Eagle Life
12-31-2010 | 07:39 AM
#783
Line Holder
Joined: Oct 2005
Posts: 631
Likes: 3
From Eaglelounge:
EGL COUNCIL 131
LAX BASE BLAST
December 30, 2010
Attention LAX Pilots,
I would like to take a few moments to update you on some important issues that have occurred in the past weeks. First, I would like to draw your attention to the chairman’s end-of-year letter and ask that all pilots in the domicile read it carefully.
Special MEC Meeting
On December 14, 2010, (BS) and I attended a special MEC meeting in Dallas. The meeting was called by your MEC chairman so that the entire MEC could receive a briefing from the Bain Consulting Group and also meet with the Eagle president, (DG). It is interesting to note that this MEC meeting has not yet been reported on by your MEC leadership.
Meeting Summary
What follows is a recap of the facts and highlights of the special meeting. Bain Consulting started with comments on their latest research into what changes are needed at Eagle. Their findings were centered on inefficiencies with scheduling. They were quick to say that the study was not yet complete. (DG) spoke for approximately 30 minutes, and then conducted a Q&A. Mr. (G’s) main theme was that Eagle still remains at a competitive disadvantage in the industry due to high labor costs, compounded with Eagle’s growing pilot longevity problem. He stated that the sale/spin-off was a front-burner issue with the AMR board. Mr. (G) also said that the need to divest Eagle was an effort to position AA with other major carriers in the industry that have multiple regional carriers providing their feed. This would allow AA to secure competitive feed in the future. Both (DG) and Bain centered on the need for Eagle to reduce costs in order to be able to compete and secure new contracts in the future. The Negotiating Committee reported that the company had presented 14 discussion items by management that were rejected by the negotiators as concessions. The negotiators then stated that they had discussed other efficiency initiatives that could benefit ALPA, which are discussed below. The most significant is PBS, and ALPA will research PBS in the coming months and report back to the MEC.
Meeting Detail
The Bain Consulting Group presented a PowerPoint briefing which detailed their current evaluation of the company’s financial practices and industry strengths and weaknesses. The Bain Group has been meeting with the Eagle Negotiating Committee off and on for the past two months. The focus of the Bain Group has been to “identify utilization opportunities and other solutions in order to achieve the required cost position for American Eagle.” They also evaluated growth potential and presented us once again with the notion that American Eagle’s operating costs are higher than similar carriers within the regional industry. They also spoke about the need for crew utilization improvements. They were very careful and guarded with the information that they shared and were quick to say that their investigation of Eagle is incomplete.
We then received an update from American Eagle president (DG) regarding the divestiture of American Eagle. Most notable was (DG's) comment that the divestiture is once again a “front-burner” issue. The remainder of this time was spent in a Q&A where he answered numerous questions from the MEC regarding Eagle’s future. Once again, the major topic of Dan’s comments was the high pilot costs and pilot longevity preventing Eagle from being competitive against other carriers. Not much new here, but it is clear that the AMR board will make its final decision as to Eagle’s fate in early 2011.
Negotiating Committee Update
The Eagle Negotiating Committee chairman presented a briefing on its work for the past two months. It should be noted that the entire Eagle Negotiating Committee has been on company special assignment for the months of November and December. During this time, they have had numerous meetings with management and the Bain Consulting Group. Captain (AN) went on to tell us that the company presented the negotiators with fourteen initiatives that he quickly characterized as concessions that they were seeking from ALPA; these initiatives were rejected by the Negotiating Committee. He did say that seven items were presented which, in his opinion, were efficiency initiatives worth discussing. They are as follows:
PBS–Preferential Bidding System
Training Cycle Reduction
Unified Captain Pay Rate
Reserve Reduction through OT Pickup Increase
Increase Expense Payments
Sliding Pay Scale
Reward Productive Pilots
I then asked Captain (AN) if these could be considered by some, to be concessions. He did agree that they could be considered concessions by some, but went on to say that if properly negotiated they could be a win for the pilots.
In my opinion, the items listed above are, in fact, concessions. If we, as an Association, enter into any further dialogue with the Company on these issues, we are in fact bargaining in the hopes of averting concessions.
The MEC chairman then asked the MEC to support the negotiators’ investigating preferential bidding (PBS) and getting smart on the current programs offered by vendors throughout the industry. The MEC’s consensus was that it would be permissible for the negotiators to do just that. It is my understanding that in January the Negotiating Committee will once again be on company-paid special assignment to explore preferential bidding.
I voiced my objection to proceeding with any discussion on preferential bidding with management unless the pilots would be allowed to vote to accept or reject PBS. The MEC must require a trial period to test and reject PBS if the pilots found it unacceptable.
It is clear that in the coming weeks this pilot group is going to face some very difficult decisions that will affect your future and the welfare of your families. It is important that all pilots become familiar with all initiatives undertaken by your MEC and the union leadership. Your career depends on it. (BS) and I welcome questions and comments from any pilot, at any time.
Fraternally,
(HM) and (BS)
EGL COUNCIL 131
LAX BASE BLAST
December 30, 2010
Attention LAX Pilots,
I would like to take a few moments to update you on some important issues that have occurred in the past weeks. First, I would like to draw your attention to the chairman’s end-of-year letter and ask that all pilots in the domicile read it carefully.
