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CAL Magenta Line For 4/28/10

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Contract 2020????
Aug 14, 2004
Item 1: Continental/United Airlines Merger Speculation

Due to rampant news media reports industry speculation over an impending merger between Continental and United, CAL MEC Chairman Captain Jay Pierce has called for a Special Continental MEC Meeting for Thursday and Friday of this week. Due to the confidential nature of the discussions of this meeting, it will be conducted in closed session.

In order for our MEC to support, endorse, and cooperate in any merger or financial transaction, unequivocally, the following criteria set by our MEC must be achieved:

· The entity being created has to be a strong and viable entity. The merger has to be in the long-term best interest of our pilots.

· A joint collective bargaining agreement must be promptly negotiated.

· Our pilots must receive equity in the new entity.

· A fair seniority integration for all pilots must be part of the new entity formed.

To that end, Captain Pierce has set up a presentation by industry analyst and consultant Mr. Michael Boyd, President of the Boyd Group International Inc., to brief the MEC on any potential transaction involving Continental-United, any potential transaction involving United-US Airways, and the landscape of the airline industry as a whole. Additionally, our MEC will receive a briefing from ALPA’s Economic and Financial Analysis (E&FA) department, the CAL MEC Merger Committee and the CAL MEC Negotiating Committee.

Make no mistake about it, our MEC has only one objective and one goal should any potential merger or financial transaction be announced: to protect and enhance the careers and livelihood of each and every Continental pilot. With that in mind, we will do whatever is required to achieve that objective.

To receive a detailed briefing on this week’s special MEC meeting, your LEC officers strongly encourage you to attend next week’s Local Council Meeting on Thursday, May 6, at the Newark Airport Marriott from 1:00 p.m. to 5:00 p.m.

Item 2: CAL MEC Merger Committee

Since mergers are in the forefront of everyone’s mind, we thought it would be appropriate for us to give you a review of our Merger Committee:

Bar none, we have the most experienced, intelligent, and talented Merger Committee of any MEC within ALPA. Our Merger Committee has been diligently working quietly in the background for years, preparing for the possibility of a merger and seniority list integration. The members of our Merger Committee are as follows:

· Chairman - Captain Jim Brucia

· Member - Captain Scott Butcher

· Member - Captain Tony Montalto

· Member - First Officer Neal Schwartz

Captain Brucia was a member of the People Express Merger Committee and has been the “pilot neutral” in seniority list arbitrations at other carriers. Captain Brucia has been working closely with our renowned merger counsel, Mr. Daniel M. Katz, for years.

Captain Scott Butcher, who also serves as our MEC Alliance Chairman, has been a member of the CAL Merger Committee for several years. Captain Butcher was the “pilot neutral” for Polar Airways in the Polar/Atlas seniority arbitration. Captain Butcher’s database and computer expertise will significantly aid our Merger Committee in any subsequent seniority list integration process.

Captain Tony Montalto has also been a member of the Merger Committee for several years, and most recently he was able to gather excellent committee experience by watching firsthand the Delta/Northwest seniority arbitration.

First Officer Neal Schwartz is the newest member of the Merger Committee. He was recently elected to the Merger Committee when ALPA amended the size of the merger committee to allow for a fourth member. First Officer Schwartz was elected to the Merger Committee by the MEC to ensure the membership of the committee reflects the breadth of our seniority list. First Officer Schwartz came to Continental after serving as the Express-Jet Negotiating Committee Chairman during their last contract negotiation. Neal was also able to witness, first hand, much of the Delta/Northwest seniority arbitration.

Item 3: Local Council Meeting and SPSC Unity Event

Merger or no merger, let’s not lose our focus on our contract campaign. Even if we merge, we will still need to demonstrate our unity and resolve for a joint contract. To that end, please make every effort to attend next week’s unity event and show your support for your MEC and Negotiating Committee. Below is a reprint of the Local Council meeting notice.


Prior to the CAL Council 170 meeting there will be an SPSC Unity Event. Please make every effort to attend to support your MEC and Negotiating Committee. Please review all details of the SPSC event below.

DATE: Thursday, May 6, 2010

TIME: 1:00 p.m.–5:00 p.m.

PLACE: EWR Airport Marriott


1. Moment of Silence to Honor Those Pilots Gone West

2. Approval of Minutes from 3/3/10 Meeting

3. LEC 170 Officers’ Update

4. MEC Update - MEC Officer

5. Merger Committee Update - Merger Committee Chairman Captain Jim Brucia

6. Negotiating Committee Update - Negotiating Committee Chairman Captain Mark Adams

7. SPSC Update - SPSC Chairman Captain Marty Miller

8. LEC 170 Grievance Committee Update - LEC 170 Grievance Lead Captain Tom Allnatt

9. LEC Officer Q&A

10. New Business

SPSC Unity Event in Newark May 6

The SPSC initiates activities that provide support and leverage to our Negotiating Committee and a way for the line pilots to send a unified message to management. There will be several opportunities in the near future that will allow you to demonstrate your unity and send that message.

