For Bucking, latest 9E union email:
The MEC reconvened at 7 p.m. this evening to consider whether to send the Tentative Agreement to the membership for ratification. The Negotiating Committee presented the final language for the Restructuring Agreement (which amends the terms of the JCBA) and a Bridge Agreement among Delta, Pinnacle, and ALPA (which includes fleet commitments and career progression, as well as longevity transition payments). After a full review of the documents, the MEC voted unanimously to recommend that the membership ratify the TA.
The Tentative Agreement differs substantially from the management’s 1113 proposal, but falls short of the original expectations of the MEC and the Pinnacle pilots. It reflects that Pinnacle Airlines is a financially insolvent entity in a regional industry that is contracting. These facts left Pinnacle wholly dependent upon Delta Airlines for survival. The terms of the Bridge Agreement recognize the pilots’ contribution to Pinnacle’s restructuring and provide us with a binding commitment from Delta that our airline will consist of at least 81 CRJ 900 aircraft. The Bridge Agreement also provides all Pinnacle pilots on the ISL with a career path to Delta. We view this as a significant achievement. However, because some of our pilots will face furlough as a consequence of the planned reduction of the CRJ 200 fleet over the next 2 to 3 years, the Bridge Agreement provides for furlough benefits packages that include pay, health care, passes, and an ATP for those with the requisite number of hours. Long Term Leaves (including Enhanced Long Term Leaves) will continue to be offered over the next several years, and we believe these leaves will greatly reduce the number of furloughs. The total number of projected furloughs for all of 2013 is approximately 150 pilots.
We plan to start road shows tomorrow in MSP (see details below), and we will release the full Tentative Agreement at that time. You will find that there are provisions that reflect the dire situation in which we find ourselves, but you will also find that numerous provisions that are important to us remain unchanged.
The MEC is recommending the Tentative Agreement to the membership for ratification not only because it is the only viable alternative to a wind down of the airline that would have been accomplished within approximately one year, but also because it provides all of our pilots with a meaningful range of options that would not otherwise have been available. Our goal was to ensure that all of our pilots are treated equitably in this transition, and although the provisions of the TA will affect pilots differently, we believe that you will find that the outcome is balanced.
The fact that this bankruptcy negotiation persisted as long as it did reflects our determination to get the best deal possible for our pilots. The bankruptcy court’s decision in our favor prevented us from facing unilaterally imposed terms and conditions, but could not change Pinnacle’s circumstances. It bought us time to negotiate terms that were far more favorable than those that were proposed by the company in August. We have attempted to offset or minimize the concessions every step of the way.
The irony of reaching a Tentative Restructuring Agreement exactly two years after the TA on the JCBA is not lost on any of us. All collective bargaining agreements reflect the economic environment in which they are negotiated, and this one is no exception. This TA represents a transitional period in which we hope to rebuild our contract and provide a stable platform from which our pilots will move to Delta and to other airlines as well.
We know that you will carefully consider all of the alternatives before you cast your vote in the New Year. We look forward to addressing your questions and concerns on the road shows, all-pilot calls, and through your P2P representatives. Thank you for your patience and support, and for maintaining a thoroughly professional and safe operation during a very challenging period.
Our unity is our strength.