Wheels falling off at RAH
08-22-2015 | 08:47 AM
#1411
Gets Weekends Off
Joined: Feb 2015
Posts: 183
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Republic Airways pulls a shocker as pilots union leadership starts to mull last, best and final offer - Chicago Business Journal
The exco is saying next week. I can't remember the specifics, but the IBT constitution requires a vote on LBFO. This happend a few years ago, but the company changed the offer, so the local pulled the vote. The above article has an interview with the local exco president. I think they will send it out, and it will not pass.
The exco is saying next week. I can't remember the specifics, but the IBT constitution requires a vote on LBFO. This happend a few years ago, but the company changed the offer, so the local pulled the vote. The above article has an interview with the local exco president. I think they will send it out, and it will not pass.
08-22-2015 | 09:13 AM
#1412
Gets Weekends Off
Joined: Jun 2010
Posts: 906
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From: Just another RJ guy
It’s entirely possible this is going to be a repeat of the whole Pinnacle situation but there are some significant differences in the industry today. When the Pinnacle situation occurred there were much fewer options for the pilots as there was far less hiring going on at the time, in addition, there were other providers who could have stepped in and absorbed the Pinnacle flying. Neither of those are true today.
From what I gather Republic is not only having trouble attracting new pilots, they’re struggling to keep the ones they have, hence the bonuses. If Republic just decided to throw the company into BK, that would mean the end of any chance of attracting new pilots. It would also make the trickle of pilots leaving now turn into a mad rush. Isn’t the whole reason Republic is offering this contract because they cannot staff the flying they have and as such are causing a major headache for DL/AA/UA? BK would exasperate this situation tremendously.
And that brings me to my other point, they can’t staff the flying the have right now, but who else could? Is there anyone out there now that could pick up Republic’s flying if they shut the doors tomorrow, or heck a year from now?
I agree that there’s something else going on here, my eyebrows definitely went up when I saw the new pay rates. But is it at least plausible that AA/DL/UA, seeing the hassle caused by the current staffing problems and knowing it would just be the tip of the iceberg if Republic went under, opened up their checkbook(s) and made some sort of adjustment to the current contracts which would then provide Republic the money to carry this new contract? Of course they could never say so, that would mean this is not the “last best offer”.
Long term it seems to me the majors are going to have to pony up more dough to their regional providers because they in turn are having to pay more to attract/retain enough pilots. It’s possible this is the first instance of such an adjustment taking place.
Maybe this will all turn out the way Pinnacle did. But while Pinnacle survived, and has decent long term prospects. I’m not sure I see viable long-term survival scenario for Republic via bankruptcy, and I think they know it. I think AA/DL/UA know it too.
From what I gather Republic is not only having trouble attracting new pilots, they’re struggling to keep the ones they have, hence the bonuses. If Republic just decided to throw the company into BK, that would mean the end of any chance of attracting new pilots. It would also make the trickle of pilots leaving now turn into a mad rush. Isn’t the whole reason Republic is offering this contract because they cannot staff the flying they have and as such are causing a major headache for DL/AA/UA? BK would exasperate this situation tremendously.
And that brings me to my other point, they can’t staff the flying the have right now, but who else could? Is there anyone out there now that could pick up Republic’s flying if they shut the doors tomorrow, or heck a year from now?
I agree that there’s something else going on here, my eyebrows definitely went up when I saw the new pay rates. But is it at least plausible that AA/DL/UA, seeing the hassle caused by the current staffing problems and knowing it would just be the tip of the iceberg if Republic went under, opened up their checkbook(s) and made some sort of adjustment to the current contracts which would then provide Republic the money to carry this new contract? Of course they could never say so, that would mean this is not the “last best offer”.
Long term it seems to me the majors are going to have to pony up more dough to their regional providers because they in turn are having to pay more to attract/retain enough pilots. It’s possible this is the first instance of such an adjustment taking place.
Maybe this will all turn out the way Pinnacle did. But while Pinnacle survived, and has decent long term prospects. I’m not sure I see viable long-term survival scenario for Republic via bankruptcy, and I think they know it. I think AA/DL/UA know it too.
However, I don't think Republic would go out of business (they would restructure)...I do think they would shrink considerably, get out of leases early that don't make financial sense, and reduce the labor group numbers. They wouldn't have to hire more because the attrition would match the reduction in airframes.
I do believe that there are some regionals out there willing to pick up some of the slack and I think they could handle the growth if it was spread out over several carriers.
