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- Sep 19, 2002
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From http://www.usairwayspilots.org/
Background on Mesa Group’s establishing Freedom Airlines:
Under Jonathan Ornstein’s control, Mesa Air Group operates wholly owned subsidiary carriers, which include Mesa Airlines, Air Midwest, and previously CCAir. The Mesa and Air Midwest pilots work under a single contract and a single pilot seniority list. In other words, Mesa and Air Midwest are a single pilot group.
The pilots of Mesa Airlines and Air Midwest, who work under the same contract, are in federally mediated Section 6 contract negotiations seeking reasonable improvements in their pay, retirement, and working conditions.
Faced with the threat of job terminations on May 15, 2002, and an announced July 1, 2002, shutdown of the carrier’s operation, the pilots of CCAir announced on April 29 that they voted to accept a management-proposed contract to ensure the continued operation of their company.
Although the proposal had been accepted by CCAir local union leaders and members, ALPA’s Constitution and By-laws requires that its president review and approve each collective bargaining agreement before it can become effective.
ALPA President Duane Woerth declined to approve the extremely concessionary proposal, which came in the context of an unbroken campaign of threats and intimidation by CCAir and Mesa Air Group to shut down the carrier if the pilots did not give up their existing agreement. President Woerth refused to approve the proposed agreement because it unjustifiably degraded pilot working conditions and offered no job security for CCAir pilots in return for the concessions. President Woerth also determined that the carrier’s management never demonstrated the need for the requested concessions and failed to show how the concessions would help save the carrier or the pilots’ jobs.
On July 17, ALPA filed suit in the U.S. District Court for the District of Arizona against Mesa Airlines, Mesa Air Group, and Jonathan Ornstein. In the suit, ALPA asked the Court to compel the Mesa defendants to bargain in good faith as outlined by the Railway Labor Act (RLA), and cease all efforts to undermine the organizational rights of Mesa Airlines pilots. It also requested that the Court enjoin the Mesa defendants from operating Freedom Airlines, a non-union start-up carrier, which they have threatened to use to divert work from the Mesa Airlines pilots.
Ornstein carried out his threat, and CCAir was shut down.
In September, ALPA’s Executive Board passed a resolution strengthening its commitment to opposing Mesa Air Group’s formation of Freedom Airlines as an alter-ego carrier. Mesa’s MEC Chairman, Captain Andy Hughes, said, "We believe that Mesa Air Group CEO Jonathan Ornstein will use Freedom Airlines to divert work from the dedicated Mesa pilots and give our jobs to Freedom Airlines pilots, who don’t have the benefits or protections of a union contract."
The formation of Freedom Airlines presents a threat to Mesa, especially as they are trying to negotiate improvements to their collective bargaining agreement.
Forming Freedom Airlines is also particularly onerous when most Mesa Air Group pilots flying for CCAir remain on furlough.
Jonathan Ornstein is transferring Mesa Airlines assets, jobs, and work opportunities to a non-union carrier to the detriment all Mesa Air Group employees, much in the way that Frank Lorenzo did under the umbrella of the Texas Air Corporation.
Freedom Airlines is a non-union airline. Freedom pilots will not have the protections and benefits of union representation or a union contract. Freedom pilots would be at-will employees subject to the whims of management’s decisions. Pilots would not have representation in disciplinary actions and would be subject to unilateral changes in their compensation, benefits, and working conditions.
The status of Freedom Airlines is subject to challenge in litigation brought by ALPA. The Association is alleging that Mesa Air Group’s use of Freedom Airlines to undermine the collective bargaining position of the Mesa pilots is a violation of the Railway Labor Act. In the ongoing lawsuit, ALPA is asking the federal court to enjoin Mesa Air Group from operating Freedom Airlines.
ALPA will also challenge Mesa Air Group’s ability to manage labor relations at Freedom Airlines separately from those of its other carriers. The National Mediation Board has already upheld the Association’s assertion that Mesa Airlines, Air Midwest, and CCAir are, in fact, a single carrier for collective bargaining purposes. If Freedom Airlines does begin operations, ALPA will seek a similar "single-carrier" ruling from the NMB as it applies to Freedom.
The US Airways MEC supports the Mesa MEC and their pilots’ efforts in their negotiations to accept the Jets for Jobs protocol in order to allow for Mesa’s ability to operate small jets under US Airways code, and supports the Mesa pilots and ALPA International’s stance against the formation of Freedom Airlines.
Bottom line:
· Pilots accepting employment with Freedom Airlines while it is being established as an alter ego airline are harming not only Mesa pilots, but the entire piloting profession.
