American Eagle told to play ball or become Comair-II

subpilot

Squawking 7600
December 20, 2013


Message from the Chairman



Fellow Eagle Pilots:


Yesterday we received a formal proposal from Eagle Management regarding the placement of large RJs on our property in exchange for additional concessions to achieve the company’s structure objectives. The proposal is extensive and touches a number of sections in our collective bargaining agreement. We briefed the MEC immediately following the meeting and engaged in a very spirited debate on the merits of the proposed changes. The MEC debate on a response will continue up through our meeting on January 2nd when the MEC will determine how to respond to Eagle management. To allow you the opportunity to advise your LEC representatives, the following is a general summary of their offer:


Potential Upside


The company would agree to increase the "metering" commitment under the existing 824 agreement from 20 to 30 beginning in September 2014. They would still send 20 per month or 50% of the AA new hire classes until then (subject to metering and ALPA’s grievance)


They would increase the percentage of new hire obligations under the "protected pilot" agreement to 50% from the current 35% and send a minimum of 30 per month if AA hires 60 or more that month.


The amended terms of the protected pilot agreement would be extended to all pilots hired after October 11, 2011 and to any Eagle new hires.


Downside


The agreement would extend until 2024 with little opportunity to amend it.


We would have to transition to a compensation model that incorporates wage caps for Captains at 12 years and 4 years for First Officers very similar to what the pilots at PSA recently agreed to. The transition would occur over roughly a four-year period.


Per diem would be reduced by $.20 on the date of signing with some incremental increases.


The employee contribution for medical coverage would increase by 5% in about a year.


We would accrue vacation at a slightly different rate and would lose the fifth week altogether.


Allow the company to train crews on the EMB 175 months before we receive it and then return them to their previous equipment until the deliveries begin.


We would adopt a 401k plan and sick accrual system that mirrors the current PSA contract.


Our current profit sharing plan would be suspended.


The proposal only guarantees a fleet of 60 aircraft



We plan to post the details of PSA's provisions on the Eagle ALPA website as well as a contract comparison of other regional airlines that are more similar to our operation.


The company indicated to us that, without what they consider to be a cost competitive agreement, they will place the aircraft with a competing carrier and we would become "Comair II".


It's important to be patient while the MEC digests the offer and determines how best to respond to management. It is equally important that you engage your LEC representatives to provide the perspective they will need to make that determination. There are many moving pieces in a process like this, so the details are likely to change. While the MEC has committed to working in an expedient manner, if there is an agreement with the company, it will be subject to pilot ratification.


I'll keep you updated as we proceed toward a response.


Fly safe.
 
It sure sucks they are threatening Eagle like that.

The only thing I'll point out is that the PSA 401k contributions are about industry average for LESS than 8 year guys and then start to pick up steam. By year 12 (I think? It's been a while) they are well above the industry average. Of course, if the increased movement to AA works out, nobody will be around much past 6 or so years to take advantage of the high 401k matching rates.
 
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There is no way this will even go to a vote. We turned down the B-scale offer and this is even worse than that offer. I find it amazing that a pilot group that is already outsourced labor to begin with (mainline scope) holds the destiny of a billion dollar company in its hands. My W-2 does not match the amount of worth I provide as it stands now. When AMR (AAG) is posting record profits, management just gave themselves $50million in bonuses and we just signed a concessionary contract a year ago with 20% cost savings in it... The line in the sand has been drawn! Comair us... I call your bluff AAG.
 
I hope that eagle pilots strongly vote this down. In other news, Skywest, Republic and Mesa are eagerly waiting for this to get more E175 on property.
 
I feel like this is going to be one of those "every labor group has to vote down" deals, because if just one labor group accepts it, well there goes the industry.
 
Get out, get out now.

Well this proposed agreement seems to potentially allow for that....

The company would agree to increase the "metering" commitment under the existing 824 agreement from 20 to 30 beginning in September 2014. They would still send 20 per month or 50% of the AA new hire classes until then (subject to metering and ALPA’s grievance)


They would increase the percentage of new hire obligations under the "protected pilot" agreement to 50% from the current 35% and send a minimum of 30 per month if AA hires 60 or more that month.


The amended terms of the protected pilot agreement would be extended to all pilots hired after October 11, 2011 and to any Eagle new hires.
 
Why would any pilot group roll over and take it up the rear in this day and age? We finally have a bit of leverage.
What leverage is that again? I'm sorry, but the regional pilots will never have any leverage when a management group can count on alter-ego's and low-cost competitors to take whatever terms they suggest. I'm not pointing fingers at anyone particular, I just don't think it's realistic to say we have leverage.
 
What leverage is that again? I'm sorry, but the regional pilots will never have any leverage when a management group can count on alter-ego's and low-cost competitors to take whatever terms they suggest. I'm not pointing fingers at anyone particular, I just don't think it's realistic to say we have leverage.
Eagle wanted to hire 600 this year. How many did they get? The word is getting out. Regional airline jobs aren't worth it. The pilot supply is being throttled by the new regs and bad press. It looks like there may actually be a shortage of people willing to work for those wages.
 
I haven't voted "yes" on a CBA since 2000 — even when it was going to be absolute armageddon if we didn't sign it.

This will not satisfy the need to AMR to treat Eagle like it's 2002. Other airlines will see the cost "savings" and then the crap will both roll up and down hill.

They're making these demands because the last group that took a big bite of the crap sandwich thought they had no leverage either.

Stand up for yourself.
 
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