In your world I'm sure it does...
Jim
Why does it make sense to split East West vs. an intra East split? The answer lies in the respective sections of each collective bargaining agreement. Section 1, East is a robust section. It represents a history dating back to 1950 when ALPA was first on the property. It has substantial protections that have survived two bankruptcies. Some significant provisions of this section include:
SECTION 1 - RECOGNITION, SCOPE, SUCCESSORSHIP AND LPPS:
5. Restrictions on code share with domestic carriers.
6. Restrictions on code share with international carriers.
C. Successorship and Labor Protection – Allegheny Mohawk 3/13 provisions
Change in Control – 50% or more of effected assets and triggers a 4.5% raise for each year after.
(F) Other protections – 20% of assets, within 12 months, sells transfers or disposes – the Association shall determine at its sole discretion where the pilots go.
LOS 63-Contingent Acquisition Rights – CAR’s - Payment and Board Representation Rights: On the day immediately preceding the occurrence of an Acquisition Triggering Event, the Company shall pay into an escrow account (in form and substance satisfactory to ALPA with an escrow agent subject to approval by ALPA) to be released to ALPA upon the occurrence of an Acquisition Triggering Event, $250 million to be allocated among pilots as determined by ALPA ( LOA63)
(I) Remedies
The Company and US Airways Group agree to arbitrate any grievance filed by the Association alleging a violation of this Section 1 on an expedited basis directly before the System Board of Adjustment sitting with a neutral arbitrator. The dispute shall be heard expeditiously no later than 15 days following the submission to the System Board and decided expeditiously no later than 30 days after submission, unless the parties agree otherwise in writing
West Section 1 Language-
SECTION 1
RECOGNITION, SCOPE AND MANAGEMENT RIGHTS
Aircraft Transfers - Pilots must be current and qualified to transfer with the equipment, does not address transfer if the pilot is not qualified.
iii. Nothing in this Subsection 1.C.1. shall be applicable to the Company’s return of aircraft to a lessor, even if the lessor is an air carrier ( no protections in the event aircraft are returned to lessors)
2. In the event of a complete merger between the Company and another air carrier (i.e., the combination
of all or substantially all the assets of the two carriers) where the surviving carrier decides to integrate the pre-merger operations, the following procedures will apply: (1) if the Company is the surviving carrier, the Company will integratet he two Pilot groups in accordance with Association Merger Policy if both groups are represented by the Association, and in accordance with Sections 3 and 13 of the Allegheny Mohawk LPP’s if pilots of the Company’s merger partner are not represented by the Association, and (2) if the Company is not the surviving carrier, the Company will make reasonable efforts to have the surviving carrier integrate the two pilot groups in the same
manner as stated in (1) of this paragraph.
McCaskill Bond Provisions
(4) COVERED TRANSACTION- The term `covered transaction' means--
(A) a transaction for the combination of multiple air carriers into a single air carrier; and which
(B) involves the transfer of ownership or control of--
(i) 50 percent or more of the equity securities (as defined in section 101 of title 11, United States Code) of an air carrier; or
(ii) 50 percent or more (by value) of the assets of the air carrier.
(d) Application- This section shall not apply to any covered transaction involving a covered air carrier that took place before the date of enactment of this Act.
(the west could be spun off without trigger this requirement of the amendment.)
H. RETAINED MANAGEMENT RIGHTS
1. Except as restricted by the express terms of this Agreement, the Company shall retain all rights to manage and operate its business and work force, including but not limited to the right to sell or discontinue all or part of the business; to sell or lease aircraft or facilities; to determine where and when to operate scheduled or unscheduled flights; to determine its marketing methods and strategies, and to enter into code sharing, affiliation or marketing
agreements with other carriers; to invest (including equity investments) in other business entities including,
without limitation, other air carriers; and to determine the type of aircraft it will utilize.
2. The exercise of any right reserved herein to management in a particular manner, or the non-exercise
of such right, shall not operate as a waiver of the Company’s rights hereunder, or preclude the Company from exercising the right in a different manner.
3. The parties agree that any past practices established prior to the date of this Agreement shall not create any contractual or legal obligation to continue such practices following the effective date of this Agreement.
There is no such management Rights provision in the East Contract.