08-22-2015 | 01:36 PM
#1413
Pilot
Joined: May 2015
Posts: 149
Likes: 0
Republic Airways pulls a shocker as pilots union leadership starts to mull last, best and final offer - Chicago Business Journal
The exco is saying next week. I can't remember the specifics, but the IBT constitution requires a vote on LBFO. This happend a few years ago, but the company changed the offer, so the local pulled the vote. The above article has an interview with the local exco president. I think they will send it out, and it will not pass.
The exco is saying next week. I can't remember the specifics, but the IBT constitution requires a vote on LBFO. This happend a few years ago, but the company changed the offer, so the local pulled the vote. The above article has an interview with the local exco president. I think they will send it out, and it will not pass.
While many are angry with the airline, and while the union will try hard to convince everyone to vote no, this will probably pass by a very small margin.
08-22-2015 | 02:42 PM
#1414
Gets Weekends Off
Joined: Jun 2011
Posts: 1,150
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Disagree. It won't pass. Even newbies are angrier than you think.
08-22-2015 | 03:21 PM
#1415
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Joined: Feb 2015
Posts: 183
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I have no idea how the pilot group as a whole feels right now, but I do know that every checkairman I know there will be a no vote. The proposal is a step I the right direction, but it sets a very bad precedent by locking he NC out. If this passes it will not improve the moral at republic. I suspect BB will start violating this proposal as soon as it is voted in.
08-22-2015 | 03:37 PM
#1416
Banned
Joined: Oct 2014
Posts: 2,137
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I agree with most of what you said with a couple of exceptions. Pinnacle back in the day had over 240 airframes so I doubt that other carriers could have swooped in and picked up the slack as easily as some might think. In my option Delta had no choice but to save them to salvage the feed. You're right, however, that there's no way any other regionals could handle the amount flying if Republic went out of business.
However, I don't think Republic would go out of business (they would restructure)...I do think they would shrink considerably, get out of leases early that don't make financial sense, and reduce the labor group numbers. They wouldn't have to hire more because the attrition would match the reduction in airframes.
I do believe that there are some regionals out there willing to pick up some of the slack and I think they could handle the growth if it was spread out over several carriers.
However, I don't think Republic would go out of business (they would restructure)...I do think they would shrink considerably, get out of leases early that don't make financial sense, and reduce the labor group numbers. They wouldn't have to hire more because the attrition would match the reduction in airframes.
I do believe that there are some regionals out there willing to pick up some of the slack and I think they could handle the growth if it was spread out over several carriers.
08-22-2015 | 03:50 PM
#1418
Line Holder
Joined: Sep 2006
Posts: 928
Likes: 2
I wonder this:
If the Local (BTW, it's the EBoard, fellas...stop calling it the EXCO) decides, "Hey, we're not putting this to the pilots for a vote," what happens?
The company sure as hell can't do anything about it because it's the IBT's constitution, not some federal procedural regulation or anything regulated by the RLA, so they have no cause for action.
I'd think that the membership would support the local blocking the company's underhanded move to circumvent them and their NC by taking such an action, so a DFR or impeachment should be unlikely.
If IBT national threatens to revoke their charter, BFD! National and some people at 1224 share a large portion of the blame for the current situation. F 'em! Hell, it's THEIR stupid constitution that left this avenue available for the company to exploit!
I know that this is uncharted territory, but does anyone have any thoughts on this?
Last edited by sqwkvfr; 08-22-2015 at 04:10 PM.
08-22-2015 | 06:48 PM
#1419
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Joined: Jul 2015
Posts: 274
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There are apparently bylaws that state if this is truly the best offer the company can produce, it has to be voted on by the membership- no matter what the Eboard says. My understanding is the local is still trying to determine if it would be legal to stop a vote from happening. This circumvention of the collective bargaining process, as well as unilaterally changing articles that were already TA'ed through the negotiating process shows the true colors of this management team. Sure, the gains with this LBFO might be substantial (per current book) and might be close to industry leading, but it would set a scary precedent to vote in a contract in this manner and frankly it is not a contract I would want to live with 8 years after it expires when management decides it's time for us to have a new contract unilaterally brought to a vote.
08-22-2015 | 07:03 PM
#1420
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Joined: Jun 2011
Posts: 1,150
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The EBoard decides and will probably decide by the end of next week. The bylaw that could permit this wasn't meant for a union controlled by the RLA; proving once again why the IBT shouldn't be the union of choice for an airline (but is great for truck and bus drivers).
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