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UAL Concession Details

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trainerjet

Well-known member
Joined
Mar 21, 2002
Posts
507
While cruising another message board, I ran across these details of the tentative pilot concessions at United. (LCO = Low Cost Operation)

6 year contract
30% paycut (from 29%)
no pay raise for another 3 years, then 1.5% per yr
pension reduced (1.35 multiplier, equates to about 35% of salary)
no furlough protection (can furlough as needed)
fly up to 89 hours (95 hours for LCO)
Minimun pay reduced to 65
20% medical contribution
747 pay now reduced to 777 pay (with 30% cut)
Airbus pay reduced to 737 pay
No RJ limits at Express
70 seat RJs allowed at Express
No domicile protection, company can base pilots anywhere including International. (LHR / EGLL), United Kingdom">LHR and NRT / RJAA), Japan">NRT very much possible)
LCO (low cost operation) agreement, see above
No first class Deadhead (FF favorite subject)
Vacation override eliminated (media favorite)
3 year equipment freeze (up to 4.5 on LCO)
 
I was just reading some of the same things - the one thing that caught my eye is a statement that the 70 seaters are tied to Jets 4 Jobs. Not good. Hope somebody has got more info.
 
So no more scope clause. I don't know if the "Jets for Jobs" is still going to take place.


________________________________


"Blueridge, welcom to Chicago... we need you in the penalty box for a twenty minute update."
 
Just one quick comment for the senior UAL (and US Air) guys who refused to, as I remember the quote from this board so many months ago, "give up a dime...I earned everything I have."

Nice job "preserving the profession."

Now I know why "greed" is one of the seven deadly sins.

Yes, yes, Tilton got 9.6 million last year...that's less than 1/2 of 1% of the 2 billion UAL lost last year.

In light of the great success of the US Air and UAL MECs'
"preservation" efforts, might I suggest an alternative strategy at AMR, NWA and DAL.

Start negociations today that...

1. Get rid of all scope clauses except this one "all flights at our airline will be flown by a pilot on THE seniority list" (I think this is ALPA's new buzz word "brand scope").

2. Allow the company to buy as many planes of whatever type they want. Why? Because their job is to fit the right plane on the right market to maximize profit for the company, without artificial barriers set up to "preserve pilot jobs" (translation, "maintain senior pilots wages and benefits, and to heck with the rest of the pilot list, all other employees, and the company...furlough is a right of passage").

3. Merge the seniority lists of all companies owned by the same airline. I'll concede to some fences, as to not make this to traumatic for some, but this really is the best way to be fair as far as job security and seniority goes. If the lists had been merged by date of hire, all the DAL furloughees would be flying at least an RJ somewhere, and most if not all the pilots at ASA/Comair hired after 9/11 would not even have a job.

4. Come up with a realistic pay scale that allows the company to ride out hard times, and rewards employees in good times (profit sharing, like at SWA...those guys got thousands upon thousands of dollars during the 1990's, bringing their salaries close to mainline levels, yet they still make a decent living during these hard times...and their company IS NOT IN BANKRUPTCY).

or

We can follow Mr. Woerth's plan paraphrased from one of his speeches...get ALPA on the SWA property...hold SWA management hostage to accept a contract comparable to current rates...then SWA will have to raise thier ticket prices to pay their pilots, and all will be right again in airline wonderland.

If this is the brilliance we're all counting on to pull the airline pilot profession out of it's current hole...then many of us better get the number to the local truck driving school.
 
Goldentrout,

I find it ironic that you chastise the mainline pilot for trying to cover his own as*, as you do exactly the same thing with your thinly veiled suggestions of "one list".

I know with your 2100 hours as a federal employee, you're an expert on the history of the profession, but you may want to rethink batting for the managment side. I realize how cool you must think you look in the right seat of a regional jet, in your snappy new uniform, but If you want to earn 1/3rd the money of what every pilot in this country made, flying the same kind of equipment did, before greedy, self serving, short sighted "pilots" like you came along, then go ahead. However, I don't appreciate you trying to drown me with you.

Fight for your rights as a commuter pilot. The harder you fight, the larger you make the bed for guys like you, (and unfortunately, guys who want a real career) to lie in. I have a feeling in 10 years, when you're still flying a "regional" jet on 2500 mile legs, for guys like Jonny O. for Government cheese pay and zero benefits, Maybe you'll rethink your position on this. But by then, after you've done all you can to destroy the quality of this profession, I can only hope you're the only one that gets to reep what you've sown. I hope when you're 60 years old, you still can look in the mirror and admire your snappy pilot uniform with as much blind enthusiasm as you apparently do now. Good Luck, with guys like you in this industry we'll all need it.

I know, I'm just another one of those greedy major pilots who has no understanding of business... We've heard that line for over 70 years now. It's old.
 
Goldentrout,

Where do you come up with this method for merging the lists?

