HIRING, FURLOUGHS, BANKRUPTCIES: It was the best of times...it was the worst of times

[A4sForever]

Hawaiian Pilots Oppose Airline Bankruptcy Move

January 20, 2005:

In response to Hawaiian Airline’s filing an 1113 motion on January 20, the Hawaiian pilots’ MEC leaders spoke out against management’s attempt to misuse bankruptcy rules to short-circuit the collective bargaining process.

MEC negotiating committee chairman charged that Hawaiian Airlines is asking the bankruptcy court to unilaterally impose demands on the pilot group that would result in many pilots facing significant cuts in retirement earnings and long-term disability protection.

“We’re hopeful that the bankruptcy court will not allow Hawaiian’s management to mistreat loyal employees in this manner,” said the HAL MEC representative. “The airline management has asked the court to reject our contract in favor of unjustified demands. In spite of this, we are ready, willing and able to sit down and negotiate a fair contract that benefits both the pilots and the company.”

The outcome of Hawaiian’s motion could threaten long-standing bankruptcy law reforms put in place after airline deregulation. Under Section 1113, employers can seek to reject labor contracts as part of the bankruptcy process, but any proposal must be limited to necessary modifications and any request must treat all parties fairly and equitably. Just before Hawaiian Airlines filed bankruptcy, the airline’s management asked for and received millions of dollars in concessions. After months of record profits, the company is now asking for even more from the pilots in the form of steep concessions in disability and retirement.

“Hawaiian Airlines’ financial condition continues to show tremendous strength based on the millions of dollars in concession the employees gave to make the company a success. The trustee and the new owners have used these gains to make every party in the bankruptcy whole—except the employees,” added the HAL ALPA MEC spokesman. “The pilots are now being told they must give up more and more. We have offered to meet their principal objectives. Now management needs to insure that this agreement is a win-win for both sides.”

NOTE: I AM NOT A SPOKESMAN FOR ANY AIRLINE OR ALPA ... ALL OPINIONS EXPRESSED ARE MY OWN AND ALL POSTS COPIED FROM OTHER SITES ARE ATTRIBUTED TO THEIR ORIGINAL AUTHORS ... A4s

 

[A4sForever]

United Pilot Leaders Endorse Revised TA with Airline Management

January 18, 2005:

The United MEC, on January 18, accepted a revised tentative agreement between ALPA and United Airlines and unanimously recommended that the pilot group ratify the agreement. The agreement now goes to the approximately 6,400 United pilots for a ratification vote. Balloting begins on January 20 and will close on January 31.

The MEC opted to accept the revised agreement rather than pursue a litigated outcome in the Bankruptcy Court under Section 1113 proceedings. Bankruptcy Judge Eugene Wedoff, on January 7, rejected the pilots’ original agreement with the airline because he said certain aspects of that agreement were inconsistent with the requirements of the bankruptcy code.

“After careful consideration and thorough study,” the UAL MEC chairman said, “the governing body of United’s pilots unanimously voted to ratify this new agreement as the best course of action for all pilots at United Airlines. Absent this agreement, we faced an unacceptable outcome in litigation before the Bankruptcy Court.” He observed that “given the circumstances in which we find ourselves, we believe that this agreement provides the stability that the airline needs to move toward an expeditious exit from Chapter 11 bankruptcy protection.”

He said, “With this agreement, the MEC has provided the tools that the airline claims it needs to exit from bankruptcy. This MEC has expended an extraordinary amount of energy and resources to achieve this agreement. If the pilots ratify this agreement, we fully expect United Corp. to use these tools to move this airline out of the morass of bankruptcy and emerge as a healthy, viable competitor.”

 

[HAL Pilot]

January 20, 2005:

In response to Hawaiian Airline’s filing an 1113 motion on January 20,

The IAM membership just rejected their new contract too.

If the Judge rules for the company and throws out the contract, stand by for the strike vote. It will quickly follow.

 

[A4sForever]

The IAM membership just rejected their new contract too.

If the Judge rules for the company and throws out the contract, stand by for the strike vote. It will quickly follow.

Let's hope it doesn't come to a strike. The whole thing stinks and it's small consolation, but your ALPA brothers and sisters will all be standing with you in this trying time .... fly safe and best of luck.

