Southwest Airlines Stock Clerk Negotiations Yield Tentative Agreement
IBT negotiators representing the Southwest Airlines Stock Clerks and SWA management reached a Tentative Agreement last Thursday evening. The committee met October 5th, 6th, and 7th, in a second meeting with mediator Mike Tosi after an introductory meeting in September. The Tentative Agreement improves upon the wages, shift differential and the 401k match. The wage rate increases are retroactive from the amendable date of August 16, 2008 and will be up to 13.5% on the date of ratification with increases scheduled for 2011 and 2012.
Highlights of the Tentative Agreement include improved language for; merger protection, additional flexibility for day trades and overtime, securing medical benefits and retiree benefits, transitional duty from occupational injury, increases in sick time accruals, and additional family members covered by the bereavement language. The parties agreed to a five year Agreement that provides for Section 6 negotiations to commence on February 16, 2013.
The negotiating committee is in the process of reviewing the final document for accuracy and will be announcing dates for informational meetings, mailing of the ballots and the vote count in the coming days. Voting will be conducted by secret ballot.
“We’re very pleased to have an agreement to bring back to the membership for ratification,” said Robert Rasch, President of Local 19. “The negotiating committee is very grateful for the support and patience our members have offered during this process. Without them, we would not have concluded this Tentative Agreement,” he concluded.
UPS Mechanics Score Victory as Federal Judge Throws Out Lawsuit over Arbitration
The mechanics of UPS scored a victory this week in federal court in Louisville, KY. A federal judge threw out a lawsuit by UPS trying to overturn an international subcontracting arbitration award won by Local 2727. The award concerns UPS outsourcing periodic maintenance checks (PMC’s) on its B-767 aircraft. The arbitrator held that the PMC’s are work routinely performed by UPS mechanics and that the contract was clear and unambiguous in prohibiting UPS from outsourcing that work internationally unless permitted by two narrow exceptions in the contract.
UPS argued that the arbitrator went beyond his jurisdiction in deciding that international work was covered by the agreement. It also claimed he ignored clear contract language. The judge agreed with the Local’s arguments that the arbitrator acted well within his jurisdiction in interpreting the contract and that the facts presented to the arbitrator supported the award. The Company must now appeal or decision becomes final.
On the bargaining front, it was confirmed that the National Mediation Board has reconvened contract negotiations between UPS and Local 2727 for October 26th -28th. The mediator is optimistic that the parties can reach a final agreement and has set three days for that purpose. The Local and Company completed work on joint interpretation of agreed articles during the week of September 28th. The bargaining now focuses on the few remaining open articles.
UAL Discussions Continue, with Side Visit to SFO Maintenance Base
UAL negotiations continued on October 4th, 5th, and 6th at Local 856 headquarters in San Bruno, CA. Discussions with the Company focused on Articles IV (Classifications), and VI (Hours of Service).
The Union Negotiating Team took the opportunity visit with the membership at the SFO Maintenance Base. The team was able to visit the engine shop, the machine shop, the landing gear shop, the narrow body docks, and some of the back shops. Additionally, the team was able to talk with the swing shift Shop Stewards in the Union Committee Office. Clacy Griswold, the Chief Negotiator for the IBT, briefed the membership at several of these areas about the ongoing negotiations. There were many very good questions brought forth, including two big questions regarding job protections and pension. Griswold advised the membership that these were both high priorities for the negotiating committee, and that they are two of the five cornerstones previously reported as requirements to achieve an agreement with the carrier.
There were also questions around how the economic package would look in the final agreement. Griswold responded that the team was not currently in the economic section of negotiations, but offered his opinion on what was needed to get a ratified agreement.
Negotiations for this session concluded with further discussions with the Company over new work rules, including the topics of vacancies, bidding, bid areas, qualifications, training, testing, and leads.
Week In Review News Items
Labor Developments
Flight attendants with Continental said they will not participate in contract talks with their peers at United. United flight attendants had said in an exchange of letters they would have more leverage if they worked together. United will continue to operate as two separate carriers until it receives a single operating certificate, expected within 18 months. The new combined carrier has some 87,000 employees…cabin crew at Irish airline Aer Lingus will protest next week against management plans for increased working hours by sticking to original rosters, the IMPACT union said.
Legislative, Safety & Regulatory
Major U.S. and European airlines are banding together to oppose government loan guarantees that help rival carriers in other countries buy Boeing and Airbus jets. Delta, American, Southwest, Air France-KLM and British Airways are among the airlines protesting the loan guarantees. A trade group for the U.S. airlines said Wednesday it plans to detail its case to U.S. government officials in the next few days…over the past year, a handful of airlines in Europe and Asia has quietly stopped seating unaccompanied minors next to adults after several incidents of alleged sexual abuse. But some airline pilots and safety experts have raised concerns that such policies leave children vulnerable to severe injury in an onboard emergency…FAA has issued preliminary rules requiring planes to maintain unusually long distances behind Boeing's 787 Dreamliner jets during landing approaches. The preliminary rules on extra spacing could potentially impose operating restrictions on the long delayed carbon-composite plane.
Airline Industry Finances & Structure
United Airlines and Air Canada say they're looking to share revenue on flights across the border. The two airlines already have antitrust immunity and sell tickets on each other's flights. Now they want to form a joint venture to make those financial ties deeper. They still need regulatory approval. If they get it, they hope to start the joint venture early next year…DOT on Wednesday proposed to grant antitrust immunity to two airline joint ventures for service between the U.S. and Japan, subject to the signing of the open-skies aviation agreement between the two countries. DOT's tentative decision would grant immunity to OneWorld alliance members American and Japan Airlines, and Star Alliance members United, Continental and All Nippon Airways.
American Airlines is recalling about 800 furloughed employees, about 1 percent of its work force, as it adds flights on international routes. CEO Gerard Arpey announced the jobs as American launched a new trans-Atlantic business with British Airways and Spanish airline Iberia. American is working on a similar alliance with Japan Airlines across the Pacific…by now you've probably read all about Southwest Airlines' acquisition of rival AirTran. Perhaps you've heard this consolidation of two large low-cost carriers will eliminate one brand (AirTran) and result in higher airfares. Or maybe you've heard just the opposite, that airfares will fall as network or legacy airlines face formidable competition from a larger and more powerful Southwest Airlines. There is little doubt the merger will affect air travel, but the underlying rationale behind the transaction may have far greater implications for the industry beyond the combination of two airlines.
Miscellaneous
Last year was dreadful for the industry as people stayed at home. While hotel operators have been optimistic that customers would trickle back this year, they expected room rates to lag. But rates are rising as demand for rooms has grown. The number of rooms sold in the U.S. rose 8.3% in August vs. a 7.4% year-to-date average, says Smith Travel Research…the U.S. hosted 27.5 million international visitors during the first six months of the year, an 11% increase, and they spent $65.2 billion, an 8% increase, according to Commerce Department data…jet travel can spread diseases from one continent to another far faster than in the past. But recent studies, including a report in August by the National Research Council’s Transportation Research Board, make a case that, in general, an airplane is no more a health threat to occupants than any other enclosed environment, like a theater or subway.