3. Merge the seniority lists of all companies owned by the same airline. I'll concede to some fences, as to not make this to traumatic for some, but this really is the best way to be fair as far as job security and seniority goes. If the lists had been merged by date of hire, all the DAL furloughees would be flying at least an RJ somewhere, and most if not all the pilots at ASA/Comair hired after 9/11 would not even have a job.

Please don't say Alpa merger & integration policy. Most people that want to shout DOH is the policy have never read the policy. About the best you could hope for is merger Comair/ASA then staple with furlough protections based on date of hire. The only problem is management likes the current setup and has no incentive to allow a merger of lists. The Delta pilot PWA doesn't require it and management likes it's ability to use it's "portfolio" of regional airlines.

furloughed DAL737FO
 
In regards to concessions from UAL and for that matter all who are being asked to "give"...what is management contributing to this.?
Where as it seems that labor is always to blame when it comes to saving an airline what about one UAL's previous higher ups (mgmt)..one who was paid $41 million to leave and another who was brought in and paid $3 million before he even walked in the door. Where is the incentive for mgmt? Answer: there really is none higher ups are usually highered. Therefore they get their money regardless of the outcome. This is unfortunately is legal but very unfair.
DAL's CEO "Leo" paid himself $10 million + (around $13million) in bonuses this month and now Delta has announced they will be having more layoffs. How much is enough?!
Why should any labor union give concessions when this continues to be the case. Where I believe in helping to save jobs when is mgmt going to learn the blame should not be blamed on us.
 
becket said:
Goldentrout,

I find it ironic that you chastise the mainline pilot for trying to cover his own as*, as you do exactly the same thing with your thinly veiled suggestions of "one list".

I know with your 2100 hours as a federal employee, you're an expert on the history of the profession, but you may want to rethink batting for the managment side. I realize how cool you must think you look in the right seat of a regional jet, in your snappy new uniform, but If you want to earn 1/3rd the money of what every pilot in this country made, flying the same kind of equipment did, before greedy, self serving, short sighted "pilots" like you came along, then go ahead. However, I don't appreciate you trying to drown me with you.

Fight for your rights as a commuter pilot. The harder you fight, the larger you make the bed for guys like you, (and unfortunately, guys who want a real career) to lie in. I have a feeling in 10 years, when you're still flying a "regional" jet on 2500 mile legs, for guys like Jonny O. for Government cheese pay and zero benefits, Maybe you'll rethink your position on this. But by then, after you've done all you can to destroy the quality of this profession, I can only hope you're the only one that gets to reep what you've sown. I hope when you're 60 years old, you still can look in the mirror and admire your snappy pilot uniform with as much blind enthusiasm as you apparently do now. Good Luck, with guys like you in this industry we'll all need it.

I know, I'm just another one of those greedy major pilots who has no understanding of business... We've heard that line for over 70 years now. It's old.


Very well said and I could not agree more!
 
I have a question.

Why don't pilot groups push to model their airlines to a model that more closely resembles that of successful airlines? There may be an argument that they can't, management makes those decisions. But that is what negotiations are for.

Example: Southwest has a defined contribution plan for pilot retirement, it includes a match for employee contributions, stock options etc. If the company goes belly up the pilots keep their retirement, although their stock would be worthless. Now what does this have to do with the current state of affairs in the airline industry? Well I read an article that United owed 12 billion to the company's retirement fund, that U.S. airways has had to trim billions from it's retirement fund. This is just one example.
 
DAL73FO

Where does one come up with a method of merging the lists? Simple answer, actually. Current events compel management to seek solutions (i.e. concessions) from their workforce. If management demands it, it is not unreasonable to counter offer for something in return. Isn't it obvious that anything is negotiable in the present economic environment?

Since management has gutted contracts containing heretofore "untouchable" items like pensions, it certainly shows that they have no problem with it. UAL and USAirways contracts were completely ammended mid term. American is next.

ALPA has a long history of contentious mergers and has developed a quite reasonable merger POLICY mechanism. What a shame that union leaders are too myopic to invoke their own policy. The airline business has been fundamentally changed, a fact which some continue to ignore.

What we need to do as members of The Pilots' Union is to come together and engineer solutions. The hiring by ASA and CMR in the last year and a half could have substantially absorbed the DAL furloughees.

But one have to at least try with some of the leverage that we do possess. And so far, there has been too little effort to bring it about. Instead, there is all this hand wringing and wailing that 'oh they'll NEVER agree to that.' And with that attitude, you are correct, it will never happen.
 
We can follow Mr. Woerth's plan paraphrased from one of his speeches...get ALPA on the SWA property...hold SWA management hostage to accept a contract comparable to current rates...then SWA will have to raise thier ticket prices to pay their pilots, and all will be right again in airline wonderland.

That's about the kind of thing I'd expect out of him, after witnessing first-hand his "expert" handling of the debacle with the Emery pilot group. I guess the next installment of "Flying the line" will be "Alpa goes under"- with D.Woerth at the helm.
 
Mach none/Beckett

Sounds llike the same crap I heard after 9/11 from all you guys...that continual arrogance that no one who hasn't been around as long as you can't possibly understand the airline industry.

