Arbitrator ruling on Pinnacle/Colgan
03-23-2008 | 05:24 PM
#1
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From: Airbus
Arbitrator ruling on Pinnacle/Colgan
ALPA Defeats Pinnacle Management in Arbitration
An arbitrator has ruled that Pinnacle Airlines Corp. and Pinnacle Airlines, Inc., functioned as alter egos to sidestep the Pinnacle pilots’ contract. The pilots won a significant victory when the arbitrator ruled that management had violated the pilots’ contractual rights when it refused to meet and discuss labor protection issues with them after Pinnacle Corp. bought Colgan Air in early 2007.
Pinnacle Airlines, Inc., is a wholly owned subsidiary of Pinnacle Airlines Corp. The arbitrator found that PNCL and PAI were alter egos functioning as a single employer at the time of the Colgan purchase. Relying on separate corporate structures, Pinnacle Airlines Corp. alleged that it was not legally bound by the contract that the pilots had signed with Pinnacle Airlines, Inc.
“Our pilots knew that Pinnacle management was playing games—we simply built the case,” says Capt. John Prater, ALPA's president. “This victory shows the strength of a resourceful union—we put a lot of manpower behind this pilot group, and they came out of this arbitration with another win.”
“This is a major victory for us,” says Capt. Scott Erickson, the Pinnacle MEC chairman. “The arbitrator recognized the corporate shell game this management has been trying to play and saw through its pathetic attempt to create an alter ego company to sidestep the legally binding contract it signed with us in 1999.”
The arbitrator ruled that Pinnacle’s “consistent failure to distinguish between the two corporate entities provides persuasive evidence that Pinnacle Airlines Corp. (PNCL) and Pinnacle Airlines, Inc. (PAI) were alter egos functioning as a single employer at the time of PNCL's acquisition of Colgan,” and concluded, “… because PNCL and PAI were alter egos functioning as a single employer when PNCL acquired Colgan …” the company violated the labor protection section of the collective bargaining agreement with the pilots.
“We are very pleased with the arbitrator’s recognition that Pinnacle violated our contract when they refused to negotiate with us after buying Colgan Air,” Erickson said. “We hope this ruling puts an end to managements’ continued quest to deny us our contractual rights, prompting it to negotiate a contract that adequately compensates us for our dedication and sacrifice to this airline.”
The Pinnacle pilots began collective bargaining with management under Section 6 of the Railway Labor Act in February 2005, and the agreement under which the pilots currently work became amendable in May 2005. Thus, Pinnacle pilots and management have been in contract negotiations for more than 3 years. A mediator assigned by the National Mediation Board has been involved in the process since fall 2006.
Based in Memphis, Pinnacle Airlines operates as Northwest Airlink and Delta Connection and flies more than 130 modern jet aircraft, including the newest addition to their fleet, the CRJ-900, which is operated under the Delta Connection livery.
So what does this mean next? A pretty big issue, did I miss the thread? I'd like to see Colgan guys get ALPA (needed badly). Maybe you guys can get some appropriate pay rates and work rules. Undercutting other CAL regionals isn't cool, either is another airline buying equipment for you...
An arbitrator has ruled that Pinnacle Airlines Corp. and Pinnacle Airlines, Inc., functioned as alter egos to sidestep the Pinnacle pilots’ contract. The pilots won a significant victory when the arbitrator ruled that management had violated the pilots’ contractual rights when it refused to meet and discuss labor protection issues with them after Pinnacle Corp. bought Colgan Air in early 2007.
Pinnacle Airlines, Inc., is a wholly owned subsidiary of Pinnacle Airlines Corp. The arbitrator found that PNCL and PAI were alter egos functioning as a single employer at the time of the Colgan purchase. Relying on separate corporate structures, Pinnacle Airlines Corp. alleged that it was not legally bound by the contract that the pilots had signed with Pinnacle Airlines, Inc.
“Our pilots knew that Pinnacle management was playing games—we simply built the case,” says Capt. John Prater, ALPA's president. “This victory shows the strength of a resourceful union—we put a lot of manpower behind this pilot group, and they came out of this arbitration with another win.”
“This is a major victory for us,” says Capt. Scott Erickson, the Pinnacle MEC chairman. “The arbitrator recognized the corporate shell game this management has been trying to play and saw through its pathetic attempt to create an alter ego company to sidestep the legally binding contract it signed with us in 1999.”
The arbitrator ruled that Pinnacle’s “consistent failure to distinguish between the two corporate entities provides persuasive evidence that Pinnacle Airlines Corp. (PNCL) and Pinnacle Airlines, Inc. (PAI) were alter egos functioning as a single employer at the time of PNCL's acquisition of Colgan,” and concluded, “… because PNCL and PAI were alter egos functioning as a single employer when PNCL acquired Colgan …” the company violated the labor protection section of the collective bargaining agreement with the pilots.
“We are very pleased with the arbitrator’s recognition that Pinnacle violated our contract when they refused to negotiate with us after buying Colgan Air,” Erickson said. “We hope this ruling puts an end to managements’ continued quest to deny us our contractual rights, prompting it to negotiate a contract that adequately compensates us for our dedication and sacrifice to this airline.”
