Cactus East Arbitration

[joevollers]

...........

 

[joevollers]

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[joevollers]

so i thought better of it

 

[m80drvr]

This is said to be the East arguement. Who knows if it is real deal.

BEFORE
GEORGE NICOLAU
MED-ARBITRATOR UNDER THE MERGER POLICY
OF THE AIR LINE PILOTS ASSOCIATION, INT’L​

In The Matter of Seniority
Integration between

The Pilots of US Airways

and

The America West Pilots


MEDIATION STATEMENT OF THE US AIRWAYS MERGER COMMITTEE

In anticipation of the upcoming mediation scheduled to begin on October 16, 2006, the US Airways Merger Representatives submit the following in support of their proposal to integrate the US Airways and America West pilot seniority lists by date of hire, subject to conditions and restrictions:

I. Date of Hire Has Worked Well At US Airways.

Historically, US Airways pilots have successfully integrated their seniority list with incoming pilot groups using the date-of-hire methodology. Allegheny-Lake Central, Allegheny-Mohawk, USAir-Pacific Southwest and USAir-Piedmont are mergers and seniority integrations that worked well for the carriers involved and for their pilots. The affected pilots in these transactions understood and agreed with the consolidation of their seniority lists because they understood and relied on date of hire as the basis on which their career choices were always made at their predecessor carriers.


The Shuttle seniority integration is an exception, as the Med-Arbitrator knows. However, neither of the Shuttle pilots’ dates of hire fairly integrated them into the US Airways list. Both sides therefore proposed other methodologies due to the exceptional circumstances of that case.

The date-of-hire principle has already been adopted by other crafts for integrating US Airways and America West employees, including flight attendants and passenger service agents. We submit that it can and should be utilized for the pilots as well.
To be sure, some of the America West pilots will require limited conditions and restrictions for a period of time to preserve their current positions or their unmerged opportunity to promote from first officer to captain. That is not an unusual or disqualifying state of affairs, however. The US Airways Merger Representatives seek a fair and equitable seniority integration and propose to leave all pilots in their current positions through no-bump/no-flush and other guarantees. For the same reason, our proposal includes domicile protections for all pilots in order to prevent anyone’s loss of a preferred base as a result of the implementation or use of the merged seniority list.

II. US Airways Brings Widebody International Flying

At the time of the announcement of the US Airways-America West merger on May 19, 2005, the US Airways pilots enjoyed premium flying in A330 and B767 aircraft to 13 destinations in Europe and to numerous Caribbean and North and Latin American points. The Company had additional applications for route authority pending at the time and has added three more European destinations as a result.



America West held no comparable route authority at the time of the merger. America West did serve the U.S., Mexico, Canada and Costa Rica prior to the merger and began service to Hawaii with B757s in the winter of 2005-06.

 

[m80drvr]

III. The US Airways Pilots’ Greater Age Will Benefit the Junior America West Pilots Due to Attrition-Based Promotional Opportunities.

The projected age-sixty attrition of the 5,098 US Airways pilots on our attached certified list exceeds that of the 1,894 America West pilots, as shown on the accompanying charts. Of the US Airways pilots, 324 were flying at the Mid-Atlantic division of US Airways on May 19, 2005, and another 1,472 were on furlough. The undeniable demographic age disparity will benefit the junior pilots at America West because added promotional opportunities will become available to them no matter how the seniority lists are combined.

IV. Fleets and Collective Bargaining Agreements.

At the time of the announcement of the merger, US Airways operated 270 jet aircraft, including nine A330s and ten B767s. On firm order were 19 A320-family aircraft and ten A330-200s, none of which has been delivered. America West operated 142 jet aircraft and had firm orders for 19 A320-family aircraft, eight of which have been delivered as of today.

The collective bargaining agreements of both pilot groups are equivalent economically when viewed as a whole. Some rates and rules are better at one carrier and others are better at the other. In fact, management at US Airways used the America West pilots’ contract as a model during the concessionary negotiations prior to the second Chapter 11 filing of US Airways in September 2004.



V. Arbitral Precedent Supports a Date-of-Hire Integrated Seniority List.

Arbitral precedent confirms that a date-weighted integrated seniority list is fair and equitable when, as here, the two carriers are relatively comparable. A couple of sample ALPA Merger Policy arbitration decisions are enclosed, including USAir-Piedmont (1988) (Kagel); and Republic-Hughes Airwest (1981) (Bloch).
In USAir-Piedmont, at 3, the arbitration board held that USAir and Piedmont were “look-alikes” and “a merger of two healthy companies that need one another.” The Board therefore integrated the lists based on date of hire. Id.at 11.

In Republic-Hughes Airwest, at 32, the arbitration panel integrated the seniority list based on length of service. Arbitrator Bloch explained, “Whether seen in terms of equipment, routes, finances, or even the labor agreements themselves, this combination was one of well-matched participants.” Id.at 3 1-32. The same applies here.