You are the guys who are have been running the unions for the last 20 years...and look where you are today!

How can you continue to follow the ALPA strategy after seeing US Air and UAL go down the tubes...with pay cuts in the 30% range and a almost complete gutting of your work rules?

You talk about the "70 years of the industry." Any student of the industry knows that up until deregulation, the airlines didn't have to have a profitable business model because they were subsidized by the federal government.

Look at SWA...created after deregulation...making money every year since it's inception...one list...no regional feeders...relatively good moral...profit sharing...management figures out the routes to fly, and the pilots fly the planes.

That 70 years of history the way airlines are run has brought it to it's knees.

Show me some FACTS that prove me wrong, instead of your emotional based sarcasm.

1. Is it not true that Comair/ASA has hired around 800 or so pilots since 9/11, and will hire another 250-300 this year? If it was one list with DAL by DOH, would there be anyone on furlough by the end of this year? Most probably no! Yes, they'd be flying an RJ, but they'd have all their benefits, and still a liveable salary.

2. Is it not true that US Air/UAL are in bankruptcy, and that AMR is probably a month or so away?

3. Is it not true that NWA is going to lay off about 5000 more employees, some pilots, in the next few months.

4. Is it not true that Comair is hiring and buying more, and bigger planes all the time?

5. Is it not true the UAL routes are being flown by Skywest and ACA RJ pilots...jobs and routes that could be flown by UAL pilots if the UAL union had long ago brought RJs onto their property.? Is it not ture that Comar/ASA/Chataqua/American Eagle are flying DAL passengers on routes and in planes that could be flown by DAL pilots if they had one list with a "brand" scope clause?

6. Is it not true the Comair is flying more and more of the old DAL mainline routes with RJs

7. Is it not true that Comair/ACA/ASA by themselves make money, while DAL loses millions of dollars every day?

8. Is it not true that UAL and DAL have/will start low cost carriers with new employee contracts to compete with Jet Blue/SWA?

9. Is it not true that Embraer/Bombardier can hardly crank out RJs fast enough to meet the demand, while Boeing can barely find enough orders to keep their people employed.

10. Is it not true that the number and amount of RJ flying in the US has increased every year over the last decade, and that projections are for RJ flying to have much more growth than large aircraft flying over the next decade.

11. Is it not true that the one major airline, SWA, that does not have ALPA on the property, is the most successful airline of all time?

12. Is it not true that the one airline, SWA, that does not have ALPA on the property, has never furloughed a pilot, and has made money every year of it's 24 year history?

13. Is it not true that UAL/DAL/NWA/AMR continue to furlough well after 9/11, while the larger regionals and SWA/Jet Blue continue to grow and hire?

You guys just don't get it...I don't want your job. I wouldn't mind being on one list with you guys, and I'm willing to bid in that list with my date of hire and let the chips fall where thay may. I'm trying to give you guys a way to keep your jobs and keep your companies viable so you have a job with a decent contract...instead of having a contract imposed upon you by circumstances or a bankruptcy judge.

Whether we're selling widgets or airline tickets, the basic laws of economics still apply.

1. A business cannot not exist...cannot attract capital...cannot get credit...cannot PAY ITS EMPLOYEES...if it's revenue does not meet its expenditures.

2. Customers will gravitate to the lowest priced widget/ticket in the market that fits their needs.

3. A company has to have overhead expenditures in line with its competitors if it is going to compete with its rivals. Otherwise, it will have to charge too much for its widgets/tickets, and will not be competitive (i.e. profitable).

As for one list...we will never go for a staple (read flow back).

Your job is no more important than my job, nor is mine more important than yours.

The only fair way to do this is by one list where we all compete with an objective standard...date of hire.

Even if I was on a mainline list, it's not likle I'd be in the right seat of any bigger iron anytime in the forseeable future...but many guys on furlough would be getting recall letters to fly RJs...and they'd have decent seniority too, since about 1/4 of the Comair list has been hired since 9/11.

In all honesty, with my two years in the industry, as a whole, I have never seen such a group of blessed people (six figure salaries, 15 days off a month, free airline travel, decent health and retirement benefits, fun job) who are, very often, the biggest whiners and greediest profession I've ever been around.

Not too mention some of the most arrogant, spoiled individuals I've ever come encountered, both in and out of the military...calling in sick because you don't feel like going to work...slowing down the plane because you want to make another ten bucks on top of your $200/hour salaries, even when you're running late...complaining about the "crap trip" scheduling gave you, even though it's your job to fly and make money for the company...drinking well inside the 12 hour rule most of our companies have set and putting the rest of the crew in the horrible position of safety versus loyalty...arguing with the schedulers and the chief pilots over even the smallest, minor inconvenience in your schedule...unwilling to give up even a dime of your six figure salary so the other members of your "brotherhood" can pay their mortgages and car payments (eventhough the guys at Frontier and AirTran did it in a heart beart, by an overwhelming majority vote).

