From: http://www.azcentral.com/business/news/articles/20130306union-fears-muddle-merger.html
US Airways pilots' seniority disputes may muddle merger
US Airways jets (front) sit at Sky Harbor International Airport in Phoenix.
The union representing pilots from the old US Airways has asked the judge in American Airlines’ bankruptcy case to keep pilots from the former America West from interfering with the current megamerger.
The bankrupt American Airlines announced Feb. 14 it intends to merge with Tempe-based US Airways, creating the world’s largest airline. That deal must be approved by the bankruptcy court.
Former America West pilots in Phoenix have been fighting over seniority since their company’s 2005 merger with US Airways, and the battle threatens to disrupt the current merger with American.
A group representing the former America West pilots, known as Leonidas, told the US Airways union last month that it would sue and seek an injunction of the merger if the America West pilots don’t get their way.
Based on that notice, the US Airline Pilots Association on Wednesday filed a complaint with the court, asserting that Leonidas has “impermissibly interfered” with the bankruptcy court.
“If (Leonidas) is permitted to prosecute … there is no question that the action itself would distract parties … from the important negotiations and tasks attendant to the merger,” the union said in its court filing.
The union also said if Leonidas interferes with the American merger it would violate the bankruptcy code.
The pilots based in Phoenix support the new merger with American but want to get the seniority they believe they are due from the company’s last big merger.
About 98 percent of the Phoenix pilots voted in favor of a deal negotiating pay raises and other working rules for the American merger, according to the union’s court filing. But that memorandum of understanding was neutral on the touchy subject of seniority.
Seniority determines the pay, work schedules, promotions and who gets cut first when flights are reduced.
With the American merger, pilots will have to negotiate yet another seniority list. Before they do so, the US Airways pilot groups will have to sort out their own East-West seniority issues.
US Airways was in bankruptcy when the solvent America West merged with the bigger airline. America West pilots argued that because their company salvaged US Airways, they should get seniority.
US Airways pilots argued that years of service should determine seniority, which favors them because their airline was older.
In 2007, a federal arbitrator named George Nicolau created a blended seniority list for America West and US Airways pilots. The former US Airways pilots didn’t like that deal because it put some of their pilots below America West pilots.
The Wednesday complaint they filed in court said the so-called Nicolau award put “America West pilots still on probation and in ground school above US Airways pilots with more than 16 years of seniority.”
Because the US Airways pilots outnumber the America West pilots about 2-1, they were able to vote out the old union in favor of the US Airline Pilots Association. They never adopted the so-called Nicolau award. The pilots have separate contracts, and none has had a raise since the merger.
Pilots who flew for America West are represented by the USAPA but say the union has not represented their interests in the seniority dispute.
“How can USAPA exclusively represent US Airways pilots and simultaneously negotiate with the West pilots? They can’t,” Leonidas wrote to members last month. “When attempting to negotiate with West pilots, USAPA defaults to what it has always done — representing just the East pilots.”
Several legal actions have led to the 9th Circuit Court, where an appeal filed by US Airways is proceeding.
Federal legislation known as the McCaskill-Bond amendment passed in 2008 governs seniority integration in airline mergers.
US Airways pilots' seniority disputes may muddle merger
US Airways jets (front) sit at Sky Harbor International Airport in Phoenix.
Michael Chow/The Republic
By Ryan RandazzoThe Republic | azcentral.comThu Mar 7, 2013 11:55 AMThe union representing pilots from the old US Airways has asked the judge in American Airlines’ bankruptcy case to keep pilots from the former America West from interfering with the current megamerger.
The bankrupt American Airlines announced Feb. 14 it intends to merge with Tempe-based US Airways, creating the world’s largest airline. That deal must be approved by the bankruptcy court.
Former America West pilots in Phoenix have been fighting over seniority since their company’s 2005 merger with US Airways, and the battle threatens to disrupt the current merger with American.
A group representing the former America West pilots, known as Leonidas, told the US Airways union last month that it would sue and seek an injunction of the merger if the America West pilots don’t get their way.
Based on that notice, the US Airline Pilots Association on Wednesday filed a complaint with the court, asserting that Leonidas has “impermissibly interfered” with the bankruptcy court.
“If (Leonidas) is permitted to prosecute … there is no question that the action itself would distract parties … from the important negotiations and tasks attendant to the merger,” the union said in its court filing.
The union also said if Leonidas interferes with the American merger it would violate the bankruptcy code.
The pilots based in Phoenix support the new merger with American but want to get the seniority they believe they are due from the company’s last big merger.
About 98 percent of the Phoenix pilots voted in favor of a deal negotiating pay raises and other working rules for the American merger, according to the union’s court filing. But that memorandum of understanding was neutral on the touchy subject of seniority.
Seniority determines the pay, work schedules, promotions and who gets cut first when flights are reduced.
With the American merger, pilots will have to negotiate yet another seniority list. Before they do so, the US Airways pilot groups will have to sort out their own East-West seniority issues.
US Airways was in bankruptcy when the solvent America West merged with the bigger airline. America West pilots argued that because their company salvaged US Airways, they should get seniority.
US Airways pilots argued that years of service should determine seniority, which favors them because their airline was older.
In 2007, a federal arbitrator named George Nicolau created a blended seniority list for America West and US Airways pilots. The former US Airways pilots didn’t like that deal because it put some of their pilots below America West pilots.
The Wednesday complaint they filed in court said the so-called Nicolau award put “America West pilots still on probation and in ground school above US Airways pilots with more than 16 years of seniority.”
Because the US Airways pilots outnumber the America West pilots about 2-1, they were able to vote out the old union in favor of the US Airline Pilots Association. They never adopted the so-called Nicolau award. The pilots have separate contracts, and none has had a raise since the merger.
Pilots who flew for America West are represented by the USAPA but say the union has not represented their interests in the seniority dispute.
“How can USAPA exclusively represent US Airways pilots and simultaneously negotiate with the West pilots? They can’t,” Leonidas wrote to members last month. “When attempting to negotiate with West pilots, USAPA defaults to what it has always done — representing just the East pilots.”
Several legal actions have led to the 9th Circuit Court, where an appeal filed by US Airways is proceeding.
Federal legislation known as the McCaskill-Bond amendment passed in 2008 governs seniority integration in airline mergers.