· Pilots accepting employment at Freedom Airlines are, in effect, joining Jonathan Ornstein in his quest to undermine the collective bargaining rights of fellow ALPA pilots at Mesa.
· The US Airways MEC and ALPA International have consistently made statements, and have taken the position, that the establishment of Freedom Airlines as non-union alter ego carrier is contrary to the best interest of Association and our members.
· Pilots accepting employment with Freedom Airlines as an alter ego entity are harming themselves.
LOA 83 --Accelerated Small Jets:
The fact that Freedom Airlines could have been a participant in the Jets for Jobs protocol as a non-union alter ego carrier was unacceptable to the US Airways MEC. The issue was addressed in the recent negotiations with US Airways management on Letter of Agreement 83, Accelerated Small Jets. Section 2A in LOA 83 states:
2. The terms and conditions for placement of the Small Jet code share aircraft that are authorized to be placed at other carriers and flown under the US Airways code by the provisions of Attachments B, B-1, and B-3 of the Restructuring Agreement shall be modified under the terms and conditions stated below:
A. Up to 20 "Medium SJs" and up to 30 "Large SJs" (CRJ-700 aircraft only) may be operated by Mesa Airlines or by any wholly owned subsidiary of Mesa Air Group or Mesa Airlines under terms agreed to between Mesa Air Group and the Association. Such aircraft shall be subject to the Jets for Jobs Protocol and must be placed into revenue operation no later than December 31, 2004.
This language states that ALPA and Mesa Group must agree to terms concerning the placement of small jet aircraft at Mesa Group under US Airways code. It denies unilateral code sharing authority to Mesa Group for Freedom Airlines as a non-union alter ego carrier. Freedom Airlines cannot carry US Airways’ code unless ALPA (Mesa MEC) agrees to terms to allow it.
MEC action:
The Mesa MEC and US Airways MEC have been working very closely to help both furloughed CCAir pilots and furloughed US Airways pilots. Mesa pilots have been seeking solutions with our Negotiating Committee to help our furloughed pilots get jobs opportunities under a Jets for Jobs agreement with Mesa. Likewise, the US Airways MEC has been working with Mesa MEC to help Mesa pilots in their difficult struggle against a hostile management. The goal for both MECs has been to secure jobs and help each other achieve acceptable working conditions for ALPA pilots.
The US Airways MEC is supporting the Mesa pilots’ position that it wants to have Freedom Airlines under the umbrella of ALPA-represented carriers at Mesa.
Background on Mesa Group’s establishing Freedom Airlines:
Under Jonathan Ornstein’s control, Mesa Air Group operates wholly owned subsidiary carriers, which include Mesa Airlines, Air Midwest, and previously CCAir. The Mesa and Air Midwest pilots work under a single contract and a single pilot seniority list. In other words, Mesa and Air Midwest are a single pilot group.
The pilots of Mesa Airlines and Air Midwest, who work under the same contract, are in federally mediated Section 6 contract negotiations seeking reasonable improvements in their pay, retirement, and working conditions.
Faced with the threat of job terminations on May 15, 2002, and an announced July 1, 2002, shutdown of the carrier’s operation, the pilots of CCAir announced on April 29 that they voted to accept a management-proposed contract to ensure the continued operation of their company.
Although the proposal had been accepted by CCAir local union leaders and members, ALPA’s Constitution and By-laws requires that its president review and approve each collective bargaining agreement before it can become effective.
ALPA President Duane Woerth declined to approve the extremely concessionary proposal, which came in the context of an unbroken campaign of threats and intimidation by CCAir and Mesa Air Group to shut down the carrier if the pilots did not give up their existing agreement. President Woerth refused to approve the proposed agreement because it unjustifiably degraded pilot working conditions and offered no job security for CCAir pilots in return for the concessions. President Woerth also determined that the carrier’s management never demonstrated the need for the requested concessions and failed to show how the concessions would help save the carrier or the pilots’ jobs.
On July 17, ALPA filed suit in the U.S. District Court for the District of Arizona against Mesa Airlines, Mesa Air Group, and Jonathan Ornstein. In the suit, ALPA asked the Court to compel the Mesa defendants to bargain in good faith as outlined by the Railway Labor Act (RLA), and cease all efforts to undermine the organizational rights of Mesa Airlines pilots. It also requested that the Court enjoin the Mesa defendants from operating Freedom Airlines, a non-union start-up carrier, which they have threatened to use to divert work from the Mesa Airlines pilots.
Ornstein carried out his threat, and CCAir was shut down.
In September, ALPA’s Executive Board passed a resolution strengthening its commitment to opposing Mesa Air Group’s formation of Freedom Airlines as an alter-ego carrier. Mesa’s MEC Chairman, Captain Andy Hughes, said, "We believe that Mesa Air Group CEO Jonathan Ornstein will use Freedom Airlines to divert work from the dedicated Mesa pilots and give our jobs to Freedom Airlines pilots, who don’t have the benefits or protections of a union contract."