Headquartered in Honolulu, Hawaiian Airlines is the nation's 12th-largest carrier, with 135 daily flights flown by 300 pilots who operate a fleet of B-717 and B-767 aircraft.

 

[A4sForever]

"it's going to be an ABSOLUTE RUSH" : UAL CEO

OR ... did he mean "ABSOLUT" ... as in Vodka ???

United Air Sees Bankruptcy Exit in Fall Saturday January 22, 5:58 PM EST

=

???

 

[A4sForever]

Aloha Airlines Reaches New Contract Agreement With Pilots

Aloha Airlines Reaches New Contract Agreement With Pilots

Tuesday January 25, 2:50 AM EST

 

[A4sForever]

Pilot Hiring in 2004 Nearly Doubles that of 2003

Pilot Hiring in 2004 Nearly Doubles that of 2003

Air Inc. reports that 9,382 airline pilots were hired in 2004—substantially up from the 4,743 new jobs in 2003. Of those new 2004 jobs, 1,139 pilots were hired at major airlines. Pilot retirements at age 60, and airline growth or shrinkage, will greatly affect hiring in 2005, Air Inc. says. Airline fleet plans are in a state of flux as passenger and cargo carriers adjust to the current fragile market environment.

The company forecasts some 10,800 new airline pilot positions in 2005.

According to ALPA's figures, there are still 8,889 ALPA pilots on furlough.

Would any of you like MY seat (airline, that is ... ) ... or perhaps I should list it on EBay?

 

[A4sForever]

Delta Connection Pilots to Conduct Informational Picketing

Delta Connection Pilots to Conduct Informational Picketing

The Atlantic Southeast Airlines pilots will conduct informational picketing outside Terminals 1 and 2 at the Salt Lake City International Airport on January 31 from 11 a.m. to 2 p.m. MST. Atlantic Southeast operates under the “Delta Connection” livery and is a wholly owned subsidiary of Delta Air Lines.

The pilots are picketing to demonstrate their frustration about the lack of progress as well as the slow pace of the current contract negotiations, which have lasted for more than 2 years. The Atlantic Southeast pilots began negotiations with management in September 2002, when their most current contract became amendable under the terms of the Railway Labor Act. Negotiations have been conducted with the help of the National Mediation Board since May 2004. On January 31, 2005, Atlantic Southeast will begin operations and open a new pilot base at Salt Lake City Airport

 

[A4sForever]

UPDATE: United Pilots Approve Concessions, Warn UAL

United Pilots Approve Concessions, Warn Airline to Use Them Wisely

UPDATE: United pilots, on January 31, ratified the revised tentative agreement between ALPA and United management. The new agreement amends the pilots’ current collective bargaining agreement, effective Jan. 1, 2005, and will provide $180 million in annual labor savings to the company.

Approximately 77 percent of the eligible United pilots cast votes on the new labor agreement, approving it by a vote of 75.46 to 24.54 percent. Bankruptcy Judge Eugene Wedoff had previously indicated he will approve this agreement.

United MEC chairman, Capt. Mark Bathurst, issued the following statement in reaction to the TA vote results: “Again, this pilot group stepped up to the plate and made the responsible decision to accept the revised tentative agreement. We understand the tremendous financial challenges facing our airline and have once again assumed a leadership role in guiding United toward an eventual exit from bankruptcy. As we did when United pilots accepted the original tentative agreement on January 6, we call on management to use the savings obtained in this agreement wisely and to apply them toward returning this airline to a financially healthy enterprise.

“We will be relentless and steadfast in holding management to an unprecedented degree of accountability as they now have all of the tools they claim they need to exit from bankruptcy,” Capt. Bathurst said. “We will accept no excuses and no undue delay in moving this company forward in the coming months to regain our rightful place at the top of the U.S. airline industry.”

The United MEC stated that the new agreement is designed to accomplish three principal goals—to preserve the basic economic terms of the TA with improvements for the pilot group; to conform the technical bankruptcy aspects of the agreement to the decision of the bankruptcy court without exposing the pilots to unfair treatment in the bankruptcy process; and to ensure that the pilot group fully participates with the other United employee groups and management in further pension discussions during the next 90 days.