Pride goeth before the fall...if you don't think that's exactly what's happening today, then you ought to have the call sign "ostrich."
 
Quote from Goldentrout:


"In all honesty, with my two years in the industry, as a whole, I have never seen such a group of blessed people (six figure salaries, 15 days off a month, free airline travel, decent health and retirement benefits, fun job) who are, very often, the biggest whiners and greediest profession I've ever been around"


Stephen Wolf....Is that you?!!

If you believe the majority of airline pilots make six figures you need to stop getting all of your industry info. from USA Today. Also, maybe just having a "fun job" isn't enough for the rest of us. Some of us don't get weepy eyed over the prospect of "getting" to fly for a living. That was when I was 17. The financial realities of two failed carriers, one walk on the picket line, and one more major furlough, only to be lucky enough to start again at the bottom of another major has cleared my thinking to aviation. Show me the money, period. I don't want to hear promises of how great things might be someday, pay me today.

Why don't you ask all those "Greedy whining" US Airways pilots, many of whom have over 30 years of service feel about having their retirment plan terminated by a bankrupcy court. Ask them if they think their free travel and fun job are enough to sustain them. You're a punk. Normally I'd give you the benefit of the doubt considering your age. However, if you're out of the military, you should be old enough to know better. I guess you're just not all that bright.

P.S. Don't even try to blame the US Airways pilots for their situation. Pilot pay has nearly nothing to do with the sucess or failure of an airline. It is squarely on the shoulders of managment. If pilots worked for free, most of the carriers in trouble today would still be in the same boat. Again, don't listen to USA Today. They're as ignorant on the subject matter as you appear to be.
 
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"Pilot pay has nearly nothing to do with the sucess or failure of an airline."

I guess that is why United got a 30% pay cut from their pilot union.



"Why don't you ask all those "Greedy whining" US Airways pilots, many of whom have over 30 years of service feel about having their retirment plan terminated by a bankrupcy court."

If they would set up their plan properly no bankruptcy court would be able to touch it. When you make a company pay for your retirement from their current revenue you are asking for disaster.


"If you believe the majority of airline pilots make six figures you need to stop getting all of your industry info. from USA Today."

ALPA states that the average United pilot, before the pay cut, makes $130,000 per year.


"The financial realities of two failed carriers, one walk on the picket line, and one more major furlough, only to be lucky enough to start again at the bottom of another major has cleared my thinking to aviation. "

Some of these issues are not with the airline but with your union. Ask any corporate guy how many times he has had to start with a new company due to downsizing etc. Aviation is a cyclical business, and in the case of the airlines, made worse by corporate raiders passing for CEO's but also corporate raiders passing as union members.
 
Mr. Beckett

Thank much for so eloquently making this "punk's" points with your own words.

1. "Show me the money, period. I don't want to hear promises of how great things might be someday, pay me today."

As I said, you and your type are more concerned about your own wallets than the health and viability of your profession...or your companies for that matter. Maybe if you'd fcoused on the profession as a whole way back when, you wouldn't be starting over today.

2. "The financial realities of two failed carriers, one walk on the picket line, and one more major furlough, only to be lucky enough to start again at the bottom of another major has cleared my thinking to aviation."

So the ALPA system in place you've been in for the last 20 years or so has gotten you two liquidations, and a furlough...and you want to defend this system?

I'll grant you that mangement has some fault in this whole mess...any MBA who signed those outrageous contracts with only the slightest hope of ever being able to cover their overhead, ought to be fired on the spot.

I do thank you for teaching me one good lesson though...not to bit the hand that feeds you.

Correction: I stand corrected. SWA has been around since 1966, or 1971 depending on how you look at it. In any case, they have made a profit every year since 1976...a 26 year run...through the first Gulf War, and even after 9/11...and in the face of growing RJs and of other low cost carriers.
 
I side with goldentrout, maybe it is time for a new way of doing business. Follow the lead of SWA, if not then get the he!! out of the way, your union mentality may have something to do with it.
 
SWA and Regulation.

Although it is true that SWA started before de-regulation, it should be noted that Airline regulation applied to *Interstate* airlines. Before deregulation, Southwest was an *intrastate* airline and thus was not a beneficiary of the guaranteed revenues that regulation provided.

If you take a look around you, you will notice that all the airlines that are doing reasonably well either started after degegulation, or were unregulated intrastate carriers before degegulation.

Another way of looking at it, Southwest, Alaska, ATA, Jetblue, etc. were companies which dealt in a competitive environment from their beginings. The other airlines were protected from competition by regulation, and now almost a quarter of a century after regulation went away, are still unable to function in a free market.


Perhaps we should stop propping them up and let them die out so that they may be replaced by companies with workable business models.


regards
 
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Jim

That's because those of who are new to the industry over the last few years have gotten a decade's worth of education in the last months.

We all heard about this ALPA "brotherhood" thing...one for all, all for one...especially us former military guys...you know, take care of your own.

But what I've seen since 9/11 is the major airline pilot groups eat their own and spit them out, all in the name of "preserving the profession."

