June 11, 2010 Newsletter

Congressional Concern over Regulatory Delay Prompts Letter to DOT Secretary

Citing concerns that, “as of this date, the Department of Transportation (DOT) has not issued the notice of proposed rulemaking (NPRM) on flight and duty time limits for flight crew members,” both the Chairman and ranking Republican members of the House Committee on Transportation and Infrastructure and the Subcommittee on Aviation have expressed their displeasure to Secretary of Transportation Ray LaHood.

In the letter dated June 9, 2010, Chairman James Oberstar (D-MN) joined by minority member John Mica (R-FL) and Subcommittee Chairman Jerry Costello (D-IL) and minority member Thomas Petri (R-WI) noted that, “We have received repeated assurances, including testimony from Federal Aviation Administration (FAA) Administrator Babbitt, that FAA would complete the rule by the end of 2009, which has slipped to this spring, and nothing has been produced.”

Since 1989, the National Transportation Safety Board (NTSB) has issued three recommendations on research, education and revision to the current regulations, none of which has been addressed by the Department of Transportation or FAA. Pilot fatigue has been on the NTSB’s “Most Wanted” list since 1990 and continues to be a major concern of pilots as the industry continues to push for reduced rest periods and longer duty days.

In noting that a comprehensive review of the flight time and duty time limits for pilots has not occurred in over 60 years, the letter went on to say that, “It is unacceptable that the DOT has not finished the process begun in 1995 to update flight and duty time regulations for pilots.”

Commenting on the letter to Secretary LaHood, Airline Division Director David Bourne said, “We fully agree with the concerns and sentiments of the letter. For too long, airline pilots have been forced to operate in an environment where they experience long flights and longer duty periods, creating the potential for fatigue induced operating errors or accidents. For too many years; from back to when FAA Administrator Babbitt flew commercially, and his father, also a very well respected airline Captain flew, these same rules have been in place and kept that way by an airline special interest lobby that places a higher value on cost cutting over safety.”

“It is time to put the safety of flight crews and the passengers who fly every day ahead of cost savings. We continue to support the efforts of Congress on this matter and encourage the FAA to complete this long overdue process promptly,” Bourne concluded.

Spirit Pilots Prepare to Strike as Deadline for Deal Looms

Faced with management proposals that have failed to address the economic and job security concerns, the pilots of Spirit Airlines have announced they will strike tonight (Friday) at midnight if an acceptable agreement is not reached. The carrier, who recently became infamous for wanting to charge passengers extra for carryon bags, has refused to bargain in good faith, according to the pilots.

Sean Creed, Chairman of the Spirit Airlines MEC (ALPA) says pilots want the new contract to bring them closer to parity with pay at carriers such as JetBlue and AirTran, which he says is 20% to 30% higher. Key sticking points are pay and scheduling, including a company proposal to increase the maximum number of hours flown and reducing crewmembers vacation time. On May 7, Creed vowed that “should the cooling-off period end without a fair agreement, make no mistake, this pilot group will strike.”

“We have heard some of the proposals put forth by management to the Spirit pilot group,” said Airline Division Director David Bourne. “To say they are insulting not only to the Spirit pilots and their families, but the piloting profession as a whole is a tremendous understatement. When our Teamster pilots at Amerijet went on strike over terrible conditions, the pilots of Spirit supported them. We are proud to stand with them in their hour of need and offer our full support. I ask each and every Teamster pilot and every Teamster who lives near a Spirit location to join them on the picket line in support, should the strike occur,” he concluded.

Spirit pilots will be picketing at the following locations, beginning at 10:30pm Friday night:

Fort Lauderdale- (FLL) Airport on the corner of Griffin and Federal Highway

LaGuardia Airport- (LGA) Upper Level Central Terminal

Detroit- (DTW) North Terminal, Upper Level

Atlantic City- (ACY) across from the airport entrance

Teamsters Dominate Discussion at Continental Shareholders Meeting

Continental Airline workers clearly got the attention of the top brass at Continental with their message that the time is now for management to address the pressing needs of their employees when a strong delegation of Teamster aircraft technicians and fleet service workers joined fellow work groups at the Continental Airlines Annual Shareholder meeting on June 9, 2010 to inform shareholders, the Board of Directors and senior management that there are serious labor concerns at the company that must be addressed before completing a merger with United Airlines.

Teamsters Local 19 technicians and fleet service workers marched in the streets of Houston and right into the shareholder meeting shoulder-to-shoulder with Continental Airlines pilots and flight attendants.

