Joint Negotiating Committee Update: July 8, 2014
It has been a little over two years since APA and US Airways began discussions on the Conditional Labor and Plan of Reorganization Agreement (CLA) that led to the eventual merger of American Airlines and US Airways. Since that time, the APA and USAPA Negotiating Committees have been working extremely well together with the common goal of achieving the best possible contract for our Membership. While this is the first joint communication you have received from us, you can be assured that the committees have been engaged in a partnership working behind the scenes on numerous contract related issues.
Our first significant joint milestone occurred when we combined forces in December 2012 to successfully reach agreement on the Memorandum of Understanding Regarding Contingent Collective Bargaining Agreement (MOU), without which the merger would likely have not occurred. The MOU also provides the process by which the two pilot groups will meet with the Company in an effort to amend the MTA and create the Joint Collective Bargaining Agreement (JCBA). In the interim, both the APA and USAPA Negotiating Committees have cooperated on many contract implementation issues and are fully prepared for the next step in the process – negotiations for the JCBA.
Today, July 8, marks the beginning of JCBA negotiations between American Airlines management and the combined APA/USAPA negotiating team. This negotiation is somewhat different than a traditional Section 6 negotiation. The current CBA for both pilot groups is the Merger Transition Agreement (MTA), which isn’t amendable until January 1, 2019. Because of this, there will be no National Mediation Board (NMB) oversight or involvement in the negotiation process. There is neither a mediation process nor any statutory self-help process provided. The JCBA discussions do, however, have a defined timeline and an interest arbitration process to settle any outstanding issues remaining at the end of that timeline.
Timeline: The pilots and the Company must complete JCBA negotiations no later than 30 days after the National Mediation Board certifies a single bargaining representative. If the JCBA has not been completed within this time period, a three-member arbitration panel will be seated and charged with concluding the process and rendering the JCBA.
Through cooperation with numerous committees and the Boards of both Associations, we have developed a strategy we believe will result in contractual improvements for all of our pilots. We will begin this week with the first step of proposing some select no cost and low cost proposals to improve upon certain provisions in the MTA along with some no cost and low cost provisions similar to those that existed in the US Airways pilot CBAs. As we progress, there will also be proposals made that bring more significant value to our pilots.
We all know this merger would have likely not occurred without the pilots being at the forefront of the effort. It is not lost on any of us just how successful this merger has become. The new American Airlines has achieved tremendous financial results at a much faster pace than almost anyone could have imagined. We expect Management to recognize the value we have brought to this venture and to respond by compensating the pilots for their steadfast support of the merger and professional contribution everyday to the operation of our airline. We strive to, as expeditiously as possible, reach parity with our peers in the industry who are enjoying substantially better pilot contracts.
We are hopeful that Management will join us in agreeing to changes to the current MTA that yield a JCBA that is beneficial to both American Airlines and its pilots. The pilots of the new American Airlines can all be proud of our accomplishments thus far. We are confident that our efforts will lead to a successful outcome in these talks.
Your USAPA and APA negotiating teams will continue our partnership in this effort and will update you as we proceed through the JCBA process. Thank you for your support.
