USAPA BPR Conference Call Recap: April 24, 2012
The Board of Pilot Representatives conducted an Informational Conference Call on Monday, April 23, 2012. The majority of the meeting included discussions and details of Confidential Information provided by the Allied Pilot Association (APA) concerning their discussions with US Airways management, their view of the current status of a potential merger between US Airways and AMR, and the terms of the Conditional Labor Agreement between US Airways and APA.
President Gary Hummel gave a brief overview of this week's upcoming informal meetings with APA's Officers, Negotiating Committee and Merger Committee, and upcoming tentative meetings which include:
- Tuesday, 4/24 - USAPA President Hummel and the NAC will meet with Attorney Roland Wilder to discuss negotiating strategy and prepare for a meeting the following day at the NMB.
- Wednesday, 4/25 - USAPA President Hummel, the NAC, and Attorney Wilder will meet with the National Mediation Board to discuss the status of negotiations with US Airways.
- Thursday, 4/26 - The Officers will meet with APA Officers for an informal get-acquainted session. USAPA Negotiating Committee and Merger Committee will meet their counterparts in a similar meeting.
- Monday, 4/30 - A BPR meeting is in the planning stages for Monday and Tuesday of next week. Guests will include APA President David Bates and members of the APA Negotiating and Merger committees.
Tony Chapman (APA VP) and Neil Roghair (APA Negotiating Committee Chairman) joined the call for approximately 45 minutes. Each thanked the BPR for the opportunity to participate in the call, made brief statements, and then answered questions from the Board. After questions and answers, the two gentlemen from APA were thanked for their time and left the call. Attached to this email is a summary from the APA Negotiating Committee to the APA pilots, including some key points of the Conditional Labor and Plan of Restructuring Agreement APA Negotiating Committee has reached with the management of US Airways.
Next, Merger Counsel Pat Szymanski gave a thorough briefing to the Board on the confidential documents provided by the APA. This included various timelines and scenarios. He answered many questions from the Board, including several concerning the Scope provisions of the contract and various other issues that would arise in the event of a merger between US Airways and AMR. Most relevant were:
- AMR has exclusive rights until September 28 to submit a Plan of Reorganization in the AMR bankruptcy proceeding without any other suitors interfering. It is possible that a Plan of Reorganization could be submitted by some other party such as US Airways before that date, but it would be unlikely that the Court would entertain a competing plan absent agreement from AMR.
- t is important for us to begin work on a Conditional Transition Agreement with US Airways and APA that would govern wages, conditions and other items in the event of a merger between US Airways and AMR. Such an agreement would protect the interests of our pilots. A Conditional Transition Agreement could set wages and conditions during the transition period and would establish the procedure for negotiating a consolidated collective bargaining agreement and establishing an integrated seniority list.
- In the absence of some agreement to the contrary, the parties would be required to follow the provisions of the McCaskill-Bond amendment to determine an integrated seniority list. McCaskill-Bond provides that, if the union parties cannot agree on an integrated list, a "fair and equitable" list will be determined through impartial arbitration.
More details will follow, and we will keep you abreast of the developments. For now, know that we have implemented an action plan that is dynamic and will continue to evolve with guidance from your BPR, as new details become available.
We have all made a tremendous investment in our company. Management wouldn't be in the position they are in today without our sacrifices. Rest assured your Officers, Committees and Legal Team know what is expected of us, and we will be working to meet or exceed those expectations. From USAPA President Gary Hummel: There is no greater illusion than fear, and no greater misfortune than having an enemy. Perhaps the lessons learned during US Airways' last attempt at a merger will provide a better opportunity for us all.
USAPA Communications