The Pinnacle pilots began collective bargaining with management under Section 6 of the Railway Labor Act in February 2005, and the agreement under which the pilots currently work became amendable in May 2005. Thus, Pinnacle pilots and management have been in contract negotiations for more than 3 years. A mediator assigned by the National Mediation Board has been involved in the process since fall 2006.
Based in Memphis, Pinnacle Airlines operates as Northwest Airlink and Delta Connection and flies more than 130 modern jet aircraft, including the newest addition to their fleet, the CRJ-900, which is operated under the Delta Connection livery.
So what does this mean next? A pretty big issue, did I miss the thread? I'd like to see Colgan guys get ALPA (needed badly). Maybe you guys can get some appropriate pay rates and work rules. Undercutting other CAL regionals isn't cool, either is another airline buying equipment for you...
03-23-2008 | 05:43 PM
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Colgan pilots did not decide anything. CAL decided that the 50 seat RJ market was not too profitable right now and came to Colgan about the Q's.
Instead of speaking on subjects you do not know anything about mabe you should look at what is going on at your own airline and worry about that.
03-23-2008 | 10:06 PM
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I'm glad you guys really understand the frustration here at XJT. Good contract, good pay, and you bash one of us for getting frustrated at Colgan coming in to EWR? Don't make this personal. This has more to do with CAL and Pinnacle management screwing over XJT, not the pilots at Colgan. Don't bash us anymore for being angry at this situation it doesn't make you guys look that good.
03-23-2008 | 11:41 PM
#7
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Colgan is, as a whole, one of the last true regional carriers. The longest regularly scheduled leg of the q400 (EWR to CMH) is 400nm. The vast majority of Colgan's legs are under 300nm. Compare that to "Contenental's" flights from CMH to IAH (855nm) and you will see HALF of the flights are operated by "regionals". So, rather than having three 737s on the mainline (crew earning roughly $220 per hour combined) there are two 73s and two RJs (earning roughly $110 per hour combined).
By no means am I saying Colgan's rates are fair and equitable, but quit bashing the puddle-jumpers for bringing down the industry when there are RJs competing against Boeings.
For me, I would rather have fewer jobs paying better salaries than a zillion jobs paying busboy wages.
By no means am I saying Colgan's rates are fair and equitable, but quit bashing the puddle-jumpers for bringing down the industry when there are RJs competing against Boeings.
For me, I would rather have fewer jobs paying better salaries than a zillion jobs paying busboy wages.
Last edited by FlyJSH; 03-23-2008 at 11:45 PM. Reason: grammer
03-23-2008 | 11:51 PM
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I'm confused. You want an already low paid pilot group, to be replaced by a even lower paid pilot group? That really helps the CAL guys get their flying back.
Did you already forget how XJT was once part of CAL? Wow lets hope this happens to the Guys at American and Eagle! I pray it doesn't
Did you already forget how XJT was once part of CAL? Wow lets hope this happens to the Guys at American and Eagle! I pray it doesn't
03-24-2008 | 12:06 AM
#9
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Clearly you miss my point. Saabs and B1900s cannot compete with jets over about 300nm (the Q400 maybe 400nm). And jets cannot compete on short hauls.
Actually what I was saying is that RJs directly impinge on mainline flying. If you don't agree, go to travelocity.com or another travel website and look for flights in the 500-1000nm range. I think you will find many where RJs directly replace larger, mainline flights.
If the <100 pax jets were eliminated (or converted to mainline), then regionals would no longer compete against the mainline. The wonderful contract XJ has (for example) would be superseeded by CO's contract. As a whole, pay for those flying a medium range route would increase. And the short haul, TP rates might increase as well.
Keep in mind I don't have SJS. I just want a livable wage.
Actually what I was saying is that RJs directly impinge on mainline flying. If you don't agree, go to travelocity.com or another travel website and look for flights in the 500-1000nm range. I think you will find many where RJs directly replace larger, mainline flights.
If the <100 pax jets were eliminated (or converted to mainline), then regionals would no longer compete against the mainline. The wonderful contract XJ has (for example) would be superseeded by CO's contract. As a whole, pay for those flying a medium range route would increase. And the short haul, TP rates might increase as well.
Keep in mind I don't have SJS. I just want a livable wage.
Last edited by FlyJSH; 03-24-2008 at 12:20 AM.
03-24-2008 | 12:20 AM
#10
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I hear you. But at XJT we currently fly only 50-seaters, minus a couple 37 seaters. I think CAL does that for frequency. A 737 on that route would cut flights by a third. Do I think XJT should be flying them and not CAL pilots? NO, but XJT should be under CAL, like it use to be, and paid as CAL pilots. Just look at what American pilots said about Eagle being sold. "All flying by American should only be done by American pilots."
One reason CAL went with Colgan is because of the scope clause. No one can fly 70-seat jets at CAL but CAL pilots. So CAL management found a loophole and used a 70-seater turboprop. Pretty sad. I don't want non-CAL 70-seat regional jets at CAL anymore than the CAL pilots don't.
One reason CAL went with Colgan is because of the scope clause. No one can fly 70-seat jets at CAL but CAL pilots. So CAL management found a loophole and used a 70-seater turboprop. Pretty sad. I don't want non-CAL 70-seat regional jets at CAL anymore than the CAL pilots don't.