What responsible union signs contracts that it knows can only be paid in the best of times? The only explanation for that is that the senior guys figure when things slow down, the company will furlough...but hey, they're protected way up on the list...max pay to the last day...pump up that mult-imillion retirement fund. If that means 500 guys...or 1000 guys...or 1500...or 2000 of their ALPA "brothers" get the axe for a few years...them's is the breaks of the game.

Contrast this with AirTran/Frontier. They voted by an overwhelming majority to take a 10% pay cut after 9/11. Then, when things stabilized (for them, because they have a reasonable cost structure), they got their 10% back, plus back pay. That's a brotherhood.

The UAL MEC has been heard to say "furlough is a right of passage."

I'm all for making as much money as possible...provided the company can still turn somewhat of a profit, put some money away for a rainy day, and at lest cover their bills during the down times.

The major airline contract negotiations seem to be about one thing...as Mr. Becket emphasized above "show me the money now."

That kind of attitude from him and his type have earned him 2 failed carriers, and a furlough.

How arrogant is it to bite the hand that feeds you, and then be surprised when the hand is no longer there?
 
What do you suppose airtran and the others would do if we lowered our cost structure to match their "reasonable" one? Why do you assume that giving concessions would only be limited to the highest paid pilot groups? I would assume that most pilots would applaud any efforts to maintain some sort of standard. Apparently I am mistaken.

Jim,

Good point. However, this is not the first time our industry has been under strain. It will recover, and the same people now bashing the majors will once again be trying desperately to join them.
 
What are you worth?

For those of you who advocate concessions, how low do you go before you say enough? I understand in principle where you're coming from - and there are companies out there in deep poop - but when do you draw the line in the sand and say I'm worth this or that amount? The folks in the ivory tower sure don't offer their salaries as a sacrifice. Granted, there a fewer of those jobs so the impact would not be as great as 10,000 people taking a cut. There are other jobs out there that pay better and you don't need all the qualifications.
Giving concessions is a tough thing to do. In a similar manner, you don't see politicians offering to pay more taxes.
 
If people think "give it a few years, and things will be back to normal"...I'd bet big bucks they are wrong.

The last big downturn (1990-1993), there was only one really viable low cost carrier, SWA. Additionally, RJs were barely only a speck on the aviation screen.

Now, RJs and Frontier/SWA/AirTran/JetBlue/ATA are gaining more and more market share every year, as people begin to understand that they are safe, and tickets are generally much cheaper.

Business travel deaprtments and individuals via Orbitz and the like have a much wider range of choices today than DAL/AMR/NWA/USA in 1991.

DEN/DFW leaving 4 Apr and returning 5 Apr, no stops. Today's rate on Orbitz for Frontier/UAL/US Air/AMR/DAL is $218. Why? Because Frontier can do it for $218 dollars and make a profit.

Can you imagine this flight in 1991? No Sat night stay, 3 days in advance. It would have been probably $1000 or more. But in 2003, with Frontier airlines to compete with, $218 is what the market will bear for that route.

As for concessions...I don't know how far to go...but UAL just took a 30% pay cut, with pretty all their scope gone, and a gutting of their work rules. Other than liquidation, It souldn't have been much worse.

What if after 9/11 the UAL MEC as well as the FA and mechanic union leaders had gone to management and said, "hey, this is going to be rough for a few years...we'll take a 10-15% pay, for awhile, cahnge some work rules, you can have whatever size jets you want, but we want UAL pilot's flying them. Bring all the feeder operation in house from Skywest and ACA, and let's start a low cast in-house carrier. Let's come up with a plan to get us thorugh this?"

Certainly would have been better than bankruptcy and a 30% paycut and a gutting of their work rules and 2000 pilots on the street.

Instead, their "max pay to the last day" attitude prevailed until they had no choice (and no leverage) left, and they basically had the contract imposed upon them...which was a GOd send for management, as the bankruptcy pretty much gave them carte blanche to void the employee contracts and impose their terms.

Dumb, dumb, dumb. dumb. dumb!

I predicated this two years ago on this very board...when I had only about 6 months time in the industry.

Am I so smart? No, but basic economic laws of supply and demand apply whether you're selling widgets or airline tickets. Also, the US auto industry and steel industry are prime historical examples of unions spending their companies into bankruptcy or at least dire financial straits.

SWA FO's currently get a min guarantee of about $8000/month after 6 years of seniority. Add to that profit sharing, and they make well over $100,000/year, while working what, 15-16 days a month? Capts top out around 13,000/month after 12 years of service. That's over $150,000/year, plus at that rate, a $21,000 profit share check in 1999.

Ain't that enough?

That's the formula. Take today's histroically low passenger numbers (or maybe even a little less to be conservative), figure out what the company can afford to pay its employees and still pays its bills. Set that as the base pay rate, and then use profit sharing to let the employees join in the benefits during the good times.

