Latest Issue of the Teamster Aviation Professional TAMC Newsletter

The newest edition of the Teamster Aviation Professional is here! This is the official newsletter of the Teamsters Aviation Mechanics Coalition (TAMC). The newsletter includes essential news, information and insights from Teamster airline mechanics and leading TAMC members who are fighting every day for airline safety and the advancement of our craft.

Click here to read the newsletter today.

Volume 4, Issue 3 of the Teamster Aviation Professional is jammed-packed with important news in the world of aviation maintenance. Teamster aviation mechanics and all airline mechanics and related professionals in our industry will find the content in this issue very informative.

The new issue includes articles on:

·         News: recent TAMC lobbying event in DC to alert Congress of the dangers of outsourced aircraft maintenance

·         News: United Airlines mechanics escalate actions for joint agreement with nationwide info pickets

·         News: United Airlines simulator technicians vote for sole representation by the Teamsters

·         Feature: ExpressJet Mechanic James Thomas retires after 60 years in aviation maintenance

·         Report: TAMC members attend NTSB “Go Team” Training with Teamster pilots

·         Report: Fall 2013 Aviation Safety Infoshare

·         Report: TAMC attends MRO conference in Canada

·         Report: Airline Division participated in GAO Whistleblowers meeting

·         Updates: contract negotiations for ASA, ASA/XJT Stock Clerks, NetJets, Piedmont, UAL, and XJT

·         Happy Holidays from the TAMC Steering Committee

The TAMC is the voice of mechanics in the aviation industry. And the Teamster Aviation Professional is our publication. The newsletter is distributed electronically and is designed to reach mechanics around the world. It keeps aviation mechanics up to date on the issues that are important to us. In addition to updates from the Airline Division on what the TAMC is doing on Capitol Hill and throughout the industry, the newsletter regularly includes articles from members that deal with topics from ASAP to outsourcing.

United Airlines Mechanics Escalate Actions For Joint Agreement At 12 U.S. Airports

November 27, 2013(WASHINGTON) – Today, United Airlines (UAL) professional aviation mechanics represented by the Teamsters Union escalated their actions to pressure the company to live up to its promises by hand-billing UAL customers inside and outside 12 major airports around the country. UAL mechanics are informing the public that they may be forced to strike if the company refuses to keep its promise to provide a fair agreement that adequately compensates and protects these workers after years of concessions.

On Monday, hundreds of Teamsters participated in informational pickets at 10 U.S. airports. Photos and videos from Monday’s informational pickets and today’s hand-billing can be viewed online here. The Association of Flight Attendants-CWA (AFA) announced that they stand “shoulder-to-shoulder in solidarity with our sisters and brothers at the Teamsters” to “demonstrate to the company it’s time to move forward together” and joined the Teamsters on the picket line. Read AFA press release here.

The second quarter of 2013 saw UAL earn its highest revenue in history. After a year of stalling, UAL executives broke off contract negotiations without agreeing to the pensions they had promised, and declared that 3,500 mechanics will be forced to pay an additional $300-$500 each month for their health care. The last proposal made by the company would actually have thousands of mechanics making less than they do today.

“Our job is to keep passengers safe and we are proud of what we do. But we are being asked to accept a contract that does not value the contribution we make every day to United and its passengers,” said John Laurin, a 24-year UAL mechanic at San Francisco International Airport and member of Teamsters Local Union 856. “We want United to live up to its promise and give us a fair contract that reinstates our pensions.”

Teamsters hand-billed at the following airports on Wednesday, Nov. 27:

• A.B. Won Pat International Airport Authority, Guam (GUM)
• Honolulu International Airport (HNL)
• Los Angeles International Airport (LAX)
• San Francisco International Airport (SFO)
• Seattle–Tacoma International Airport (SEA)
• Denver International Airport (DEN)
• George Bush Intercontinental/Houston Airport (IAH)
• Cleveland Hopkins International Airport (CLE)
• Dulles International Airport (IAD)
• Newark Liberty International Airport (EWR)
• Orlando International Airport (MCO)
• Chicago O'Hare International Airport (ORD)

“United promised us a year ago that they would enter into fast-track negotiations to reach an industry leading contract – one that we could all be proud of ,” said Mike Moats, a UAL mechanic at Cleveland Hopkins International Airport and member of Teamsters Local Union 964. “After stalling and making excuse after excuse, the Company came back with a proposal that would have resulted in pay cuts for thousands of our members.”

The Teamsters Airline Division represents about 80,000 workers in all segments of commercial aviation, including mechanics, pilots, and flight attendants. The International Brotherhood of Teamsters was founded in 1903 and represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. Visit www.teamster.org or www.teamsterair.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook atwww.facebook.com/teamsters.

For more pictures click here..

UAL Mechanics Special Update November 14, 2013

Yesterday the leadership of the IBT informed the company that the resource utilization letter has terminated. This was done at 2pm EST via conference which was held over the phone. The company leadership disagreed with the union's position and requested the matter be resolved using the expedited arbitration process. The parties are now in the process of scheduling this hearing. 

