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Pinnacle files suit against ALPA

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spinproof

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http://biz.yahoo.com/iw/080108/0346048.html

MEMPHIS, TN--(MARKET WIRE)--Jan 8, 2008 -- Pinnacle Airlines Inc., a wholly owned subsidiary of Pinnacle Airlines Corp. (NasdaqGM:PNCL - News), has filed a lawsuit in U.S. District Court against the Air Line Pilots Association International (ALPA) citing bad-faith bargaining in contract talks that began in 2005.

"We regret having to file this lawsuit, but the union left us with no choice. On more than one occasion, we agreed to terms that the union said would result in an agreement, and then they moved the goalposts and made additional demands," said Clive Seal, Vice President and General Manager of Pinnacle Airlines Inc.

"We need them to come to the table and deal fairly in a genuine effort to get a fair contract for our Pilots and their families. I believe we would have an agreement already if our Pilots had been told the truth about our offer and been allowed by the union to vote on the company proposal as we requested."


Seal said one result of the union continuing to move the goalposts is not being able to compete for new regional jet service. "The failure of ALPA to reach an agreement with Pinnacle resulted in the loss of 17 of our 50-seat jets and a chance to fly 76-seat jets for Northwest Airlines. On another occasion, one new customer removed Pinnacle from consideration for 25 new regional jets. We let the union know what was at stake on both occasions and that it was imperative that we achieve a new contract in a timely manner.

The union's response was that 'it's your problem.' We have a different view. This would have meant hundreds of new jobs for all of our People, including 200 new pilot jobs and immediate upgrades for 110 first officers. Success in this industry is based on growth, and we're offering a deal with that in mind."
"We're simply saying 'shoot straight with our Pilots, share with them what we've offered, not only in formal proposals but in informal meetings where we have agreed to your requests,'" said Seal. "One-sided negotiations can't be successful."

Pinnacle Airlines has a consistent history of reaching agreements with ALPA in 1989, 1996 and 1999. In fact, Duane Woerth, then president of ALPA, was quoted following 1999 negotiations as saying: "This is an extraordinary collective bargaining success. This is the way collective bargaining should work all the time. It's a landmark and a very positive result.'' (The Commercial Appeal, May 1, 1999).

The Airline recently reached an initial agreement with the Transportation Workers Union to cover its dispatchers, the United Steel Workers for its flight attendants and has made wage adjustments for all other work groups.
"We want a new contract for our Pilots. We want to be at the table and bring these negotiations to a close. We have bargained in good faith and have repeatedly responded positively to requests from the union.

We have been more than fair," said Philip H. Trenary, President and CEO of Pinnacle Airlines. "All of us built this company together under the premise that we are a team, and we think it's unfair that our pilots are the only employee group that has not had a raise since 2005. Now, it's time for the union to be fair by putting union politics aside and doing what's in the best interest of our Pilots."
 
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Ha Ha Ha.............

Now if unions don't capitulate to any demands airline managements feel are acceptable, they can sue to force their beliefs.

It's not an agreement until it's a SIGNED agreement. I've heard Peanuckle management spent the first year or so stalling, because their was no downside on their part. Then when consequences began to materialize, they expected the pilots to meet managements needs on their timetable.

Trenary's a gasbag...................the suit will fail.
 
This reeks of the typical Ford & Harrison legal games we endured for years. A petty tit-for-tat retaliation for the union requesting a proffer. Even ASA management wasn't bold and stupid enough to attempt this tactic.

While it grabs good headlines for the general public, if they're hoping to influence the board with this frivolous lawsuit, it will probably backfire.

If they're trying to influence the pilot group, it will backfire miserably.

Pinnacle pilots, it's time for a safety campaign.
 
Furthermore, if Pinnacle management felt all along that ALPA was not negotiating in good faith, the appropriate remedy would be to address this with the mediator and the NMB, as laid forth in the RLA, not to suddenly sue after the union requests a proffer.
 
Why on Earth would anyone take good ol' ALPA to court?
 
If I were the board of directors, or major investors, of this company I would be furious right now. The annoucement of this caused the stock to hit a 52 week low... suing your own employees while they're threatening to strike doesn't do much for investor confidence.

