UAL/CAL pilot talks hit snag, article

[General Lee]

On Friday June 25, 2010, 2:51 pm EDT
WASHINGTON (Reuters) - Efforts by United Airlines, a unit of UAL Corp (NasdaqGS:UAUA - News), and Continental Airlines (NYSE:CAL - News) to reach a joint contract agreement with their pilots before concluding their merger have hit a snag, pilots said on Friday.

Negotiations have stalled over undisclosed issues that would have little financial impact on the new company, the Air Line Pilots Association (ALPA) said in a statement. The union said the companies "are headed down the wrong path" regarding the contract talks.

(Reporting by John Crawley)



Does it have to do with SCOPE? Don't give in boys! Hold it steady! The pay will come (along with bonuses for Tilton and Sismiek(?)), but trust me---getting scope BACK is tough to do. We know all about that. Don't give in, and please keep the 70 seaters away or let them go when their (contractor) contracts are up. Good luck!



Bye Bye--General Lee

 

[Raoul Duke]

Scope does not typically fall into the "little financial impact" category. It is probably whether they will wear hats or not or if there will be a unwritten rule about wearing hats or not. . .

 

[UALRATT]

Press Releases

Why on earth would Morse and Pierce think Glenn or Jeff will change their tune overnight? It's going to be uphill all the way with the steepest part near the end of the climb. The real question is "do they have to endurance to reach the summit"?

Excerpt from Captain Wendy Morse's statement..."While this news is not what you want to hear, we remain committed to communicating the facts as we see them."

What are the facts Captain????? instead of the tired old rambling along...

FOR IMMEDIATE RELEASE

Continental, United pilots encounter roadblock to merger
Pre-contract talks with management stall at the table

Chicago, Ill., and Houston, Texas (June 25, 2010)--The pilots of United and Continental, represented by the Air Line Pilots Association, Int’l (ALPA) say they have run into a roadblock while negotiating a transition agreement with the management of United and Continental Airlines. The transition agreement is an important first step in the process that is designed to ultimately result in a joint collective bargaining agreement (JCBA) and integrated seniority list. Reaching an integrated seniority list allows the new merged carrier to secure a single operating certificate and reap the full potential of the merger.

“It is unbelievable that contract talks have stalled so early in the process and for such a basic item as a transition agreement,” said Capt. Jay Pierce, Chairman of the Continental pilots unit of ALPA. “We are stalled because of management’s unwillingness to compromise on matters that have little financial impact. We have heard the recent statements by Jeff Smisek, proclaiming the virtues of the upcoming merger, touting the benefits coming to labor because of the expected synergies and promising to work with labor in good faith to complete our contracts. However, if this is an indication of management’s approach, I have serious doubts about how long it will be before any of the touted synergies can be achieved.”

Capt. Wendy Morse, Chairman for the United pilots, said, “As I’ve consistently said, there is a right path and a wrong path. This merger could be simple if the right path is chosen. Regrettably it appears the companies at this early juncture are headed down the wrong path. Obviously, allowing talks to stall over non-economic issues shows that management is once again choosing the wrong path. Failure by management to choose the right path will lead to very predictable results; results that will not attain anywhere near the forecasted synergies that are being touted about this transaction. Both Mr. Tilton and Mr. Smisek stated recently before Congress the importance of recognizing labor in this deal. At this juncture, their words ring hollow.”

Capt. Pierce added, “Since the merger announcement on May 3, I have expressed my opinion that it was possible to reach a joint collective bargaining agreement by this fall, predicated on the willingness of management to expeditiously recognize and reward the contributions of pilots to the ultimate success of the merger. As I have said before, this merger can provide many opportunities. Those opportunities cannot be achieved if management refuses to return to the table to negotiate in good faith. We have done our part and are ready and willing to continue work toward a transition agreement that meets the needs of both sides.”

“Fortunately, management has time to correct this misstep in the merger process,” added Capt. Morse. “But time is of the essence to show the employees and the world that this merger will be successful. Management still has the opportunity to recognize the value pilots bring to this process, and it will be necessary they correct this in a timely manner. Success requires that management continue to focus on getting past these initial issues and allow us to move forward with the Joint Collective Bargaining
--------------------------------------------------------------------------
A Special MEC Update for Friday, June 25, 2010, this is
MEC Chairman Captain Wendy Morse.

Today, both the UAL MEC and CAL MEC issued a press release regarding a stall in negotiations concerning the transition agreement between the two airlines. Prior to stalling, progress had been made, albeit slowly, but came to a sudden halt late yesterday over noneconomic issues that are essential to both pilot groups. The Company has chosen to prematurely draw a line in the sand at this early juncture at a point 10 yards apart, after having come a sizeable distance. It is regrettably not the correct choice if management wants to accomplish this merger in a timely manner and attain the forecasted synergies.

The recent negotiations on the LOA concerning reimbursement of merger expenses perhaps foreshadowed yesterday’s events. While we eventually attained an acceptable agreement, the process leading up to that agreement was far too arduous and required far more effort than should have been required.

We have said repeatedly that there is a right and wrong path to achieving a successful merger. Based on yesterday’s actions it is apparent that management, for whatever reason, continues to fail to traverse the correct path. It is imperative that management changes course and recognizes the value the pilots bring to this merger in leadership and recognition of synergies. Management’s past approach of business as usual, requiring a “give” for a “get,” will no longer work with this pilot group. This is a new opportunity for management to right the wrongs of the past and work cooperatively with its pilots to ensure this merger’s success. Unfortunately, at this time, indicators are not positive that management will seize the occasion. The ball is in their court.

