Arbitration update

Tim Nelson

Veteran
Jan 5, 2003
10,937
4,875
Bartlett
By your company's own admission, fleet service arbitration award was approx. $300,000,000.
Folks, that's a 1/3 Billion dollars. Here's the facts:

1. The IAM only arbitrates cases that have bigtime merit. Over 15 years I think they have only arbitrated a half dozen cases. This case was one of them because it has "Total merit" and was described as a 'slam dunk'. Even your company admitted on paper that a change in control did happen and that alone affected bonus' and payouts for senior executives [if I remember the CLT town hall meeting correctly which a CLT fleet service worker had obtained public company documents expressing this].

2. Your company is 'VERY CONCERNED' with good reason and doesn't want to go to arbitration. They tried their best by trying to force a judge to agree with them that a bankruptcy judge should hear the case. THEY LOST. THERE IS BIG REASON WHY YOUR COMPANY IS DELAYING ARBITRATION AND DOING WHATEVER THEY CAN TO NOT GO. Your T/A is a 'snake oil scheme' to steal your socks off of you without taking your shoes off. To throw away 1/3 billion dollars is asinine for the employee but smart for the company and union.

3. Your company has 'appeased' the IAM by securing 'enhanced positive space travel' for the Union Bosses', and securing thousands of more members. So why has the IAM flip flopped on arbitration and now insist that you should 'pay no attention to it'? Politics, they want your vote because they have been appeased.

The choice is clear, throw 1/3 Billion $ in the trash for a buck raise or force your company to pay up for the lost wages.

There is only one 'smart' choice.

Question
The IAM sez it will take between 2 and 4 years to collect our award?
Answer
This may be true but I doubt it. If you are awarded what you deserve then the retro pay will be 'severe' for your company. As it stands, fleet service would not only get over $21 hr but also 'retro' pay of over $20,000 for some folks and it is still collecting as each day goes by.

regards,
 
my question is, not knowing the snap-back languague that well. if the arbiter agrees with the union on a change of control taking place, then the members should return to a pre bk cba, correct? I am thinking that should restore the clas 1 2 and 3 stations back none, pay increases, holidays vacation etc....
Why would anyone want to vote now and take less willingly. after ratifying this t/a then wouldn't any ruling only force the company to pay back from the original date of transfer to the new t/a date..

Oy Vey
 
Tim, I don't know if the AGC's know about this!

Yesterday in CLT, The AGC made the statement;
"Back Pay! What do you mean Back Pay? No one ever said anything about Back Pay!"
He was also informing everyone that the arbitration was only worth 38 Million.

Thanks for the info!! :up:
 
My understanding of the 1999 FSA says if there is a CIC, ALL contract providsions are snapped back.
 
I believe the language is identical in the M&R contract, that is why the grievances were grouped together.

Which is pay rates from when we all got parity.
 
The IAM fleet contract only states snap backs for pay. There is nothing in that agreement that says anything about back pay. Where did you guys get that information?
 
The back pay issue would be that if indeed the change of control was violated and won by the IAM, it would have been effective the day the grievance was filed, therefore that is why the back pay would be given as it has been an ongoing experience.
 
That makes sense. Thank you. But doesn't that depend on the arbitrator to decided if back pay will be awarded?
 
If the Grievance is upheld, the arbitor would have to award back pay as that is the premsis of the grievance.

The day the merger was completed would have been the day for the pay rates to snapback and specific % raises given every year as spelled out in the language in the CBA.
 
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my question is, not knowing the snap-back languague that well. if the arbiter agrees with the union on a change of control taking place, then the members should return to a pre bk cba, correct? I am thinking that should restore the clas 1 2 and 3 stations back none, pay increases, holidays vacation etc....
Why would anyone want to vote now and take less willingly. after ratifying this t/a then wouldn't any ruling only force the company to pay back from the original date of transfer to the new t/a date..

