miaami
Topic Author
Posts: 777
Joined: Thu Jul 12, 2007 2:27 am

AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 3:18 am

This is going to get interesting. Do you think the unions made a good decision here?

http://blogs.star-telegram.com/sky_t...ators-for-binding-arbitration.html

Will AA agree to arbitration?
 
genybustrvlr
Posts: 105
Joined: Wed Jul 14, 2010 4:30 am

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 3:26 am

Not a chance! Maybe AA would have agreed pre-bankruptcy but not now.
 
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EA CO AS
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Joined: Wed Nov 14, 2001 8:54 am

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 4:44 am

Too little, too late. Why would AA trade what is essentially a "guaranteed win" in the courts for a 50/50 shot at a "win" via arbitration?
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
crAAzy
Posts: 554
Joined: Tue Jan 29, 2008 12:02 am

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 7:05 am

Agreed it's a little too little, too late.

Although with AA now willing to freeze pension instead of dumping them altogether - if AA does get tied into binding arbitration then I can't help but feel AA management really screwed up their opportunities to get some issues under control in BK and the lost opportunities will likely leave them with little hope of actually emerging as a strong competitor.
 
LAXdude1023
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Joined: Thu Sep 07, 2006 3:16 pm

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 1:22 pm

Forget it. Won't happen.
It is what it is...
 
CALPLT756
Posts: 2
Joined: Fri Mar 09, 2012 1:38 pm

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 1:44 pm

Interesting play by the Unions to save what they can of their contracts. Binding Arb. would place them much closer to their competitors than the term sheet presented by the company.

The lawyers will be the real winners in this round. If AA rejects binding arb., then it automatically sets in motion a 30-day cooling off period for self help according the terms of the RLA. I'm not sure the latitude the judge has in matter. There are MANY MANY more what if's than knowns.

S
 
ldvaviation
Posts: 1146
Joined: Sun Dec 21, 2008 7:21 pm

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 4:05 pm

Quoting CALPLT756 (Reply 5):
The lawyers will be the real winners in this round. If AA rejects binding arb., then it automatically sets in motion a 30-day cooling off period for self help according the terms of the RLA. I'm not sure the latitude the judge has in matter. There are MANY MANY more what if's than knowns.

No, it doesn't. The NMB would still have to declare an impasse, something it has been reluctant to do because up to this point the unions have not been bargaining in good faith. There is no impasse just because one of the parties refuses binding arbitration.

Even if the NMB were to declare an impasse at this point, AA could quickly file to have the union contracts abrogated. Once abrogated, according to case law, the contracts would no longer exist, the RLA would no longer be the presiding law, and self-help would no longer be an option.
 
ckfred
Posts: 4942
Joined: Wed Apr 25, 2001 12:50 pm

RE: AA Unions Ask For Binding Arbitration.

Fri Mar 09, 2012 5:10 pm

Knowing a little about labor relations, I assumes that AA's first proposal wasn't the last one. The fact that AA is now willing to freeze all pensions but the pilots's proved that.

By the same token, the unions have to know that AA won't agree to arbitration. The risk fo getting stuck with contracts that aren't competitve with the industry is too great.

If I were the head of the TWU or the APFA, the question to ask management is how much do you want to spend, in wages and benefits, on our members each year? And, would you be willing to do something to get a number of very senior employees to leave the workforce? Atter management answers those questions, come up with a proposal that fits those parameters.

As for the APA, besides those questions, I would ask what it would take to get the pension frozen? My guess is to get rid of the lump sum option is part of management's answer.

Here's the question that someone can answer. If the PBGC ultimately takes over the pilots' pension, can a pilot still take a lump sum? I don't know the answer, but I'm betting the answer is no.

If that is the case, then dropping the lump sum option is a no brainer. If the APA is willing to drop it, then the pension plan being frozen is more likely. If not, then the PBGC might wind up dropping it.
 
miaami
Topic Author
Posts: 777
Joined: Thu Jul 12, 2007 2:27 am

RE: AA Unions Ask For Binding Arbitration.

Sat Mar 10, 2012 3:30 pm

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