Mediated negotiations resumed today in Washington D.C.
We received two proposals simultaneously, “Option 1 and
Option 2,” from management last night. Management’s Option
one proposal had better pay rates, little scope protection and nil
retro-pay. Option two had little pay rates, some scope and
slightly more retro-pay. Neither option alone was adequate to
embrace. In fact, both options combined were inadequate and
fell well short of the pilots needs in scope, pay rates, retro pay
and duty rigs.
In the morning, the Association countered comprehensive full
language proposals on all the remaining open issues. In result,
we are close to tentative agreements in Section 18 Instructor
Pilots, Section 27 Retirement, Section 28 Insurance, and Section
30 Duration. These Sections are pending final review for
typographical errors.
We remain committed to obtaining a fair agreement that offers:
job protection with minimized whip-saw threats, raises that are
commensurate with industry standards and future COLA’s, each
year. The rates we have proposed would do just that and still
allow the Company to remain extremely profitable and
competitive within the industry.
Here’s a recap of the remaining open issues:
Scope: Fragmentation, this provision dictates how aircraft can
potentially be transferred between airlines and what job
protections will be in place for ASA pilots in the event of one or
more aircraft transfer(s). We appear close in concept on some of the issues here; but, management’s proposals fall short of our
needs.
Pay rates: Lately, pay rates are all over the board in
management’s proposals. This may be intentional on their part
to try and confuse the pilots at ASA (in their updates.) At a
glance the CR2 captain rates may look ok in one proposal, but
the rest of their proposals are lacking substance. Management’s
proposals also fall short of our long standing requirement to
compensate our first officers at 60% of the Captain’s rate.
The CR7 pay rate proposals are either nothing for the duration in
option two proposal; and, 1% on DOS and 1% DOS+24 months
in option one. One thing to consider for each 1% raise on the
CR7 equates to only $264,000 per year in additional costs for
the Company. As Company profits continue to soar, they want
your salary to remain stagnant.
Profit Sharing: The Association agreed to accept the Company’s
profit sharing program to move closer to management in their
pay rate proposals. Keep in mind all other non-contract
employees continue to enjoy the profit-sharing program and did
not have to give up pay to get it.
Management continues to encumber the profit-sharing program
as a contingency to accept a preferential bidding system (PBS).
The Association remains opposed to any PBS system in this
contract. Remember how long it took us to negotiate Section 13
Scheduling? We spent a year and a half negotiating a new
Section 13, many of the areas that we negotiated to improve and
spent bargaining capital to obtain would simply go away under
PBS. Examples would be the improvements to the integration
system, line construction guidelines, and vacation bidding. We
are not interested in renegotiating these issues or giving up the
value we have in the gains we have made.
Duty Rigs: The dispute in this issue is the application of the duty
rig. Management has various offers on the table all of which
have glaring holes in their application. The Association’s
proposal is a simple industry standard 1 hour pay for 2 hours of
duty based on actual duty and a min day of 3 hours 45 minutes.
Retro pay: The parties remain millions apart on what it should
be. The methodology of how to compute retro pay also remains
in dispute. When the Association’s economist uses
management’s methodology, we still come up with much higher
numbers than management does.
It became apparent to the Association early in this session that
management came to this session only willing to reach an
agreement under their terms, not a mutual agreement. The
Association’s proposals are more than reasonable and easily
affordable by the Company.
We will explain the issues and
positions of both parties in further detail in a future update.
In the late evening the mediators informed both parties that we
will meet with the National Mediation Board member(s) Thursday
morning at the NMB office to discuss our case. We will report to
you after the meeting.