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McCaskill-Bond Seniority Integration Legislation

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FDJ2

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Joined
Aug 9, 2003
Posts
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Here's some info on the McCaskill-Bond legislation which might be of interest to the Frontier and SWA pilots. These excerpts come from a communication which was originally put out by the UAL MEC, but I think there's some good information in there which might play out in the next few months at Frontier/SWA.



Important Facts Regarding the McCaskill-Bond Seniority Integration Legislation


· Ensures the Association’s Merger/Fragmentation Policy will guide the seniority integration process if two ALPA-represented carriers merge.

· Ensures that a pilot group’s collectively bargained merger integration protections will continue to govern as before. In the case of the United pilots, seniority integration protections afforded by Section 1 of the CBA (as shown below) will remain in force.

1-D-3 – Air Carrier Successors
In the event of a Successorship Transaction in which the
Successor is an air carrier or Entity that Controls or is under
the Control of an air carrier, the Successor shall provide the
Company's pilots with the seniority integration rights provided in Sections 2, 3, and 13 of the Labor Protective Provisions specified by the Civil Aeronautics Merger Board in the Allegheny-Mohawk merger (''Allegheny-Mohawk LPPs''), except that the integration of the seniority lists of the respective pilot groups shall be governed by Association Merger Policy if both pre-transaction pilot groups are represented by the Association.

1-E-2 – Seniority Integration
The Company shall require the Transferee to provide the
Transferring Pilots with the seniority integration rights provided in Sections 2, 3, and 13 of the Allegheny-Mohawk LPPs except that the integration of the Transferring Pilots into the Transferee's seniority list shall be governed by Association Merger Policy if both pre-transaction pilot groups are represented by the Association. The Company shall require each Transferee to provide the seniority integration rights specified in the preceding sentence in connection with a Substantial Asset Sale in a written document enforceable against the Transferee by the Association and/or the Transferring Pilots.

· Provides a seniority integration process for pilot groups lacking contractual seniority integration protections defined in sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions (LPPs).

Sections 3 and 13 from Allegheny-Mohawk

Section 3

Insofar as the merger affects the seniority rights of the carriers employees, provisions shall be made for the integration of seniority lists in a fair and equitable manner, including, where applicable, agreement through collective bargaining between the carriers and the representatives of the employees affected. In the event of failure to agree, the dispute may be submitted by either party for adjustment in accordance with section 13.

Section 13


(a) In the event that any dispute or controversy (except as to matters arising under section 9) arises with respect to the protections provided herein which cannot be settle by the parties within 20 days after the controversy arises, it may be referred by any party to an arbitrator selected from a panel of seven names furnished by the National Mediation Board for consideration and determination. The parties shall select the arbitrator from such panel by alternatively striking names until only one remains, and he shall serve as arbitrator. Expedited hearings and decisions will be expected, and a decision shall be rendered within 90 days after the controversy arises, unless an extension of time it is mutually agreeable to all parties. The salary and expenses of the arbitrator shall be borne equally by the carrier and (i) the organization or organizations representing employee or employees or (ii) if unrepresented, the employee or employees or group or groups of employees. The decision of the arbitrator shall be final and binding on the parties.

(b.) The above condition shall not apply if the parties by mutual agreement determine that an alternative method for dispute settlement or an alternative procedure for selection of an arbitrator is appropriate in their particular dispute. No party shall be excused from complying with the above condition by reason of having suggested an alternative method or procedure unless and until that alternative method or procedure shall have been agreed to by all parties.
 
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WN will make SLI on their terms part of the deal - i.e. the bankruptcy court would impose the bostich SLI protocol
 
Here's some info on the McCaskill-Bond legislation which might be of interest to the Frontier and SWA pilots. These excerpts come from a communication which was originally put out by the UAL MEC, but I think there's some good information in there which might play out in the next few months at Frontier/SWA.



Important Facts Regarding the McCaskill-Bond Seniority Integration Legislation


· Ensures the Association’s Merger/Fragmentation Policy will guide the seniority integration process if two ALPA-represented carriers merge.

· Ensures that a pilot group’s collectively bargained merger integration protections will continue to govern as before. In the case of the United pilots, seniority integration protections afforded by Section 1 of the CBA (as shown below) will remain in force.

