Tentative Agreement Reached for 6,500 Agents at US Airways

The International Brotherhood of Teamsters and the Communications Workers of America announced this week that they have reached a tentative agreement covering 6,500 passenger service employees at US Airways.

The tentative agreement provides for wage increases at every step for all passenger service employees and includes a ratification bonus. It also provides critical job security protections, an important issue for workers as the US Airways- American Airlines merger goes forward.

Agents from US Airways and American Airlines have launched a joint campaign to make certain they have a strong union voice at the merged airline.

“Working together, passenger service employees at US Airways have built a strong, united group that will continue to make advances for all agents as the US Airways-American Airlines merger proceeds,” said CWA Chief of Staff Ron Collins.

A ratification vote is being scheduled. 

UAL Committee Reconvenes, Discusses Options

The steering committee reconvened in Chicago on Wednesday July 31^st and Thursday August 1^st in Chicago to discuss options surrounding the negotiations with United Airlines.

On Wednesday the committee received several presentations on the status of bargaining when the parties last met in May.

Clacy Griswold, Airline Division Rep and Chief Negotiator, opened the session and explained to the group all that had transpired since the committee met last August.

Local 210 Business Agent Ralph Salzano went through article by article all of the non-economic items that were agreed to during the facilitated process. This was followed by a presentation by Peter Hardcastle, of Cheiron, on the VDB (Variable Defined Benefit) pension discussions. He was followed by John Colberg and Jim Holland; both from Cheiron, who gave a presentation on the health and welfare discussions. Dan Akins, economist from Akins and Associates then gave a presentation of the overall economic issues that the negotiating committee both has and will be dealing with.

At the end of each presentation there were question and answer periods for the committee so that they could clearly understand what was being discussed. One of the items that generated much discussion during the health and welfare discussions was the VEBA program. This program is a tax free account used to offset different medical costs. This account can be carried with the employee through retirement and then willed to surviving dependents. More information about this program will be available in the coming months.

Close to the end of the session on Wednesday, the group received word that the company wanted to meet with the IBT leadership to discuss negotiations. That evening, Division Director David Bourne, International Representatives Clacy Griswold and Paul Alves, along with Ed Gleason from IBT Legal met with management to learn what direction the company was seeking in regards to negotiations.

Thursday morning the steering committee was given a report on the meeting of the prior evening. The committee was informed that the company desired to get back to the table and that they appeared motivated to finishing what was started in January. Based on this report it was determined that the best course of action would be to return to the table as soon as possible to finish the deal.

Ed Gleason from IBT Legal gave a presentation on scope. It was determined that a joint scope committee meeting should be held in the very near future to discuss several issues that were brought forward in the question and answer period following Ed’s presentation.

After the session, the company was notified that the committee desired to return to the table. The parties will discuss scheduling in the next couple of weeks.

 It is anticipated that the parties will return to the table in early September.

Airline Industry News

Governmental and Regulatory

President Barack Obama nominated Deborah Hersman for a third term as chairwoman of the National Transportation Safety Board. Hersman has served in the post since 2009, and must be confirmed by the Senate.

American Airlines and US Airways will receive approval from the European Union for their proposed merger, sources said.

Transportation Secretary Anthony Foxx indicated he intends to move forward rules related to pilot fatigue, co-pilot training and enhanced training on aircraft stalls.

The House passed an amendment to require warnings about landing speeds on aircraft that was introduced by Rep. Jackie Speier, D-Calif. The amendment was adopted to the Transportation and Housing and Urban Development 2014 budget bill.

Airlines, Industry and Labor

Boeing is repurchasing older models of its 747 from airlines to close deals on its 747-8.

Investors reacted favorably to word that Republic Airways Holdings had secured a possible deal to sell its Frontier unit.

United Airlines is refreshing its menu items available on board with "Bistro on Board" offerings that include fresh food.

AMR stakeholders overwhelmingly approved the reorganization plan offered by American Airlines and parent company AMR. Chairman and CEO Tom Horton called the approval "another important milestone toward our launch of the new American."

Atlas President and CEO William J. Flynn announced Atlas Air Worldwide's earnings for the second quarter of 2013, in which the carrier's earnings per share came to 79 cents per share. "Earnings in the second quarter of 2013 were driven by the strength of our ACMI operations, especially our new 747-8 freighters," said Flynn.

European aerospace firm EADS plans to rename the company Airbus Group after its jet manufacturing division of Airbus.

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