The first is the unity event in Newark on May 6.

This pilot group has conceded in excess of a billion dollars over the past five years. We have flown grueling schedules and have been forced to fly high line values while 147 of our pilots remain on furlough. Our quality of life, retirement, work rules, and finances have been decimated. The time for management to recognize and reward our sacrifices over the past five years is long overdue. Let management know that the time to get serious at the bargaining table is now.

Unity Event May 6

Location: EWR C-3 Food Court

Time: Meet at 11:15 a.m.

Dress Code: Summer uniform

Refreshments provided.

Following the event is an LC 170 meeting at the EWR Airport Marriott, starting at 1300. Pilots from all bases are welcome and encouraged to attend both the event and the LC meeting. Show your support for a new contract that truly recognizes the sacrifices we have made. Join us on May 6.

Item 4 – Chairman’s Editorial

I came to work for Continental in April 1987. Continental was a different airline back then, in fact the same could be said for United Airlines. Almost one- third of my new hire classmates went to work for United within a few short years after we were hired at Continental. Many Continental pilots back then walked around with their tail between their legs like second class citizens when interacting with not only United pilots but those of most major airlines.

The Continental Airlines of the last decade has come a long way since the 80’s and 90’s. The Continental Airlines of 2010 has had a major positive transformation. Unfortunately, for the United Airlines pilots, they too have seen a major transformation, but for them, through no fault of their own, this has occurred in a very negative way.

Today our airline is an industry leader with a large contingent of new aircraft orders that are slated for expansion and our contract, career expectations, and our projected overall future is far brighter than those at all other major airlines, most specifically United Airlines. We don’t need a merger to survive. We don’t have a management team whose sole business plan for survival is based on a merger. We as Continental pilots have every reason to expect a truly industry leading contract during our current round of negotiations.

So please do me a favor when you interact with pilots at United or any other airline for that matter. Hold your heads high; be proud of your airline, MEC, Negotiating Committee, Merger Committee, superior contract, and overall future as a whole as a Continental pilot. You have every reason to believe since our airline is successful and prosperous and our future as Continental pilots is very bright that we would fare very well in any potential seniority integration with any airline.

Just because you may have heard a rumor from someone on the jumpseat, crew room, or the so-called experts on the crack pipe, that attempts to convince you otherwise, that doesn’t change the undisputable facts as I described them above. Any arbitrator in a seniority list arbitration will use those very items bearing significant weight in determining any subsequent seniority list award.

If a merger is announced, we will enter the process from a position of strength in the seniority list integration process. It is also important to note we will first negotiate a joint CBA before pursuing a merged seniority list. In this effort, we would stand with the United pilots to maximize our leverage.

Message to Mr. Smisek: If you work with us we can make any potential merger go smoothly. Conversely, we can also make it one heck of a nightmare for you and the merged entity. If you are planning on any potential merger, you had better get your checkbook out and secure the future of ALL Continental pilots, yesterday.

That is all for today, please remember we have 147 pilots and their families on furlough.
So, the CAL pilots are going to listen to a presentation given by Mike Boyd... I still remember when he predicted UAL would be liquidated back in 2002. I would take everything he says with a HUGE GRAIN OF SALT.
I agree - they should be speaking with Seabury, the Teal Group or Bain. I dont know if any of those companies would represent pilots (particularly if they thought they could get consulting from what would be the worlds largest carrier in the future)
Mike Boyd has a big mouth and a small brain. I laugh every time I watch his interviews - what a jacka$$...

Hey Mike - FYI, UAL did not liquidate in 2002 as you predicted... Someone should ask him about that prediction.
"our renowned merger counsel, Mr. Daniel M. Katz, for years."

Represented the USAir and NWA pilots in their SLI's
The merger committee chairs for both CAL and UAL served on the ALPA Merger Policy Review Committee which overhauled the policy last year. What that means is that they both have a clear understanding of the new process and the pitfalls of 'lawyering up' and handing your fate to an arbitrator (or arbitrators). I would be surprised if this turned into a cash cow for Katz or any other lawyer who is used to USAPA like spending on merger related arguments. Times are changing and it is up to pilots to end the gravy train for the lawyers that think that inciting pilot wars is an acceptable way to earn a living.

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