Management may think they don't have to answer to the employees, but they sure as heck have to answer to the investors and board. Driving your stock to new lows and being at the helm while extreme labor troubles have erupted screams "executive restructuring." If I were management at Pinnacle, I'd be very careful.

Good luck to all you over there, put up a fight.. and fly safe.


Furthermore, if Pinnacle management felt all along that ALPA was not negotiating in good faith, the appropriate remedy would be to address this with the mediator and the NMB, as laid forth in the RLA, not to suddenly sue after the union requests a proffer.

So ironic. They sue about arguing in bad faith... by going around the RLA. Isn't that the definition of bad faith? They're going to be laughed out of court.
 
Now would be a good time for the pilot group over there to take a page from the playbook of Big Brother (mainline)...
 
Pinnacle pilots, it's time for a safety campaign.

It's interesting to me to contrast this situation with UAL. Their pilots were battered during the bankruptcy and their morale has never been lower. When UAL management engaged in a tactic like their distribution, the UAL pilots may have responed by fllying the contract and letting management fall on their own sword. They didn't pick up open time and legally refused to fly trips they weren't required to make.
At 9E, they have a relatively junior pilot group with everyone trying to get out ASAP, but now confronted with a test to their unity, it will be interesting to see how they respond. With the economy and age 65 slamming the door on their escape, I hope the pilot group can reaffirm Wall Street's perception that management is no longer in control of the airline and that it's desperate act will backfire.
 
"The failure of ALPA to reach an agreement with Pinnacle resulted in the loss of 17 of our 50-seat jets and a chance to fly 76-seat jets for Northwest Airlines.


Didn't you guys lose just 15 aircraft? The other 2 that Mesaba "gained" were the two that were delivered to them prior to BK. I hope I'm wrong, but it looks like your V.P. doesn't even know how many aircraft you guys lost!!!
 
It's interesting to me to contrast this situation with UAL. Their pilots were battered during the bankruptcy and their morale has never been lower. When UAL management engaged in a tactic like their distribution, the UAL pilots may have responed by fllying the contract and letting management fall on their own sword. They didn't pick up open time and legally refused to fly trips they weren't required to make.
At 9E, they have a relatively junior pilot group with everyone trying to get out ASAP, but now confronted with a test to their unity, it will be interesting to see how they respond. With the economy and age 65 slamming the door on their escape, I hope the pilot group can reaffirm Wall Street's perception that management is no longer in control of the airline and that it's desperate act will backfire.

Reference Wall Street and the UAL pilot group:

http://cbs2chicago.com/business/ual.stock.plummets.2.624622.html

"Shares of United Airlines parent UAL Corp. fell Monday after a veteran industry analyst downgraded the company, citing festering labor discord he said includes pilots calling in sick and working the minimum number of hours required."

The selling continued at the open this morning.
 
http://biz.yahoo.com/iw/080108/0346048.html

Seal said one result of the union continuing to move the goalposts is not being able to compete for new regional jet service. "The failure of ALPA to reach an agreement with Pinnacle resulted in the loss of 17 of our 50-seat jets and a chance to fly 76-seat jets for Northwest Airlines. On another occasion, one new customer removed Pinnacle from consideration for 25 new regional jets. We let the union know what was at stake on both occasions and that it was imperative that we achieve a new contract in a timely manner.

Sounds just like the arguement Comair management used in bankruptcy court. "We've lost flying opportunities because of our pilots." "We can't grow because our costs are not competitive." "If we get competitive costs, we'll start growing again." After the bankruptcy judge ruled in management's favor and the union negotiated a huge bankruptcy claim for Comair pilots in exchange for pay rates the company wanted guess what...

Comair is still shrinking.

Everyone is pulling for those at Pinnacle. With age 65, a slowing economy, and $100/barrel oil, most regional pilots are going to be regional pilots for a long time.
 
http://biz.yahoo.com/iw/080108/0346048.html

MEMPHIS, TN--(MARKET WIRE)--Jan 8, 2008 -- Pinnacle Airlines Inc., a wholly owned subsidiary of Pinnacle Airlines Corp. (NasdaqGM:PNCL - News), has filed a lawsuit in U.S. District Court against the Air Line Pilots Association International (ALPA) citing bad-faith bargaining in contract talks that began in 2005.

