Details on Delta TA

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As far as my opinion, if I were the NC chairman and I got the authority to TA a table position at a special MEC meeting, then did just that, and later am asked to go back and re-negotiate, I would resign. So I think that part is pretty certain. I also think the MEC would have zero credibility with the company. The new NC would therefore have a tough time convincing the company negotiators that they indeed have the authority to TA. The natural conclusion is that it is the MEC who is driving the NC and ultimately empowered with ability to accept a TA at the table. After balking once, why would the company believe the same divided MEC could ever in good faith TA.

Ok then, if we take your logic to the next point, why do we even have an MEC vote or a member ratification vote? The company is never going "believe" us again. By your logic we should just sign the deal now because that's what the NC came up with. No thank you.

Then you have the issue of precedent. Would the company ever open that can of worms? Would they reward the fickle behavior of the MEC with a superior contract? What kind of message does that send? What happens next time? I think history is a guide and can satisfactorilly answer that. What group has ever rejected a TA and then been rewarded with a significantly improved version? I can't think of a single one? Does anyone have an example of this tactic providing good results?

Well, as far as I'm concerned, if half the rumors are true, contract 2012 is potentially a better contract than 2015. We will see

For these reasons, I think the horse has left the barn when the NC achieves a TA. It was a big issue last time for me. As it turns out, I liked C2012 and had no problem voting for it. But, I wondered if that had not been the case, what exactly was the path to a significantly superior agreement, assuming we failed to ratify the TA they accepted? The only scenario I came up with that made any sense considering the above, was to recall enough reps to significantly change the MEC. In this way the credibility issue with the company would not necessarily pose such a problem. In this scenario it's the MEC's fault and we pilots recognize and correct the problem. We then re-engage the company with a completely new MEC and NC. This is what the APA did more than once. That process takes time and the TVM eats up gains. History says that isn't a good bet.

See above

So in a way, I think failed membership ratification is easier to deal with than TA that was authorized by the MEC, then rejected during the review. In the former, you can remedy the situation by forming a new MEC. What can you do with a MEC that rejects their own TA?

Uhhhhh like you just said, form a new MEC if that's what it takes.

I suspect if we have the same drama this time with a split MEC, I do think that is the case BTW, somehow they achieved a majority consensus when they authorized the NC to TA. If I was in the minority on that particular vote, I would emphasize to the MEC as a whole that the horse is about to leave the barn. Are we certain we want to do this? There appears to be little or no future for a significantly superior outcome if the slim majority collapses and the TA is rejected. Perhaps asking for a 2/3 majority instead of 1 vote majority. At any rate, as a minority opinion I would be under no illusions that I owned the TA for no better reason than it would be virtually impossible to go forward and achieve superior results.

For that reason, I was quite amazed with so many NO votes last time. What possible benefit? Perhaps the NO voters knew they didn't have the final tally to reject and therefore there wasn't really any risk. Basically a symbolic and political move to speak to their members? Probably, but just maybe they really saw no risk in rejecting the TA. The latter possibility concerns me. A vision of monkeys, gas cans, and matches comes to mind. Saw that in technicolor over at the APA and USAPA.

Word is the TA will be revealed in its entirety on Tuesday in open session. I'll be there for sure. This was a real spectacle last time and it should be quite something to see this time. I've been chided here for suggesting we have a divided MEC. I challenge anyone who says I'm wrong to come and watch Tuesday and Wednesday. If I'm wrong, I will admit it right here.

BTW, I'm serious and want to see some scenarios as to how this could work out if the TA is rejected by the MEC. Need something to think about until Tuesday.
1. The MEC sends the NC back in and says get a better deal we don't care how long it takes.

2. The NC is fired/resigns and a new NC is sent back in to get a better deal.

3. The MEC admin and NC are fired/resign and new ones are elected and sent back in.

What is wrong with any of these scenarios? Time is on our side. Why settle for a mediocre agreement in this negotiating environment? Why can we not follow the footprint of Contract 2001 negotiations? It was a great negotiating environment too.

