Please feel free to distribute the following. I cannot seem to attach it as a PDF so some formatting will not be present. if you'd like a PDF version (complete with some very nice graphics) please email me at [email protected]. Garry ----------- Captain Garry Kravit January 5, 2012 Brother and Sisters, The response from the United pilots, both L-UAL and L-CAL, to the letter I sent to ALPA National President Lee Moak has been overwhelming. The concerns about the failures of Captain Pierce abound, and it is clear that the pilots want more information. It is true that where there is smoke, lots of smoke, there is fire. I received a communication that appears to contain the talking points from Captain Jay Pierce to the CALMEC version of the United P2P (Pilot to Pilot) program. This information is finding its way to both United and Continental pilots, exactly as a P2P machine would intend. Because the United and Continental pilots need facts, I reached out to former Master Chairman, Captain Morse, and asked her how all of this went down. I have posted Captain Pierce’s letter below, and then the facts after the letter. I have chosen to utilize the POLITIFACT style of presentation. In a few cases they did not have an icon appropriate and I chose the best symbol I could think of. As you read through this please realize that while a couple of Captain Morse’s rebuttals may seem like points that are insignificant, when looking at the picture that Captain Pierce tries to paint, nothing is insignificant. Over the course of the last eighteen or so months Captain Pierce has solidified the perception held of him by the UALMEC which holds a virtual consensus on the matter. Considering the UALMEC, this is truly a remarkable achievement. LETTER FROM CAPTAIN PIERCE From our MEC Chairman... (CAL-MEC Chairman, Jay Pierce) A couple of final thoughts before I go to bed-- It is important that you all know that we bent over backwards to work with the UAL MEC leadership in getting a full extension of the TPA. On December 9th, having not heard a peep from the UAL folks about the terminable provisions of the TPA I reached out to them to set up a meeting, I flew to ORD to meet with their MEC, I set up the meetings with management. This was the right thing to do and we made some good headway with management on the TPA issues. They agreed to extend the furlough protection provision and the ratio protection provision-- both very valuable to the UAL side of the house. They also were agreeable to our participation in the PS plan for 2011. Valuable to us. To make a long story short these discussion failed because the UAL Leadership inserted demands that were not TPA related into the mix. This killed the deal before we could even get to an end game. First they insisted on wage rate parity with CAL for all UAL pilots. Management rejected that proposal. In response, UAL then approached management unilaterally (without agreement from us) with a proposal that insisted that the UAL pilots receive a bonus of an equivalent amount to our Profit Sharing. Management rejected thier offer, ended the TPA extension discussions and only then approached us with a different way to participate in profit sharing. It is never a good poker strategy to bluff when the other side knows what cards you are holding. In short, Wendy went all in with a pair of twos and was shocked that management called her bluff. Then to top it all off she wanted us to cover her for a few more hands with our Profit sharing. Being blunt, they messed up these talks and now are looking for someone to blame. Now, as to the concept that because of all this we will suffer a loss of unity severe enough that our future joint efforts will be negatively affected, let me say this; I have spoken to Jay Heppner throughout the last few weeks and kept him apprised of what we were doing - much more so than his prior leadership. I spoke to him today, his first official day in office, and we agreed to a joint project designed to protect both CAL and UAL pilots Scope interests when UCH goes to a single code. This is remarkably important work that we need to do jointly. Negotiations for a JCBA will go forward jointly without missing a beat. Our goals have not changed nor the desire to get it done. Yes, there will some individual UAL pilots who will be angry that we were able to produce value for our pilots with this and that their leadership failed to do so. Yes, their MEC may look for ways to save face and cast blame on me or our MEC. I have pretty thick skin. I think that in the long run there will be recognition that on the important issues, such as negotiating our JCBA or protecting our Scope sections, we have to work together. And just like the minor rift between the MEC's a year ago over pay banding was healed by our common interests so too will this be healed. After all, when all is said and done, what happened was that both pilot groups ended up participating in exactly the same Profit Sharing plan. Jay REBUTTAL TO CAPTAIN PIERCE: Captain Morse clarified what actually happened. Captain Morse