Employee issues dominated the meeting.  Teamsters Local 19 President Robert Rasch addressed the meeting with a strong message about the urgency to get serious at the bargaining table for both aircraft technicians and fleet service workers during these critical months before completing a merger with UAL which would create the world’s largest commercial airline.  “On behalf of the mechanics, the time is now to reach an agreement that honors the sacrifices these loyal and highly skilled employees have made since their pay was frozen in 2002… and regarding the fleet service employees, we applaud the decision of the company to save 150 jobs by reversing a decision to outsource the work in seven stations but we are deeply concerned about the company’s plans to outsource fleet service jobs at Newark Airport.” 

Throughout the meeting Chairman and CEO Jeff Smisek acknowledged the different employee groups attending the meeting and their valued contributions to the company but kept forgetting to mention the presence of the fleet service workers.  It’s an omission he is likely not going to make ever again. Teamsters Fleet Service Workers spoke powerfully and passionately at the meeting regarding continuing unfair treatment from supervisors who have created an environment of disrespect and intimidation toward employees in retaliation to the workers organizing victory in February 2010.

Teamster Adrienne Abner spoke on dangers of placing pregnant women at undue risks to their health and safety on the job by not accommodating them with light duty.  This lack of care has caused pregnancy complications and in some cases miscarriage.  Jorge Bonilla told Chairman Smisek about the retaliation facing fleet service workers since their organizing victory, “One day after the election, Continental’s Vice President of Human Resources published a public statement saying the company would respect the vote but just days later the company threw our rule book out the window.”  Chief Steward Reggie Robinson brought the issue home stating that despite the CEO’s claims that there is no management retaliation going on the workers feel like they are being attacked for exercising their rights in an attempt to improve their life on the job and their company and that their irritations and frustrations are growing.

Continental technician and Local 19 representative Chris Moore questioned the company’s continued use of China based HAECO for aircraft maintenance despite lack of FAA oversight and its few certified mechanics and how this creates unnecessary security and safety risks.  Unfortunately Smisek defended the company’s contracting with HAECO but indicated that Continental is supporting the tougher outsourcing standards proposed by Congress in the FAA Re-authorization Bill.

Jay Pearce, Chairman of the Airline Pilots Association representing Continental Pilots gave a thoughtful and impassioned statement regarding the need to work with labor in order to make the UAL merger a lasting success and not just a financially engineered windfall for top executives.

AAWW Contract Discussions Bog Down, Management Continues to Delay

Reporting in a message to crewmembers that, “Nothing has changed since our last announcement. Management continues to frustrate your legitimate expectations in bargaining through delay and regressive proposals,” the Negotiating Committee for the AAWW crewmembers; comprised of Atlas Air and Polar noted that while reaching agreement on some areas of the CBA week, much remains unresolved due to management intransigence.

While noting that sections including cockpit recording devices and subsections of Gateway Travel, Leaves of Absence and Reserve Crewmembers had been resolved, they wrote, “…the parties remain very far apart in other areas, despite the Union’s good faith effort to reach a compromise.”

“The Company’s proposal represents an attack on your benefits, plain and simple,” they continued. “Management can’t hide behind self-serving rhetoric about rising insurance costs. Indeed, one look at the Company’s financial statements puts to rest any notion that management needs to gut your insurance. Their profits come from your work, talents, skills and licenses. It is indefensible for management to demand that you further enrich the Company’s treasury by agreeing to cut your family’s insurance benefits.” Regarding struck work they reported, “…while no Teamster should ever be required to cross another union’s primary picket line; your Union agreed to work with management to identify alternatives to deadheading crewmembers riding on struck carriers. In response, management demands the right to terminate you for refusing to deadhead on a flight operated by scabs.” “Additionally, management continues to reject Union proposals that properly make hostile area flying voluntary. Once again, your Union proposed language that represents a good faith compromise. We proposed to create a volunteer pool from which management could draw upon for hostile area assignments. In the unlikely event that there are an insufficient number of volunteers for a particular trip into a hostile area, management would be free to assign management pilots or even contract pilots to that trip. In response, management continues to demand the right to force you to fly into harm’s way over your objection under the threat of termination.”

The next bargaining session for the group is scheduled for the week of June 21st in Washington, DC.

Teamsters Reach “Just Cause” Agreement with CAL

Teamster negotiators have reached an agreement with Continental for a just-cause provision for all fleet service workers, which takes effect immediately. Just-cause agreements provide important protections against arbitrary or unfair termination and other forms of inappropriate workplace discipline. The agreement follows a meeting between union representatives and CAL management on Tuesday, June 8th in Houston.

