What happens to the Compass flowthrough, if NWA Merges?

[lookin4better]

compass is going to be sold to republic anyway.

I hate to say it but I think history might back up this one......ala Mid Atlantic

one of the reasons I did not go to the interview this spring

of course I fully admit I could be wrong...just a guess, good luck to all who went there! We are all just trying to get to that final job

 

[Airline Driver]

With in the next 5 years of our every changing industry, there will most likely be 1 or 2 less legacy carriers and a few less Regionals as well. All because of mergers and or acquisitions or perhaps even a couple of bankruptcy's. Not something we all want to hear but I think it is a pretty reasonable assumption.

"AS THE PROP TURNS" Not a bad name for a reality series huh!! All we need now is a producer and a contract and we could all supplement our incomes pimping ourselves out to NBC on a new hit reality series. imp: $$$$$$$$$$$$$$$$$$$$$

 

[N2264J]

Re: What happens to the Comapss flowthrough, if NWA Merges?

It's in the contract.

When I said "agreement" I meant contract.

A merger will trigger the renegotiation of the new contract for the new emerging airline giving management yet another chance to hack away at labor.

If I'm not mistaken, the Northwest MEC will be negotiating on behalf of the Compass pilots.

 

[Occam's Razor]

How can you be sure?

Because it's a law thingy.

The contract(s), both NWA and CPZ, can't be changed unilaterally. They can only be changed with concurrence of both parties. (Aside: That's the ugly truth in the former-TWA pilots gripe with "ALPA")

Speaking only in the purest legal sense, the RLA prevents the new combined carrier from abrogating any contracts unless the contract permits it (section-by-section). For example: Contracts can contain triggers that require new pay rates, or a release from Probation for members, if a merger takes place.

In the case of NWA and DAL, Section 1 contains "successorship" language that keeps all sections intact unless modfied by BOTH parties. The CPZ contract goes further, and defines who the "parties" are.

The new airline will have to negotiate a new agreement, right?

At some point, of course.

I think your question is: Would the current agreement be modified as a pre-condition to consummating the merger?

My guess: Probably.

As a Scope-hating lawsuit-lover, you probably see any such pre-nup as another chance for "ALPA" to stick it to you.

As a pragmatist, I see it as an opportunity to recover some of things we lost in Chapter 11, that would protect and enhance this career. Investors and the new Board will pay to achieve Labor peace.

 

[N2264J]

At some point, of course.

Yes, and sooner rather than later. Otherwise, in the Delta-NWA example, whose work rules would be used when the deal is consumated? Whose pay rates? Whose benefit package? How about conflicting scope clauses?

A new consolidated contract will have to be negotiated. So how can you be sure about anything currently in the NWA agreement?

 

[DrewBlows]

Yes, and sooner rather than later. Otherwise, in the Delta-NWA example, whose work rules would be used when the deal is consumated? Whose pay rates? Whose benefit package? How about conflicting scope clauses?

A new consolidated contract will have to be negotiated. So how can you be sure about anything currently in the NWA agreement?

Compass is not the same as NWA. I don't think it is likely Compass is merged with anyone in a sale, though I could be wrong. Some possibilities (not probabilities in my opinion): Compass is merged with Comair, Compass is merged with Delta and NWA, Compass, Comair, NWA, and Delta are merged, Compass is sold to Republic (I'm not sure if this is even possible at the present due to NWA contract language).

 

[Occam's Razor]

...in the Delta-NWA example, whose work rules would be used when the deal is consumated? Whose pay rates? Whose benefit package? How about conflicting scope clauses?

Both, until operations are integrated.

Both, until a new deal is negotiated.

Both, until a new deal is negotiated.

There are none.

So how can you be sure about anything currently in the NWA agreement?

Because I deal in what is...and not what might be.

The NWA agreement (we call it a "contract") can't be changed without our consent. I'm SURE of that because the Railway Labor Act makes it a statutory certainty. If we were in Chapter 11, I'd tell you a judge could change it. Since we're not...I'm telling you only WE can change it.

There's a good chance it will be changed. But since we're not in extremis, any changes will have to be to our benefit...or we will simply sit on our hands and watch the circus....and no changes will occur.

We kept our Successor and Fragmentation language largely intact, so our vulnerability to "do it, or else!" is low.

 

[Dirty Sanchez]

Compass flowthrough?

It is as much a fantasy as the Easter Bunny...

 

[DashTrash400]

Compass flowthrough?

It is as much a fantasy as the Easter Bunny...

I suspect we're about to find out just how real the flowback is.

 

[~~~^~~~]

I'm not so sure about that. NWA is unique in that they still have a defined benefit pension plan. THis retirement was bought with very concessionary rates.

Delta and United lost their retirement plans. In Delta's case the pay is better than NWA and no one really wants to go back to the Company retirement because no one trusts a defined benefit plan to be sustained until they retire.

It is my guess that if a merger should occurr the managing carrier would try to cash out the NWA pilots' retirement, in a manner similar to the early out packages Delta pilots were offered before bankruptcy.

This is a win/win, since the senior gentlemen have a voluntary option to enter a funded retirement and the airline manages costs by decreasing longevity, as well as avoiding displacements and furloughs.

The question is, how well is NWA's retirement plan funded? Can they do a targeted early retirement option?