Monday, July 2, 2012

Mechanic's Dispatch

Seniority Integration Committee


On June 20th, the National Rank and File Seniority Integration Committee met in Newark to begin the work of integrating the three seniority lists. The committee was joined by Local rank and file committee members from several Locals as well as representatives from the International along with Mediator Ralph Berger and attorney Denis Duffey from the firm of Spivak Lipton. International Representative Clacy Griswold began the meeting with introductions. Mediator Berger then discussed an opinion letter from Spivak Lipton. It was Mr. Berger's opinion that since this was a merger of equals in the mechanics class and craft and that the consent decree from the sub United agreement would cover all members in the amalgamated agreement, then a date of hire seniority integration should occur for purposes of layoff and recall. Attorney Duffey, as coauthor of a legal opinion on the decree, explained the rationale used to come to the conclusion that the decree would apply to the combined list. Essentially, the new United will be a successor to Continental, CMI and the old United and the decree applies to successors.

Much discussion occurred among the committee on the consent decree and its effects on seniority as well as several questions regarding procedures to amend or remove the decree. IBT attorney Ed Gleason explained the reasons why it would be impractical to attempt to amend or remove the decree.

Each member of the national rank and file committee was given an opportunity to ask questions, share opinions, and suggest alternatives. Several issues were brought up including the disparity in premium seniorities, (i.e. inspectors and leads) as well as previous adjustments and how they were handled on each list and the need to work from lists that are accurate.

At the end of the meeting, Clacy gave the committee an overview of what would transpire process wise for the national committee. First, the committee will ensure the accuracy of the list and will meet via conference call in two weeks to discuss progress made. Then, the committee will meet with the national steering committee to report progress and findings.

In attendance for the National Rank and File Committee were: Jerry Davis (Local 19), Larry Bailey and Bill Horn (Local 210), Don Ramsey (Local 455), Steve Oggeri (Local 769), Scott Baroni (Local 781), Mark Gabriel (Local 856), Brad Himes (Local 964), Dion Cornelious, Moki Kim and Leigh Skilling (Local 986).
In attendance for the Local Rank and File Committee were: Mike Bergen, Bob Clever, Debra Hernandez and Craig Larson (Local 19), Paul Bacerra (Local 769) and Fred Wood (Local 986).
Representing the Airline Division were: Clacy Griswold, Paul Alves, Bob Fisher and IBT Legal Counsel Ed Gleason along with Mediator Ralph Berger and Denis Duffey, from the law firm of Spivak- Lipton.

Benefits Review Committee Report

The benefits review committee met on June 5th & 6th at IBT Headquarters in Washington DC. The committee was accompanied by Hemant Berry, a benefits specialist with the IBT Benefits department, and pension analyst Peter Hardcastle from Cheiron.

The committee worked on comparing and contrasting the medical benefits from both carriers to identify the differences in the plans, so the best of both plans can be identified. Different ideas where brought up on ways to control the premium costs, with further investigation into some wellness programs being needed.

On Wednesday, June 6th Peter Hardcastle gave a presentation to the committee that explained the differences as well as the pros and cons of the different types of pension plans; Defined Benefit (DB), single payer and multi-employer, Defined Contribution (DC), as well as 401(k)'s and hybrid type plans. The committee will be determining what pension plan would be the best choice to recommend to the members.

The committee reconvened in EWR on June 18th and 19th to continue working on opening proposals for Articles 10 and 11 as well as continuing discussions on what pension plan would serve the members best.

The committee began a side-by-side comparison of plans, as it relates to benefit issues of the two Collective Bargaining Agreements (CBA’s) to identify the differences, similarities and changes that may be needed in each article. Although there is still much work to be done the committee has built a good foundation that they will continue to improve on.

On Tuesday June 19th, the day started with an update, via conference call, from the company on the “wellness plans” they are examining. Research will be done to see if this is a valid way to keep premiums lower. The committee also received its first side-by-side pension comparison presentation by Jim Holland from Cherion. Side-by-side comparisons have been requested on all the different types of pension plans being investigated. This first presentation showed a comparison of the Continental Airlines Retirement Plan (CARP) and the Western Conference of Teamsters Pension Trust. The committee will update everyone as the different comparisons are completed and presented to them. After both presentations the committee continued its’ work on contract language proposals relating to benefits.

The committee will reconvene in SFO during the same week as the National System Negotiating Steering Committee meetings. While in SFO the committee will continue its’ research of the different plans and attend a presentation from the West Coast Pension Trust, to see if this plan should continue to be considered in any comparisons.

The committee’s ultimate goal is to explore all options and share that information along with a recommendation, to the National System Negotiating Steering Committee, on benefit language to be incorporated into an opening proposal in Joint Collective Bargaining. Updates will follow the July meetings.