June 11, 2013
Dear Continental & United Pilots,
This message is about the remainder of the first tranche of Retro/Lump Sum Payments negotiated as a part of the United Pilots Agreement.
As you have been advised, ALPA’s internal dispute-resolution process, which consisted of an internal review by ALPA’s Executive Council and an arbitration, has been concluded with a finding by the arbitrator that all appeals are denied. This has prompted inquiries asking when the remaining 5% holdback from the first tranche payment will be released.
Although ALPA’s internal dispute-resolution process has been completed, one lawsuit and two administrative claims have been filed and are pending. Other actions have been threatened.
The Executive Council must weigh the importance of releasing the funds to the pilot group versus the legal risks from lawsuits and other challenges. As of today’s message, the 5% holdback will continue.
The next meeting of the Executive Council will be on July 9-11. We expect to have more to report after the Council’s review of these issues at that meeting.
Recall that the second tranche is expected to be paid in its entirety upon completion of the Integrated Seniority List.
Respectfully,
Capt. Lee Moak