That makes so much sense that someone out to try it out and see if they can consistently make money, have low turnover, and have relatively happy employees...oh yea, someone is doing that at SWA, and it has been consistently working for over a quarter of a century!

It doesn't take a genius...it does take a leadership/paradigm shift at ALPA to get rid of the "max pay to the last day" dogma.
 
Goldentrout,

Although I don't agree with everything you mentioned you pointed out some valid and inevitable realities which will be hard for many of the senior pilots to swallow, hence the old saying "you can't teach an old dog........"

UAL, DAL, et-al (including ALPA) are anachronisms, as well as the attitudes of many of the senior mainline pilots and management. Time changes most things in this World except, unfortunately, the minds of the aging.

A few obvious inevitabilities:

1. American FA's getting fatter.
2. Continued RJ growth.
3. Shrinking mainline.
4. Old timers fighting to maintain the old ways.
5. PFT
6. Basic economic principles.
7. Over paid airline execs.
8. Etc, etc,.........blah, blah, blah,......

I certainly can sympathize with the old timers, but at the same time feel sorry for them. They are locked into such a linear way of thinking and no amount of logic or reasoning will alter their out-dated ideologies. Why they keep trying to manipulate the "natural laws of economics" with rediculous methodologies such as "Scope" and "J4J w/super seniority" is beyond my simple ability to comprehend. There are many more effective and resonable ways to protect their jobs and benifits.

"The Truth Must Always Reveal Itself."
 
Goldentrout,

You didn't answer my question. The lcc's largest cost savings (by far) comes from lower employee wages and benefits. This is not a speculation, it is a fact, backed up by SEC filings. Suppose we were to lower our costs to match theirs. How do you think that they would react. Do you think that they could compete with the major carrier's route structure, ff programs, schedule, international destinations, alliances, etc. if the costs were the same?

You advocate lower wages and criticize those who choose to protect what those who came before us have earned. What you fail to realize is the only reason the lcc's have - according to you - "reasonable" salaries is that they are based on a standard set by the very people you criticize, using the attitude that you lament.

Should we protect our investment and give help if it is need? Sure. If it is needed. But I for one hope that we are very careful about what we concede. For I, unlike you it seems, know that if pilot groups don't fight for what they deserve, every pilot's career will erode. Even the guys at Southwest.

Once we allow mgt to compete by paying us less than the competition, it will only a matter of time until we are all paid like the bus drivers some seem to think that we are. That doesn't seem to bother many pilots on this board. While I don't propose to know everthing, I think the writing on the wall is pretty clear. Unfortunately, many don't want to read it, because right now they are doing well. They should be a lot worried about tomorrow. I don't know why they feel that they are impervious to the forces that are currently attacking the major contracts.


P.S.
Golden, I like your idea about bringing rj's onto mainline property to be flown by Delta pilots. I believe (and hope) that my MEC is fighting for that as we speak. I know you were speaking of UAL, but I assume you would feel the same about doing it at Delta.
 
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FlyDeltasJets said:
The lcc's largest cost savings (by far) comes from lower employee wages and benefits. This is not a speculation, it is a fact, backed up by SEC filings. Suppose we were to lower our costs to match theirs. How do you think that they would react. Do you think that they could compete with the major carrier's route structure, ff programs, schedule, international destinations, alliances, etc. if the costs were the same?

Of course they could compete. AirTran's product works as it is, at these cost levels. It's a good one. It doesn't depend on Delta not making money in order for it to succeed. It's just another choice for consumers. What you don't seem to understand is that successful carriers don't much care about how much money the other guys are making or not making. If Delta somehow lowered their costs to AirTran levels, Delta would be making a lot of money. So would AirTran. How would this force AirTran to cut pay for their pilots?

One possible scenario is if Delta gets really greedy. The real problem here is the behavior of Delta management, not AirTran. If somehow (for the sake of argument, not gonna happen) Delta got its costs down to AirTran levels, they may not just bank all that cash and leave well enough alone. They would want the whole enchilada and then try to put AirTran out of business. Assume here that the DOJ is asleep and doesn't take any action (also unlikely). That might force AirTran to cut pay in a desperation move, but the fault wouldn't lie at the pilots' feet. Not hardly. It would lie at the feet of a management, Delta's, that won't stand for anything less than a monopoly. Other than this far-fetched scenario, try to come up with a reason why you think the slope is so slippery in regards to pilot pay.
 
FlyDeltaJets

While I hear your position

"Should we protect our investment and give help if it is need? Sure. If it is needed. But I for one hope that we are very careful about what we concede. For I, unlike you it seems, know that if pilot groups don't fight for what they deserve, every pilot's career will erode. Even the guys at Southwest. "

It is difficult to support your position after watching the MECs at allow UAL/US Air go into bankruptcy and have their pay/work rules gutted...and now AMR is looking at a 25% pay cut with a furlough of 2500 pilots.

At least APA at AMR has finally learned the lesson that it's better to bargain with some leverage, than to have a contract imposed while in bankruptcy.

