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ATA, mechanics talks deteriorate
But flight attendants hint at progress as stock spirals toward $2
August 28, 2004
Contract talks between ATA Airlines and its mechanics were cut short this week as union leaders charged the company with not negotiating seriously and raised the prospect of a strike.
At the same time, the leader of the union representing the struggling Indianapolis-based airline's flight attendants said that group is making progress toward a concessions agreement.
The mix of bad and good labor news came on a day ATA's stock reached a record low. Shares closed at $2.14, after dipping as low as $2.08. They had traded above $10 in February.
Terry Harvey, assistant national director of the Aircraft Mechanics Fraternal Association, said the National Mediation Board on Wednesday adjourned what were scheduled to be week-long talks with the company.
"They're not doing anything, not moving, not negotiating," Harvey said Friday as he left Indianapolis. The union, representing about 600 mechanics at the financially troubled airline, has been negotiating with ATA since October 2002 on its first-ever contract.
"This is a complete misrepresentation of the facts," Richard Meyer, ATA's vice president of labor relations, said. "It is nothing more than a bargaining tactic that we find reprehensible."
Harvey said the union's main complaint was that the company had reneged on an agreement that would have prevented outsourcing of mechanical work. "They said they needed flexibility," Harvey said. "Our interpretation is they want to go shopping for cheaper labor."
But Meyer said no such promise was ever made. "At no time was there ever an agreement, even tentative, by the company to limit the proportion of maintenance work that can be outsourced."
Meyer said the union is seeking pay increases that would cost ATA $18 million over two years during a time of financial difficulty for the airline.
Harvey said the union is flexible in its wage demands, but said ATA mechanics make "quite a bit below average" pay for their profession. An ATA mechanic of five years would make $25 per hour, he said, compared to well above $30 per hour at other airlines.
Harvey said union officials would now conduct a series of meetings with members to determine whether to ask the federal board to release the union from mediation. The first of those occurred Thursday with the more than 300 mechanics based in Indianapolis. "Overwhelmingly, the people in attendance said they would not accept an agreement without labor protection," Harvey said.
Once a release is granted, a 30-day countdown to a strike would begin, he said.
Company and union officials will next meet with the federal mediator Sept. 28. "ATA looks forward to continuing its efforts to work with (the union) at that time," Meyer stated.
ATA is seeking concessions from its unionized pilots and flight attendants, pursuing other cost-cutting moves and looking to raise revenue by adding business-class seats and possibly launching service to Europe next year. Earlier this month, ATA reported a $26 million second-quarter loss and said it could run out of cash early next year.
Flight attendants rejected $8.9 million in concessions earlier this summer in a close vote. Jacki Pritchett, head of the unit representing ATA's 1,900 flight attendants, said Friday that talks had resumed. "I think we've gotten over some of the bumps," Pritchett said.
The company, she said, had not calculated the savings from the proposed cuts, but she thinks it will be more than what was previously voted down.
She said more discussions would take place next week and said the company's flight attendants "have a lot of confidence in this company."
But flight attendants hint at progress as stock spirals toward $2
August 28, 2004
Contract talks between ATA Airlines and its mechanics were cut short this week as union leaders charged the company with not negotiating seriously and raised the prospect of a strike.
At the same time, the leader of the union representing the struggling Indianapolis-based airline's flight attendants said that group is making progress toward a concessions agreement.
The mix of bad and good labor news came on a day ATA's stock reached a record low. Shares closed at $2.14, after dipping as low as $2.08. They had traded above $10 in February.
Terry Harvey, assistant national director of the Aircraft Mechanics Fraternal Association, said the National Mediation Board on Wednesday adjourned what were scheduled to be week-long talks with the company.
"They're not doing anything, not moving, not negotiating," Harvey said Friday as he left Indianapolis. The union, representing about 600 mechanics at the financially troubled airline, has been negotiating with ATA since October 2002 on its first-ever contract.
"This is a complete misrepresentation of the facts," Richard Meyer, ATA's vice president of labor relations, said. "It is nothing more than a bargaining tactic that we find reprehensible."
Harvey said the union's main complaint was that the company had reneged on an agreement that would have prevented outsourcing of mechanical work. "They said they needed flexibility," Harvey said. "Our interpretation is they want to go shopping for cheaper labor."
But Meyer said no such promise was ever made. "At no time was there ever an agreement, even tentative, by the company to limit the proportion of maintenance work that can be outsourced."
Meyer said the union is seeking pay increases that would cost ATA $18 million over two years during a time of financial difficulty for the airline.
Harvey said the union is flexible in its wage demands, but said ATA mechanics make "quite a bit below average" pay for their profession. An ATA mechanic of five years would make $25 per hour, he said, compared to well above $30 per hour at other airlines.
Harvey said union officials would now conduct a series of meetings with members to determine whether to ask the federal board to release the union from mediation. The first of those occurred Thursday with the more than 300 mechanics based in Indianapolis. "Overwhelmingly, the people in attendance said they would not accept an agreement without labor protection," Harvey said.
Once a release is granted, a 30-day countdown to a strike would begin, he said.
Company and union officials will next meet with the federal mediator Sept. 28. "ATA looks forward to continuing its efforts to work with (the union) at that time," Meyer stated.
ATA is seeking concessions from its unionized pilots and flight attendants, pursuing other cost-cutting moves and looking to raise revenue by adding business-class seats and possibly launching service to Europe next year. Earlier this month, ATA reported a $26 million second-quarter loss and said it could run out of cash early next year.
Flight attendants rejected $8.9 million in concessions earlier this summer in a close vote. Jacki Pritchett, head of the unit representing ATA's 1,900 flight attendants, said Friday that talks had resumed. "I think we've gotten over some of the bumps," Pritchett said.
The company, she said, had not calculated the savings from the proposed cuts, but she thinks it will be more than what was previously voted down.
She said more discussions would take place next week and said the company's flight attendants "have a lot of confidence in this company."
