January 7, 2008

Arbitration Panel Denies Change in Control Grievance

To : All IAM Members Employed By US Airways

Dear Sisters and Brothers :

The System Board of Adjustment created to resolve the Machinist Union’s Change in Control grievance today issued its decision. The neutral arbitrator, Richard I. Bloch, sided with US Airways and denied the grievance.

Full Decision

The issues surrounding the grievance were very complex. Arguments to the System Board involved different interpretations of the contract language, bankruptcy law and Delaware corporate law (where US Airways is incorporated). The Machinists union received differing opinions from legal experts regarding our chances of ultimately prevailing in the grievance. Because the potential stakes were so high, however, we had to go forward with the case even if our chances of winning were slim. Yet, the IAM never viewed the Change in Control grievance as the solution to all the membership’s issues.

While the IAM fought for a favorable resolution of the grievance, we simultaneously worked to reach negotiated transition agreements to improve pay, benefits and working conditions for all IAM-represented employees. Even winning the Change in Control arbitration would not have addressed pay inequities between East and West employees, fair seniority integration, job security improvements, and better and more secure pensions. Our bargaining efforts resulted in a tentative agreement for Fleet Service that, although ultimately rejected by the membership, would have significantly improved wages and job security in exchange for withdrawing the Change in Control grievance for Fleet Service employees.

Traditional Railway Labor Act bargaining is not scheduled to begin until late 2009 when the current East agreements become amendable. With the National Mediation Board having ruled that both East and West employee groups are combined under a single carrier, any efforts to reach an agreement that does not cover both groups would be fruitless and impractical. Only the current transition negotiations for the combined groups can achieve any gains prior to traditional negotiations, which won’t start until nearly two years from now.

Airline industry conditions, and the situation at US Airways in particular, have deteriorated in the last year, and those conditions could be even worse when traditional bargaining begins. The America West-US Airways merger presented a unique opportunity to address many of the membership’s issues prior to the amendable dates in our agreements, and that window still exists, but the bargaining environment is changing daily.

Therefore, in an attempt to improve the financial and working conditions of IAM members, direct negotiations with US Airways will resume. District 141 will return to the bargaining table January 22, 23 and 24 2008 and District 142 will continue bargaining January 29, 30 and 31, 2008.

Full membership solidarity is essential for the IAM to succeed in this bargaining. East and West, Fleet and Maintenance – we must all be united in our common goal of retrieving what was taken from us and making a career at US Airways a long-term, profitable endeavor.

Sincerely and fraternally,

November 1, 2007

US Airways Change of Control Update

To : All IAM Members Employed By US Airways

Printable Version

Dear Sisters and Brothers:

As you will recall the Change In Control arbitration case was presented  to Arbitrator Bloch on September 13,2007, to be followed by written briefs by both  the Company and the IAM after receipt of the written transcripts of the hearing.

The written transcripts have been received and the parties (Company and IAM) have until the second full week of November to submit their written briefs to Arbitrator Bloch. Upon receipt of the written briefs, Arbitrator Bloch will reconvene the members of the System Board for final review and comment.

A written opinion and decision from Arbitrator Bloch should be forthcoming thirty (30) to sixty (60) days upon recess of the System Board. The membership will be advised immediately upon receipt of the decision rendered by Arbitrator Bloch.

We will continue to update you as events allow and dictate.

In Solidarity, we remain,

Top

September 17, 2007

US Airways Change in Control Arbitration Update

TO: All US Airways IAM Members 

Printable Version

Dear Sisters and Brothers: 

On September 13, a hearing was held in Phoenix on the change in control grievances filed by District Lodges 141 and 142 before a System Board of Adjustment comprised of neutral arbitrator Richard Bloch and representatives of the IAM and US Airways. 

The IAM presented testimony at the hearing that there was a "change in control" as that term is defined in the Mechanics and Related and Fleet Service agreements because the transactions that created the new US Airways in 2005 involved the sale of all or substantially all of the assets of the Company and the sale US Airways' common stock to a group of investors acting in concert. 

US Airways presented contrary testimony that there was no sale of its assets in 2005, that the then-outstanding common stock of the Company was cancelled in bankruptcy, and that the investors in the new US Airways acted independently and not as a group. 

The Union and the Company will submit post-hearing briefs to the arbitrator in late October or early November. A decision will come after the submission of the briefs.  

We will keep you informed of developments in this case.

Sincerely and Fraternally,            

September 5, 2007

US Airways Membership Chooses Change of Control Arbitration

To: All US Airways IAM Members

Printable Version

Dear Sisters and Brothers, 

The difference between union and non-union employees is simple: unions give employees choices and options. The IAM provided US Airways Fleet Service employees with a choice between accepting contract changes two years before the East’s December 31, 2009 amendable date or going forward with the Change of Control arbitration. After two weeks of voting, 64% of the membership has chosen to present our Change of Control grievance to a neutral arbitrator instead of accepting the tentative agreement. Your negotiating committee thanks the membership for their active participation throughout the protracted negotiation and ratification process.  

