PIEDMONT MASTER EXECUTIVE COUNCIL
AIR LINE PILOTS ASSOCIATION INTERNATIONAL
535 HERNDON PARKWAY
HERNDON, VIRGINIA 20170
703-689-2270
To: Captain Duane Woerth, Alpa President; Captain Matt Kernan, Alpa Resource Coordinator; Captain J.C. Lawson, Alpa Executive Vice President Group B; Captain Jay Schnedorf, Alpa Executive Vice President Group B; Captain Mike Milofsky, Alpa Executive Vice President Group C; Captain Tom Wychor, Alpa Executive Vice President Group C; Captain Kent Hardisty, Alpa Executive Vice President Group D.
December 5th, 2003
Gentlemen:
It is imperative for the Association to promptly address Wexford Group’s petition to acquire Midway Airline’s assets. It appears that beyond a new name, Ascent Airlines, Wexford’s plans includes offering jobs to the old Midway employees, under the same management. The plan also appears to include a service contract with USAirways as a feeder carrier. There is only one very significant difference between Midway and Ascent: a lack of union representation!
If approved by the bankruptcy court, this amounts to nothing less than deliberate and intentional union busting! The assets that are Midway Airlines will merely have been transferred via bankruptcy court to an entity with exactly the same managers, the same planes, same address and same phone number. Foreseeing the potential for such tactics by management, I conferred with our contract administrator and Alpa Legal earlier this year, using Piedmont Airlines as an example, and was assured that the legal implications in most cases would likely
prohibit a company from proceeding in this direction.
I urge this Association to forcefully object to Wexford’s blatant
attempt to circumnavigate US law, as it must be abundantly clear that yet another battleground will emerge on a broad scale if there is a court ruling favoring such tactics. We cannot allow further attacks on organized labor to remain unchallenged. If the
bankruptcy judge allows Wexford’s attempt to prevail, it will openly threaten the job security of every Association member at all airlines, rendering union membership and labor contracts meaningless in the future, far beyond the Association itself!
USAirways provided DIP financing to Midway Airlines during a period when the company itself was subject to Chapter 11 of the bankruptcy code, approved by the presiding judge. One of the provisions was for Midway’s aircraft leases to fall under USAirways control in the event of a liquidation order by Midway’s
bankruptcy judge.
USAirways’ senior management expressed to us that those aircraft would then either be assigned to PSA Airlines or Mesa Airlines. As we know, PSA Airlines already have an accelerated delivery schedule from Bombardier and are unlikely to receive FAA approval for the introduction of additional aircraft, and in any
case would probably be unable to assume such deliveries in addition to current plans. Mesa Airlines also appear unable to facilitate the additional burden at this time. It is easy to see how these events negatively affect the rapid deployment of Regional Jets and revenue generation projections as specified in USAirways’ own restructuring plan as approved by the Bankruptcy court upon USAirways’ emergence from bankruptcy, and as accepted by the ATSB amongst others.
Several attempts have previously been made to establish non-union regional carriers through the holding companies of their affiliate airlines, i.e. Freedom Air and Republic, and this latest attempt reeks of yet another effort of doing so, through the legal blessing of the courts! Such a carrier can operate without consideration for and in direct conflict with contractual provisions negotiated by other pilot groups, and USAirways has already demonstrated their willingness to violate such provisions locally, fully realizing that such disputes are subject to a lengthy grievance process and to the ruling of an arbitrator whose
consideration at the time of ruling will likely include the financial burden to both USAirways and the infringing carrier were he/she to find for the Association.
Your immediate response is requested, and only prompt action by the Association on a national level via filing an objection with the
bankruptcy court and applying political pressure can avert the opening of yet another Pandora’s box as the assault on labor continues.
Fraternally,
Captain Olav C. Holm /s/
PDT MEC Chairman
AIR LINE PILOTS ASSOCIATION INTERNATIONAL
535 HERNDON PARKWAY
HERNDON, VIRGINIA 20170
703-689-2270
To: Captain Duane Woerth, Alpa President; Captain Matt Kernan, Alpa Resource Coordinator; Captain J.C. Lawson, Alpa Executive Vice President Group B; Captain Jay Schnedorf, Alpa Executive Vice President Group B; Captain Mike Milofsky, Alpa Executive Vice President Group C; Captain Tom Wychor, Alpa Executive Vice President Group C; Captain Kent Hardisty, Alpa Executive Vice President Group D.
December 5th, 2003
Gentlemen:
It is imperative for the Association to promptly address Wexford Group’s petition to acquire Midway Airline’s assets. It appears that beyond a new name, Ascent Airlines, Wexford’s plans includes offering jobs to the old Midway employees, under the same management. The plan also appears to include a service contract with USAirways as a feeder carrier. There is only one very significant difference between Midway and Ascent: a lack of union representation!
If approved by the bankruptcy court, this amounts to nothing less than deliberate and intentional union busting! The assets that are Midway Airlines will merely have been transferred via bankruptcy court to an entity with exactly the same managers, the same planes, same address and same phone number. Foreseeing the potential for such tactics by management, I conferred with our contract administrator and Alpa Legal earlier this year, using Piedmont Airlines as an example, and was assured that the legal implications in most cases would likely
prohibit a company from proceeding in this direction.
I urge this Association to forcefully object to Wexford’s blatant
attempt to circumnavigate US law, as it must be abundantly clear that yet another battleground will emerge on a broad scale if there is a court ruling favoring such tactics. We cannot allow further attacks on organized labor to remain unchallenged. If the
bankruptcy judge allows Wexford’s attempt to prevail, it will openly threaten the job security of every Association member at all airlines, rendering union membership and labor contracts meaningless in the future, far beyond the Association itself!
USAirways provided DIP financing to Midway Airlines during a period when the company itself was subject to Chapter 11 of the bankruptcy code, approved by the presiding judge. One of the provisions was for Midway’s aircraft leases to fall under USAirways control in the event of a liquidation order by Midway’s
bankruptcy judge.
USAirways’ senior management expressed to us that those aircraft would then either be assigned to PSA Airlines or Mesa Airlines. As we know, PSA Airlines already have an accelerated delivery schedule from Bombardier and are unlikely to receive FAA approval for the introduction of additional aircraft, and in any
case would probably be unable to assume such deliveries in addition to current plans. Mesa Airlines also appear unable to facilitate the additional burden at this time. It is easy to see how these events negatively affect the rapid deployment of Regional Jets and revenue generation projections as specified in USAirways’ own restructuring plan as approved by the Bankruptcy court upon USAirways’ emergence from bankruptcy, and as accepted by the ATSB amongst others.
Several attempts have previously been made to establish non-union regional carriers through the holding companies of their affiliate airlines, i.e. Freedom Air and Republic, and this latest attempt reeks of yet another effort of doing so, through the legal blessing of the courts! Such a carrier can operate without consideration for and in direct conflict with contractual provisions negotiated by other pilot groups, and USAirways has already demonstrated their willingness to violate such provisions locally, fully realizing that such disputes are subject to a lengthy grievance process and to the ruling of an arbitrator whose
consideration at the time of ruling will likely include the financial burden to both USAirways and the infringing carrier were he/she to find for the Association.
Your immediate response is requested, and only prompt action by the Association on a national level via filing an objection with the
bankruptcy court and applying political pressure can avert the opening of yet another Pandora’s box as the assault on labor continues.
Fraternally,
Captain Olav C. Holm /s/
PDT MEC Chairman
