December 04, 2009 Newsletter

Airline Division News Items

The FAA Reauthorization Bill May be Put Off for Another Three Months, According to Congressional Quarterly

With a deadline approaching for reauthorizing the Federal Aviation Administration, lawmakers in both chambers are beginning to plan another short-term extension for the agency accordingly to a Congressional Quarterly article this week. The current short-term authorization expires Dec. 31

Though aides said they still hope the Senate Finance Committee might find time this year to act on its piece of a multi-year reauthorization, it seems increasingly unlikely as the Senate focuses on health care legislation. House and Senate aides said the most likely course would be a three-month extension for the agency through the end of March. The House will likely take the lead on an extension. Jim Berard, spokesman for the House Transportation and Infrastructure Committee, said nothing has been drafted yet, but acknowledged the tight schedule. “I think we have to be prepared with some kind of extension, and three months is probably the most likely candidate at this point,” he said. “Unless the Senate suddenly kicks into hyperdrive.”.

The Teamsters have lobbied among other things for language in the House and Senate versions of the FAA bill having to do with putting maintenance outsourcing rules for MRO’s in foreign countries on a more equal footing with domestic maintenance rules.

NMB to Hear Testimony Next Monday on Its Proposed Changes to Election Rules

A National Mediation Board proposal, which was announced November 3, would base the outcome of union elections in the airline and rail industries on the majority approval of people who vote. This is the same method used under the National Labor Relations Act and in political elections nationwide. The current union-election system, which has been in place since 1934, 

bases the outcome of airline and rail union elections on the majority approval of an entire workgroup and counts those who do not participate in the election as voting against union representation. 

This means that workers who do not vote because they never received balloting instructions, have religious objections, forget to vote, are apathetic or make a deliberate choice not to vote, have their votes counted as a vote against unionization.  This creates an unfair unequal playing field for workers who want to form a union under the Railway Labor Act.  Many commentators have also noted that the unfair voting rules violate airline workers’ freedom of association.

The NMB has established a 60-day comment period on the proposal.  On this coming Monday the NMB has provided an opportunity for oral testimony on the proposal. A long list of invited speakers on both sides of the fence will have an opportunity to challenge or praise the NMB’s proposal at NMB headquarters in Washington, D.C.

Dates Set for a New Representation Election for Cape Air Pilots

The NMB has established next Monday as the date ballots will be mailed out for a new (rerun) representation election.  After an investigation, the previous election was ruled invalid by the NMB.  Ballots will be counted at NMB headquarters in Washington on January 5, 2010.

Omni Air International Contract Negotiation Moving Forward

NMB mediated negotiations continued in Houston, Texas in late November with a Tentative Agreement reached on another section of what will be the first Collective Bargaining Agreement for the flight crewmembers of Omni Air International. Significant progress was made on two other sections, Sick Leave and Vacations, and they would be complete but for accrual amounts that could not be agreed upon. This brings the status of negotiations between the Company and the Union to ten tentative agreements. Local 747 Executive Council negotiators Clark Cameron, Charlie Wallace and Walt Reulbach participated on behalf of the Omni crewmembers. They were joined by Teamsters Local 747 Business Agent John Herron and Jennifer Petty. An aggressive negotiating schedule and topic agenda has been set, with negotiating sessions planned for December 15-17, January 20-22, March 2-4, and March 30 &31.

The Coalition of Airline Pilots Associations (CAPA) Activities

The Coalition of Airline Pilots Associations (CAPA) has been very busy in Washington, DC addressing the numerous bills that have been written to address pilot professionalism in the cockpit. These bills have been written as a reaction to the Northwest Airlines flight that overflew MSP and was out of radio contact for over 90 minutes.

Senate Aviation Subcommittee Chairman Dorgan (D-ND) has offered a bill that would "prohibit the use of personal wireless communications devices and laptop computers by the flight crew of commercial aircraft on the flight deck of such aircraft during aircraft operations." Senator Menendez (D-NJ) offered language that would "require the Administrator of Federal Aviation to promulgate regulations to prohibit the in-flight use of certain portable electronic devices in the cockpit of commercial aircraft and to conduct study of the safety impact of distracted pilots." Congresswoman McCarthy (D-NY) offered a bill that would "implement recommendations of the National Transportation Safety Board regarding the installation of cockpit image recording systems in the cockpits of commercial aircraft" for "purposes directly related to investigations of accidents and incidents by the NTSB" as well as place restrictions on the use of laptop computers and portable electronic devices in the cockpit.

