Amerijet Talks Continue, Focus on Language
Contract talks for the pilots and professional flight engineers at Amerijet are proceeding, according to Local 769 Business Representative Daisy Gonzalez-Colli. While several key sections of the contract have not yet been addressed, the parties have been focused on non economic issues and contract language. “On the whole, I think we are making reasonable progress,” said Gonzalez-Colli. “This is the first Section 6 negotiation since a first contract agreed to and both sides are looking at and addressing language clarifications and other key contract areas that will strengthen the foundations of the agreement as we move forward. We have a lot of work to accomplish and to date we seem to be finding good common sense resolutions to issues each side has identified,” she concluded.
Centurion Discussions Move Forward Despite Rumors
Rumors are a normal part of the process during any labor negotiation. While the generally accepted policy is to not respond; this week union negotiators representing the flight deck crewmembers of Centurion Air Cargo felt it necessary to address a rumor regarding the possibility of an agreement that was being circulated. In a letter to the membership, Airline Division Director David Bourne and Local 769 Business Representative Daisy Gonzalez-Colli advised the members of the falsehoods contained in the rumor. In the letter, they said,
“both the company and union have presented and discussed various sections of the contract and have been working faithfully to achieve an agreement that is acceptable to both sides. If and when that agreement is tentatively agreed to (which is part of the RLA process), YOU will be the decision makers when it comes to the acceptance or rejection of the agreement.”
They also reminded the members that while mediation had been filed and a mediator was assigned, the company owner had requested the mediation be put in abeyance and he became directly involved in the negotiations. “The rumor of a ‘take it or leave it’ ultimatum was completely false,” said Daisy Gonzalez-Colli. “Our discussions with the company have been open and very good. We are mindful of the serious financial pressures currently facing the cargo industry as a whole and our focus it to protect our members rights and benefits while working with management to preserve job security,” she went on to say. “We’re very appreciative of the efforts of Centurions owner, Alfonso Rey and his involvement,” she concluded.
SWA Material Specialists
SWA Material Specialist Contract Negotiations continued in Dallas this week. The Negotiations Committee, Local Union Business Agents and Airline Division Representatives met outside of negotiations on December 10th to work on Articles 23- (General and Miscellaneous), 26 – (Savings Clause) and 27 – (Shift and Day Trades).
Direct negotiations with the Company continued on December 11th and 12th. The Company gave a presentation on Comprehensive Disability and Retiree Healthcare and passed corresponding Articles 12 – (Leaves of Absence), 13 – (Sick and OJI) and 20 – (Insurance Benefits). The Company also passed Article 11 – (Vacations). The Union made passes on Articles, 23, 26 and 27 and the parties were able to reach a Tentative Agreement on Article 26 – (Savings Clause).
Dates for the next round of talks are being discussed and will be announced upon being agreed upon.
Piedmont Negotiations Update
Negotiations resumed on December 9th, with the Union making a proposal that made substantial movement toward the Company position.
While management did not responded in kind, there was considerable discussion regarding the proposals, and managements position relative to a merger and possibility of replacement aircraft for the older fleet. Although some of the issues are not in the Company control, the union does not believe the technician agreement should hinder the decisions to be made by mainline.
Recent press releases have announced that PSA will be getting new Bombardier CRJ 900 aircraft. The merged American has announced the purchase of additional Embraer E 175 aircraft, but has not placed them with either of their other regional carriers, American Eagle or Piedmont.
Discussions with the respective pilot groups will most likely precede the decision by the merged American.
Airline Industry News
Governmental and Regulatory
A growing number of industry and general aviation groups are speaking up in opposition to the arbitrary implementation of Obstructive Sleep Apnea (OSA) testing for pilots by the Federal Air Surgeon.
The chairman of the FCC is taking considerable heat over the possibility of allowing cell phone calls inflight.
Under a budget deal that was approved by the House this week, it will cost air travelers more to fly as Transportation Security Administration (TSA) fees would rise from $2.50 per leg of a connecting flight, topped at $5 per trip, to a flat fee of $5.60 each way in order to generate an estimated $12.6 billion over the next 10 years, which would go toward the general government fund.
Transportation Secretary Anthony Foxx said his agency will consider a ban on inflight cell phone calls.
Rep. Bill Shuster, R-Pa., said Congress should begin working on the next reauthorization of the Federal Aviation Administration, which comes up in 2015. "Foreign governments are strategically using airlines to drive economic growth — and they're not necessarily concerned about turning a profit," he said. "In some cases the government itself owns and operates the airlines, and those carriers benefit from low fees and taxes, low labor costs, and relaxed labor regulations."
Airlines, Industry and Labor
Airlines are concerned that the new budget deal will force a hike in ticket prices.
William Flynn, the president and CEO of Atlas Air Worldwide Holdings, appeared on the CNBC program "Fast Money" to discuss trends in air freight and how his company provides value to customers. "Our core business is we fly for other airlines and we fly for integrators," he said.
Airbus plans to focus on production of current aircraft models over the next decade. "Nobody sees brand-new developments in the next 10 years or even more," said Fabrice Bregier, president and CEO of Airbus.
Delta Air Lines said its oil refinery in Trainer, Pa., should turn a profit next year. "We process 180,000 barrels a day, 365 days a year, times $2 to $3. You can do the math and see it's a material sum of money in opportunities yet to be attained," said Edward Bastian, Delta president.
Experts say the merger of US Airways and American Airlines, which closed on Monday, should correct the airline industry's course to financial stability.
EADS, the parent company of Airbus, plans to trim 5,800 jobs over two years. Most of the job cuts will be in the European Union, where EADS is based.