CAL/UAL Pilots Wanna stop Outsourcing to Reg
 

http://online.wsj.com/article/BT-CO-...27-706936.html

By Doug Cameron

Of DOW JONES NEWSWIRES



HOUSTON (Dow Jones)-Pilots at Continental Airlines Inc. (CAL) and UAL Corp.'s (UAUA) United Airlines want to end outsourcing of flying to regional partners following their planned merger, a move likely to shake up the industry's already turbulent labor relations.

The companies' pilots aim to finalize a new joint contract by the end of the year, and this week proposed bringing all flying in-house over a period of years following a merger that would create the world's largest airline by revenue.

U.S. network airlines have outsourced large parts of their domestic networks to an array of regional airlines over the past 20 years in a bid to cut costs, though the amount is capped by "scope" clauses in their pilots' collective bargaining agreements.

Jay Pierce, head of Continental's pilots' union, expects the proposal to receive a cool reception from management, but said mainline company pilots can fly regional jets just as cheaply following years of contract concessions.

"We put it on the table [on Wednesday]," said Pierce in an interview at the union's Houston office. "It's a proposition we believe will not be readily acceptable [to management]."

Continental Airlines has one of the industry's most restrictive scope clauses. Only mainline pilots can fly jets with more than 50 seats, and the airline contracts ExpressJet Holdings Inc. (XJT) to fly more than 200 smaller Embraer aircraft on its behalf.

United has more flexible work practices that enable it to fly more than 150 70-seat regional jets. Rising fuel costs have made 50-seat jets less economic, while the emergence of new aircraft in the 70 to 130-seat range have made airlines look to loosen the restrictions of existing scope clauses.

The proposal from the Continental and United pilots includes an initial cap on outsourcing, then a move away from the practice over what Pierce described as "multiple years".

Continental declined comment.

Management throughout the industry has become stuck in a mindset where they feel they have to subcontract more flying, said Pierce.

U.S. network airlines have already carved out almost all of their regional flying units. AMR Corp. (AMR) is working on plans that could lead to a sale or spin-off of its American Eagle business, and Delta Air Lines Inc. (DAL) recently sold two of its three remaining regional operations.

Pierce said he is confident a new pilots' deal can be hammered out with Continental and United by year-end, in line with the airlines' merger schedule, though a decision will be taken Oct. 12 whether enough progress has been made to continue the current fast pace of negotiations.

The airlines and the pilots have learned lessons from previous mergers, especially the combination of America West to form an enlarged US Airways Group Inc. (LCC), where labor issues remain unresolved after five years. Pilots at Delta and Northwest Airlines forged a joint deal before the two carriers merged in 2008.

"Being third is good," said Pierce. He said one of the thorniest issues - merging the airlines' pilot seniority lists - won't be tackled until a new contract is agreed.

Other areas include furloughs. United has more than 1,400 pilots on furlough while Continental has 147, all of whom Pierce expects to be called back by year-end. The transition deal calls for furloughed United pilots to be called back to whichever airline requires them before any fresh hiring.

SCOPE is EVERYTHING !

Well Done! I seriously hope the CAL/UNITED Pilots can pull this off with management. This would be huge for anyone looking to one day get out of the regionals. Keep up the good works guys!

We can only hope. It's in the mainlines hands....again.

Proof will be in the pudding. If it is so important they will protect CALs scope during the merger at all costs.

We will see what happen.

Come on. It never has been just in mainlines hands or the regionals hands.

Sure mainline has to push for all flying to be at mainline, where it used to be and should be, with good wages and work rules that make this a professional career not just a job.

At the same time regional pilots are just as responsible. Every time one carrier undercuts another to get more flying or is willing to fly larger aircraft for less money they are making it more difficult for mainline to regain flying. Also every time a new commercial pilot goes to work for the cheapest contractor or alter ego because they just want to build time and move on, they just continue to feed the beast.

It's hard to have a spine and demand things when other people keep cutting you off at the knees.

Every one needs to raise their expectaions of what the rewards of being a professional pilot are. If pilots aren't willing to fly for peanuts the planes simply will not move.

Wrong. It has always been, and still is, 100% in the hands of mainline. It's their flying, not anyone else's, and they need to secure it.

Regional wages are defined by the entry-level, which means flight instructors. Even if they have a clue, which they usually don't, they are not likely to pass up a regional job if it means remaining a CFI. A few will hold out for a non-bottom-feeder, but that's about the most you're going to get out of them. The idea that they are going to hold out for higher wages is ludicrous.

By the time they are making a regional decision they are past V1, the flight training scam industry has already sucked them dry and left them in debt beyond any rational expectation of return on investment. The only things that will help at th entry-level are...

- Responsible financing: It seems as though lenders may be wising up on this. We can only hope.

- ATP Requirement: In addition to enhancing safety, this should scare away some of the zero-to-hero wannabes at the get-go and also raise entry-level wages to something at least livable.

- Education: Too many newbies have "misconceptions" (actually lies perpetuated by puppy mills and aviation colleges) about the impending "pilot shortage"... they think they will be a $300K+ widebody CA 5-6 years after CPL. There's no formal way to address this, it's more of a grass roots kind of thing. We can do it here on the various forums, or face-to-face if you stumble on someone interested a flying career. Actually alpa could organize some thing like this...sponsor volunteer-staffed pilot-career info sessions at local airports. The alpa name would be enough to draw in attendees. It wouldn't cost much at all, but I suspect the ROI would be very good.

If and when we do put a stop to outsourcing to regionals I wonder if all the RJ brethren at ALPA will lash back? Not that I care what they think but this could be the beginning of what finally either splits ALPA or gets us on the same page.

I'm personally sick and tired of my dues and job going to other ALPA groups who's only means of economic viability is undercutting wages. Go get your own marketing department and start selling tickets under your own name, oh wait, you can't.

KC

Amusing post from a former regional pilot. If there's one thing you can always count on is how unified a pilot group will be about pulling up the ladder behind themselves.

I hope CAL/UAL get this locked down, but I'm not going to stand here and throw mud at everyone who is a few years younger than me though.

KC- There are a few ALPA regional carriers who have held the bar and refused to bid on flying for crap wages and adding mainline furloughs. I agree with your posting but wanted to point out that not all have gone down the wrong path.

Express Jet, Air Wis, and Trans States have tried to not worsen with not flying more than 50 seaters.


I believe that lesson's were learned from the bankrucpy era that will not be repeated again. Way too many dreams, marriages, and bank accounts were ruined so that upper management could profit at mainline's expense. As a CRJ pilot now I am extremely hopeful that CAL/UAL ALPA can pull this off. It would be a step in the right direction and return the furloughs back to the flightdeck and open the doors to regional pilots like myself who are ready to move on!

On the Dues front there is better communication than ever before between mainline and express carriers at ALPA. UAL, CAL, DAL all have joint standing committee's where mainline MEC's and regional MEC's discuss issues and have FWD thinking rather than taking away. So on the ALPA front I am hopeful. Now to get airlines like SKYW and Republic to get onboard we might then be heading in the correct path.

So here is to putting a positive spin on the merger and I am really counting on UA and CAL to hold the bar high.