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Scope Clause Language – TWU Versus The Other Unions
February 23, 2013
The TWU scope clause (Article I) has changed in the newly ratified September 12, 2012 M&R agreement. While the TWU negotiating committee pushed for maintaining the previous language that kept approximately 90% of maintenance spend in-house (includes TAESL as insourced work), the bankruptcy (BK) process made that an impossibility.
Every airline that has gone through bankruptcy has targeted Scope clauses in union contracts. As a result, other organizations have largely had their contractual Scope protections gutted. The TWU did not let that happen. When you compare our contract language with other organizations, we ended up with far better Scope language then the IBT, AMFA and IAM have at their respective carriers.
AMFA Scope Clause at United
AMFA became the collective bargaining agent of M&R at United after the Company had already entered BK and extracted one round of concessions. AMFA had promised better results than the IAM had in BK court. However, two years later AMFA negotiated an agreement during the BK process that removed the IAM’s prohibition against overseas maintenance, allowed outsourcing of whole categories of plant maintenance work, and preserved only three lines of heavy maintenance. AMFA also agreed to another wage cut and termination of the UAL pension plan. Within a short period of time, most of the remaining airframe overhaul work that United performed in-house was outsourced, with large portions being sent overseas to Korea and China. The 747, 767, and 777 overhaul work was moved and the good paying union jobs that performed this work at SFO were eliminated.
If the AMFA scope language were in effect at American Airlines, ninety percent of airframe overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of May 1993 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of April 1999 to avoid layoff.
AMFA Scope Clause at Northwest
When AMFA signed its first agreement with NWA there were over 10,000 mechanic and related on the property. After a series of force majeure layoffs and AMFA arbitration losses, AMFA was reduced to 4200 active M&R employees before its strike. What happened next at Northwest was a disaster for labor. AMFA took its members out on strike without a strategy or plan, and despite the fact that Northwest had an aggressive program to hire and train replacement workers in preparation for the strike. When AMFA lost the strike, only 900 mechanics remained, most of whom were scabs. As part of the contract settlement after the strike, both the scabs and supervision were placed on the seniority list. The new AMFA scope clause had no caps on outsourcing and only two stations were to be staffed, MSP and DTW.
If the AMFA/NWA scope language were in effect at American Airlines, all airframe overhaul, all engine overhaul, all back shops, all component shops, and the majority of line maintenance would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of November 1985 to avoid layoff. There would be no Title II workers.
IBT Scope Clause at United
The IBT took over from AMFA after strong member dissatisfaction with AMFA’s performance. The IBT negotiated their first contract in 2011, but they were not able to bring more work in-house. The new scope clause has no specific outsourcing cap and United can continue to outsource as long as it does not result in layoffs. Currently United outsources 45% of its maintenance expense and has only three heavy overhaul lines in house.
If the IBT scope language were in effect at American Airlines, all airframe overhaul could be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of May 1993 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of April 1999 to avoid layoff.
IBT Scope Clause at Continental
After years of being non-union M&R members at Continental organized and joined the IBT. Continental had already outsourced most heavy overhaul during the Bethune era. Heavy overhaul bases at LAX and DEN were closed and thousands of AMT jobs gone. The IBT was unable to secure any cap on outsourcing however, through cost and productivity improvements, the 737 and 757 light C Check work was brought in-house.
If the IBT scope language were in effect at American Airlines, most airframe overhaul, all engine overhaul, and all component overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of February 1992 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of October 1997 to avoid layoff.
AMFA Scope Clause at Alaska
AMFA has negotiated several contracts with Alaska since they took over from the IBT. Prior to AMFA’s arrival, Alaska maintained an overhaul facility in OAK with approximately 350 mechanics. Under the AMFA/ASA agreement all heavy overhaul and plant maintenance was outsourced beginning in 2004, and the OAK maintenance base was closed.
If AMFA/ASA scope was applied at AA all heavy maintenance facilities would be closed and all automotive and facilities mechanics would be furloughed.
IAM Scope Clause US Airways
The IAM at US Airways went through two bankruptcies. During that time management attacked the US Airways scope clause by outsourcing all A330, 757, and 767 overhaul and retained the 737 and A320 work in house.
If the IAM scope language were in effect at American Airlines, all wide-body airframe overhaul, partial engine overhaul, and most component overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of July 1991 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of July 1987 to avoid layoff.
AMFA Scope Clause at Southwest
Southwest Airlines has performed very limited overhaul work in-house. Prior to 2003, the IBT represented M&R and Southwest Airlines had approximately 4 M&R workers per aircraft. By the end 2011, that number had dropped 3.0 workers per aircraft. In attempt to place a floor on further loss of work, AMFA negotiated a headcount per aircraft ratio of just 2.25 mechanics per aircraft. The scope language also locks in heavy check work at four airframe check lines at 622 aircraft. There is no maintenance spend cap in AMFA’s contract and Southwest now stands at 60% of aircraft maintenance spend on outsourced work.
If the AMFA/SWA scope language were in effect at American Airlines only four lines of airframe overhaul in-house (the equivalent of DWH only), all engine overhaul, and all component overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of November 1990 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of June 1988 to avoid layoff.
Scope Clause Summary
When you put the TWU scope clause head-to-head with that at any other carrier the answer is clear. The TWU language protects more good paying jobs than any other union contract in the airline industry. The TWU continues to perform the bulk of American’s heavy maintenance in house while, other unions have allowed most of their work to be sent to non union domestic MROs, and increasingly, to China, Korea, El Salvador, and Mexico.