1-D-3 – Air Carrier Successors
In the event of a Successorship Transaction in which the
Successor is an air carrier or Entity that Controls or is under
the Control of an air carrier, the Successor shall provide the
Company's pilots with the seniority integration rights provided in Sections 2, 3, and 13 of the Labor Protective Provisions specified by the Civil Aeronautics Merger Board in the Allegheny-Mohawk merger (''Allegheny-Mohawk LPPs''), except that the integration of the seniority lists of the respective pilot groups shall be governed by Association Merger Policy if both pre-transaction pilot groups are represented by the Association.

1-E-2 – Seniority Integration
The Company shall require the Transferee to provide the
Transferring Pilots with the seniority integration rights provided in Sections 2, 3, and 13 of the Allegheny-Mohawk LPPs except that the integration of the Transferring Pilots into the Transferee's seniority list shall be governed by Association Merger Policy if both pre-transaction pilot groups are represented by the Association. The Company shall require each Transferee to provide the seniority integration rights specified in the preceding sentence in connection with a Substantial Asset Sale in a written document enforceable against the Transferee by the Association and/or the Transferring Pilots.

· Provides a seniority integration process for pilot groups lacking contractual seniority integration protections defined in sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions (LPPs).

Sections 3 and 13 from Allegheny-Mohawk

Section 3

Insofar as the merger affects the seniority rights of the carriers employees, provisions shall be made for the integration of seniority lists in a fair and equitable manner, including, where applicable, agreement through collective bargaining between the carriers and the representatives of the employees affected. In the event of failure to agree, the dispute may be submitted by either party for adjustment in accordance with section 13.

Section 13


(a) In the event that any dispute or controversy (except as to matters arising under section 9) arises with respect to the protections provided herein which cannot be settle by the parties within 20 days after the controversy arises, it may be referred by any party to an arbitrator selected from a panel of seven names furnished by the National Mediation Board for consideration and determination. The parties shall select the arbitrator from such panel by alternatively striking names until only one remains, and he shall serve as arbitrator. Expedited hearings and decisions will be expected, and a decision shall be rendered within 90 days after the controversy arises, unless an extension of time it is mutually agreeable to all parties. The salary and expenses of the arbitrator shall be borne equally by the carrier and (i) the organization or organizations representing employee or employees or (ii) if unrepresented, the employee or employees or group or groups of employees. The decision of the arbitrator shall be final and binding on the parties.

(b.) The above condition shall not apply if the parties by mutual agreement determine that an alternative method for dispute settlement or an alternative procedure for selection of an arbitrator is appropriate in their particular dispute. No party shall be excused from complying with the above condition by reason of having suggested an alternative method or procedure unless and until that alternative method or procedure shall have been agreed to by all parties.
Great information. However, since it is not a merger it has no effect on SWA. If SWA offers F9 a staple with pay protection they will take it. They can also put a freeze on the Denver Base until all the Air buses are gone. What a deal for them. One minute they are in Chapter 11 with an auction and the next they are with SWA.
 
This has nothing to do with ATA and is totally different. SWA did not bid to acquire ATA. Yes I know they purchased the company to get the gates at LGA but that was only after ATA was 100% OUT OF BUSINESS! SWA never tried to acquire aircraft or employee groups at ATA.
 
However, since it is not a merger it has no effect on SWA.
Your assumption is premature.
What a deal for them. One minute they are in Chapter 11 with an auction and the next they are with SWA.
That's how it works. Heck, sometimes the newly acquired pilots even get furloughed. Such a deal the AA buyout was for me.
 
Great information. However, since it is not a merger it has no effect on SWA.

If more than 50% of Frontier's assets are purchased, then it's considered a merger under this legislation.
 
SWA will operate F9 as a totally seperate company and slowly kill them off. Thats why the statement said "Frontier employees will be hired into Southwest as needed". I hate to say it but SWA has never wanted another airlines employee's. SWA has a very good culture that they want to protect, and they do that with their "people" department. F9 pilots will be "hired" as necessary. Its sad because F9 has a bunch of great people. I think there will be a bunch of F9 guys on the street. Hopefully I'm wrong, but history doesn't show it.
 
If more than 50% of Frontier's assets are purchased, then it's considered a merger under this legislation.

It is a purchase. Of course it will be over 50%. How else would SWA own it if it were less. It would be a merger if they combined the airlines into one operation. That is not what it is at this time. Delta and NW was a merger. This is a purchase.
 
Great information. However, since it is not a merger it has no effect on SWA.

Are you sure about that?

"In the event of a Successorship Transaction in which the Successor is an air carrier or Entity that Controls or is under the Control of an air carrier, the Successor shall provide the Company's pilots with the seniority integration rights provided in Sections 2, 3, and 13 of the Labor Protective Provisions"
 

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