 “This is a very important agreement for our fleet service members, and it substantially increases their job security,” said Dan Smith, the lead Teamster negotiator. “Workers deserve to know that they will be protected when they face disciplinary action. We also discussed other issues with the company, including shift-trade policies, and the company has committed to work on these issues with us.”

A “just cause” agreement means that an employee may not be discharged unless an employer demonstrates affirmatively that an employee has received notice of charges against them, that the company’s rule or order under which the employee is disciplined is reasonable, that there has been an investigation into the charges which has been fairly conducted, that there is substantial proof of a violation of the rule or order, that the employer treats employees equally for similar violations, and that the penalty against the employee is fair given the seriousness of the proven offense and given the employee’s record of service. The company also agreed to work more closely with the Teamsters to accommodate the availability of union representatives at all hearings and investigations.

Smith was assisted by Teamster Airline Division Attorney Nick Manicone, Business Agent Chris Moore (Local 19-Houston) and Paul Alves, Local 19 President Robert Rasch, and Local 210 (New York City) Business Agent Gabe Guzman.

Meanwhile, contract negotiations with Continental will begin June 29 in Houston, and IBT Business Agents Bob Luciano (Local 210-New York), Daisy Gonzalez (Local 769-Miami), Charles Alferio (Local 964-Cleveland) and Moore (Local 19-Houston) will participate, as well as Manicone. The negotiations will be chaired on the union side by IBT International Representative Dan Smith (Local 104-Phoenix). Five fleet service members from the rank-and-file of the airline, whom will soon be announced, will also be on the committee and attending the meeting.

 Week In Review News Items

 Labor Developments

Negotiations between Spirit Airlines and its pilots were entering their final stage on Friday, with pilots threatening to walk out at midnight if they don't get a new contract…the union representing British Airways cabin crew said it was to ballot members on further industrial action that could disrupt summer holiday travel…BA’s chief executive Willie Walsh has turned down a six-figure bonus for the second year as the carrier struggles with losses and a series of strikes by cabin crew…and IATA slammed unions for walking off the job at a time when carriers are struggling to turn a profit.  

A federal appeals court ruling would free the U.S. Airline Pilots Association  (USAPA) to negotiate a new contract with US Airways, but the pilots who lost the case are expected to file this week for a rehearing before the full appeals court…United and Continental airlines are on course to wrap up a new contract with their pilot unions by fall, a critical step if their megamerger is to deliver the $1.2 billion boost leaders of the carriers promised Wall Street…and total employment at U.S. airlines declined by 4.1% last year as carriers shrank in the recession, and mechanics took a wrenching share of the job losses, according to the federal Bureau of Transportation Statistics. Airlines employed 7.2% fewer maintenance workers in 2009 compared to 2008, and 6.4% fewer pilots. 

Regulatory & Safety

Lawmakers demanded Wednesday that DOT Secretary LaHood write new rules aimed at preventing pilot fatigue, as he promised to do last year after an airline crash near Buffalo, N.Y., killed 50 people. The top Democratic and Republican members of the House Transportation and Infrastructure Committee and its aviation subcommittee sent LaHood a letter complaining that new rules governing how many consecutive hours airlines can require pilots to work haven't been proposed by the Transportation Department.  

Airline Industry Finances & Structure

With the accelerating pace of the global economic recovery bringing a renewed surge in demand for air travel, IATA predicted Monday that the world’s airlines would report profits of $2.5 billion this year, a dramatic improvement from the steep losses of the past two years…American Express CEO Kenneth Chenault says U.S. card holders are traveling more and spending more on hotels this year than last year, even though they remain cautious travel spenders…and EU competition regulators will decide by July 15 whether to clear or block a planned $8 billion merger between British Airways and Spain's Iberia, the European Commission said on Friday. 

Aviation Security

FBI Deputy Director John Pistole impressed members of the Senate Commerce Committee in his first of two confirmation hearings Thursday with his knowledge and experience with terrorism concerns in his bid to become administrator of TSA…new body-scanning machines have detected hidden weapons like ceramic knives and flagged illegal drugs. But they've also tested the patience—and vanity—of some passengers. 

Miscellaneous

American Airlines named a new chief executive and president of its regional affiliate, American Eagle, on Thursday and repeated that it planned to divest itself of the unit…customer satisfaction with airlines serving North America improved in the last year -plus, reversing a three-year decline, J.D. Power and Associates says in its annual survey…travelers at O'Hare face delays this summer that could be easily avoided if the airlines simply overcame their penchant for jamming too many flights into the most-congested hours, FAA has warned.