Part 2
Tactical Comments
1. The “strike option”: It is no option at all at this time. The idea that there is, according to the FedEx MEC chairman, “limited excess capacity” in our industry may refer to hull capacity, but not to the availability of pilots. Never before have there been so many looking for work. During our strike at Continental, there were less than 1000 airline-qualified pilots on the street (mostly Braniff)—450 crossed our picket line! Today, there are at least 8,000 pilots on the street and thousands of others who would leave their jobs to work for FedEx. If you think these pilots cannot be quickly trained, you have not lived through a strike and experienced the dynamics of these situations. It’s time to start listening to those who have been there.
2. Business: Recently, FedEx ALPA indicated its desire to have a “business relationship” with the company. This is not a realistic expectation. In order to earn a business relationship one has to be a bonafide business employing rational economic and ethical business principles. The union has not done this, thus, it has no standing as a business and it will be neither respected nor engaged at that level.
3. Railway Labor Act: During every airline negotiation, unions and companies alternately argue that RLA either helps or hurts them, depending on the day of the week. Recently, an MEC member stated that the delays caused by the RLA were the source of our problems and we would be better off once we were released to self-help. This opinion completely avoids the true economic and sociological factors that affect us (i.e., thousands of pilots on the street, intra-profession warfare, etc.).
Like it or not, the RLA is currently our friend. Without a doubt, this is the worst time in airline history to be negotiating a contract. Anyone who wishes to face off with FedEx now must not have learned anything from extreme post-deregulation disputes. Traditional ideas about pilot solidarity are delusional. Experienced pilots know very well that what people say in the cockpit and what they are willing to do are two entirely different things, even under the best of circumstances.
4. Self-Help: I have found that few pilots are aware of the company’s options in self-help. Among other things, it is entitled to impose a contract, lock employees out, and bring employees back out of seniority order (seniority is not a “right,” it is a negotiated provision). If you desire to enter into this mode, you had better be certain that you have the fire power to overcome these tactics.
5. The “Last Offer”: I suggest that the pilots reconsider the last offer put on the table by the company. The day after the union officials announced rejection of this offer (before most of us knew there was an offer), FedEx pilot, Jim Sullivan (elected rep at CAL during our strike, long time ALPA volunteer and successful business owner), stated that we should have made a few improvements to the offer, thrown it back to the company, and taken the deal. Jim has expertise in these things because of his past experiences. Given the economic and sociological deficiencies that we face, I am in agreement. We could have taken the two year option, put some money in the pilots’ pockets, and bought ourselves two years to implement the necessary tools. Instead, the pilots have now earned at least one year of NOTHING while increasing the risk that it could get worse. My advice: Take the offer and start rebuilding.
If it is your opinion that two years is too long, you might consider the situation at UPS. UPS is one of the world’s most successful companies with revenues substantially greater than those of FedEx, and it has a highly unionized work force. Yet, after 42 months of negotiations, and mediation since August 2004, they are still at it! Why? Because they rely on the same traditional economic and sociological models as we do. Does two years still sound like it is “long enough”?
The Wrap Up
Do pairings need to be improved? Does Retirement need to be more secure? Yes to both questions. There are a lot of things that need improvement, and FedEx is capable. But, there are two major obstacles that suppress our ability to maximize the deal at FedEx. First, the economic obstacle: This includes an economic collapse of the passenger carriers, a process of rapid globalization, and, spiraling health care costs. These factors must be dealt with but our representative bodies have too much baggage to do it. Whereas, an enlightened profession would produce true leaders dedicated to solving modern dilemmas, ours has favored tradition and surveys over leadership. It has done almost nothing other than picket airport terminals and complain to Congress.
Second, the sociological obstacle: Starting shortly after the airline companies were deregulated, our profession institutionalized an every-man-for-himself behavioral model that exists to this day. Most pilots seem to know this but almost no one is trying to do anything about it. Pilots have been so busy competing with each other for short term gain that they have not learned how to truly unify in order to both complement and compete with other corporate stakeholders. There has been NO strategic leadership on this matter.
Remember: It is not a question of merely closing a deal within two years…It is a matter of optimizing one’s position in order to maximize results. This is where we are getting destroyed, and I, personally, will not accept it. From a marketing perspective, FedEx pilots have done nothing to distinguish their “product.” Hence, our income, benefits, and working conditions will move towards equilibrium with those of others in the marketplace, including the similarly-skilled, lower-paid commuter pilots—it is happening as we speak with pilots at DAL, NWA, UAL, and USAir! Right now, the only thing that distinguishes FedEx pilots from everyone else is the fact that FedEx is making money, a condition that is both created and controlled by the talents of FedEx management. Unless we employ new strategies such as those provided above, our quality of life will rise or sink with the rest of the pack. This is a risk we need not take.
Experienced pilots will recognize current union techniques as a replay of everything that has been tried over the last 28 years with diminishing success. Hence, we will ultimately settle for less regardless of whether it takes two days, two years, or twenty years. At some point, the MEC is destined to report that they got us the “best deal possible under the circumstances.” They will be wrong. There are a lot of exciting techniques available that could provide better and more secure results. FedEx pilots should be leading the way.
For each FedEx pilot, the important question is not if two years is long enough. It is: How long am I going to put up with traditional failing unionism before I help create something new?
Bob lavender has been a Federal Express pilot for 16 years and owns and operates a nationwide real estate/mortgage business. He was a Continental pilot from 1978 to 1983. He was on strike there for two years and would do it again if it were prudent. He left ALPA last year partly because of the union’s refusal to consider new ideas and publish articles such as this one. He can be reached at
[email protected].