"We regret having to file this lawsuit, but the union left us with no choice. On more than one occasion, we agreed to terms that the union said would result in an agreement, and then they moved the goalposts and made additional demands," said Clive Seal, Vice President and General Manager of Pinnacle Airlines Inc.

"We need them to come to the table and deal fairly in a genuine effort to get a fair contract for our Pilots and their families. I believe we would have an agreement already if our Pilots had been told the truth about our offer and been allowed by the union to vote on the company proposal as we requested."


Seal said one result of the union continuing to move the goalposts is not being able to compete for new regional jet service. "The failure of ALPA to reach an agreement with Pinnacle resulted in the loss of 17 of our 50-seat jets and a chance to fly 76-seat jets for Northwest Airlines. On another occasion, one new customer removed Pinnacle from consideration for 25 new regional jets. We let the union know what was at stake on both occasions and that it was imperative that we achieve a new contract in a timely manner.

The union's response was that 'it's your problem.' We have a different view. This would have meant hundreds of new jobs for all of our People, including 200 new pilot jobs and immediate upgrades for 110 first officers. Success in this industry is based on growth, and we're offering a deal with that in mind."
"We're simply saying 'shoot straight with our Pilots, share with them what we've offered, not only in formal proposals but in informal meetings where we have agreed to your requests,'" said Seal. "One-sided negotiations can't be successful."

Pinnacle Airlines has a consistent history of reaching agreements with ALPA in 1989, 1996 and 1999. In fact, Duane Woerth, then president of ALPA, was quoted following 1999 negotiations as saying: "This is an extraordinary collective bargaining success. This is the way collective bargaining should work all the time. It's a landmark and a very positive result.'' (The Commercial Appeal, May 1, 1999).

The Airline recently reached an initial agreement with the Transportation Workers Union to cover its dispatchers, the United Steel Workers for its flight attendants and has made wage adjustments for all other work groups.
"We want a new contract for our Pilots. We want to be at the table and bring these negotiations to a close. We have bargained in good faith and have repeatedly responded positively to requests from the union.


We have been more than fair," said Philip H. Trenary, President and CEO of Pinnacle Airlines. "All of us built this company together under the premise that we are a team, and we think it's unfair that our pilots are the only employee group that has not had a raise since 2005. Now, it's time for the union to be fair by putting union politics aside and doing what's in the best interest of our Pilots."
Now that's some funny sh--!!! Phildo is smoking the good stuff again.
 
This reeks of the typical Ford & Harrison legal games we endured for years.
Not Ford & Harrison. It's actually worse. It's Baker & Hostetler. The firm is littered with former Lorenzo attorneys, and the one that handles Pinnacle's account was one of Lorenzo's best buds.
 
It's all a distraction.

Todays airline management likes to play these games with the pilot group to take the sweat off of their own backs. Why? Because it is too difficult for them to figure out how to run an airline that is safe and profitable at the same time. It's easier to point the finger at a unionized group who does their job 400% better than their leaders do, than it is for the management team to concentrate on their own errors and correct them.

I can't believe shareholders fall for this crap. It costs them A LOT of money. More than their overpaid CEO's are worth.

Damn unions!

-Unity
 
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Does anyone know if there is precedence for taking an issue like this outside the RLA?
 
As a 9E alum, I wish those still flying under PT's miserable rules a steadfast resolve to win back some well deserved public dignity. All of us who suffered unpaid training, JM's, highspeed's, attempted illegal scheduling, etc. FIGHT THE GOOD FIGHT!

Any idea as to when we can join the MEM/MSP picket?
 
You all are amazing....you all say fight the good fight as you flee the scene...Strap on your parachute and bail out and leave the rest to go down with the ship in flames....But hey guys, we support ya...See Yaaaa
 
You all are amazing....you all say fight the good fight as you flee the scene...Strap on your parachute and bail out and leave the rest to go down with the ship in flames....But hey guys, we support ya...See Yaaaa


Where is it that they are 'bailing' to?
 

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