Newest update from SWAPA M&A Committee. Hit my email about ten mins ago. Just clarified some of the language re the SWAPA offer that was in this morning's statement.
[FONT=Arial Narrow,Arial MT Condensed Light,sans-serif] Frontier transaction status still fluid
[/FONT] [FONT=Arial,Helvetica,sans-serif]SWAPA Pilots,
It has been a whirlwind week for your M&A Committee. We have been in meetings with our M&A counsel in Washington Monday and Tuesday and quickly returned to Dallas on Wednesday for a pressing meeting with FAPA. We would like to bring you up to date on the Frontier transaction.
Weeks ago, the Company approached SWAPA for ideas on how to complete the Frontier transaction with our pilots' support. We expressed our concerns about new federal legislation on the books (McCaskill/Bond) and its potential effect on pilot seniority at Southwest. The Company, at SWAPA's request, included a "labor contingency clause" requiring labor agreements in place prior to the closing of the Frontier acquisition. This action took the possibility of binding arbitration out of play and protected our pilots from a harmful arbitrated seniority integration.
As the Company was developing their formal binding proposal to acquire Frontier out of bankruptcy, Southwest bankruptcy counsel expressed concern that the Southwest bid could be excluded from the auction process because Frontier legal counsel deemed the proposal "not qualified" for the auction process due to the labor contingency clause. However, the labor contingency clause would be deemed acceptable and the bid deemed qualified if SWAPA and FAPA reached an Agreement in Principle for seniority integration. That triggered negotiations Thursday between SWAPA and FAPA.
SWAPA's concerns throughout this process have been to protect our seniority list and our Collective Bargaining Agreement (CBA). The only way to adequately protect our entire pilot group was to place the FAPA pilots below the SWAPA pilots on our new Master Seniority List.
FAPA's concerns are:
> Job Protection They WOULD have had this.
> Seat Protection Out of control egos say what?
> Pay Protection Not just protection, but WHOPPING raises.
> Domicile Protection Grandfathered for 3 years not enough?
FAPA's position was for relative seniority with a "variable" for the ratio for integration. Clearly, meeting all of FAPA's concerns would be an enormous windfall for Frontier pilots at the expense of Southwest pilots.
Understanding the need for a quick resolution, SWAPA (in coordination with the Company) offered to pay protect FAPA pilots at SWAPA FO pay rates or higher FAPA non-concessionary book rates adjusted for SWAPA negotiated contract raises and offered grandfather rights for a DEN domicile for three years following transition agreement time period. As of 2230 last night, no agreement had been reached.
This morning, Southwest will be requesting to delay the auction process to solve additional problems in the bid which will allow more time for labor bargaining. Frontier legal counsel will determine whether or not to extend the auction deadline.
We are still in negotiations and the situation is very fluid. We wanted to keep you up to date with the most current information and will provide more information as it becomes available.
[/FONT]I read the part about pay rates to mean not only would F9 guys get pay protected, but this would be done at the NEW TA rates, rumored to be 9% over current rates. Does that sound about right?