Some of the provisions in the new agreement include the following:

· A letter confirms that United will explore, and work with the pilot group to explore, alternative solutions to terminating the pilots’ A plan during the next 90 days. Further, that the MEC does not have to withdraw opposition to pension plan termination until all alternatives have been exhausted.

· This contract has less of a salary reduction (11.8 percent) than in the previous agreement (14.7 percent).
· The agreement has a similar duration provision to the previous agreement with an amendable date of 12/31/09 and negotiations to begin no later than 5/1/09.

· The agreement clarifies that pilots will receive the enhanced C plan contribution and $550 million in convertible notes if either the company or PBGC terminates the A plan. It also clarifies that contributions to the C plan will begin no later than June 1, 2005.

 

[A4sForever]

ALPA Pres Duane Woerth Sez:

Capt. Woerth Calls for a ‘Course Change’

In a video message to all of ALPA’s members, the union’s president, Capt. Duane Woerth says that government officials and airline managements are "playing with our money now."

He addresses three critical federal government issues: outrageous security tax proposals, a lack of funds for air space modernization, and plans for pension reform legislation. He warns that, unless ALPA and other airline employee representatives take a strong stand, airline managements will continue to sacrifice the pay and benefits of employees before they will raise ticket prices to pay for the tax increase.

(note: I have no "truck" (look it up) with Duane nor his "praetorian guard" BUT: I know him personally -- and he is "right-on" with these three (3) current major airline industry problems ... )

 

[A4sForever]

Recall News @ NWA

Last week NWA mailed out 30 PNR's for April training. Using the
Jan. 2005 senority list, the most junior pilot receiving a PNR was
5540 ...

 

[A4sForever]

BAD NEWS for NWA FURLOUGHEEs

NWA informed ALPA yesterday that they will stop recalling pilots.
We do not know when recalls will begin again, but NWA has said that
this is "temporary".

In the fall of 2004 NWA came up with their marketing plan and as a
result their flying levels. This data drove them to recall. Since
that time a few factors have changed. Delta Airlines decided to
implement a new fare strategy, that will impact NWA's revenue and
fuel prices have not gone down dramatically. NWA sees this as
revenue negative while costs are increasing. As a result, NWA has
decided to keep 4 DC-9's 'parked' and to 'park' two more for the
summer flying season. This will reduce the number of pilots needed
to fly the summer schedule.

Here is an update on the recall/furlough numbers. All of these
numbers assume that all of the 30 PNR's that were mailed for April
training will be accepted and that these 30 pilots will actually
accept recall.

Recalled in 2004: 277
Recalled in 2005: 141
Number on furlough: 502

NWA officially announced 200 recalls for the 1st half of 2005. In
other forums and publications the number "floated" was 400 to 450
recalls. This inflated number was based on the 2005 projected
flying levels that were made in 2004.

BUMMER BALL !!

 

[webmaster]

Ok, so what's going on with HAL then? Any word on the terms of the labor deal, are they hiring back more of the furloughs?

 

[A4sForever]

Dunno ... we'll wait for HAL-pilot to fill us in on furloughs and recalls @ Hawaiian Air Lines. "Out of bankruptcy" can't be a "bad" thing -- long term, however.

 

[HAL Pilot]

No one is sure yet what is in the TA. The MEC is supposed to meet to approve it this week and send it to the pilots for ratification next week. The Negotiating Committee chairman said the agreement provides improvements in compensation, per diem, deadhead and training pay. He said there were no concessions. The retirement issue was deferred to further negotiations after emergence from bankruptcy with the union committed to transitioning from an "A plan" (defined benefit) to a combination "B plan" (defined contribution - from the company) and 401K within the "next several years". Any change in the retirement plan would have to give the same overall level of benefits as the current plan.

Until I see the actual TA I can't be sure, but it looks like HAL ALPA made the company blink. ALPA had the stronger case and I don't think the company would have prevailed in their attempt to have the judge throw out our contract. I think the company realized this as they backed down from a lot of their contractual demands and made a full-court press to settle before the court hearing.

No word on expansion or recalls. I don't think we will hear anything on that until after the company emerges from the bankruptcy process. Hopefully that will happen in March/April. Than it will probably take another month or two to let the dust settle.