Denny

PS. I wasn't going to start getting involved in the contract questions until Tuesday but by then it will be too late to respond.
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Quote: Would you negotiate with someone who says we have a deal and then says, well not really, just kidding? More importantly would you reward that behavior by offering them a superior deal? Remember, the MEC gave the green light for the table position. Most importantly, can you show me an example where that tactic has worked in this business? What airline union has actually pulled that off?
Quote: Fine. Don't use history solely. How about using some of it? You need to study this business. It ain't the military. I'll save you time though, but you'll have to trust me. I've been in this business for nearly 22 years and nobody has pulled off the trick yet. Bait and switch does not work.
Quote: Read what I'm saying and not what you want me to be saying. We can negotiate until the cows come home. We don't have to accept anything they're offering. We can demand whatever we want and as long as we have the patience and intestinal fortitude we can endure.

What we cannot do and what will not be tolerated is to bait and switch. We cannot agree to something and then back out because we changed our minds. It destroys credibility.

Find me an example where that has worked. Just one.
Part 1:

American union pulls out of deal, bankruptcy possible - Apr. 19, 2003

American union pulls out of deal

Flight attendants will vote again on concessions to avoid bankruptcy due to outcry over exec pay.
April 19, 2003: 1:58 PM EDT
By Chris Isidore, CNN/Money Senior Writer

NEW YORK (CNN/Money) - American Airlines' flight attendants union announced it would hold a new vote on $340 million in annual concessions due to outcry over a compensation plan for the airline's management, a move that could force the world's largest airline into bankruptcy.

The rank-and-file members of the Association of Professional Flight Attendants initially rejected the cost-cutting six-year pact Tuesday by a 51 to 49 percent margin, then the next day approved the pact by a 53-47 percent vote at the strong urging of union leadership. But both votes took place before the compensation packages for management were widely known. The union leadership said compensation plans for American's best paid executives were "morally bankrupt" and demanded another vote of members.

American Airlines, the world's largest airline, faces a new bankruptcy threat due to union outcry over its executive compensation plans.

"This taints the agreement that was ratified just two days ago in a wrenching process for our members," said a letter from APFA President John Ward late Friday night. "Every APFA member - those who voted for the agreement and those who voted against it - are outraged by this action, as am I."

American Airlines had said that it needed the concession contracts with the flight attendants and the other two unions approved by this past Wednesday at the latest or it would be forced to immediately file for bankruptcy court protections. Its spokesmen would not take questions on the APFA threat of holding a new vote.

"American has a valid ratified agreement with the APFA," was the only statement from American spokesman Gus Whitcomb.

There was no immediate word from two other unions - the Allied Pilots Association and the Transport Workers Union, which represents most American ground workers - on their plans to go forward with more than $600 million each in annual wage concessions approved this past Tuesday.....
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Does Tuesday Make Sense?
First appearance on this forum for me. So a quick "hello," with no further adieu.

How does an open meeting on Tuesday make sense? Wasn't the TA floated to the MEC members on Thursday, and it's a minimum seven day process (barring a unanimous vote for less, which I can only assume would be remotely polled)? Since it's nearly Monday and we haven't heard of a place or time, I have to wonder. Or did I miss the place and time? Regardless, please post or repost any known schedule. I happen to be in ATL for an initial qual. Barring a conflict, I'd like to be there.

Thanks,

Rich
744/B to "be" (for around the blink of an eye)
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Quote: How is this true? Isn't the survey our primary communication? And when the details of discussions aren't released, what are we supposed to communicate about?
I think you communicate about what you've heard (leaks as modified by the rumor mill). That's what's happening right now. All the ticked-off pilots I work with (most of whom say they don't follow and certainly don't post here) are realizing there may be major deviations "from the survey" as they think they understand it.

Personally, I think the survey would be a great tool for DALPA pilots if the results were known and verified. As a secretive metric, it probably does more harm than good...especially in conjunction with any process that requires 50%+1 passage and nothing more than that.
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Quote: Really? How so? The company will have to be in bankruptcy. Anything short of that and I retain my fixed pay rate. Surely you don't think I would volunteer my pay like John Malone's MEC did? Got that T-shirt when the majority ratified pre-bankruptcy concessions. I think the pilot group learned from that one.

Theyll ask for it and get it.

They ask for concessions now and we give it, won't be any different then.
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Quote: Would you negotiate with someone who says we have a deal and then says, well not really, just kidding? More importantly would you reward that behavior by offering them a superior deal? Remember, the MEC gave the green light for the table position. Most importantly, can you show me an example where that tactic has worked in this business? What airline union has actually pulled that off?
Quote: Fine. Don't use history solely. How about using some of it? You need to study this business. It ain't the military. I'll save you time though, but you'll have to trust me. I've been in this business for nearly 22 years and nobody has pulled off the trick yet. Bait and switch does not work.
Quote: Read what I'm saying and not what you want me to be saying. We can negotiate until the cows come home. We don't have to accept anything they're offering. We can demand whatever we want and as long as we have the patience and intestinal fortitude we can endure.