In Solidarity,
CIO
February 23, 2013
The TWU scope clause (Article I) has changed in the newly ratified September 12, 2012 M&R agreement. While the TWU negotiating committee pushed for maintaining the previous language that kept approximately 90% of maintenance spend in-house (includes TAESL as insourced work), the bankruptcy (BK) process made that an impossibility.
Every airline that has gone through bankruptcy has targeted Scope clauses in union contracts. As a result, other organizations have largely had their contractual Scope protections gutted. The TWU did not let that happen. When you compare our contract language with other organizations, we ended up with far better Scope language then the IBT, AMFA and IAM have at their respective carriers.
AMFA Scope Clause at United
AMFA became the collective bargaining agent of M&R at United after the Company had already entered BK and extracted one round of concessions. AMFA had promised better results than the IAM had in BK court. However, two years later AMFA negotiated an agreement during the BK process that removed the IAM’s prohibition against overseas maintenance, allowed outsourcing of whole categories of plant maintenance work, and preserved only three lines of heavy maintenance. AMFA also agreed to another wage cut and termination of the UAL pension plan. Within a short period of time, most of the remaining airframe overhaul work that United performed in-house was outsourced, with large portions being sent overseas to Korea and China. The 747, 767, and 777 overhaul work was moved and the good paying union jobs that performed this work at SFO were eliminated.
If the AMFA scope language were in effect at American Airlines, ninety percent of airframe overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of May 1993 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of April 1999 to avoid layoff.
AMFA Scope Clause at Northwest
When AMFA signed its first agreement with NWA there were over 10,000 mechanic and related on the property. After a series of force majeure layoffs and AMFA arbitration losses, AMFA was reduced to 4200 active M&R employees before its strike. What happened next at Northwest was a disaster for labor. AMFA took its members out on strike without a strategy or plan, and despite the fact that Northwest had an aggressive program to hire and train replacement workers in preparation for the strike. When AMFA lost the strike, only 900 mechanics remained, most of whom were scabs. As part of the contract settlement after the strike, both the scabs and supervision were placed on the seniority list. The new AMFA scope clause had no caps on outsourcing and only two stations were to be staffed, MSP and DTW.
If the AMFA/NWA scope language were in effect at American Airlines, all airframe overhaul, all engine overhaul, all back shops, all component shops, and the majority of line maintenance would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of November 1985 to avoid layoff. There would be no Title II workers.
IBT Scope Clause at United
The IBT took over from AMFA after strong member dissatisfaction with AMFA’s performance. The IBT negotiated their first contract in 2011, but they were not able to bring more work in-house. The new scope clause has no specific outsourcing cap and United can continue to outsource as long as it does not result in layoffs. Currently United outsources 45% of its maintenance expense and has only three heavy overhaul lines in house.
If the IBT scope language were in effect at American Airlines, all airframe overhaul could be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of May 1993 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of April 1999 to avoid layoff.
IBT Scope Clause at Continental
After years of being non-union M&R members at Continental organized and joined the IBT. Continental had already outsourced most heavy overhaul during the Bethune era. Heavy overhaul bases at LAX and DEN were closed and thousands of AMT jobs gone. The IBT was unable to secure any cap on outsourcing however, through cost and productivity improvements, the 737 and 757 light C Check work was brought in-house.
If the IBT scope language were in effect at American Airlines, most airframe overhaul, all engine overhaul, and all component overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of February 1992 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of October 1997 to avoid layoff.
AMFA Scope Clause at Alaska
AMFA has negotiated several contracts with Alaska since they took over from the IBT. Prior to AMFA’s arrival, Alaska maintained an overhaul facility in OAK with approximately 350 mechanics. Under the AMFA/ASA agreement all heavy overhaul and plant maintenance was outsourced beginning in 2004, and the OAK maintenance base was closed.
If AMFA/ASA scope was applied at AA all heavy maintenance facilities would be closed and all automotive and facilities mechanics would be furloughed.
IAM Scope Clause US Airways
The IAM at US Airways went through two bankruptcies. During that time management attacked the US Airways scope clause by outsourcing all A330, 757, and 767 overhaul and retained the 737 and A320 work in house.
If the IAM scope language were in effect at American Airlines, all wide-body airframe overhaul, partial engine overhaul, and most component overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of July 1991 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of July 1987 to avoid layoff.
AMFA Scope Clause at Southwest
Southwest Airlines has performed very limited overhaul work in-house. Prior to 2003, the IBT represented M&R and Southwest Airlines had approximately 4 M&R workers per aircraft. By the end 2011, that number had dropped 3.0 workers per aircraft. In attempt to place a floor on further loss of work, AMFA negotiated a headcount per aircraft ratio of just 2.25 mechanics per aircraft. The scope language also locks in heavy check work at four airframe check lines at 622 aircraft. There is no maintenance spend cap in AMFA’s contract and Southwest now stands at 60% of aircraft maintenance spend on outsourced work.
If the AMFA/SWA scope language were in effect at American Airlines only four lines of airframe overhaul in-house (the equivalent of DWH only), all engine overhaul, and all component overhaul would be outsourced. Under these circumstances, a Title I AMT would need to have an occupational seniority date of November 1990 to avoid layoff. A Title II PM mechanic would need an occupational seniority date of June 1988 to avoid layoff.
Scope Clause Summary
When you put the TWU scope clause head-to-head with that at any other carrier the answer is clear. The TWU language protects more good paying jobs than any other union contract in the airline industry. The TWU continues to perform the bulk of American’s heavy maintenance in house while, other unions have allowed most of their work to be sent to non union domestic MROs, and increasingly, to China, Korea, El Salvador, and Mexico.
In Solidarity,
CIO