How can you defend a union that strategy has been partially responsible for allowing two major airline bankruptcies, thousands of furloughs, while at the same time exceptional growth and outsourcing of their flying at subsidy/contract carriers?

1. If we were on one list on 9/11 by DOH (with some fences...that's a given), I wouldn't have a job, and most probably none of your guys would be on furlough. They'd be flying RJs, but hey, that's better than the street.

2. If your MEC agreed now to one list now by DOH (with some fences), the 300 or so pilots Comair is hiring this year could all be Delta furloughees...and they could bid with thier DOH, which would put them senior to me already holding a line. Many could hold 70 seat FO or 50 seat Capt.

3. After 9/11, your MEC could've asked for all the 70 seaters to be at mainline. He could've offered to drop all scope clauses if his furloughees could fly the planes...or bring them on the property at mainline. He could have told the company to buy as many 70/90 seaters as they need...jets which are perfectly suited to certain markets, rather than maddogs or 737s or 727s. Did he? I don't know for sure, but my bet is no...because once he let those "little" jets on the property, then there would be no going back..you know, "preserve the profession." Tell that to your new 200 guys on the street as of 1 May.

Now...your MEC has very little leverage. Other than getting his scope back by allowing the code share, what leverage does he have left?

Now that ASA and Comair have 70 seat planes/pilots/maintenance/training systems...what does it benefit mainline to negotiate a whole new deal for bigger RJs at mainline...when ASA/Comair are getting the job done, and making a profit?

At first I thought it was bizarre that the mainline MECs were doing nothing to stop the impending train wreck. I thought, well maybe they're working deals behind the scenes.

But after seeing US Air and UAL go down, and watching it take 18 months for APA at AMR to get its act together, I realized that what it's really about at ALPA is "max pay to the last day, and to heck with the junior guys and the financial viability of the company."

By allowing the situation to deteriorate to the current situation, the MECs have played right into management's hands. By being in bankruptcy or threatening the same, management has the leverage to demand huge concessions.

What if the MECs had taken action in Oct 2001 as I've outlined above? Guess we'll never know the answer to that...but we can see the horrible results of sitting around and doing nothing...30% pay cuts...1/5 of the seniority list on the street...gutting of work rules...huge growth at the wholy owned/contract companies, while more mainline guys go on the street every month.

Your concern about "concessions" in other circumstances would be valid. However, in todays environment, it seems very obvious that its better to negotiate while you still have some leverage left, rather than have circumstances let management dictate what it wants...as they've pretty much done at UAL/US Air/AMR.

My prediciton is that it's only a matter of time at NWA/DAL before management comes knocking at the concession door. The question is will your MEC negotiate a palatable deal now, or wait until the company is so financially weak, that management imposes a settlement?
 
Blue,

Read any airline study. People choose tickets for price first, then schedule, then ff progams and other perks. If the prices were equal, the very vast majority of the people would be choosing the majors for their schedule, alliances, ff programs, international routes, etc. Evidence of this can be found in the multitude of low fare airlines who have gone out of business when directly competing with a major. IF the lcc's lose their cost advantage, they will die, or come to their employees to help them recapture it.
 
goldentrout said:
FlyDeltaJets

While I hear your position

"Should we protect our investment and give help if it is need? Sure. If it is needed. But I for one hope that we are very careful about what we concede. For I, unlike you it seems, know that if pilot groups don't fight for what they deserve, every pilot's career will erode. Even the guys at Southwest. "

It is difficult to support your position after watching the MECs at allow UAL/US Air go into bankruptcy and have their pay/work rules gutted...and now AMR is looking at a 25% pay cut with a furlough of 2500 pilots.


I think that you will find that both U and UAL agreed to concessions before bankruptcy. It didn't help.




At least APA at AMR has finally learned the lesson that it's better to bargain with some leverage, than to have a contract imposed while in bankruptcy.


See above. I fear the even with their concessions, mgt will ask them for more in BK, a la U/UAL


How can you defend a union that strategy has been partially responsible for allowing two major airline bankruptcies, thousands of furloughs, while at the same time exceptional growth and outsourcing of their flying at subsidy/contract carriers?



I don't accept the notion that ALPA has been responsible for ANY bankruptcies, ever. I also have never defended ALPA's scope policy, I have always said that it needs to be MUCH stronger.



1. If we were on one list on 9/11 by DOH (with some fences...that's a given), I wouldn't have a job, and most probably none of your guys would be on furlough. They'd be flying RJs, but hey, that's better than the street.



You keep getting me with that DOH thing! You really are a kidder! However, we have had 1260 furloughs and DCI has hired 800 (IIRC). There would have been furloughs, but fewer of them. I agree that onelist would help all of us. However, and I have explained this before, you neglect the fact that onelist is not our decision to make. It is mgt's, and they have stated many times (to me personally in fact) that they would spin off DCI before surrendering their massive cost advantage by agreeing to onelist. We simply cannot compel them to do this. We do not have the leverage. To continue to fight for that pie in the sky would mean neglecting more achievable and realistic solutions.