VI. Placing Furloughed Pilots Ahead of Active Pilots Is Fair.

The US Airways Merger Representatives’ date-of-hire proposal is fair and equitable, as arbitral precedent confirms, even though it places furloughed US Airways pilots ahead of active America West pilots. Republic-Hughes Airwest at 45-46 (1981) (Bloch, Arb.); Braniff-Panagra at 4-5 (1967) (Cole). In Braniff-Panagra, at 4, the Arbitration Board integrated 987 active Braniff pilots, 73 active Panagra pilots and fourteen furloughed Panagra pilots. Id.at 4, Award at 1, and App. I at 7-8. In a merger approved by the Civil Aeronautics Board on October 15, 1966, the ALPA Arbitration Board intermingled these furloughed Panagra pilots with active Braniff pilots, integrating the senior furloughed Panagra pilot immediately below an active Braniff pilot hired on December 1, 1964 (number 625 on the integrated list), and integrating the junior furloughed Panagra pilot immediately below an active Braniff pilot hired on November 1, 1965 (number 747 on the integrated list). Id.


In Republic-Hughes Airwest, at 2 n.1, 17, approximately 100 Airwest pilots were on furlough, but no Republic pilots were. Id.at 2 n.1, 14, 28;

Sommermeyer Concurring Op. at 6. The Board found it “not inappropriate” to place furloughed Airwest pilots ahead of active Republic pilots. Id.at 45.

According to Arbitrator Bloch, “Such placement will have occurred as a result of more extensive, albeit prior, active service by the furloughed pilot.” Id.at 45-46.

VII. The Alleged Financial Disparities Between the Pre-Merger Carriers Does Not Justify The Anticipated Relative Position Proposal of the America West Merger Representatives.

We anticipate that the America West Merger Representatives will propose integrating the seniority lists using a relative position ratio on the theory that such a methodology would be justified by the alleged financial disparities between the pre-merger carriers. That dog won’t hunt.

In Republic-Hughes Airwest, at 20, Arbitrator Bloch wrote that “one would neither sell a golden goose nor purchase a white elephant.” Here, too, a willing buyer and seller made a deal and neither “saved” the other. One need only look to the comments of Doug Parker, CEO of the merged US Airways, to see that there is no golden goose and no white elephant involved in this merger either. Instead, we have two carriers that were in similarly poor financial condition. Both needed the merger and gained substantially from it, as did their employees. Mr. Parker recently commented:

So, if you’re an employee and trying to leverage the former America West “We didn’t need to merge, we were just fine on our own” point of view, I’d ask you to rethink that philosophy. Because it’s simply not true. We did need this merger. And although our situation wasn’t as dire or as immediate as US Airways, this merger was important to America West’s future. And indeed, I think, extremely important. On the other hand, if you’re trying to leverage the former America West, you know, “See, Doug says you guys weren’t doing very well either,” position, I’d argue that’s not really the right tack to take either.

Quite frankly, nine months after this merger’s closed, who needed whom more really doesn’t matter. We needed each other. Those are the simple facts. We’re much stronger together than either was individually. And that’s all there is to it.​

Phone-In Hotline, Doug Parker, July 26, 2006. Accordingly, as in USAir-Piedmont, date of hire is the appropriate methodology for merging the pilot seniority lists of America West and US Airways.

Dated: October 10, 2006

Respectfully submitted,

Daniel M. Katz, Jason M. Whiteman
Katz & Ranzman, P.C.
5028 Wisconsin Avenue, N.W.
Suite 250
Washington, D.C. 20016
(202) 659-4656

Counsel for the US Airways Merger Representatives




Let the bitching begin. I've got a cold sixer waiting by the computer for this one. This chould be good.

 

[vetrider]

Nothing in there is a surprise to any on either property who have been paying the least bit of attention. Nicolau will get to the bottom of it.

 

[TWA Dude]

He will indeed.

 

[grog_sit_reserv]

blah, blah, blah, puke.....

 

[MK82Man]

Sentence one, para one.

Historically, US Airways pilots have successfully integrated their seniority list with incoming pilot groups

Arogance on the East side. Incoming, not. New company. Could hurt the East in front of the Mr. Nicolau.

Secton V, DOH Argument

Sommermeyer Concurring Op. at 6. The Board found it “not inappropriate” to place furloughed Airwest pilots ahead of active Republic pilots. Id.at 45.

Why would the East lawyer hi-light this action? Completly inappropriate and underminds EAST DOH suggestion and integration of furloughees in front of AWA active pilots. How much are they paying this "expert?" Why would East MEC agree to this language? All they could find was 14 Panagra pilots from 1966 to support furloghees in front of active list pilots from the WEST. Very poorly written section

Secton VII, Anticipated AWA DOH Argument

That dog won’t hunt. In Republic-Hughes Airwest, at 20, Arbitrator Bloch wrote that “one would neither sell a golden goose nor purchase a white elephant.”

Attempt at emotional connection with Nicolau. He is a proven mediator and a fact based approach always works best in legal-type environment. Absent facts, East tries emotion. We might not have been a glittering golden goose on the West (at least we were making money), but we may in fact have purchased (with outside help) a while elephant.

I think the EAST's opener is weak. Other thoughts?