We would like to remain hopeful that management realizes the tactical flaw and returns to the right path in a timely manner so as to get this process back on track. If they want this merger to be a success they must deal with our concerns, all of which are legitimate and reasonable, in a meaningful manner.

We stand ready to reengage, but only if management changes its course and returns to the table to get to a deal. This requires deal makers at the table, willing and able to accomplish the goal for success. Failure to do so would be yet another error in judgment.

While this news is not what you want to hear, we remain committed to communicating the facts as we see them. It is extremely imperative that we continue to maintain our high level of professionalism while on the line and ensure that these distractions do not invade our cockpits, thereby allowing the bargaining process and our negotiators to work. Please remain cognizant that a court order is still in place and exhibit patience while we resolve this roadblock in the negotiating process. We will continue to keep you updated as the situation warrants.

 

[100/hour/5y]

147 Pilots on the Street

June 25, 2010

Contents
Chairman's Brief

SPSC - Video, CLE Air Show

Communications - Photo Gallery

Security - El Salvador

A MESSAGE FROM THE CHAIRMAN
It seems that all too often when our management approaches a fork in the road, they choose to make a U-turn and head back toward the Lorenzo era. I have been concerned for some time that on the management side, there is a shortage of decision makers who are able to get to a deal. Most of those at the table from CAL management are a product of either a non-union or concessionary environment. And although I don’t know the UAL participants well enough yet to know their history, I do know the pilot/management relationship at UAL has certainly not been stellar. I worry that management’s negotiators simply do not know how to get a deal done – in other words, how to say “yes.”

We have been working on a transition agreement for several weeks now with the joint management negotiating team. Yesterday, after receiving a counterproposal from our Joint Negotiating Committee, management advised us that they did not intend to reply to our proposal—not exactly what I expected on a relatively innocuous document such as a transition agreement. Most of the tenets of the agreement have been resolved, with only a few remaining issues left to be settled. It is very disappointing that they would shut the negotiating process down over low or no cost items needed to enable us to move forward. I don’t believe it helpful to negotiate in public, so I won’t go into the detail of the counterproposal, but rest assured that the items we proposed were well within the realm of reasonableness and in some cases had already been agreed to informally.

Since the merger announcement in early May, I have expressed my opinion that it is possible to complete a contract sometime this fall. I have always prefaced that statement by saying that a fall timeframe is possible only if management reverses their past practices and begins to agree to things, without requiring a knock-down, drag-out fight over every issue. It is disconcerting that in this week’s negotiating session, management has not shown any indication that they are ready to move forward in an expeditious manner.

As I have said before, for this negotiation to be successful, it should follow a systematic path—beginning with a transition agreement, followed by the joint collective bargaining agreement (JCBA) and on to the final seniority list integration. Attempting to skip steps or underachieving in any of these areas begs for failure. So, if management continues to be recalcitrant in these negotiations, my optimism for a solution by fall will have to be pushed into the future. To be very clear, I would very much like to get a new contract, and by default get out from under our current contract, as soon as possible. But it has to be the right contract, done the right way. It is time for management to decide if they are going to fish or cut bait.

There seems to remain within our management’s psyche a belief that there must be a strict “quid pro quo” for each singular item up for negotiation, or that there should be an absolute equality of value between the pilots and company when all is said and done. I want to be emphatically clear in how completely wrong this thought process is. If we are to reach a successful conclusion to this contract cycle without a legal job action preceding it, management needs to learn very quickly that it is their turn to give, not take. We have given and been taken from, every day since April 1, 2005. Again, I want to be brutally honest. This negotiating cycle will be used to improve our pilots’ working conditions, pay, retirement and job protections. This is management’s turn to give. We can professionally negotiate what is due our pilots at the table in a systematic and organized manner, or we can take it publicly on the street and in front of the airport terminals. Pick your poison.

Last week I sat in two congressional hearing rooms and listened to Mr. Smisek proclaim the virtues of the upcoming merger. One of the benefits he spoke of was the benefit coming to labor because of the synergies that will be achieved. I heard him promise first to the Aviation Subcommittee and then to the House Committee on the Judiciary that management would work with labor in good faith to complete our contracts. Mr. Smisek, we are off to a bad start. It is bad form to mislead the United States Congress. It is even worse to mislead the pilot group.

I am hopeful that our CEO, who was hired for his business acumen, decisiveness and willingness to hold his managers accountable, is able to prevent the failure of the largest airline merger in history. We are fast approaching a fork in the road. Try not to make the U-turn this time.

One Union. One Voice.

Capt. Jay Pierce
CAL MEC Chairman

 

[mamba20]

Get ready to strike boys and girls. Give us what we deserve or face the consequences. Without us this merger WILL fail.

 

[Jetjockey]

Get ready to strike boys and girls. Give us what we deserve or face the consequences. Without us this merger WILL fail.

They will realize this sooner or later. Considering past performances of management, it probably will be later.

 

[densoo]

Get ready to strike boys and girls. Give us what we deserve or face the consequences. Without us this merger WILL fail.

Spirit strikes, Jazz settles. Thanks Spirit. Hope CAL (both sides of the table) learn from this.

 

[mach none]

How will you strike? NMB has to release you to the 30 day cooling off period. Is the NMB even involved at this point?

 

[mamba20]

I'm planning ahead. If things continue down this current path I have no doubt the NMB will get involved. We have been more then patient and more then fair.

 

[mach none]

Keep your powder dry, it is a long path before you get to use it.