January 7, 2008
Arbitration Panel Denies Change in Control Grievance
To : All IAM Members Employed By US Airways
Dear Sisters and Brothers :
The System Board of Adjustment created to resolve the Machinist Union’s Change in Control grievance today issued its decision. The neutral arbitrator, Richard I. Bloch, sided with US Airways and denied the grievance.
The issues surrounding the grievance were very complex. Arguments to the System Board involved different interpretations of the contract language, bankruptcy law and Delaware corporate law (where US Airways is incorporated). The Machinists union received differing opinions from legal experts regarding our chances of ultimately prevailing in the grievance. Because the potential stakes were so high, however, we had to go forward with the case even if our chances of winning were slim. Yet, the IAM never viewed the Change in Control grievance as the solution to all the membership’s issues.
While the IAM fought for a favorable resolution of the grievance, we simultaneously worked to reach negotiated transition agreements to improve pay, benefits and working conditions for all IAM-represented employees. Even winning the Change in Control arbitration would not have addressed pay inequities between East and West employees, fair seniority integration, job security improvements, and better and more secure pensions. Our bargaining efforts resulted in a tentative agreement for Fleet Service that, although ultimately rejected by the membership, would have significantly improved wages and job security in exchange for withdrawing the Change in Control grievance for Fleet Service employees.
Traditional Railway Labor Act bargaining is not scheduled to begin until late 2009 when the current East agreements become amendable. With the National Mediation Board having ruled that both East and West employee groups are combined under a single carrier, any efforts to reach an agreement that does not cover both groups would be fruitless and impractical. Only the current transition negotiations for the combined groups can achieve any gains prior to traditional negotiations, which won’t start until nearly two years from now.
Airline industry conditions, and the situation at US Airways in particular, have deteriorated in the last year, and those conditions could be even worse when traditional bargaining begins. The America West-US Airways merger presented a unique opportunity to address many of the membership’s issues prior to the amendable dates in our agreements, and that window still exists, but the bargaining environment is changing daily.
Therefore, in an attempt to improve the financial and working conditions of IAM members, direct negotiations with US Airways will resume. District 141 will return to the bargaining table January 22, 23 and 24 2008 and District 142 will continue bargaining January 29, 30 and 31, 2008.
Full membership solidarity is essential for the IAM to succeed in this bargaining. East and West, Fleet and Maintenance – we must all be united in our common goal of retrieving what was taken from us and making a career at US Airways a long-term, profitable endeavor.