  

All three of these bills would still allow exceptions when "use of the laptop computer or personal electronic device is directly associated with command of the aircraft" so CAPA is not going overboard in its efforts to address these bills but we are closely monitoring their status in case something changes that we need to address. In our numerous meetings with House and Senate staffers to discuss these bills and the MSP overfly event the topic of "how could this have happened for 90 minutes" came up every time. CAPA representatives managed to turn the conversation to the need for comfortable, fatigue-reducing noise-cancelling communication headsets and intercoms that would increase attention to radio communication with ATC. Southwest Airlines has recognized the value in the use of these headsets and has begun to provide them to all SWAPA pilots and expanding their use to all commercial aviation cockpits would increase safety and decrease missed or misunderstood radio communication.

There is one bill that has caused concern at CAPA, and that is Senator Jim DeMint's (R-SC) Pilot Professionalism Assurance Act which proposes to "improve air safety by authorizing the limited use by air carriers of information collected through cockpit voice recorders and flight data recorders" to "discipline or discharge a pilot or flight engineer for actions that endanger the safety or well being of passengers." If you ever doubted that pilots need to have a constant presence in Washington, DC to monitor Congress then you should no longer have doubt. Fortunately CAPA representatives, including CAPA lobbyists Jim and Jack Albertine and SWAPA Lobbyist Jay Keese have been canvassing Congress to address this intrusive and unnecessary bill and will do everything possible to make sure this bill is defeated. Our initial assessment is that the DeMint Pilot Professionalism Assurance Act is not widely supported on Capitol Hill or by industry. CAPA will be on top of this issue and will keep its members informed of its status.

House Subcommittee Hears Teamster Testimony on Security at Overseas Repair Stations

Subcommittee on Transportation Security and Infrastructure Protection heard testimony on November 18 from the Teamsters Union about security at

overseas repair stations. In both written and oral testimony, the Teamsters

Union said there should be a single security standard for aircraft repair

stations in the U.S. and overseas.  Chris Moore, a Teamster airline mechanic

and chair of the Teamsters Aviation Mechanics Coalition, testified that he had witnessed lax security at the Aeroman facility at El Salvador International

Airport, which now handles four lines of heavy maintenance for Southwest

Airlines. Moore, who has worked for Continental Airlines at George Bush Intercontinental Airport in Houston since 1986, visited Aeroman in June.

Moore told the subcommittee that Aeroman had no electronic card reader to

verify that escort badges are valid. In Houston, a card that fails to be verified

by electronic card readers will immediately draw a law enforcement officer.

TSA conducts surprise inspections of mechanics in the United States, though

Moore saw no such inspections in El Salvador. Further, he saw no patrols of

the perimeter, though many other businesses were patrolled by armed guards.

“Is there real control over who is actually working on our aircraft in a

developing economy?” Moore said. “When the aircraft is stripped bare and

there are literally thousands of places where explosives or other contraband

can be hidden, are we willing to take that chance?” Subcommittee

Chairwoman Sheila Jackson Lee (D-TX) thanked Moore for his testimony,

calling the utilization of America’s workers a “key element of security.”

The purpose of the hearing was to determine if security at repair stations is

adequate and if further collaborations between the transportation industry and Homeland Security need to be made. The hearing clearly put pressure on the

TSA to tighten security restrictions at repair stations. Two days prior to the

hearing, the TSA posted a proposed rule to its website focusing on security

at airplane maintenance facilities.

Flight Options Mediated Negotiations Held This Week at Teamsters Headquarters

Representatives of Flight Options, LLC and Teamsters Local 1108 met at IBT headquarters this week in an effort to finalize a first contract.  Airline Division Director David Bourne attended the mediation sessions.  NMB Mediator Marvin Sandrin has scheduled three additional mediation sessions for the last of January 2010.  When mediation resumes, the parties will attempt to resolve the few remaining sections of the contract.  Local 1108 represents approximately 525 pilots employed by the Cleveland-based fractional operator.

