HSLD

Council 34 Secretary / Treasurer’s Report
July 6, 2010

The Conundrum

When I re-read this quote last week attached to a Council 12 update it brought back painful memories of bankruptcy, of how we were managed and manipulated, scared and beaten into accepting much worse than was necessary or deserved. We continue to be viewed by management as something to be manipulated, kept down with minimal expectations. To any of you out there who believe we are still “managers,” get real. We are blue-collared workers, to be spent and used as our management feels necessary to make a buck off the back of labor. That is their job, it is business and it’s not personal (although it might feel like that sometimes).

So much that we hear and read from the mouths and pens of our current management has a deliberate theme, motive and intention. Most of the time it is to manage our expectations, to try to make us feel a kinship with the way they wish to proceed. The above quote by James Sprayregen, United Airlines Lead Bankruptcy Attorney, illustrates this well. They wanted to get rid of our pensions; they realized this was not going to be an easy sell so they got into the “hearts and minds of the employees.” They made it seem as if there was no option, a slow relentless build up and then the quick, professional knife to the heart as our pensions were torn away with barely a sigh from anyone.

This merger is starting to move along similar lines. As they try to lower our expectations, excuses as to why they cannot do this or that abound. It is all about managing this troublesome workforce’s expectations in such a way as to maximize the long term net gain for themselves.

However, this time management has a conundrum. On the one hand they wish to downplay any synergies this merger will provide, realizing that we expect to translate a portion of these profits into rewards for ourselves, the employees. They must balance this reality against the need to sell the merger to the shareholders, Wall Street, and the bankers who need to be reassured that the synergies will be there to fund this merger and reward the investors. You actually have to feel quite sorry for Glenn and his cadre of bean counters (not). Remember though these guys are specialists in “getting into the hearts and minds” of the employees (think manipulation). Rest assured, there will be plenty of doublespeak going on behind closed doors as “synergies and run rates” are bandied about with a sly nod, a wink and a crooked hand shake.

All of us, as an employee group, need to realize that this merger does have a one-time opportunity associated with it. Future contract negotiations will again be along more normal lines as financial numbers and news are manipulated to control our expectations. This time, with the “conundrum” working in our favor, we must stand our ground and demand our fair share.

For those of you out there who are still suffering from a little, “wannabe manager” syndrome, take a look at your last W2. Compare what you find with a comparable Southwest / Alaska / UPS / almost anybody, and wake up. We have all been badly taken; since bankruptcy we have worked hard for very little. Now is the time to proudly don your blue collar and start thinking about your families.

I am not suggesting that we kill the golden goose. What I am saying is that we have to end the mindset of “labor is the problem.” We are not the problem. In fact, as a percentage of revenue, labor costs on this property are at an all time low! Our labor costs are approximately half of those at DAL in terms of percentage of revenue. The combined CAL / UAL projected revenue is a whopping $33 billion-per-year. Adopt the mindset that we have earned our fair share of this money. Your families deserve this.

Ben Landon
Secretary /Treasurer C34

TheQuan

Pilots have dealt with mergers, furloughs, pay cuts, and many other issues in our industry with very few and short-lived gains. With the new merger underway, Continental and United pilots stand to regain the losses that have been consistently eroded from our profession. As a combined pilot group we stand to not only be part of the largest airline in the world, but the cornerstone for the rebuilding of our profession. This contract will be looked upon by every other airline pilot around the world as the one to strive for; the one to beat; but only if we achieve a level of security through financial and beneficial gain. This contract must take into account that we are professionals who, on a daily basis, provide a service that is essential to the world economy. We are workers who strive to safely and efficiently complete our mission of moving people and cargo. This contract can only be great if we ensure its greatness through unity. Without a unified pilot group any beneficial gains will be difficult to achieve.
We are in the middle of one of the most important negotiations not just for the careers of Continental and United pilots, but for every airline pilot. We deserve not just an industry-leading contract, but an industry-changing contract.

Monkeyfly

I'm starting to believe that management will intentionally keep the pilots separate, ala USAIR. I believe that they will find this cheaper in their minds than a joint contract.

No way we will get a contract this year from these morons. Anybody out there still optomistic?

They delayed the transition talks' progress until after the congress hearings and then walked away. They never meant to sign anything. Next we will get the same until after the shareholders meeting and DOT approval and then we will be back where we were, waiting for NMB release.

I don't believe we have any "Wall Street Leverage" when we have a management team oblivious to the value of employees.

I feel that management may be unwittingly unifying the two pilot groups, but when are we going to be unifyingly fed-up!?!

Speedtape

The supposed synergies of a merger will be lost if they keep the pilot
groups separate.
We just need to be patient and stick to our guns.
I'm sure if there is a dirty trick in the book that we can think of, its
already in their playbook.
But ultimately they need the groups together

CRJ1000

I thought it was interetsting when Capt. Wendy Morris (UAL ?) was talking about the need to have flow UP and DOWN. Also some discussion about the FAR's only being the base line of safety. Talked about Main Line being better than Regionals because of Mentoring program.

Fritzthepilot

Monkeyfly,

My question is, can we get released while negotiating a JCBA? Is this negotiation treated differently than regular section 6?

This question might be premature at this point. The companies and unions are still probing to determine each others resolve. I wouldn't be surprised if the company walked away just to see if we would blink. My eyes however, are wide open and I have scratched a strike fund together not to waste it.

It's better to die standing than on your knees.

satchip

It's a shame things are turning out this way. You guys are poised to be even bigger and better than the new Delta. You have two great employee groups that together could be world beaters. Hopefully your union leaders and management can have some forward thinking and decide to cooperate ala Delta/NWA and our pilot groups. Good luck guys and gals!

skippy

The nmb will not be releasing the pilots

Captain Bligh

I agree. Nor will any presidential administration between now and the end of capitalism endorse a work stoppage that would leave the world's economy in temporary peril. So is it time to disband and redeploy all those involved in SPC work? I think if this airline ever does get put together, we as ALPA membership need to watchdog just how much dues money gets spent on strike committee work.

iahflyr

UAL and CAL pilots do not need an industry leading contract to make this merger a success. Don't get me wrong, there should be contract improvements over the current contracts, but even if it turns out to be Delta -1%, there is still so much good for the entire pilot profession (UAL/CAL pilots and others) that will be realized.


Having one less major airline reduces cutthroat competition. Fares go up, revenue goes up, airlines can actually make money. When airlines make money, pilots benefit (See FedEx/UPS contracts)

United will be the largest airline in the world. United's west coast presence with CAL's east coast presence. United's Asia routes with CAL's europe routes. United's best frequent flier mile program. Brand recognition. Efficiencies created by operating as one company and not two separate company. The benefits go on and on.

There has been all this talk of a "national seniority list." It will never happen, but the concept of a national seniority list is that there aren't a million different airline seniority lists that you'll have to start at the bottom of if you start at a new airline. If we reduce the number of major airlines, the seniority lists at those respective airlines get bigger, essentially creating one of a few "national seniority lists." Fewer airlines is better for pilots.


So yes, there should be contract improvements. But even if the contract is not industry leading, but industry top, this merger will be good for all pilots (UAL, CAL, and everyone in the profession).