BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
- Banned
- #16
SH,
From my perspective an outsider watching the negotiation process (never in the room), Parker's single big mistake was his insistence on a "cost neutral" combined contract. Because "cost neutral would have guaranteed concessions by one or both sides, that guaranteed no movement for the first year and a half of the merger. If he had put the $120 million that the Kirby proposal supposedly represented on the table initially, everything would have probably been settled when the arbitrator announced his award. The last 4+ years of ejecting ALPA, legal wrangling over the seniority integration, and now the company/USAPA fight could have been avoided. I can understand why he wanted "cost neutral" at the time - the whole merger was predicated on "old" US having about the same labor cost/seat mile as HP and giving the biggest side contract improvements without taking something back to offset that destroyed the employee cost savings - but in 20/20 hindsight it was an expensive mistake.
The union on both sides insisted that Parker stay out of the seniority issue - not unusual since that's normally the case in mergers. Seniority is for the two sides to work out and not for the CEO to dictate ant more than the CEO can dictate contract terms in union settings. Parker didn't intrude on the FA, mechanic, ramper, customer service, or dispatcher seniority settlements so why would he have done so with the pilots at that time?
As someone else said, the transition agreement spelled out the process of integrating seniority. It said ALPA policy because ALPA represented both sides through the respective MEC's, but if it had said the process would be a fist-fight between MEC chairmen with the victor getting to integrate seniority any way he/she chose the same would be true. Both sides, East and West representatives, agreed to the process specified.
Likewise with the joint statement of labor principles - Lakefield and Parker specified what they considered fair in the seniority integration. While in no way binding on either pilot group, it provided a framework for what the two CEO's considered fair.
Anyway, that's my 2 cents.
Jim
From my perspective an outsider watching the negotiation process (never in the room), Parker's single big mistake was his insistence on a "cost neutral" combined contract. Because "cost neutral would have guaranteed concessions by one or both sides, that guaranteed no movement for the first year and a half of the merger. If he had put the $120 million that the Kirby proposal supposedly represented on the table initially, everything would have probably been settled when the arbitrator announced his award. The last 4+ years of ejecting ALPA, legal wrangling over the seniority integration, and now the company/USAPA fight could have been avoided. I can understand why he wanted "cost neutral" at the time - the whole merger was predicated on "old" US having about the same labor cost/seat mile as HP and giving the biggest side contract improvements without taking something back to offset that destroyed the employee cost savings - but in 20/20 hindsight it was an expensive mistake.
The union on both sides insisted that Parker stay out of the seniority issue - not unusual since that's normally the case in mergers. Seniority is for the two sides to work out and not for the CEO to dictate ant more than the CEO can dictate contract terms in union settings. Parker didn't intrude on the FA, mechanic, ramper, customer service, or dispatcher seniority settlements so why would he have done so with the pilots at that time?
As someone else said, the transition agreement spelled out the process of integrating seniority. It said ALPA policy because ALPA represented both sides through the respective MEC's, but if it had said the process would be a fist-fight between MEC chairmen with the victor getting to integrate seniority any way he/she chose the same would be true. Both sides, East and West representatives, agreed to the process specified.
Likewise with the joint statement of labor principles - Lakefield and Parker specified what they considered fair in the seniority integration. While in no way binding on either pilot group, it provided a framework for what the two CEO's considered fair.
Anyway, that's my 2 cents.
Jim