After more than three and a half years of contract negotiations, the pilots of Flight Options, represented by Local 1108, have reached a tentative agreement with management on a first contract.

In addition to the inherent problems of negotiating a first contract, Local 1108 also dealt with circumstances that few pilot groups have ever faced. Ownership and senior management changes several times during the long bargaining process and the worst economic crisis since the Great Depression, that disproportionately impacted the entire fractional aviation sector made reaching a first contract exceptionally difficult. 

Upon being notified of the agreement, Airline Division Director David Bourne said, "It's been my pleasure to work with the leadership and Negotiating Committee of Local 1108 during their negotiations. Throughout a long and difficult process, they demonstrated a total devotion to professionalism and to representing their pilots. I am very happy for the members of Local 1108 and commend the leadership and committee for a job well done."

The proposed tentative agreement contains a variety of improvements, including across the board pay increases for every pilot, longevity-based salary increases, scope and job security protections, a grievance and arbitration procedure, additional PTO for vacation and sick day use, eligibility for overtime for early duty start times on the first day of a tour, a protected crew basing system, seniority based furlough/recall, schedule and vacation bidding, insurance and benefit security, future improvements to the 401(k) plan, a 7&7 schedule, extended recall rights for furloughed pilots, improved leave of absence provisions, safety-based duty and rest protections verifiable mechanism that increases pilot compensation as the business rebounds.

Management and Union representatives will meet next week to proofread the tentative agreement. 

UAL Bargaining Focuses on Training, Integrating MPA's and SCOPE

Negotiations continued with UAL this week, with bargaining centered on talks regarding Training as well as integrating the Maintenance Planning Analysts (MPA) into the Mechanics Agreement. With significant progress reported on a number of issues, the training sub-committee reported that discussions will continue in the coming weeks.  In related discussions, on January 28th, Teamsters Airline Division Director David Bourne joined union chief negotiator Clacy Griswold and IBT attorney Ed Gleason, in a meeting with top company officials including VP of Labor Relations Doug McKeen and VP of Maintenance Jim Keenan. The meeting was arranged to review the Union's SCOPE proposal that is designed to ensure job security.

CAL Begins Mediation in Phoenix

Federally sponsored mediation talks between the Teamsters, representing the Continental Airlines Aircraft Technicians and related Employees and management began on January 20th in Phoenix.  Mediator Marvin Sandrin was assigned to the case by the National Mediation Board (NMB) and is being assisted by Tony Iannone.  The initial meetings focused on the committee providing the mediator an overview of the direct negotiations up to this point, including articles that have been agreed to, along with open articles still under discussion.  Further discussions fostered by the mediator led to additional agreements on other open articles and a Letter of Agreement that clarifies the Reduction in Force process as it currently exists.

The next negotiating session is scheduled for the week of March 22-26.

Request for Mediation Filed On Behalf Of Horizon Pilots

Citing an ongoing inability to reach agreement on key financial provisions of their contract, the Teamsters Airline Division filed for mediation with the National Mediation Board on Thursday. Despite the continued work by both sides, financial demands by Alaska Air Group, the parent company that owns Horizon, have kept the sides from finalizing an agreement, despite over three years of negotiations and private mediation.

"The continued demand of the Alaska Air Group for concessions from this pilot group at a time when they have just reported profits of over 24 million dollars in the fourth quarter alone is unjustified," said David Bourne, Airline Division Director. "Their demands to have employees work more while being paid less to feed management bonuses and further increase corporate profits has been proven time and again to be an unsustainable model. Being a good employer and corporate neighbor means more than having rallies; it means properly compensating your employees and their families for the work they do and the sacrifices they make to make your airline profitable."

Division Director Nominated for Award, a First for Labor

In a first for organized labor, Teamsters Airline Division Director David Bourne was recently nominated for Business Travel News' prestigious list of the "Top 25 Most Influential Executives in Airline Industry."  Nominated for the award just 16 months into his  job, Bourne's vision and willingness to seek new ways of finding solutions and his insistence on the negotiation of stronger, industry-leading contracts for his members has been cited as one of the primary reasons the Airline Division has seen a 33 percent increase in union membership under his leadership.

"It truly was a surprise and honor to be notified that I had been nominated," said Bourne. "Regardless the outcome, the real reward is seeing our members getting better contracts and bringing back previously outsourced jobs to them and their families."

In a statement released by the International Brotherhood of Teamsters yesterday it was noted that, "Bourne is a leading voice for airline workers on Capitol Hill, where he has championed issues important to our members in the division. Armed with the full confidence and support of Teamsters General President Jim Hoffa, Bourne will continue to lead the charge for our members in the Airline Division far into the future."

Week in Review News Items

Labor Developments

Teamsters General President, James Hoffa writes in The Huffington Post, "Nearly one in five Americans who want a full-time job can't find one. That is a serious, serious problem..." British Airways has been accused of trying to rush through a "handful" of workers to try to break any strike by cabin crew involved in a bitter row over jobs, pay and conditions--American Airlines says it will furlough up to 175 pilots beginning next month because it has a too many pilots after reducing its flight schedule--and a little-known pilot contract provision could scuttle two major international initiatives planned by Continental and United Airlines and their Star Alliance airline partners.

Regulatory & Safety

Lebanon's Transportation Minister says the pilot of the ill-fated Ethiopian Airlines jet did not fly in the direction recommended by the airport control tower before it plunged into the Mediterranean on Monday minutes after take-off in heavy rains and storms from Beirut?Boeing's latest 747, the 747-8, has new computer systems that "may allow the exploitation of network security vulnerabilities resulting in intentional or unintentional destruction, disruption, degradation, or exploitation" of critical systems, according to FAA--Virgin America has managed to survive an economic crisis and even hopes to achieve an operating profit this year. But the airline still faces the same hurdle that has daunted previous start-ups: getting access to scarce runway slots and terminal gates at some of the nation's biggest and busiest airports.

Airline Industry Finances & Structure

U.S. airlines offered mixed quarterly results on Thursday, raising concerns about the industry's recovery after being clobbered in recent months by the recession--meanwhile IATA has predicted a gloomy outlook for the aviation sector in 2010, saying that airlines will lose over $5.6bn--antitrust-immune joint ventures have emerged as the key to international network growth as U.S. carriers face restricted access to foreign capital, legal barriers to entering some foreign markets and substantial costs in sustaining international growth the old-fashioned way—with their own planes and people?WestJet has its work cut out for it. The 14-year-old Canadian carrier wants to grow 10% annually, but it has to reduce its current cost base to compete not only in the Canadian market, but on the world stage as well--and in an update to a previous report published in today's Mainichi newspaper, Japan Airlines has confirmed it would decide next month which US carrier to tie up with.

Miscellaneous

The past decade was defined by terrorism, starting with the Sept. 11 attacks in 2001 that led to two wars and big changes in the way Americans travel and live--airline baggage fees are not taxable, the Internal Revenue Service said, a victory for carriers trying to protect a growing revenue stream...travelers fighting an airline over some injustice may find a new partner riding shotgun: Uncle Sam--and more business travelers are getting what they say they want most from hotels: free Internet access in their rooms.