“1113 c proceedings are not Section 6 negotiations”. Well now, we are starting to get somewhere. You may want to tell that to your friends Mr Owens, or Vortilon, or 1AA or all of the other experts that have said just the opposite and criticized the TWU for dealing with the same restrictions and legal limits that AMFA had to deal with in 2005. You are correct that the Company needed AMFA to agree that it could terminate its defined benefit pension plan without being required to set up an equivalent defined benefit plan. Otherwise United would have been liable under the contract and under the Railway Labor Act for massive damages. So AMFA did just what CIO said – it agreed to termination and, in addition, that the Company had no further obligation to pay defined pension benefits. Did it have a choice? I doubt it. If AMFA hadn’t agreed that the Plan could be terminated the Court probably would have imposed the relief. Of course, you could have adopted Brother Owens strategy –the one he criticizes the TWU for not adopting-- and let the Court impose and then go fight for the right to strike in response in federal court. But, no-one, at least not anyone with the responsibility for the lives of actual working people, is crazy enough to do that.
So, like the TWU, you did the best you could do with a bad situation. The TWU agreed, not to termination of the pension plan, but to a freeze—something much less. Do you really think it had any choice? As you said Section 1113 is not Section 6 and if the TWU hadn’t agreed the Court would have imposed the freeze and, perhaps, worse. Do you think that reality has stopped your friends from pounding the TWU for “giving up” their pension? Not hardly. You say the Court was not going to reimpose restrictions on outsourcing after the IAM had agreed to lift them in the first 1113 proceeding. I’ll go you one better – the Company needed the additional foreign outsourcing relief AMFA gave up because, without it, they would not have achieved the necessary savings. If AMFA hadn’t agreed would the Court have imposed it? –possibly, maybe even probably. The TWU agreed to something much less – 35% outsourcing, a percentage well below anything else in the industry. It was still a painful concession, but if we hadn’t agreed does anyone doubt the Court would have imposed something as bad or worse?
You accuse CIO of “belittling” AMFA for making the difficult concessions that it faced when UAL filed for its second round of relief under Section 1113. What do you think goes on everyday…every hour…on this board with respect to the TWU, which was operating under the very same law as AMFA. Yes, there is a big difference between negotiations that occur under 1113 c of the Bankruptcy Code and Section 6 and I believe CIO understands that. In fact, that is just his point. So if you want to be treated fairly and not belittled, take the oldest advice around and “Do unto others as you would have others do unto you.”