CAL/UAL Merger Done Next Week

[UAL-GSO]

All I can say is that there better be no furloughed UAL pilot senior to me on the new list. I was a DEC 2005 CAL hire

I've met a lot of good people at CAL through the years. I guess your always going to have a few that slip through the cracks.

Nothing a code red won't fix...

 

[Mr.B]

All I can say is that there better be no furloughed UAL pilot senior to me on the new list. I was a DEC 2005 CAL hire

HAHAHa...another internet tough-guy. Tool.

 

[Plug]

What uniforms will the combined carrier wear?

 

[Mr.B]

What uniforms will the combined carrier wear?

I'll wear my football helmet if that SFR tough guy shows up. Scary man.

 

[Jetjockey]

I'll wear my football helmet if that SFR tough guy shows up. Scary man.

No need for a football helmet, SFR is a self-proclaimed pillow biter.

 

[EL10]

Sure, UAL gave up scope with a gun to there heads. Sure, UAL parked the guppies in anticipation of the merger. Sure, UAL has more wide bodies. Sure, CAL protected scope and a frozen pension in exchange for work rules and pay.

At the end of the day the seniority list will be closer to relative seniority then DOH. The question will be are the furloughs of each included in that calculation? Either way if they are not one thing fir sure everyone needs to pull for is that furloughs return with accrued longevity. While this will not speed up the Captain pay, it does at least provide for compensation while being away. This is the only way that the UAL second time furlougheies would be worth their while to go back. Give them the pay scale that they would have been making, vacation they would have earned. Who would not fight for that for theses guys?

Same goes for if any stock is part of the deal. Include them in the distribution, they are the ones that the merger has had the most costly toll on.

 

[CheapFlyer]

If they want to keep the 70 seaters etc, they can bring them to mainline... flown by mainline pilots...

Yogi

Exactly. I don't know why people keep saying you can't get scope back. All these RJ operators are on 2-7 year contracts. Hopefully, we can get (force) the company to not renew any future 70 seat contracts. All future "bids" will go to mainline. I don't see why this can't be used to bring back all the furloughees.

 

[General Lee]

Flopgut: You assume that the status-quo is an option. Unfortunately, from a practical perspective, you don't get to make that choice. This decision to enter into a merger transaction is management's to make. I commend CAL ALPA on the strength of their scope. Unfortunately, having a historically strong scope doesn't mean you don't have to spend bargaining capital now and in the future to sustain it.

Your company may be merging with a company that has existing contracts worth hundreds of millions (perhaps billions) of dollars to outsource 70 seat jets. So what are your choices? You can keep your scope, but that several hundred million will come from somewhere. Suppose the 70 seat contracts are worth $750 million. You will pay a premium to cancel them, since the company would be subject to litigation as well as significantly increased operating costs. So what are you willing to spend to cancel those contracts and dial back the scope clause? $1 Billion? I don't think ALPA has $1 Billion in bargaining capital in this situation. My understanding is that the combined company is planning to spend ~$500 million to appease labor during the merger.

Despite our best hopes, this is a bargaining process. The company has to give up something, and so does labor. Sure, the balance may be lopsided from time to time (C2000, Bankruptcy, etc) but eventually things return to equilibrium. It is tempting to believe that ALPA holds all the cards now, and that the company should give the pilots everything they ask for. That type of thinking is what causes the massive peaks and troughs in this career.

Clearly, CAL and UAL ALPA can accomplish a lot given their strong bargaining position. But don't forget the value of the merger to your career. The merger makes sense for the long term viability and quality of career for most of the pilot group at the combined company. CAL seems to have bright prospects for now, but don't kid yourself-so did every other airline now on the trash heap of history. You want management to act aggressively and capitalize on opportunities for growth and cost savings like this merger, otherwise they start looking to labor to make up the difference. Given the rumored structure of the proposed merger, the companies can combine relatively inexpensively at the beginning of an economic recovery. Truthfully, this is the best combination CAL can ever hope for and the timing couldn't be better. If CAL ALPA stops the merger now, they may be forced to revisit a less favorable merger in the future under worse terms. You can prevent further growth of 70 seaters at the combined company and achieve a significant improvement in QOL and pay. But dialing back scope would cost more than any pilot is willing or should be willing to pay.

You seem to forget that the CAL pilots CAN VETO THIS. It is in their contract. So, scope is THEIR'S to lose. This is up to them. If they want to approve 70 seaters, they can. They can also state NO DEAL unless they get a pay raise, along with tighter scope and 70 seaters going away when the contracts expire. If they don't, it is THEIR own fault. If you have leverage, you should USE it. This isn't BK court with a judge watching.

And BTW, your SLI will be fairly close to relative, with some fences around 744s probably. Both airlines are legacies with widebodies and not a lot of smaller narrowbodies. Everything is about the same except the 744s. Both ordered 787s, with CAL probably getting them first, which might have a short fence around them for a couple years. (JMO)


Bye Bye--General Lee

 

[Scope out RJ's]

You mean kind of how the Delta pilots squandered the once in a career opportunity during the NW merger?

.......Says the "major" airline pilot flying for jet blew!

 

[DontFeedTheBear]

You seem to forget that the CAL pilots CAN VETO THIS. It is in their contract. So, scope is THEIR'S to lose. This is up to them. If they want to approve 70 seaters, they can. They can also state NO DEAL unless they get a pay raise, along with tighter scope and 70 seaters going away when the contracts expire. If they don't, it is THEIR own fault. If you have leverage, you should USE it. This isn't BK court with a judge watching.

And BTW, your SLI will be fairly close to relative, with some fences around 744s probably. Both airlines are legacies with widebodies and not a lot of smaller narrowbodies. Everything is about the same except the 744s. Both ordered 787s, with CAL probably getting them first, which might have a short fence around them for a couple years. (JMO)



Bye Bye--General Lee

Don't forget that CAL's orders are for growth, whereas UAL's orders are for replacement. Something has to be said for career expectations. CAL has 99 hires that hold CA, UAL's 99 hires are furloughed. So that is one more factor that needs to be taken into consideration!

Yogi