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Old 05-29-2013, 05:13 PM   #1 (permalink)
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Default Jetblue "3A" decision.

"The arbitrator in the 3A case issued his decision today, denying the claims from 2009, but determining that the 2007 pay raises triggered Section 3A. While we are disappointed with this decision, we respect the process and recognize the importance of honoring the Pilot Employment Agreements. At this point, JetBlue is evaluating next steps."


Any idea how much this will cost the company and number of pilots affected. Is this a good win for the pilot group and enforcing our PEA?
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Old 05-30-2013, 12:46 AM   #2 (permalink)
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Rough estimate is 300 million.

It is a good win for the pilot group as it allowed joinder however it took 3 years to prove. Going forward it provides a clear example of how any further litigation would proceed and indicates how management may address any future seniority issues when a merger occurs.
Without turning this into a bashing thread the decision speaks to the arrogance of management. This issue was brought to the attention of every level of management and at each level the pilots were, essentially, laughed out the door.
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Old 05-30-2013, 05:07 AM   #3 (permalink)
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Interesting...think any upper management job positions will open up because of this?? The BOD must be livid!
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Old 05-30-2013, 05:39 AM   #4 (permalink)
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Your guess is as good as anyone's. in the end it's not personal just business.
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Old 05-30-2013, 06:03 AM   #5 (permalink)
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For those of us on the outside looking in, what does the 3A case have to do with and why the arbitration? Thanks.
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Old 05-30-2013, 06:11 AM   #6 (permalink)
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JetBlue violated section 3A of the PEA. The issue went to arbitration and the ruling was in favor of the pilots. 3A stated if one new pilot was provided a raise all pilots would receive the same percentage. JetBlue gave raises to specific groups only.
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Old 05-30-2013, 07:12 AM   #7 (permalink)
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Are the affected pilots looking at up to 6-7 years of retro pay?
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Old 05-30-2013, 08:52 AM   #8 (permalink)
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Yes but only pilots that signed up.
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Old 05-30-2013, 09:09 AM   #9 (permalink)
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Do you think the company is insured against litigation? Or does that come out of the bank?
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Old 05-30-2013, 09:46 AM   #10 (permalink)
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Thats forthe CFO to decide however the last 10K indicated they took out a 350 mil line of credit.
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