UAL Discussions Continue to Yield Progress
This week’s meetings between union negotiators and UAL management led to agreement on additional contract articles regarding Definitions, Classifications, Hours of Service, Holidays and Sick Leave. Additionally, several revised articles including, Vacancies, Field Trips, Training, Safety and Health, Union Representation, Grievance Procedure, Board of Arbitration, General and Miscellaneous, Apprentice Mechanics, Transportation, and the Savings Clause were agreed to.
Also finalized were multiple Letters of Agreement, many of which were retained for historical purposes; which included, Conversion to System Seniority, Application of Seniority at time of layoff FST’s and GCT’s, Realignment of Manpower when there is Temporarily no Work, Method established to Break Ties on Master Seniority List, Retirement Plan Credit prior to age 25, Intent of Company Regarding Leads, Pay Rates when transferring to Other Represented Classifications, Contacting Employee for temporary work, SFOPI Lead Mechanics, Warranty Work, Checks Performed Overseas, Maintenance Instructors, Outsourcing Heavy Maintenance, Utility and CT Severance Benefits, Indemnification, Bankruptcy Exit Agreement, and two new letters which include, Working in a Lower Classification, and Tool Allowance.
The parties will meet next week in Chicago in an effort to close out the few remaining open issues.
Atlas Profit Sharing Announced
Atlas Air (Local 1224) TEC Co-Chairman Captain Steven Richards has advised the Atlas pilot group that the company has provided information regarding the annual profit sharing distribution to the Atlas pilot group. The plan provisions and distribution process are part of the groups CBA. Distribution is based on a percentage of the individual crewmembers eligible compensation. The distribution for 2010 is 20.1%, up from 12.9% in 2009.
Notified of the announcement by Captain Richards, Airline Division Director David Bourne said, “This distribution of profit sharing to the Atlas pilots shows yet again what can be accomplished when an airline focuses on providing superior customer service and works cooperatively with its employees to deliver the product and treat them with respect. Atlas’ willingness to explore and diversify its business model in a prudent, cost effective manner has benefitted both its shareholders and the employees as evidenced by their strong 2010 numbers and 2011 projections. Their growth is resulting in increased opportunities for our members and additional hiring,” he continued.
“This distribution is historic for our crewmembers,” said TEC Co-Chairman Steven Richards. It is the byproduct of many hard hours of work and many days on the road by our members. We look forward to continued opportunities for our members and additional growth for our company.”
Crewmembers will receive their distribution mid month. Upon conclusion of the joint combined CBA, the Polar Air Cargo crewmembers, which will also come under the new contract, will be eligible for profit sharing.
Teamster Pilot Lends His Unique Expertise to Help Earthquake Victims
Tom Holman, who captains a Boeing 747-400 for Atlas Air (Local 1224) is not just your everyday guy. In addition to always being available to help the leadership of the AAWW TEC on issues, he is a successful businessman with a global reach. While on a planned business trip to Japan, he and his family were caught in the earthquake, about 80 miles from the Fukushima Diaichi nuclear power plant.
He has reported back that power is still out in many spots and that cell phone and internet coverage is very poor.
However, with the assistance of his local staff, they have been able to set up a local phone network to provide phone service and made it available to anyone that wants to make outbound calls. Using a private satellite uplink and a backup generator he had installed recently, they have created a phone bank of 83 phones for people to make contact with family and emergency crews to contact whomever they can outside the affected areas via the satellite uplink.
According to Tom, “the word got around pretty quick and I am pretty surprised the number of calls made from the phone bank. We opened up a couple of wireless internet access points for folks to use the internet so they can communicate also. At least they can Facebook and email via our satellite uplink. Unfortunately, I had to restrict bandwidth so they couldn't do skype calls. We have to save that bandwidth for the phones. We were also able to tie in a doctors office next door to our power supply since they had become a “make shift” emergency room.
“When I heard about this, I have to admit that I wasn’t surprised,” said Airline Division Director David Bourne.
