June 30, 2012

Early this morning, after a week of mediated negotiating sessions under the supervision of NMB Chairman Puchala, management put what they described as a “framework for a deal” on the table. The proposal received was unexpected, given that it was so regressive to the progress we thought had been made over the last few weeks.

Your union negotiators and leadership have done everything we could in an attempt to reach agreement. What we could not and would not do is settle for a compensation package that does not recognize the value our pilots bring to the cockpit and that rewards management for delaying this agreement. We would not accept job protections that do not adequately protect our futures, or retirement and health insurance packages that we believe to be inadequate.

Despite pushing and prodding by the NMB, and the best efforts of your Joint Negotiating Committee, subject matter experts and Master Chairmen in formulating reasonable, workable solutions for the issues that remain unresolved, management chose instead to put forward an untenable proposal. Whether by direct intent to deprive its pilots of the gains we deserve through this contract, or through extreme negligence and ineptitude, the result is the same – management has once again failed to deliver on the promises they made to employees, shareholders, passengers and Congress regarding the merger, and our pilots are forced to suffer though another understaffed summer, working under outdated contractual provisions that fatigue both the mind and body.

Based on these differences, we could not agree to management’s proposal. I could not accept this as a reasonable or fair offer, nor could a single member of the team we have assembled to represent and protect your interests. Management’s proposal once again exemplifies their attitude that although they are the highest paid airline managers in the industry, they are afraid to and refuse to compete on a level playing field with other airlines. They insist that labor compensate for their inadequacies by us working harder for less.

So, we leave NYC without having reached agreement. Under the circumstances, I must remind all members that although some might be tempted to try to influence negotiations through independent actions, doing so will only make things worse and potentially harm or delay our chances for engaging in lawful activities. Please do not jeopardize our position through improper use of sick leave or decisions that negatively impact operations.

The immediate future is this: We will regroup, reassess and continue to pursue all lawful avenues for bringing about an agreement, including the work begun in close coordination with ALPA National to obtain a release from the NMB. The NMB has told our JNC to take a brief pause until we reconvene on Monday, July 9 in Washington to receive a status update that week. (These meetings are not bargaining sessions and there are currently no additional mediated negotiating sessions scheduled.)

Our pilots deserved a deal this week – the deal that could have been done, and should have been done. Management must consider the market consequences that further delay of our contract, and further delay of true integration and merger success, will bring for the future of our airline. Our passengers will increasingly lose patience with excuses and management failures. Our shareholders will lose patience with unnecessary delays to their return on investment, and the Street will quickly grow tired of management’s attempts to blame customers for not accepting change and employees for the operational problems that result from running two subsidiary airlines.

Please look for more information in the coming days.

CAL MEC Chairman