The Change of Control arbitration will be heard on September 13 and 14, 2007. Preparations for the arbitration have been ongoing for nearly two years and did not cease because of the tentative agreement. District 141 and our attorneys are eager to present our case before a neutral party.  

Separately, the West agreement is currently amendable and District 141 will continue negotiating to bring West employees under the East agreement and fairly integrate the two work groups.

             In solidarity,

S.R. (Randy) Canale
President & Directing General Chairman 

Rich Johnsen              Dan Zuger                               Tom Regan         Jeff Rusk

Mary Reed                  Tony Armideo                          Dave Lolly          Ron Roth

Bill Chandlee               John Mendenhall                     Pat Flynn           Mark Wingard

Steve Miller

Jeff Hayden

August 23, 2007

Change in Control Litigation Update

To: All US Airways IAM Members

Printable Version

Dear Sisters and Brothers:

This summer, US Airways filed an appeal of the Machinists Unions’ District Court win that compelled the airline to go forward with the Change in Control arbitration. The arbitration is currently scheduled to begin next month. Today, the court of appeals ordered that the briefing schedule on the appeal would not begin until November 7, 2007. While this does not affect the arbitration schedule, it does mean that a decision on US Airways’ appeal is not expected until Spring, 2008 or later. In addition, any ruling by the arbitrator may be subject to a further court appeal.

You will be advised of any new developments in the case.

In solidarity,

S.R. (Randy) Canale
President & Directing General Chairman

August 14, 2007

US Airways Update

To: All US Airways IAM Members

Printable Update

Complete Terms of Agreement 

Dear Sisters and Brothers:

District and Local Lodge representatives are meeting in Charlotte, NC today to review and discuss the Tentative Agreement reached last week between District 141 and US Airways. The complete terms of the Tentative Agreement are now available on the District 141 website.

The Transition Agreement, like any type of complex contract, always generates questions. Your Local representatives are receiving in-depth explanations of what was negotiated and how the terms were reached. They will be able to answer your questions about the Agreement when they return to their home stations so you can receive factual answers before casting your informed vote. District 141 is also developing a Q&A document that will be posted on our website to answer the membership’s most common questions.  

Each Local Lodge is responsible for posting ratification voting dates, times and locations. Ratification results will be announced on September 5, 2007.  

             In solidarity,

S.R. (Randy) Canale
President & Directing General Chairman 
 

Rich Johnsen              Dan Zuger                               Tom Regan      

Jeff Rusk

Mary Reed                   Tony Armideo                          Dave Lolly        

Ron Roth

Bill Chandlee               John Mendenhall                     Pat Flynn          

Mark Wingard              Steve Miller                             Jeff Hayden

August 10, 2007

District 141 and US Airways Reach Tentative Agreement

Dear Sisters and Brothers:

After more than a year of negotiations and the recent assistance of National Mediation Board facilitator Linda Puchala, your District 141 negotiators today reached a tentative agreement with US Airways that provides for a single collective bargaining agreement for all Fleet Service workers.

The tentative agreement includes a single wage scale that covers all Fleet Service workers and provides for wage increases of up to 22%. We also successfully eliminated the 60-day rule and Class II pay scales, increased pension contributions (to the only defined benefit pension plan on the property) and significantly enhanced our scope language that provides additional job security. A summary of terms is posted here. 

One of our major demands was to bring East & West employees together, and we were successful in achieving our goal. Most importantly, it did not come at the expense of either group.

This contract will guarantee more job security, higher wages and increased pensions. The alternative is waiting until the East’s current December 31, 2009 amendable date to seek contract changes and taking our chances with the Change in Control grievance. Even winning that grievance would not provide the improvements contained in this tentative agreement. These improvements were achieved, in part, because of the increased leverage our Change in Control grievance provided. If the tentative agreement is accepted, the Change in Control grievance will be withdrawn.

Your negotiating committee unanimously recommends ratification of this agreement. The final decision, however, rests with the membership. We urge the membership to attend ratification meetings, ask questions and base your decision on factual information, not rumor.

Your choice will be between accepting the proposed changes now, or waiting for traditional negotiations to resume in 2009. US Airways has been through two bankruptcies in three years, so in spite of the airline’s current state, we are all well aware of what can happen in a short period of time.

These have been very difficult negotiations because of the unique situation the merger created. They were successful because East and West employees worked together, not just at the bargaining table, but also in the workplace. We look forward to moving ahead as a unified workforce.

District 141 Local Chairmen will meet in Charlotte, NC on Tuesday, August 14, 2007 to receive the proposed terms of the tentative agreement and comprehensive explanations from the negotiators. The complete terms will also be posted on the District 141 website at that time.

A ratification schedule is being developed and will be distributed to the membership. Vote results will be announced on September 5, 2007.

Thank you for your extraordinary patience, solidarity and support.

In solidarity, we remain

S.R. (Randy) Canale
President & Directing General Chairman