Settlement of MEC Grievance 15-01

On April 1, 2015, MEC Chairman Mike Donatelli filed Grievance 15-01 (see MEC Update 15-03), asserting that the Company was out of compliance with the Bundle 1 flying provision of Section 1 P., Delta/Air France/KLM/Alitalia Joint Venture, of the PWA. The formal filing of the grievance started the process to have the issue heard before the Five Member System Board of Adjustment under an expedited timeline.

The Company approached ALPA after the grievance filing to discuss a mutually agreeable settlement to the grievance. These discussions have led to a settlement. Included in the settlement agreement is a payment of thirty million dollars to the Delta pilots for Delta Air Lines’ share of Bundle 1 flying being less than the minimum required EASKs for the period of April 1, 2011 to March 31, 2015.

This settlement is not part of the Section 6 negotiations currently in progress. The settlement agreement also includes language that dictates the distribution of these monies.

We will provide the details of the actual distribution in a future update.

 

Beyond ignorant.

Unbelievable.

Carl

 

It's not two LEC's sailingfud and you know that. So why would you say it?

Carl

 

Carl. Buddy, I knew I could count on you for a non-factual, incendiary and condescending post.

Thank you for never disappointing.
You are our strength. Our rock of discontentment.

 

Maybe he was complimenting you. Couldn't "beyond ignorant" mean "smart"?

 

Actually I don't know Carl. It sounds like from your reply that there may be some legs to the statement be it 2 or 3 LEC's.

 

The $30M settlement is great but that's $2500 per pilot or so on average.

I haven't seen anything other than an announcement. I don't think the details are out yet but...

My guess is it will go to international guys or potential upgrades. My further guess is that it rewrites production balance to a lower value so this doesn't happen again. The Virgin JV agreement set the floor below current flying because they saw this coming and didn't want to pay for noncompliance on Virgin.

BTW the Deltanet news piece on the May dip disappeared. I was going to reference it but, too late. Hmmm?

 

How much was actually lost by the pilot group because of the JV non compliance? More or less than $30M?

And what is the JV section of the new Section 1 of the TA going to be?

Now, if that cost the pilot group $100M in lost wages, then $30M is a disappointment. If the Section 1 language is a concession, then it's a real disappointment when the two are put together.

But, it cost us $20M in lost wages and we got an extra $10M put on top of it, it's good. Especially if the Section 1 language improved.


So why at this point, without knowing more than what was told in the email and without seeing the new Section 1 should we really have any opinion on it? That would be like cheering 9933 in Section 3 before you find out its funded in Section 1 and 23 and the people here are too smart to get sucked in to headlines before they read the article.

 

Surprisingly I agree with you on all of the above. Details are needed.

 

It totally depends on the long term resolution of the issue. It could be very good to very bad. Not enough information to make a decision.


Scoop