1113(C) EXTENSION LOA (11/03/05)
Earlier today the NWA MEC Negotiating Committee reached a Tentative Agreement with NWA management which would provide NWA with short-term, interim contract relief pending completion of longer-term contract modifications. In return, NWA management would delay the start of its Section 1113(c) hearings (currently scheduled for Nov. 16, 2005) for at least two months, until at least January 16, 2006.
In a roll-call vote of 3657 in-favor to 1269 opposed, the MEC voted to approve the LOA, and send it out for a membership ratification vote.
The primary goal of the Agreement is to generate more time to deal with NWA’s 1113(c) motion to reject the ALPA collective bargaining agreement. The Negotiating Committee is concerned that the current 1113(c) timeline leaves insufficient time to advance negotiations for a new, longer-term agreement. There is particular concern over the area of Scope, especially in regard to how smaller jet flying will be conducted in the NWA system.
The Communications Committee is preparing a comprehensive mailing to be e-mailed tomorrow outlining the terms and explaining the logic behind the interim agreement. However, the general terms of the Agreement are as follows:
o 23.9% pay reduction in hourly and supervisory base pay rates, International Flying Rates, Instructor/Special Pilot Overrides, base and cost of living allowances
o Elimination of International Flying Rates for fights between 48 US states and Canada, Mexico, Central America, the Caribbean, and Bermuda
o Elimination of Premium Pay for Pay Time in excess of 80 hours
o Pays sick leave, except for Extended Sick Leave, at 75% of regular hourly rate
o Eliminates domestic crew meals
o Reduces pilot costs by approximately $17.9 million/month
o Cost reduction equals 60 percent of the $358 million/year pilot cost reduction target sought in management’s 1113(c) filing
o Requires management to obtain proportional savings from IAM and PFAA.
o Postpones 1113(c) hearing by at least 60 days
Approving the interim agreement would mean accepting concessionary contract changes sooner than would be the case under 1113(c). However, because the interim agreement would postpone what are almost certain to be more extensive contract changes until later, it could be expected to be cost-neutral for NWA pilots. In effect, our pilot group would gain additional time for negotiations at no cost – time which may allow us to reach a more satisfactory longer-term agreement than might otherwise be possible.