 

[CaptBud330]

Date of hire, I think not

Historically, US Airways pilots have successfully integrated their seniority list with incoming pilot groups

Tell that to the Mohawk pilots that were hired in 1968 and were put behind Allegheny pilots hired in 1969 who were on furlough from Mohawk but flying for Allegheny.

 

[ALGFLYR]

Sommermeyer Concurring Op. at 6. The Board found it “not inappropriate” to place furloughed Airwest pilots ahead of active Republic pilots. Id.at 45.

Why would the East lawyer hi-light this action? Completly inappropriate and underminds EAST DOH suggestion and integration of furloughees in front of AWA active pilots. How much are they paying this "expert?" Why would East MEC agree to this language? All they could find was 14 Panagra pilots from 1966 to support furloghees in front of active list pilots from the WEST. Very poorly written section

He highlighted that section because it supports the position of placing furloughed pilots ahead of active pilots. Read "NOT inappropriate". To read the same sentence another way is: The board found it appropriate to place furloughed Airwest pilots ahead of active republic pilots.

Appropriate means the same thing as not inappropriate...

 

[KeroseneSnorter]

Historically, US Airways pilots have successfully integrated their seniority list with incoming pilot groups

Tell that to the Mohawk pilots that were hired in 1968 and were put behind Allegheny pilots hired in 1969 who were on furlough from Mohawk but flying for Allegheny.

Before my time, but correct me if I am wrong, I believe that was agreed upon because of the fences that were put in place to help both sides maintain their position during the first few years. It later became irrelevant due to the vast growth and the fences were dropped since they didn't matter anymore.

If the fences had remained as planned the Mohawk furloughees would have faired better as Allegheny 69 hires rather than Mohawk 68 hires due to the difference in fleet sizes, equipment, and pilot ages in relation to retirement.

 

[CaptBud330]

Mohawk-Allegheny

Actually, the Mohawk-Allegheny merger involved international routes (Canada). Because of that, it had to be approved by President Nixon. The furloughed Mohawk pilots were loosing time from their 1968 date of hire while the Allegheny pilots continued to accrue seniority. The Mohawk 1968 DOH would still have slipped in front of the Allegheny 1969 DOH if the President had signed the transfer of authority when it hit his desk. But as fate would have it, it sat on his desk for an additional 12 days thereby providing enough time for the Allegheny pilots to move ahead of the Mohawk pilots.
If you don't think seniority matters, because of those 12 days, I had 3 furloughs and sat right seat for 16 years.

 

[KeroseneSnorter]

Actually, the Mohawk-Allegheny merger involved international routes (Canada). Because of that, it had to be approved by President Nixon. The furloughed Mohawk pilots were loosing time from their 1968 date of hire while the Allegheny pilots continued to accrue seniority. The Mohawk 1968 DOH would still have slipped in front of the Allegheny 1969 DOH if the President had signed the transfer of authority when it hit his desk. But as fate would have it, it sat on his desk for an additional 12 days thereby providing enough time for the Allegheny pilots to move ahead of the Mohawk pilots.
If you don't think seniority matters, because of those 12 days, I had 3 furloughs and sat right seat for 16 years.

Hard to Predict the future, know a guy that was hired in 66 with Lake Central and he was flushed back to F/O in 70 for another 10 years, didn't suffer any furloughs but he was also 2 years senior to the Mohawk guys.

Anyway, the intention of that I think was to preserve the positions, even though it didn't quite work out that way.

 

[TWA Dude]

AWA MEC MERGER COMMITTEE UPDATE​

Friday, October 20, 2006​

​

​

The West and East Merger Committees concluded five days of mediation today with no agreed-upon integrated seniority list. A blackout is in effect with regard to the substance of the mediation and will remain in effect until the start of arbitration on December 4th, 2006. We can tell you that we did reach agreements on certain employment data issues, some basic conditions and restrictions that were contained in the Transition Agreement and procedural ground rules for the arbitration. The status of CEL (Combined Eligibility List) Pilots will be resolved by the arbitrator based on briefs we will file prior to the commencement of the arbitration.

Thank you for your continued support. Although we will not be able to discuss the events of this past week, we look forward to speaking with you at the upcoming family awareness events about the seniority integration process generally. As always, we remain steadfast in our commitment to serving the best interests of the America West Pilots and their families.

 

[Jeff Helgeson]

So, you never had a bumper sticker that read........

Actually, the Mohawk-Allegheny merger involved international routes (Canada). Because of that, it had to be approved by President Nixon. The furloughed Mohawk pilots were loosing time from their 1968 date of hire while the Allegheny pilots continued to accrue seniority. The Mohawk 1968 DOH would still have slipped in front of the Allegheny 1969 DOH if the President had signed the transfer of authority when it hit his desk. But as fate would have it, it sat on his desk for an additional 12 days thereby providing enough time for the Allegheny pilots to move ahead of the Mohawk pilots.
If you don't think seniority matters, because of those 12 days, I had 3 furloughs and sat right seat for 16 years.

....."Nixon, now more than ever" ???!!!

 

[cactusboy53]

George is in control, and I'm not talking about the autopilot.