Sound familiar to anybody?
Dear Pinnacle Pilots:
We have received reports that the Air Line Pilots Association (ALPA) has filed a lawsuit on behalf of Pinnacle Pilots in federal court in Minneapolis challenging a bonus program instituted by the company to attract qualified pilots in an effort to address the pilot attrition that has affected our ability to staff the airline adequately and to perform our duties under our contract with Northwest. While the lawsuit is totally without merit, we feel it is necessary to let all of our People know what is happening with the pilot negotiations, which affects the future of all of us.
You may be wondering why ALPA is objecting to a bonus program for our newly selected pilots, and why has ALPA just stopped the company from putting in an immediate pay increase for junior first officers in our effort to retain pilots and reduce attrition which threatens to disrupt our operations? The reason is that ALPA believes that this increases their leverage in the negotiations and will force the company to agree to their unreasonable demands that would jeopardize the company's financial position and everyone's future.
Throughout these negotiations that began in 2005, we have taken every reasonable step to treat our Pilots fairly and to offer them a new contract with substantial wage increases and numerous work rule changes that they have requested. We have increased our offers several times when we were told that certain changes would close a deal. After those changes were made, the union representatives then said, sorry, we need more. Instead of trying to close the gap and move toward a deal, the union has kept increasing its demands and widening the gap. As a result, the company lost opportunity for flying 70 seat jets at Northwest, and then, even worse, lost 17 or our CRJ's to Mesaba because the pilot negotiations extended beyond deadlines set by Northwest. To illustrate, ALPA recently increased its pay proposal substantially to Express Jet wages plus 3%. Express Jet's existing wages are not competitive and Continental took over 60 airplanes away from Express Jet and awarded the flying to other carriers because of the high costs at Express Jet. We do not intend to agree to terms that jeopardize everyone's future, and create special treatment for one employee group.
Needless to say, we are very disappointed with the union's response to our efforts. We continue to believe that our Pilots are the best in the business. Our present contract with ALPA, which was ratified by an overwhelming majority of our Pilots, enabled us to become a CRJ operator, and provided wonderful growth opportunities and more job security for all of our People. The great performance by our Pilots, as well as our other People, created the operational excellence that allowed us to get the Delta Business.
We believe that our compensation policy to pay competitive wages is fair to everyone, and that it is one of the reasons that we have survived. We simply cannot sacrifice the future of all the other groups of employees for the short term benefit of one group. Presently, the situation is like a football game where we get to the goal line and ALPA leadership keeps moving the goal post. We will continue to deal with integrity with the intention of doing those things which protect our airline and all of our People.
Thanks for taking the time to read this letter and thanks for the great service that you give our customers every day.
Sincerely,
xxxxxxxxxxxxx
Vice President & General Manager
Pinnacle Airlines, Inc.