Special MEC Meeting
On December 14, 2010, (BS) and I attended a special MEC meeting in Dallas. The meeting was called by your MEC chairman so that the entire MEC could receive a briefing from the Bain Consulting Group and also meet with the Eagle president, (DG). It is interesting to note that this MEC meeting has not yet been reported on by your MEC leadership.
Meeting Summary
What follows is a recap of the facts and highlights of the special meeting. Bain Consulting started with comments on their latest research into what changes are needed at Eagle. Their findings were centered on inefficiencies with scheduling. They were quick to say that the study was not yet complete. (DG) spoke for approximately 30 minutes, and then conducted a Q&A. Mr. (G’s) main theme was that Eagle still remains at a competitive disadvantage in the industry due to high labor costs, compounded with Eagle’s growing pilot longevity problem. He stated that the sale/spin-off was a front-burner issue with the AMR board. Mr. (G) also said that the need to divest Eagle was an effort to position AA with other major carriers in the industry that have multiple regional carriers providing their feed. This would allow AA to secure competitive feed in the future. Both (DG) and Bain centered on the need for Eagle to reduce costs in order to be able to compete and secure new contracts in the future. The Negotiating Committee reported that the company had presented 14 discussion items by management that were rejected by the negotiators as concessions. The negotiators then stated that they had discussed other efficiency initiatives that could benefit ALPA, which are discussed below. The most significant is PBS, and ALPA will research PBS in the coming months and report back to the MEC.
Meeting Detail
The Bain Consulting Group presented a PowerPoint briefing which detailed their current evaluation of the company’s financial practices and industry strengths and weaknesses. The Bain Group has been meeting with the Eagle Negotiating Committee off and on for the past two months. The focus of the Bain Group has been to “identify utilization opportunities and other solutions in order to achieve the required cost position for American Eagle.” They also evaluated growth potential and presented us once again with the notion that American Eagle’s operating costs are higher than similar carriers within the regional industry. They also spoke about the need for crew utilization improvements. They were very careful and guarded with the information that they shared and were quick to say that their investigation of Eagle is incomplete.
We then received an update from American Eagle president (DG) regarding the divestiture of American Eagle. Most notable was (DG's) comment that the divestiture is once again a “front-burner” issue. The remainder of this time was spent in a Q&A where he answered numerous questions from the MEC regarding Eagle’s future. Once again, the major topic of Dan’s comments was the high pilot costs and pilot longevity preventing Eagle from being competitive against other carriers. Not much new here, but it is clear that the AMR board will make its final decision as to Eagle’s fate in early 2011.
Negotiating Committee Update
The Eagle Negotiating Committee chairman presented a briefing on its work for the past two months. It should be noted that the entire Eagle Negotiating Committee has been on company special assignment for the months of November and December. During this time, they have had numerous meetings with management and the Bain Consulting Group. Captain (AN) went on to tell us that the company presented the negotiators with fourteen initiatives that he quickly characterized as concessions that they were seeking from ALPA; these initiatives were rejected by the Negotiating Committee. He did say that seven items were presented which, in his opinion, were efficiency initiatives worth discussing. They are as follows:
PBS–Preferential Bidding System
Training Cycle Reduction
Unified Captain Pay Rate
Reserve Reduction through OT Pickup Increase
Increase Expense Payments
Sliding Pay Scale
Reward Productive Pilots
I then asked Captain (AN) if these could be considered by some, to be concessions. He did agree that they could be considered concessions by some, but went on to say that if properly negotiated they could be a win for the pilots.
In my opinion, the items listed above are, in fact, concessions. If we, as an Association, enter into any further dialogue with the Company on these issues, we are in fact bargaining in the hopes of averting concessions.
The MEC chairman then asked the MEC to support the negotiators’ investigating preferential bidding (PBS) and getting smart on the current programs offered by vendors throughout the industry. The MEC’s consensus was that it would be permissible for the negotiators to do just that. It is my understanding that in January the Negotiating Committee will once again be on company-paid special assignment to explore preferential bidding.
I voiced my objection to proceeding with any discussion on preferential bidding with management unless the pilots would be allowed to vote to accept or reject PBS. The MEC must require a trial period to test and reject PBS if the pilots found it unacceptable.
It is clear that in the coming weeks this pilot group is going to face some very difficult decisions that will affect your future and the welfare of your families. It is important that all pilots become familiar with all initiatives undertaken by your MEC and the union leadership. Your career depends on it. (BS) and I welcome questions and comments from any pilot, at any time.
Fraternally,
(HM) and (BS)
01-01-2011 | 04:50 AM
#787
Gets Weekends Off
Joined: Apr 2007
Posts: 228
Likes: 0
From: B737
01-01-2011 | 05:57 AM
#789
Gets Weekends Off
Joined: Aug 2008
Posts: 2,413
Likes: 0
From: forever fo
AMR can want to sell Eagle all they want, but it requires someone buys it, and the price tag is big, so I am not sure it will all play out. I think much of this is smoke and mirrors to get concessions.
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