Chuck Schalk
Veteran
- Nov 17, 2006
- 1,042
- 1,149
The McCaskill-Bond Amendment
What is it? How did it come about? How does it affect us?
What is it?
Passed as part of the Consolidated Appropriations Act of 2008, the McCaskill-Bond
Amendment provides a process for achieving a “fair and equitable” seniority integration of
employee groups affected by the combination of two or more airlines.
The seniority integration procedures provided for in the Amendment are those found in Sections 3
and 13 of the Allegheny-Mohawk Labor Protective Provisions (LPPs). Imposed upon
Allegheny Airlines and Mohawk Airlines by the Civil Aeronautics Board (CAB) in 1971, the
LPPs governed the seniority integration of the employee groups when those two airlines merged in
1972 and were subsequently imposed on other mergers until the passage of the Airline
Deregulation Act of 1978. After that, the LPPs were no longer imposed by the federal
government. Nevertheless, unions generally negotiated for similar procedural safeguards
relating to merger-related seniority integration to be incorporated in their collective bargaining
agreements. As a shorthand, these contractual safeguards are frequently referred to as
Allegheny-Mohawk LPP’s Sections 3 and 13.
Section 3 of the LPPs provides that, where applicable, the carrier and the representatives of
the affected employee groups shall attempt to achieve through collective bargaining a “fair
and equitable” seniority integration. If the parties are not able to reach an agreement on a “fair
and equitable” seniority integration through negotiations, the dispute will be submitted to a
neutral arbitrator for a final and binding resolution.
Section 13 of the LPPs governs the arbitration process. An arbitrator will be selected by the
unions and the case is to be heard expeditiously. Each party will present its case to the arbitrator
and may call witnesses, including employees, industry experts, and financial analysts. After
completion of the case, the arbitrator will make the award – the new integrated seniority list. Per
the LPPs, the cost of the arbitration will be split between the parties.
How did it come about?
In 2001, American Airlines purchased TWA after this carrier had filed for bankruptcy. As part
of the bankruptcy process, TWA successfully demanded that the unions representing TWA
employees – including ALPA and the IAM – waive their contractual rights to seniority
integration in accordance with Allegheny-Mohawk LPP’s Sections 3 and 13. As a result, the
TWA pilots and flight attendants lost their right to demand the arbitration of an integrated
seniority list. Instead, the seniority lists that were imposed on these TWA employee groups were
largely the product of negotiations between American Airlines and its own unions.
In response to the perception that the seniority integration lists imposed on the TWA pilots and
flight attendants were unjust, Senator Claire McCaskill, the Democratic Senator from Missouri,
sponsored the current federal law that requires that the procedures of the Allegheny-Mohawk
LPPs Sections 3 and 13 be followed – except where the respective employee groups are
represented by the same union.
Exactly what does “seniority list integration” mean?
Quite simply it means the method by which the two seniority lists are combined into one. Prior to
negotiating over the integration of the seniority lists, each party must decide how they wish to see it
accomplished. There is no set way of doing it. Each group determines what is best for their group.
commonly used methods of list integration:
Date-of-Hire – Many people believe straight date-of-hire is the only fair way to merge the lists. It
is the only method that gives each employee credit for her/his entire career at an airline.
Under this method, one year at Airline X is no more or no less valuable than one year at
Airline Y.
What is it? How did it come about? How does it affect us?
What is it?
Passed as part of the Consolidated Appropriations Act of 2008, the McCaskill-Bond
Amendment provides a process for achieving a “fair and equitable” seniority integration of
employee groups affected by the combination of two or more airlines.
The seniority integration procedures provided for in the Amendment are those found in Sections 3
and 13 of the Allegheny-Mohawk Labor Protective Provisions (LPPs). Imposed upon
Allegheny Airlines and Mohawk Airlines by the Civil Aeronautics Board (CAB) in 1971, the
LPPs governed the seniority integration of the employee groups when those two airlines merged in
1972 and were subsequently imposed on other mergers until the passage of the Airline
Deregulation Act of 1978. After that, the LPPs were no longer imposed by the federal
government. Nevertheless, unions generally negotiated for similar procedural safeguards
relating to merger-related seniority integration to be incorporated in their collective bargaining
agreements. As a shorthand, these contractual safeguards are frequently referred to as
Allegheny-Mohawk LPP’s Sections 3 and 13.
Section 3 of the LPPs provides that, where applicable, the carrier and the representatives of
the affected employee groups shall attempt to achieve through collective bargaining a “fair
and equitable” seniority integration. If the parties are not able to reach an agreement on a “fair
and equitable” seniority integration through negotiations, the dispute will be submitted to a
neutral arbitrator for a final and binding resolution.
Section 13 of the LPPs governs the arbitration process. An arbitrator will be selected by the
unions and the case is to be heard expeditiously. Each party will present its case to the arbitrator
and may call witnesses, including employees, industry experts, and financial analysts. After
completion of the case, the arbitrator will make the award – the new integrated seniority list. Per
the LPPs, the cost of the arbitration will be split between the parties.
How did it come about?
In 2001, American Airlines purchased TWA after this carrier had filed for bankruptcy. As part
of the bankruptcy process, TWA successfully demanded that the unions representing TWA
employees – including ALPA and the IAM – waive their contractual rights to seniority
integration in accordance with Allegheny-Mohawk LPP’s Sections 3 and 13. As a result, the
TWA pilots and flight attendants lost their right to demand the arbitration of an integrated
seniority list. Instead, the seniority lists that were imposed on these TWA employee groups were
largely the product of negotiations between American Airlines and its own unions.
In response to the perception that the seniority integration lists imposed on the TWA pilots and
flight attendants were unjust, Senator Claire McCaskill, the Democratic Senator from Missouri,
sponsored the current federal law that requires that the procedures of the Allegheny-Mohawk
LPPs Sections 3 and 13 be followed – except where the respective employee groups are
represented by the same union.
Exactly what does “seniority list integration” mean?
Quite simply it means the method by which the two seniority lists are combined into one. Prior to
negotiating over the integration of the seniority lists, each party must decide how they wish to see it
accomplished. There is no set way of doing it. Each group determines what is best for their group.
commonly used methods of list integration:
Date-of-Hire – Many people believe straight date-of-hire is the only fair way to merge the lists. It
is the only method that gives each employee credit for her/his entire career at an airline.
Under this method, one year at Airline X is no more or no less valuable than one year at
Airline Y.