The formation of Freedom Airlines presents a threat to Mesa, especially as they are trying to negotiate improvements to their collective bargaining agreement.
Forming Freedom Airlines is also particularly onerous when most Mesa Air Group pilots flying for CCAir remain on furlough.
Jonathan Ornstein is transferring Mesa Airlines assets, jobs, and work opportunities to a non-union carrier to the detriment all Mesa Air Group employees, much in the way that Frank Lorenzo did under the umbrella of the Texas Air Corporation.
Freedom Airlines is a non-union airline. Freedom pilots will not have the protections and benefits of union representation or a union contract. Freedom pilots would be at-will employees subject to the whims of management’s decisions. Pilots would not have representation in disciplinary actions and would be subject to unilateral changes in their compensation, benefits, and working conditions.
The status of Freedom Airlines is subject to challenge in litigation brought by ALPA. The Association is alleging that Mesa Air Group’s use of Freedom Airlines to undermine the collective bargaining position of the Mesa pilots is a violation of the Railway Labor Act. In the ongoing lawsuit, ALPA is asking the federal court to enjoin Mesa Air Group from operating Freedom Airlines.
ALPA will also challenge Mesa Air Group’s ability to manage labor relations at Freedom Airlines separately from those of its other carriers. The National Mediation Board has already upheld the Association’s assertion that Mesa Airlines, Air Midwest, and CCAir are, in fact, a single carrier for collective bargaining purposes. If Freedom Airlines does begin operations, ALPA will seek a similar "single-carrier" ruling from the NMB as it applies to Freedom.
The US Airways MEC supports the Mesa MEC and their pilots’ efforts in their negotiations to accept the Jets for Jobs protocol in order to allow for Mesa’s ability to operate small jets under US Airways code, and supports the Mesa pilots and ALPA International’s stance against the formation of Freedom Airlines.
Bottom line:
· Pilots accepting employment with Freedom Airlines while it is being established as an alter ego airline are harming not only Mesa pilots, but the entire piloting profession.
· Pilots accepting employment at Freedom Airlines are, in effect, joining Jonathan Ornstein in his quest to undermine the collective bargaining rights of fellow ALPA pilots at Mesa.
· The US Airways MEC and ALPA International have consistently made statements, and have taken the position, that the establishment of Freedom Airlines as non-union alter ego carrier is contrary to the best interest of Association and our members.
· Pilots accepting employment with Freedom Airlines as an alter ego entity are harming themselves.
LOA 83 --Accelerated Small Jets:
The fact that Freedom Airlines could have been a participant in the Jets for Jobs protocol as a non-union alter ego carrier was unacceptable to the US Airways MEC. The issue was addressed in the recent negotiations with US Airways management on Letter of Agreement 83, Accelerated Small Jets. Section 2A in LOA 83 states:
2. The terms and conditions for placement of the Small Jet code share aircraft that are authorized to be placed at other carriers and flown under the US Airways code by the provisions of Attachments B, B-1, and B-3 of the Restructuring Agreement shall be modified under the terms and conditions stated below:
A. Up to 20 "Medium SJs" and up to 30 "Large SJs" (CRJ-700 aircraft only) may be operated by Mesa Airlines or by any wholly owned subsidiary of Mesa Air Group or Mesa Airlines under terms agreed to between Mesa Air Group and the Association. Such aircraft shall be subject to the Jets for Jobs Protocol and must be placed into revenue operation no later than December 31, 2004.
This language states that ALPA and Mesa Group must agree to terms concerning the placement of small jet aircraft at Mesa Group under US Airways code. It denies unilateral code sharing authority to Mesa Group for Freedom Airlines as a non-union alter ego carrier. Freedom Airlines cannot carry US Airways’ code unless ALPA (Mesa MEC) agrees to terms to allow it.
MEC action:
The Mesa MEC and US Airways MEC have been working very closely to help both furloughed CCAir pilots and furloughed US Airways pilots. Mesa pilots have been seeking solutions with our Negotiating Committee to help our furloughed pilots get jobs opportunities under a Jets for Jobs agreement with Mesa. Likewise, the US Airways MEC has been working with Mesa MEC to help Mesa pilots in their difficult struggle against a hostile management. The goal for both MECs has been to secure jobs and help each other achieve acceptable working conditions for ALPA pilots.
The US Airways MEC is supporting the Mesa pilots’ position that it wants to have Freedom Airlines under the umbrella of ALPA-represented carriers at Mesa.