initiated contact by calling Captain Pierce, not the other way around, to inform him that she had called a Special MEC Meeting of the UAL MEC for the purposes of discussing the T&PA termination provisions. This meeting was made necessary due to Captain Pierce’s broadcast in the CALMEC “Position Report” that he was achieving progress on profit sharing. This go-it-independent communication served only to incite the concerns of the United pilots. Further, it had the potential to undermine the collective and unified position that most Continental and United pilots seek in achieving a JCBA. <I flew to ORD to meet with their MEC,> Technically, reports Captain Morse this is a true statement. Captain Pierce did fly to Chicago to meet with the UAL MEC. But it was not because he was initiating contact as a leader. It was in response to the crisis developing and brought about by his actions. The fact is that on December 10th (the day after Captain Morse called Captain Pierce to express significant concern over Captain Pierce’s communication) Captain Pierce emailed Chairman Morse suggesting that he address the UAL MEC at the Special MEC meeting on the 14th and 15th. Captain Morse told Captain Pierce that she would make the timeslot around 2PM available on the 14th should the UALMEC wish to hear from him. Captain Pierce advised Captain Morse that he would be arriving in Chicago on the morning of the 14th. Captain Pierce actually planned to fly to Chicago on the night of the 13th but did not advise Captain Morse of this fact. Upon learning this information Captain Morse asked Captain Pierce to call her as soon as he landed in Chicago and when he did she asked him to meet her in the UALMEC office. A meeting ensued which included Captains Morse, Pierce, Heppner, Perry, and First Officer Hamilton. Collectively they laid out a plan to provide impetus toward achieving a JCBA which would include T&PA extension provisions. Captain Pierce indicated that he wanted to consider the plan and to reach out to some portion of the CALMEC about this matter. Captain Morse asked him to let her know before the UALMEC meeting began in the morning if he and the CALMEC would be on board with the collective strategy. Before the UALMEC meeting began, Captain Pierce indicated to Captain Morse that he and the CALMEC were onboard with the plan. <I set up the meetings with management. > With regard to these discussions with management, Captain Morse indicates that she called Senior Vice President of Human Resources, Mike Bonds, on December 16th, the day after the Special MEC Meeting, as agreed to by Captains Morse, Pierce, and Heppner, to see if Bonds would be available at a specific time. Captain Morse left a message with Bonds’ secretary who indicated that he would be available as requested. Captain Morse then brought Captains Pierce and Heppner onto a line and conferenced Mike Bonds. A meeting was then set up for Monday evening, December 19th. On December 19th, at 1830, Captain Morse met with Captains Pierce, Heppner, Perry, Randy Hodge, CAL-MEC Secretary Treasurer, and Mike Bonds and Doug McKeen. The joint proposal agreed to by Captain Pierce and presumably the CALMEC, was passed to the company. In discussing this with Captain Morse, “Half True” might not be exactly the right descriptor. Maybe, “YEAH, SORTA, KINDA,” would be more appropriate. The fact is that $40million dollars is concrete and quantifiable. That is what the CAL pilots will receive. There was no “headway” made as there was no change from what the company had previously indicated in passing conversation that they were willing to offer. Furlough protection and ratio protections are only valuable IF there is likely to be, either a furlough, or the company deciding to reduce flying on one side or the other. Captain Pierce takes quite a liberty in expressing for the United pilots what is important to the United pilots. It is also critical to consider that these provisions will only last twelve (12) months for the United pilots, while the profit sharing that a Continental pilot receives, if put into a 401K plan will last a lifetime and beyond. While nobody can predict with certainty all eventualities, current situations, events, and realities can give us a pretty good view of things. For the next twelve months it is HIGHLY unlikely that the airline will furlough anybody. It is also highly unlikely due to certain CBA provisions that the “ratios” could be impacted. Consider that shrinking UAL would means shrinking UAX. Consider that CAL has provisions that do not allow 70-seaters, and consider that the 50-seat product is for all intent and purpose, dying. Consider that United is requiring pilots on LOAs to return upon those leaves expiring with no extensions because they are short of pilots, consider that the airline should be hiring, especially because in less than twelve months significant retirements will begin. Consider that United is understaffed for 2012 summer, a period in which they offered us, according to Captain Pierce, “valuable furlough protection.” One must ask, whose