Mike Cleary is accurate. Looks like Nic got it right.
Or, you could use this one and say he got it wrong:
Republic-Hughes Airwest
One of the most comprehensive discussions
of the issue appears in the 1981 seniority integration
arbitration decision by Arbitrator Richard
Bloch in the Republic-Hughes Airwest
merger. Republic acquired all of the stock of
Hughes Air Corp., which operated Hughes
Airwest, in October 1980. The previous year
had been a difficult one for Hughes Airwest,
which had furloughed 117 pilots, about 20
percent of the workforce. Although Republic,
too, was facing financial difficulties, none of its
pilots were furloughed, and it continued to hire
pilots through August 1980. The ALPA Merger
Policy Arbitration Panel adopted a length of
service methodology, giving no credit for time
spent on furlough prior to the merger, and
assigned seniority numbers as of the merger
date of October 1, 1980. In arriving at this
methodology, Arbitrator Bloch acknowledged
that furloughed pilots remain wedded to their
airline, often choosing to forgo employment
elsewhere in order to retain the potential to
return to a high-paying and desirable job. He
explained:
The choice, difficult as it is, arises as a result
of comprehensive employment protection incorporated
as a significant contractual bargain.
It is an alternative to full unemployment
and gives the pilot the absolute right to return
as soon as his number is reached. This is a
right that often extends for many years. One
may readily acknowledge the equities of protecting
relative seniority within a given pilot
seniority list, as is provided by contract. But
in the context of comparing lists in the merger
situation, the equities are different.
In the difficult business of analyzing respective
strengths and weaknesses, furloughs
become an important (and one of the few)
objective indices of carrier performance. As
between carriers, the fact that one keeps its
workforce working is significant. This has
been recognized in virtually every arbitrated
dispute in this area.
In this case, Airwest contends . . . that its
pilots have “paid their dues” through necessary
layoffs and fleet regeneration. One may
accept this argument as having contributed
to Airwest’s viability at the time of the merger.
It is part of the basis upon which this Board
has adopted the basic length of service approach.
It would be inconsistent, however, to
at once acknowledge these previous hardships
as “dues paid” while at the same time
crediting—“repaying”—the individuals for
such time spent and thereby ranking them
even higher on the final list. The relative
positions of these pilot group and the equities
of the case do not support such a result.
The panel therefore declined to extend even
partial seniority credit for time spent on furlough
before the merger.
In spite of the deduction of all furlough time,
the chosen methodology resulted in the placement
of some Airwest furloughees at the time
the award was issued senior to working Republic
pilots. This result was justified, in Arbitrator
Bloch’s view, “as a result of more extensive,
albeit prior, active service by the furloughed
pilot.” He emphasized, however, that the award
does not permit a furloughed pilot to displace a
working pilot. And in order to avoid what he
termed “a mechanical ‘switching’ effect wherein
a pilot recalled for a minimal period of time
displaces another,” the award required a recalled
pilot to remain active for 60 days before
exercising displacement rights.
Significantly, the methodology employed by
the Bloch panel did not distinguish in any way
between furloughs completed years before the
merger and those ongoing as of the merger date.
Both pilot groups had experienced furloughs at
different times, with a greater number of Republic
pilots having had some furlough time.
Hughes Airwest pilots, however, had experienced
more total days on furlough and 76 of
them had accumulated over four years of furlough
time. One of the pilot neutrals wrote a
separate concurring opinion in which he disagreed
with the refusal to give partial credit for
time spent on furlough. In his view, the Hughes
Airwest pilots with the greatest furlough time
were disadvantaged by this approach. Partial
credit was warranted, he contended, to “allow
them to move up the list to a position that is
more commensurate with their age, job expectations,
and date of hire.” This position, however,
did not carry the day.