Oy Vey
Redeye,

Court documents put the total arbitration package at close to $700 million [mechanics and Fleet]. This figure was the work of "TOP" economist/accountants from "recognized' institutions and paid by your company. The $300,000 million was a figure represented in public record by your company to the Judge, and your company contracted with the NUMBER 1 Law firm in the country according to that one magazine....and LOST ITS CASE.

As far as the IAM loyalist goes. The folks presenting the T/A are presenting '3 scenerios' but HAVE FAILED TO BREAKDOWN ANY NUMBERS on the worth of each giveback. It's politics and the IAM was 'appeased' by your company and is campaigning for a yes vote by being a company mouthpiece. You should not be surprised that the IAM is discarding the arbitration 'before a vote' as something next to meaningless. Also, the IAM sez, NOBODY will see the award if the arbitration case is won until 2-4 years. I disagree because ANY award will still have to be paid and 'huge' backpay checks with possible interest should be 'most welcomed' by IAM members. So if you're an IAM member, you should be excited if the company doesn't pay out the award for 2-4 years, it means 'more for you'. Also, as 700uw correctly said, the back pay is a result of the violation over the past 2.3 years. For fleet service it means over $20,000 for some folks and still 'big fat paycheck' for others. Of course the IAM won't talk about that....R U Kidd me?

regards,
 
the iam said they expect to announce the vote results on sep 5, is'nt that a coincedence. the arbitration is sheduled for the 11th or 13th....... vote this down, go back to the company and say we want what we want and when the arbitration is won the pay scales will be set and the west can transition to it.....
 
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the iam said they expect to announce the vote results on sep 5, is'nt that a coincedence. the arbitration is sheduled for the 11th or 13th....... vote this down, go back to the company and say we want what we want and when the arbitration is won the pay scales will be set and the west can transition to it.....
The IAM and company DO NOT WANT to go to arbitration. BANK ON THAT as I think all of you on this board, regardless of how you vote, can understand.
My understanding is that UA wants 'done deals'. I have forwarned you people that the fleet deal would happen around August 1st, even though the IAM loyalist were lying about the company not wanting to negotiate. I have also expressed the apparent "UA Deal" 3 days before Tilton made his desires public. I'm not a prophet and am only as good as my sources....but my sources are 'Tops' IMO.

Further, a "top" source in my book reviewed your T/A and after the concessions and pay raises are added, it represents something between a $7 million -$12 million offer. This represents a potential savings for your company of approx. $288 million dollars. Most of the benefits will be provided to the class 2 stations who come out the best. It's basically a wash for the class 1 stations as the profit sharing represents over a $1 giveback based on current profit projections.

Most of the concessions, which are 'significant' will be to the westies as they give up their scope protections, std, ltd, health, shift differ, vacation, holidays, holiday pay, ops differ, part time grievance award, profit sharing, double time. Basically the westies throw all their benefits under the bus for a wage increase. Even privileges like shift swaps are reduced.
The westies will experience 'great pain' but the pain will be masked with a pay raise that offsets some of the concessions. Some of these concessions were needed so that the IAM could have an enhanced positive space travel for its High paid 'Bosses'.

This didn't include any projected savings for the company with elimination of 450 jobs and closure of 19 westie stations after 3.5 years.

regards,
 
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the iam said they expect to announce the vote results on sep 5, is'nt that a coincedence. the arbitration is sheduled for the 11th or 13th....... vote this down, go back to the company and say we want what we want and when the arbitration is won the pay scales will be set and the west can transition to it.....
700,
the IAM thinks the ramp is stupid but just because people work the ramp doesn't mean they are dumb. The problem is fear, confusion and panic. The IAM is good at stirring this up with threats that the arbitration is meaningless. Even though your own company had highly respectable attorneys, economist and accountants put the arbitration award at close to $700 million, IAM loyalist coming into breakrooms are marginalizing it and DONT" want to talk about interst awards and back pay.

It's a mind job come true if they can 'snake oil' the ramp to give up a 1/3 billion dollar award. The equivalence of stealing socks and leaving the shoes still on. God forbid the IAM bosses not be given their enhanced positive space travel!

regards,
 
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