case is Captain Pierce making; managements, or ours? Regardless of the realities and truth, it is up the United pilots to decide what is valuable, and what is not, for the United pilots. Captain Pierce may be the decider of all things for the CALMEC and Continental pilots, but he would be well advised to not attempt such Fergish behavior on the United pilots. Oh, wait. Too late. According to Captain Morse, what Captain Pierce is attempting to do is redirect, rationalize, justify, and lay blame for his failure at the notion of TRUE JOINT COLLECTIVE bargaining, as a team, rather than as in individual. What UAL Leadership (Captains Morse and Heppner) presented was a negotiation position. They were told by Captain Pierce that he and the CALMEC were onboard with this strategy. Within the proposal were incentives and penalties, like the piece calling for parity equivalence with what the CAL pilots were receiving but only if the JCBA was NOT reached by a date certain. Under Captain Pierce’s original plan the CAL pilots were getting $40 million dollars extra contractually and the United pilots were to get ZIP, ZIPPO, NADA – not a singe red cent. The company wanted to include the PS (profit sharing) for CAL pilots for their own public relations purposes, to mollify the CAL pilots, and to reward Captain Pierce for distancing the CAL pilots from their UAL brothers and sisters during the SOC training/safety struggle, as well as other matters such as Captain Pierce’s failed promises to join the United pilots and the rest of the industry in ensuring that all checking events are conducted in full motion simulators (more on these matters later). Captain Morse reports, to the contrary, that she and Captain Heppner delayed sending our contract proposal to the company until Captain Pierce agreed on the proposal and plan. She said, “We did not send the counter until Thursday, December 29th, because we did not want to send it without Pierce’s agreement.” She further added that the counter proposal was based on the Company’s response to our proposal and meeting with the company on December 19th. The Company’s counter to our December 19th proposal came on Thursday December 22nd. Most importantly and relevant is that what Captain Pierce refers to as a “proposal” is actually the following: On Friday December 23rd Captain Morse had a conversation with Doug McKeen and asked him whether the T&PA agreement needed to be concluded by the end of the year due to the inclusion of CALs profit sharing. She told McKeen that reasonable people could get to a reasonable place, but that it would take time, which was running out if there was indeed a deadline of December 31st. She further advised McKeen of the status quo implications should the UAL pilots not receive equivalent remuneration. That was a statement of the facts, not a “unilateral approach with a proposal,” as Captain Pierce suggested. As Captain Morse has stated, neither she nor any other UALMEC representatives sent any kind of proposal until Captain Pierce agreed it to on the 29th of December. His statement is simply not factual. Further, Captain Morse states that on the day prior to sending the proposal agreed to by Captain Pierce, and presumably the CALMEC, Captain Pierce and she participated in a call with Mike Bonds and Doug McKeen. On this call they stated that they were unwilling to provide remuneration to the United pilots, and reiterated that they were willing to provide profit sharing to the CAL pilots in return for settling their 767 disagreement. Captain Morse reports that before the meeting with management began, she and Captain Pierce mutually agreed that they would ONLY LISTEN to the company and not engage in any debate or negotiating. This matter had been discussed on a conference call between Captains Heppner, Pierce, and Morse, and it was agreed that neither side would provide a position because at that time Captain Pierce was opposed to sending the proposal because he wanted to separate the CAL pilot issues (profit sharing) from the UAL pilot issues (remuneration for the United pilots), as he was hoping that the UAL pilot issues would fall off the table and he would be successful in achieving profit sharing, even if it was necessary to sacrifice those he’s committed to standing together, and working collectively with. Some of us believe that there is a word for that kind of behavior. Interestingly, during the conference call with managers Bonds and McKeen, on the 28th, after hearing the company’s position, Jay Pierce spoke up. He asked the managers if the company would allow one side to agree to management’s proposal (meaning CALMEC) while the other side rejected it (meaning UALMEC). According to Captain Morse, Bonds replied, “No, the extension required all three parties.” Bonds meant that the company, the CALMEC and the UALMEC would all have to agree for the extension provisions, which included the profit sharing extension for CAL pilots in order for the extensions to be in place. The call was concluded and prior to hanging up Captain Pierce asked