duane Woerth want Allegheny to sign this thing so bad? This letter is obviously ment to get the Allegheny rank and file to fight with the MEC and force him to sign J4J. If they really didn't need us they would have written us off long ago.

Another thing I don't understand is why the mainline guys aren't trying to find out what is going on at the wholly owned level. If they are going to come here and work 50% of the jobs you would think they would want the partake in the negotiations that would affect their future. While it is true they will make about 14% more money than our guys, it is also true they will have to work under our work rules. Right now our management is trying to abort every goody we have in our contract. For instance, they want to cut our sick pay acrual to 2 hrs per month. Cut per diem to $1.35 per hour. Completely change the health care coverage. Make a min. day 2 hrs, change duty time pay benefits and Cut our pay 10.5%.

It seem Ironic that mainline is trying so hard to get us to sign J4J so they can save the jobs of their pilots but when they get here the contract will have been raped so bad that they would probably rather stay unemployed.
 

surplus1

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Part of the problem is that the average mainline line pilot doesn't have a clue as to what's in your contract now or what might be there in the future.

The line pilots aren't the architects of this mess. It's the politicians on the MEC and the National leaders.

Most line pilots at the mainline know very little about the "regional" contract content with the possible exception of some book rates. The same is true of the regional line pilot. Most don't know what's in the mainline contract, they just know some numbers in Section 3.

We are often our own worst enemies.
 
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