United Joint Board of Adjustment and Mechanics Section 6 Negotiations Held in San Francisco this Week

The first meeting of the newly created Joint Board of Adjustment met on Monday and began work on resolving the backlog of grievances.  Negotiations on a new contract continued later in the week and focused on sections 21 and 22 and good progress was made.  Negotiations will resume next week in San Francisco on the 8th and 9th.

Week in Review News Items

Labor Developments

Labor relations at United have long been a sour spot, but the carrier's largest union is bucking the trend. At a time when the airline industry is shedding jobs, IAM, which has about 17,500 members at United, recently signed an innovative agreement to save 700 ramp and agent jobs at O'Hare.

  Regulatory & Safety

Siim Kallas, the incoming EC commissioner for transport, was urged this week to set up a Stakeholder Summit for aviation early in 2010. A letter to Mr. Kallas calling on him to organize the summit  was signed by bodies representing all sectors of the industry including labor (Teamsters Airline Division), consumers, airlines and travel buyers…Canadian safety inspectors are backing a federal government decision to stall self-monitoring in the aviation industry, but they say they fear a partially implemented regime has left big airlines vulnerable. The Canadian Federal Pilots Association was to appear Monday at a Commons committee studying the issue, where it said it would expose "major safety breeches, including an extremely serious incident at one of Canada's major air carriers" under the fledgling safety program.

Boeing is urging airlines to carry out a major retrofit on over 220 of its 777 jets in the light of a series of potentially dangerous incidents of overheating and chronic structural damage to engine parts…a Senate panel criticized senior aviation officials in the Obama administration Tuesday for delaying long-awaited federal rules designed to combat pilot fatigue…U.S. regulators aren’t likely to let airline pilots take so-called controlled naps in cockpits as part of an overhaul of rest regulations…NTSB Chairman Deborah Hersman yesterday criticized FAA for failing to act on runway safety recommendations the board repeatedly has made…FAA decided to allow over 130 Boeing planes to continue flying international trips until early 2011, despite warnings about suspect parts that have caused rare midair engine shutdowns.

Airline Industry Finances & Structure

Passenger demand for air travel rose in October but freight demand continued to fall, especially in Europe, indicating the global economic recovery remains fragile. However, Continental came out with November unit revenue numbers that will catch the attention of Wall Street. Continental estimated that its revenues per seat mile flown dropped 8 to 10 percent in November, or 7 to 9 percent compared to a year earlier. That's the best its unit revenues have performed year-over-year since January…American is ne.com/news/story.html?storyID=18684%26utm_source=feedburner%26utm_medium=feed%26utm_campaign=Feed%253A%2BAtwDailyNews%2B%2528ATW%2BDaily%2BNews%2529%26utm_content=Netvibes" target=_blank>partnering with TPG Capital to offer to invest $1.1 billion in Japan Airlines to assist with the ailing carrier's restructuring and ensure it remains in oneworld…Japan's All Nippon Airways said it and fellow Star Alliance members United and Continental plan to apply for antitrust immunity to allow closer cooperation on transpacific routes…Delta’s recent attempt to wrest financially strapped Japan Airlines  away from the oneworld alliance marks the beginning of a new era in airline recruitment by the alliances.

A Different Kind of Air Rage

Can government regulations, aggressively enforced by bureaucrats, make the nation's skies friendly again? It looks like we're about to find out. With surprisingly little fanfare, DOT in the last three months has suddenly become the consumer advocate again. After a decade of somnambulance, especially during the George W. Bush years, the Obama administration's DOT has suddenly come alive with righteous indignation, and it's wielding its regulatory cudgel with gusto. 

Miscellaneous

Dulles’ new gate-to-terminal train service has passed a final phase of testing by its manufacturer and will probably begin operating next month…a recent Washington Post article suggests that “hundreds, if not thousands, of lobbyists are likely to be ejected from federal advisory panels as part of a little-noticed initiative by the Obama administration to curb K Street’s influence in Washington.