“Anyone who has ever worked with Tom knows that he is the first person to get in there and make things happen, whether it’s for the union or his fellow pilots. He is a dedicated pilot, family man and union member. I could not be prouder to know that a fellow Teamster is there helping out during this tragedy and I am not in the least bit surprised that it is Tom. I am honored to call him a union brother and more importantly, a friend,” Bourne concluded.
Captain Holman anticipates staying in Japan for several more days ensuring his employees and their families are safe, before returning home and to his scheduled flying with Atlas.
Week In Review News Items
Labor Developments
Despite the fact that airline labor groups in the US have made considerable concessions over the last decade, they fails to recognize that rising oil is as much a labor problem as it is a management problem, according to MIT Research Engineer Bill Swelbar, who said labor’s basic negotiating philosophy must change to meet this new reality. “In 2002, when the restructuring began, the average cost of a full-time-equivalent airline employee was $74,910.00” Mr. Swelbar stated. “Today, the average cost of a full-time equivalent employee is $83,869.00” But the Business Travel Coalition’s Kevin Mitchell counters separately: "The comparison of the average cost per employee in 2002 versus today is grossly misleading. Today, airlines are carrying more than 100 million additional passengers with 155,000 fewer employees."
Legislative, Safety & Regulatory
TSA “cooked the books” when it compared the costs of federal airport screeners to private companies, the chairman of the House Transportation Committee charged. Rep. John Mica (R-Fla.) said a report released this week by the U.S. Government Accountability Office showed TSA used faulty data and did not provide complete information to lawmakers when Congress considered privatizing airport security last year. TSA said then it would cost 17 percent more to privatize screeners, but the GAO report said it would cost just 3 percent more.
Airline Industry Finances & Structure
Sparked by ongoing unrest in the Middle East and North Africa and the threat of higher oil prices, airlines face a tough challenge to keep fares low enough to sustain demand while covering costs…airlines have used surging oil prices to justify fare increases of up to $60 per ticket since the start of the year. But the rising cost of fuel isn't the only reason it's getting more difficult to find cheap fares. The improving economy, a shrinking supply of seats and industry consolidation are also to blame…the airline industry is the business the media most loves to pick on. Since the days of the Wright Brothers, the U.S. airline industry has lost money. US Airways CEO Doug Parker maintains that it is counter to our national interest to have such an important segment of our transportation infrastructure be so economically fragile. Now, the industry has finally appeared to have stumbled onto a way to make money, charging passengers fees for the services they use, and more closely aligning capacity with demand.
Planemakers
Boeing Co sealed deals worth $10 billion with two airlines in China, the world's fastest growing market that is likely to buy more than 2,000 aircraft over the next five years. China expects to order 1,100 new transport aircraft and 1,000 general aviation aircraft, Wang Changshun, vice minister of the Civil Aviation Administration of China, said at an Asian aerospace conference on Tuesday. Last-minute orders for 200 planes in December pushed EADS subsidiary Airbus, past its U.S. rival for a third year. Both aircraft makers are flying high on demand from emerging economies and low-cost airlines and a shift toward less fuel-thirsty jets…Airbus said it expects airlines in Asia to take delivery of 8,560 aircraft in the next 20 years, representing a third of the global total as the region's fast-growing economic growth fuels demand for air travel.
Miscellaneous
Hotels across Hawaii were evacuating tourists to higher floors on Friday morning as the islands braced for a three to six-foot tsunami in the wake of an 8.9 earthquake in Japan earlier today. Some flights were diverted from Honolulu International Airport but it remained open; airports on Maui, Kauai and the Big Island were shut down as a precaution…many people are getting adept at online comparison such as shopping for great travel deals, but let the user beware. A Consumer Reports ShopSmart investigation reveals you can easily get sucked into paying more money than you have to if you're not on your toes…complaints are piling up rapidly at Southwest Airlines over its new frequent-flier program and very long waits on the airline’s phone lines.