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SAPA "Negotiations" Update

Nevets

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SkyWest Airlines Pilot Association

SAPA President Update

June 21, 2013

Negotiations Update

The negotiating committee met with management this week and everyone seems to want to know how it is going. Frankly, it is still very early in the process. This update will be a little short on details but I will be working with the committee in the coming weeks to get more data and information to the pilot group.

Our goal as the SAPA negotiating committee is to get the BEST overall package that we can. With 3200 pilots, we know the group will have 3200 different opinions on what is best. We are listening to your ideas as well as your wants and needs and will try to convince SkyWest to deliver. The SAPA Representative Board will guide and advise the negotiating committee through this process. Once we have a package that the Board finds acceptable, it will be sent to the pilot group. At that point, THE PILOTS will decide by a direct vote to approve or reject. We have no idea how long this will take, or even IF we will be able to negotiate an agreement that we can support.

It should come as no surprise that both SAPA and the Company have both spent a lot of time prepping for these negotiations. Much of the first meeting was spent talking about the current state of the industry, SkyWest profitability, the new E175 orders, and pilot contracts/pay at other carriers. In addition, we explored a few ideas that would provide mutual benefits to SkyWest and our pilots. We agreed to meet again in a few weeks after reviewing some of the ideas presented.

First, the good news is that SkyWest, Inc. IS making money. The recent orders for E175s show that SkyWest INC is willing to invest in this market and has a positive long term outlook. Publically filed financial statements show that SkyWest Airlines is doing well, while ExpressJet still has a lot of work to do to regain profitability.

The challenge is that the 50 seat market is slowly shrinking and being replaced by new 70-90 seat aircraft. The number of SkyWest CRJ 200s will be reduced as scope limitations kick in. SkyWest has approximately 100 aircraft coming off contract in the next 3 years. ExpressJet has about 150 coming off contract in the same time frame. SkyWest is competing for new flying against a number of other carriers with costs significantly lower than ours. It is important for everyone that we win our fair share of the replacement flying, and the hope is that SkyWest can win enough to continue to grow.

So what does that mean for us? It?s hard to tell. In the last year, SkyWest won 40-E175s for United, and a handful 700s and 900s for Alaska and US Air. Unfortunately, we missed out on some significant awards for Delta and American. The additional E175 orders/options are contingent on us winning more flying contracts. We know we won't win them all, but our expectation is that SkyWest will continue to compete and will secure new flying opportunities. Management contends that our pilot compensation is one of the biggest challenges to winning new contracts and believes that Mesa and Pinnacle contracts are the new standard.

In addition, the FAR 117 rest rule changes and the possible 'pilot shortage' from mainline hiring make it anyone's guess on how things will actually play out. Many have suggested that it may be unwise to lock ourselves into anything long term while facing so much uncertainty.

Well, that's the short update. We've been asked to provide more info to the pilot group so look for future updates from the committee with graphs, tables, and other information. We appreciate your support.
 
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Freebrd

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Management contends that our pilot compensation is one of the biggest challenges to winning new contracts and believes that Mesa and Pinnacle contracts are the new standard..


only IF you allow this to happen, they're trying here at ExpressJet too
 

Nevets

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only IF you allow this to happen, they're trying here at ExpressJet too

"Management contends that our pilot compensation is one of the biggest challenges to winning new contracts and believes that Mesa and Pinnacle contracts are the new standard."

In the last 2 years they have gotten new flying for Alaska, new flying for US Air, new flying for American, new E175s for UAL, and they continue to expand their pro-rate flying yet management contends that pilot compensation is one of the biggest challenges to winning new contracts?
 

wms

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There is no "allowing" it. They're non union and will take what they get. But, Mgmt. knows if a substandard contract is forced on them they won't be non union for long.
 

