December 11, 2011 Newsletter

Airline Division Representatives Attend Local 528 Craft Meeting

Airline Division Attorney Nick Manicone and Airline Division Representative Chris Moore joined Local 528 President Don Toney and Business Agent Johnny Edwards in Atlanta on December 7th for the ASA Mechanic and Related Class and Craft. Joining them at the meeting were Negotiating Committee members Local 19 Business Agent Mike Cline, ASA MX Chief Steward Geoff Maloney and Shop Stewards Juan Ruiz and Chris Rogers.

In addition to questions about the articles that have already been Tentatively Agreed to, questions were also fielded about future negotiating dates, the merger with Express Jet and how the mediated negotiations at XJT will affect the ASA negotiations. Manicone explained that the Teamsters are committed to bargaining separate agreements for both work groups prior to a single carrier filing and the commencement of bargaining a single contract for the merged work group.

The negotiating committee met on December 8th to work on the next article they intend to pass to the company when negotiations resume on January 16, 2012. Good progress was made over the last few bargaining sessions and the committee looks for that to continue when talks begin next year.

NetJet Mechanic Contract Negotiations Kick Off In Columbus

Members of the Net Jet mechanics negotiating committee members; Business Agent Paul Suffelleto, Shop Stewards Chad Morrison, John Wolf and Isaac Thielman and Observer  Fred Price , were joined by Airline Representatives Paul Alves and Chris Moore for the opening round of negotiations at Net Jet Headquarters in Columbus Ohio on December 9, 2011.

After introductions, the company gave a brief presentation which included the history of NJT, an overview of the Maintenance Operation and the current state of affairs in the fractional jet industry. The parties have agreed to tentative dates for negotiations beginning in January 2012.

Omni Air Ratifies First Contract

After rejecting their first Tentative Agreement with management, the crewmembers of Omni Air have ratified a revised agreement, putting in place their first collective bargaining agreement.

The four year agreement; ratified by a vote or 116-83 includes raises of between 30% and 43% and provides improved travel, strong scope protection and significant work rule improvements. Additionally, it includes seniority rights, job protection and other provisions, including a dispute resolution process.

“I am very pleased for the crewmembers of Omni Air,” said Airline Division Director David Bourne. “First contracts are historically challenging, however the leadership kept focused and management also worked to achieve an agreement that was acceptable to both groups. We look forward to its implementation and congratulate everyone on a job well done,” he concluded.

Horizon Pilots Win Pay Arbitration

The pilots of Horizon Air have prevailed in their pay arbitration dispute with management, it was announced this week. Arbitrator Jaffe rejected the company’s proposal and instead of taking a 5% pay cut as demanded by the company, the pilots will receive a 2.8% increase on December 15th and First Officers will receive an additional 1.2% increase on December 15, 2013.

In November 2010, the pilots approved a new five year agreement, but the tentative wage settlement was rejected by the pilots which led to both parties presenting their “last, best and final offers” to the arbitrator for his decision. Commonly referred to as “baseball style arbitration,” the agreed to process requires the arbitrator to order the implementation of one proposal or the other without changes.

The groups are scheduled to return to the table in 2013 to resolve wages rates for the final two years of the agreement. If they are unable to do so, they will follow the same arbitration process.

Cape Air Negotiators Prepared to Resume Discussions

Negotiators for Cape Air are prepared to resume discussions at their next scheduled session on January 4, 2012 in Hyannis, MA. The parties have reached tentative Agreement on all sections of the contract with the exception of pay rates for the ATR-42, Scope and Definitions. They remain optimistic that an agreement could be reached by mid-January.

Airline Industry News

Government and Regulatory

Several airlines have requested that the DOT give them one year to install the technology required to implement two of the agency's new rules regarding fees…Lawmakers continue to debate a key provision in the FAA funding bill that will change the way airlines form unions…Airlines are urging the FAA to keep plans for an updated air-traffic-control system on track after the resignation of FAA Administrator Randy Babbitt.

Labor and Airlines

The unsecured creditors panel appointed by the Justice Department for the bankruptcy of American Airlines' parent company includes three union representatives, Boeing and several banks…US Airways believes in the benefits of consolidation, Chief Financial Officer Derek Kerr says…Boeing machinists have voted to approve a deal to extend their contract and keep production of the 737 Max in Puget Sound, Washington.

Despite the European debt crisis, business travel is likely to rebound slightly in 2012, analysts say.