Captain Morse to call him. She returned his call and suggested that Captain Heppner be brought back on the line. Captain Pierce agreed and it was decided that they would all redial in on a conference call number due to technical matters with their personal phones earlier in the day. They both hung up, she texted Captain Heppner and they joined the conference line. Captain Pierce never called in. Captain Morse texted Captain Pierce but he did not respond. She stated that at the time she supposed that he was talking to his confidant(s) on the CALMEC, but now, based on how things turned out and the timing, it is quite likely that he was in fact speaking directly to the company behind the UALMEC’s back. The following day, on December 29th, Captain Pierce called Captain Morse and asked how she wanted to respond to the company’s offer of the 28th. She stated that “we should send our counter that we had worked on earlier in the week.” Pierce agreed to send the counter proposal to the company, the one that included profit sharing for CAL, equivalent monies for the United pilots, and extension of the T&PA with certain modifications as previously decribed in a letter to the pilots by Captain Morse around December 30th. Yes, management rejected our offer. They ended the T&PA extension discussions. What is not known is what discussions Captain Pierce had with management on his own. Captain Morse states that there was no “bluff,” as Captain Pierce suggests. In her words, “This was simple negotiations, which we had hoped we could act on as a unified team, to count on each other and each other’s strengths as well as the cards in each other’s hands, as one combined hand the goal of which was to incentivize the company to negotiate a JCBA. What we learned, and if I was shocked at anything, was the speed and efficiency at which Jay Pierce harmed the overall objective.” What Politifact icon to place here? Perhaps this picture speaks a thousand more words… Captain Morse puts it a little differently, “This is an interesting statement from the man who has stood before thousands of United and Continental pilots, has stood before both MECs, has stood before Wall Street and the world and proclaimed that United Airlines is dealing with a formidable force of a unified pilot group 12,000 strong who cannot be divided by management’s tactics.” “Captain Pierce knows as well as I do,” says Captain Morse, “that Captain Heppner was on the calls with us, with the exception of the one call with Bonds and McKeen. He was not on that call because for some reason Doug McKeen called Heppner and asked him not to be on the call, with little explantation. Captain Heppner could not have been more appraised and involved, as he was completely included in the creating of the proposals and the discussions. Where does Captain Pierce come off making such accusations? <I spoke to him today, his first official day in office, and we agreed to a joint project designed to protect both CAL and UAL pilots scope interests when UCH goes to a single code. This is remarkably important work that we need to do jointly. Negotiations for a JCBA will go forward jointly without missing a beat. Our goals have not changed nor the desire to get it done. Yes, there will some individual UAL pilots who will be angry that we were able to produce value for our pilots with this and that their leadership failed to do so.> Captain Morse states that she’s not sure how to respond to such obvious and blatant propaganda. But the United pilots who have been reaching out have indicated disgust with the behavior of Captain Pierce in going it alone, in abandoning the principles of unionism and unity and in seeking to gain for a minority at the expense of the collective. The United pilots I have spoken with are furious over Captain Pierce’s never ending stream of failed promise after failed promise. In the words of one especially irate United pilot, “It’s time for him to own his s—t.” Captain Morse did say, “To summarize, the company was unwilling to give value to the United pilots because what they wanted was to rid themselves of a troubling matter, the 767 sales, and to be able to parade the CAL pilots around to the media and the world as happy employees holding bags of nickels on February 14th when profit sharing is paid. Captain Pierce, it is alleged, has violated the T&PA by unilaterally negotiating a deal contrary to his agreement with Captain Heppner and me. Although Captain Pierce told us that the CAL MEC were in agreement with the proposal, I am not sure that they even knew about it. In essence he violated his commitment and abandoned his only ally, the United pilots. Perhaps this should not come as a surprise to us, for despite the numerous times that Pierce has spoken the words of unity to our pilots and our MECs, he also said to the UAL MEC that “one way or another he was going to get profit sharing.” Pierce mortgaged the collective futures of 12,000 United pilots, and all for only 40 million pieces of silver on a combined contract that today is worth over 1.5 billion dollars.