What we cannot do and what will not be tolerated is to bait and switch. We cannot agree to something and then back out because we changed our minds. It destroys credibility.

Find me an example where that has worked. Just one.
Part 2:

USATODAY.com - American flight attendants OK new contract concessions


Posted 4/25/2003 11:41 AM Updated 4/25/2003 2:37 PM

American flight attendants OK new contract concessions

By Dan Reed, USA TODAY

FORT WORTH — Flight attendants at American Airlines agreed Friday to concessions that the company said it needed to avoid bankruptcy.

Flight attendants at American Airlines agreed Friday to concessions that the company said it needed to avoid bankruptcy.

Leaders of the Association of Professional Flight Attendants had been badly split over a concessions offer that the company sweetened this week, with lingering anger aimed at Don Carty, who was forced to resign as chairman and chief executive Thursday.

"With new leadership in place at AMR, there was a renewed willingness from management to begin to repair the damage done to relations with its employees," said John Ward, president of the flight attendants union.

Gerard Arpey, the company's president, replaces Carty as CEO, while board member and former Sears CEO Edward Brennan will take over as chairman.

Arpey said some employees will lose their jobs, and he praised the unions for agreeing to the concessions.

"By any measure, we have our work cut out for us," Arpey said at a news conference Friday afternoon shortly after the flight attendants announced their agreement.

"We are not out of the woods yet, but as your new CEO, I am up to the task. I will always do what is right. Working with our unions and all of our employees, together we will put American Airlines back on top," he said.

To secure the union's approval of the concessions deals voted on last week, AMR's board sweetened the deal:


The length of the contracts was shortened to five years, or until April 30, 2008. Previously, the contracts were to run five years and eight months, until Jan. 1, 2009. Airline contracts don't end. They become amendable at a set date, while existing terms remain in effect.

Either the unions or the company can move to reopen contract negotiations two years early, in April 2006, effectively reducing the contract's length to three years.

Unions can seek to renegotiate one contract item of their choosing during a 30-day period that begins May 15. However, total value of the contracts cannot change. Disputes on those points can be settled by arbitration.

Terms of an incentive pay plan added as a deal sweetener earlier this month to coax union members to approve the concessions will also be applied to management. Employees will be able to earn larger pay raises if American reaches "reasonably achievable" operational and financial goals. The plan is in addition to profit sharing and stock-option plans included in the concessions approved last week.
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Quote: Sure it is. 5.75% of that figure goes from variable (at risk) compensation to fixed compensation. Last time I checked, profit is not guaranteed. In fact I endured a bankruptcy as a consequence of the lack of profits.
Is profit sharing a cost to the company? Maybe technically it is, I don't know but I don't consider it as at risk compensation. IMO profit sharing does not "cost" the company anything. Why? Because it comes out of profit! Profit sharing is a "bonus" in the good times and an easy out for the company in bad times.

As far as the bankruptcy goes, I was there too and if you forgot, we gave up a heck of a lot in pay rates just prior to and in bankruptcy so what's your point?

Denny
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Quote: So you're saying the MEC can't vote no?
It's a goal post shift because the TA is here.

Now it must be passed by the MEC. Next, it must be passed by the pilots. Anything less and we lose all credibility or something.
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Quote: I'm with sharpest tool. Get rid of PS. Give me that as a percentage in my pay check plus a raise. Soon PS will be gone and or very little. Anderson is on his way out. Who knows what's next?
How soon is "soon?" You have seen the projected profit for the next few years haven't you? I'm not totally against doing some of it but how about we wait until next contract to do it?

Denny
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Quote: So you're going to guarantee that another 2008 or 9/11 isn't going to happen in the next 3 years? Seriously? Or the current cycle that is going on 8 years isn't going to reverse. Wow!
I didn't say I'd guarantee either of those...I'm guaranteeing profits for three years (quite obviously it's a guess). I'm not saying they will be the same profits, but they could fluctuate either direction.

I can ALSO guarantee that as long as profit sharing is in place at significant rates, these TED-guaranteed profits will be enhanced by pro-profitability behavior on the flight deck...that would otherwise be diminished if PS were shifted to hourly pay.
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