2. If your MEC agreed now to one list now by DOH (with some fences), the 300 or so pilots Comair is hiring this year could all be Delta furloughees...and they could bid with thier DOH, which would put them senior to me already holding a line. Many could hold 70 seat FO or 50 seat Capt.



Again, for those who missed it the first 500 times I have said it: If my MEC had agreed to onelist, ABSOLUTELY NOTHING WOULD BE DIFFERENT. See above. P.S. Stop it already with that DOH thing...I can hardly breath, and my milk just came out of my nose!


3. After 9/11, your MEC could've asked for all the 70 seaters to be at mainline. He could've offered to drop all scope clauses if his furloughees could fly the planes...or bring them on the property at mainline. He could have told the company to buy as many 70/90 seaters as they need...jets which are perfectly suited to certain markets, rather than maddogs or 737s or 727s. Did he? I don't know for sure, but my bet is no...because once he let those "little" jets on the property, then there would be no going back..you know, "preserve the profession." Tell that to your new 200 guys on the street as of 1 May.


Once again, Delta already has the right to buy as many rjs as they like. There are NO limits to the amount of any airplane that DAL can buy. In fact, the rj is the least restricted airplane out there, for it is one of the few that we allow mgt to outsource. However, once they hit the limit, they have to be flown by mainline pilots. Also, you are incorrect that the MEC has not tried to get rjs at Delta. We proposed it during our last negotiations, and were told to pound sand. I have been told that we are again proposing it. P.S. Those little jets should never have been let off the property. They are simply newer dc-9's, and we have allowed mgt to alter our perceptions. Every 70 seater that we let mgt outsource hurts us all, except of course the guys who claim that they "want" to work for less money their entire careers.


Now...your MEC has very little leverage. Other than getting his scope back by allowing the code share, what leverage does he have left?



I'm not sure that I understand. I first responded because I got the impression that you felt we were forcing our airlines into BK. Now you tell me that we have no leverage?

I agree that our leverage is extremely limited. However, if we are to give concessions, I expect some things in return. One is 70 seaters at mainline. I hope that my reps feel as strongly about this as I do.


Now that ASA and Comair have 70 seat planes/pilots/maintenance/training systems...what does it benefit mainline to negotiate a whole new deal for bigger RJs at mainline...when ASA/Comair are getting the job done, and making a profit?


Two reasons. 1: our contract only allows them to outsource 57 of them. If they want more, they know who has to fly them, and 2: Because they want concessions from us. We expect some things in return.



At first I thought it was bizarre that the mainline MECs were doing nothing to stop the impending train wreck. I thought, well maybe they're working deals behind the scenes.


They were.



But after seeing US Air and UAL go down, and watching it take 18 months for APA at AMR to get its act together, I realized that what it's really about at ALPA is "max pay to the last day, and to heck with the junior guys and the financial viability of the company."


You assessment is incorrect. There is no employee group who's fortunes are more closely tied to the success of an airline than the pilots. I can assure you that the financial viability of the airline is foremost in all of our minds. However, protecting our careers in other ways is equally important. If we worked free for the rest of the decade, that would certainly help Delta. Would it help us? Heck no. There is a balance, and I assure you it won't be found by our discussion today, or by running to the company with out wallets out at the first sign of trouble. It will be found through careful study and negotiation, which is going on as we speak.



By allowing the situation to deteriorate to the current situation, the MECs have played right into management's hands. By being in bankruptcy or threatening the same, management has the leverage to demand huge concessions.


See above. I cannot speak for U or UAL, but I assure you that these steps are being taken at Delta.



What if the MECs had taken action in Oct 2001 as I've outlined above? Guess we'll never know the answer to that...but we can see the horrible results of sitting around and doing nothing...30% pay cuts...1/5 of the seniority list on the street...gutting of work rules...huge growth at the wholy owned/contract companies, while more mainline guys go on the street every month.

Your concern about "concessions" in other circumstances would be valid. However, in todays environment, it seems very obvious that its better to negotiate while you still have some leverage left, rather than have circumstances let management dictate what it wants...as they've pretty much done at UAL/US Air/AMR.


Again, I cannot speak for other airlines. Delta, however, is not on the verge of bankruptcy. While it is not out of the question, it is not imminent, either. We have time, and some leverage.



My prediciton is that it's only a matter of time at NWA/DAL before management comes knocking at the concession door. The question is will your MEC negotiate a palatable deal now, or wait until the company is so financially weak, that management imposes a settlement?


That's a bold prediction. Let me try. I predict that my beloved Yankees will beat the Blue Jays 8-4 and 10-1 the first two games this year, and Derek Jeter will hurt his shoulder in the first game. How did I do?

Your prediction occured some time ago. Both mgts have already asked for concessions. I don't know about NWA, but DALPA is currently undertaking the financial analysis with ALPAs experts, and will meet with the company shortly. While it may be necessary, I am under no delusions that the results will be anything but harmful to all of us, although it might take a little longer for some to feel the results.
 

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