US Airways ALPA MEC Chairman's Letter to Doug Parker
August 21, 2007
Mr. Doug Parker, CEO
US Airways, Inc.
1111 West Rio Salado Parkway
Tempe, AZ 85281
Dear Doug,
Last week, the US Airways MEC met in Washington, DC in order to address the pay discrimination caused by the two-tier B-scale wage system in place for the US Airways East pilots. As you know, the MEC passed a resolution that reassigns the East members of the JNC back to Negotiating Committee duties, and directs that they will no longer engage in joint contract negotiations until the US Airways pilots are provided longoverdue pay parity with the America West pilots. Furthermore, after September 1, 2007, any settlement with the US Airways pilots will include retro pay from that date, including an interest charge of 8% for monies due.
Shortly after our MEC passed this resolution, you quickly responded to our pilot group by telling them that the problem is not that you want to deny them pay parity, but that you will only grant it under a joint contract with the West. You also write that “the East MEC resolution correctly notes that some other contract employees have received pay parity, but in each case that came with a joint contract.†Our pilots are well aware, as are you, that the JNC process is not the only way to achieve equal pay. They have not
forgotten how many times our contract was opened on management’s behalf.
Let us lay it on the line. What joint contract do you think our pilots would ratify, since in doing so, it would lead to the implementation of the Nicolau Award? Doug, our pilots deserved equal pay years ago, yet this company prospers on the backs of the US Airways East pilots.
It is ironic to me, that in your communications to our pilots, you attempt to portray an image of neutrality with statements such as “not wanting to drive a wedge between the pilot groups.†In this industry, it is hard to imagine driving a bigger wedge than what you are currently doing by compensating differently the company’s pilots (who are represented by the same union and flying some of the same equipment) for two years now. The hypocrisy is astounding. Every day, our pilots continue to struggle financially under LOA 93. Meanwhile, you add to your millions and the rest of our airline enjoys profit sharing produced largely by the lowest pilot wages in the industry.
On another issue, the contract that you offered to the JNC on May 8, 2007 containing equal pay plus a three percent raise was a single joint contract. It was grossly inferior to industry-standard contracts, and in some ways, concessionary. Both East and West members of the JNC found the proposal insulting and not even close to recognizing the considerable contributions and sacrifices of our pilots. More importantly, your proposal would fully implement the Nicolau Award, which you already know is a non-starter.
There is also the cost issue of equal pay. Both the US Airways and the America West JNC members have told management that parity wages were a merger-related expense, a business decision—no different than the ill-fated proposal to purchase Delta Airlines. The US Airways pilots stood in amazement as you offered all the pilots the best of the three pilot contracts going into that deal. Yet, once that deal was squelched, you returned to your previous stance, again ignoring that the US Airways pilots were not being paid the same wages. At this point, as long as there is a pay disparity in the JNC three-party negotiating process, serious and fair negotiations cannot take place.
To paraphrase your own words, equal pay for equal work is the right thing to do, and you readily admit having the resources to do it. As if you don’t already have enough reasons to do the right thing, let me offer some to consider. Below is a list of “right things†that you have done for the pilots of AWA:
1. You made sure the West pilots were brought up to East standards as far as DC contributions are concerned. No longer do West pilots have to match 401(k) contributions to get a 10% plan.
2. The West pilots were able to participate in the profit sharing plan that was part of the East Collective Bargaining Agreement. The US Airways MEC also endorsed sharing our plan with the West.
3. Recall that the East had an agreement with US Airways to pay for mergerrelated expenses. The West did not. They asked for and subsequently received an amount in the area of $125,000 for their merger expenses. The East supported the AWA pilots in their endeavor. We, on the other hand, are still trying to recapture something you took away from us—Union Space Positive Travel and the ability to properly represent our pilots in our multi-domicile system. We enjoyed that right until you stole it with a stroke of the pen by unilaterally implementing your own policy. We are close to a settlement on the issue after many hours of work by the MEC leadership. We are now told that the AWA pilots will be given these same Union Space Positive Travel benefits, even though they never had them before.
4. Inclusion of the West pilots on the East IVR Jump Seat System.
5. Make no mistake, we would expect that you would honor the West CBA and provide them with their contractual 3% raise in January of 2007. But you have publicly acknowledged that without the merger with AAA, the AWA pilots would likely have ended up with pay cuts through the bankruptcy process.
You have stated that the merger with US Airways prevented all that.
We certainly have the right to demand different treatment from our management.
Unarguably, the course and destiny of America West and US Airways would be drastically different today if it were not for the difficult decisions made by the US Airways East pilots. While we could rightfully expect to be treated much differently for making truly heroic decisions, we simply ask that we be treated the same. You immediately leveled the playing field for your management team and others shortly after the merger in terms of compensation. You have had almost two years to do that for our pilots while the JNC process sputtered along at your pace. It wasn’t long ago in the JNC process when we offered to attend a two-week lockdown, in a neutral location, in order for us to hammer away at achieving a mutually acceptable CBA. You declined. The pilots’ patience has run out. To attempt to hide behind a flawed JNC process, and use your position of “neutrality†as the alibi, is nothing less than offensive.
In light of your August 16 letter, I ask that you again carefully read the MEC’s resolution.
If you are under the mistaken assumption that the MEC is running wild, I invite you into our crew rooms to speak personally to our pilots. You were once received warmly there, but I ask you to look each of our pilots in the eye now and see if the temperature of their reception has changed. Don’t take my word for it; ask them what they think of performing the same job for less money. Ask them how they feel about subsidizing profits for you and others by being on a B-Scale and being paid less than the West pilots.
Ask them how they feel about equal treatment, your offer to the pilots during the proposed Delta merger, and the so-called “level playing field†in which we work and negotiate.
Doug, it will be important for labor management relations that you reconsider your position on parity. You will find that our pilots are more than ready to take a stand to recapture what is rightfully theirs. We expect to be compensated accordingly and not one penny less than our brother and sister AWA pilots. Just like before, the survivability of this airline is at stake, and this time it will require your participation.
Sincerely,
Jack Stephan
US Airways MEC Chairman