Freebrd

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Realize that wms, but they can still hang tough, wait and then piggy back on our contract (hopefully an improved one) IF we ever amend the damn thing
 

Nevets

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Realize that wms, but they can still hang tough, wait and then piggy back on our contract (hopefully an improved one) IF we ever amend the damn thing

They have been promised to get our 401k matching, health benefits, and scope.
 

PBRstreetgang

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They have been promised to get our 401k matching, health benefits, and scope.

SGU promises are like farts in a hurricane, and are honored for as long as you can smell them....
You are high if you think SGU will push money across the table at pilots, it's more like if you look at our bennies, that's your future. And when enough pilots leave, pick one of the 3 airlines, and that one will have the doors chained shut, to staff the other 2. But don't worry the guys locked out will be given "preferential interviews" and a spot at the bottom of the respective seniority list.
It's not that is what I am hoping for, it's just after a decade or so, they become, well...... predictable.
That's how SGU will roll.
 
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Mickey Mouse

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Is SAPA like a make believe union or something? Is there a make believe contract too?
 

CFIT

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Is SAPA like a make believe union or something? Is there a make believe contract too?



Sort of, ya. With a make believe contract that management can piss on at will.

Kind of like ALPA is a make believe union that helps regionals. And kind of like the make believe advancing contract that Pinacle just signed.

So, what's your point?
 

SpyFlysDOTs

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There is no "allowing" it. They're non union and will take what they get. But, Mgmt. knows if a substandard contract is forced on them they won't be non union for long.

Now THAT is funny!
Obviously you don't have any recollection of just how our last few union votes went?
 

wms

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Sure I do. The company gave you a cup of kool aid and butchered your health insurance. Then you coat-tailed Asa's sacrifice and hard work on a contract and got Asa +$1, and another cup of kool aid.
 

badog

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Sure I do. The company gave you a cup of kool aid and butchered your health insurance. Then you coat-tailed Asa's sacrifice and hard work on a contract and got Asa +$1, and another cup of kool aid.

Man, that koolaid must be some powerful stuff?
It's very hard to understand how such a large group can be so easily led by someone who thinks joe smith found gold tablets in his back yard and started a religion in the late 1800's. oh yeah, they're all chuck Yeager pilots over at mainline skywest.
 

Nevets

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They're 401k is better than ours Nevets. So is their quarterly bonus system and a few more things just to name a few.

No, our matching is better. And we also get a B fund contribution. They have the same performance+ plus quarterly bonus as well.
 

nerjdriver

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No, our matching is better. And we also get a B fund contribution. They have the same performance+ plus quarterly bonus as well.

You really need to do your homework Nevets. I wish I had gone to SKYW back in the day. A friend of mine hired around the same time has upgraded and makes much more than our CAs. But keep telling yourself this mess at XJT is better. You have your head in the sand.
 

Nevets

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You really need to do your homework Nevets. I wish I had gone to SKYW back in the day. A friend of mine hired around the same time has upgraded and makes much more than our CAs. But keep telling yourself this mess at XJT is better. You have your head in the sand.

I never said that this mess at XJT was better. What I said is that our 401k matching is better and that we have the same performance plus bonus (just that our performance sucks). Check your contract, section 25, page 154. As for overall compensation, you have to calculate it as total compensation divided by total block hours flown for a true comparison.
 
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Flyer1015

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There is no "allowing" it. They're non union and will take what they get.
Pinnacle was union ALPA and they took what they got: an industry bottom concessionary contract or be jobless. They voted yes by an overwhelming majority. So even as "union" they still took what they get.
 

Nevets

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Pinnacle was union ALPA and they took what they got: an industry bottom concessionary contract or be jobless. They voted yes by an overwhelming majority. So even as "union" they still took what they get.

Actually, if they were non-union, it would have been worse.
 

CFIT

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Actually, if they were non-union, it would have been worse.

Really? Their top Captains took around a 40% cut and the bottom 2/3 will be eventually dumped.


Ya, thank god they had ALPA?
 
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