While the arbitration process unfolds members are advised to file grievances when assigned to tasks that violate the integration of maintenance operations. All members are advised to perform assigned tasks and grieve when the task is complete. Do not become a target for discipline by refusing an order to do this work. 

Copies of the letter requesting conference to terminate the letter and the company's response can be found here:

http://www.teamster.org/sites/teamster.org/files/Ltr_to_McKeen03110913.pdf

http://www.teamster.org/sites/teamster.org/files/companyresponserul.pdf

Negotiations Update



 The committee met this week in an attempt to finalize the joint CBA. The company presented a comprehensive proposal early in the week that the union rejected.  

Tonight the union gave its comprehensive final proposal to the company. It did so after working shoulder-to-shoulder with its financial, legal and actuarial experts to develop a contract that meets the members’ needs while satisfying the company’s objectives.  In less than a half an hour, the Company rejected the Union’s proposal and stated that the proposal was significantly more expensive than it could afford.  The Company also advised that it will apply for formal NMB mediation tonight.  The Company’s filing this evening will bring to an end 10-months of intense, direct negotiations facilitated by the NMB under a special process that the Company had asked the Union and the NMB to participate in. The purpose of the facilitated process was for securing a mutually agreed upon collective bargaining agreement on an expedited basis.  The company also informed the committee this evening that they would be filing for mediation. 
 

The committee is deeply disappointed at the outcome, as it was our hope to reach a consensual agreement through direct negotiations. We remain ready to meet at any time and at any place to finalize this agreement in a manner that will best reward the membership for its hard work.  

 

The NMB worked tirelessly with both the Union and the Company to reach such an agreement.  NMB Representatives who have worked with the parties throughout direct negotiations have committed to continue working with the parties while in formal mediation and have expressed their hope that a mutually satisfactory agreement can be reached. 

 

The committee would like to remind the membership that the only official source of negotiations information will be from the negotiating committee, the Division or your Local Representatives.  Please do not fall victim to rumors and stay tuned for further updates.

October 28, 2013 Negotiations Update

Benefits Grievance Update 

On Friday, an et al (“and others”) benefits grievance was filed in regards to the unilateral changes imposed by the company. A copy of this grievance will soon be posted on line, until that happens, your chief steward or business agent will have a copy for your review. 

Business Agent and Chief Steward Training The Division will be scheduling a training class for Business Agents and Chief Stewards who present grievances at the joint/system board level. The class will be a refresher course for most, but will provide valuable information to those new to the process. The focus of the class will be on the preparation and presentation techniques required to be successful at this step of the grievance process. 

Negotiations Update

The parties will reconvene on November 4^th in Chicago in an attempt to finalize the joint collective bargaining agreement. The parties will be assisted by Senior Mediator Pat Sims and Mediator Michael Kelleher from the NMB.

Mechanics Update October 20, 2013

Division Representatives Attend MRO Conference 

This week Representatives Chris Moore and Bob Fisher attended the MRO Network conference in Montreal Canada. A detailed report will issued shortly but there were a few key takeaways. Trending continues to be positive for domestic maintenance as labor rates in Asia continue to move upward. It is expected that both established Asian countries labor rates, as well as emerging Asian countries labor rates, will converge with domestic rates in approximately 2018.  

That trend will make it impractical to offshore widebody overhauls to Asia in the future. A second key point is that M&A (merger and acquisition) activity is heating up with more than 100 such transactions expected by the end of this year. That's up slightly from last year's roughly 80 transactions. For the past five years this trend has continued as MRO's which have little yield seek to join forces to produce more volume. Obviously this will drive up costs to airlines as this trend continues. Look for more companies start to discuss outsourcing using the word contracting.  

According to ARSA the word contracting doesn't have the same negative connotations as outsourcing with the public and regulators. Certainly it makes no difference what it's called, as the old saying goes you can polish a turd but it's still a turd. Look for the detailed report of this conference in the next TAMC newsletter. 

Scope Meeting Held 

On Wednesday the scope committee met in Houston. The line and hangar plans for sCO and sUA were discussed. There will be some movement of work around the system as fleets are moved but there was no anticipation of any headcount reduction systemwide. There will be movement of some line check work into IAD and EWR as a result of the new hangars in those locations. There was also discussion of bringing back in house some checks that have been previously outsourced. The company explored this possibility with the committee and it appears there could be movement to bring some of this work back into the SFO base. 

Grievance to be Filed Regarding Health and Welfare Benefits 

As reported in the update last week the Division will be filing a grievance this coming week over the unilateral change in medical benefits. The company was notified that the union will be processing one grievance on behalf of the membership. The Division intends to move this grievance to the front of the arbitration docket to attempt an expedited resolution.

Negotiations Update October 12, 2013

Negotiations resumed the week of October 7^th with the company in Phoenix, Arizona. Both parties engaged in an effort to narrow issues in order to reach a Joint Collective Bargaining Agreement (JCBA). 

The week began with a presentation from United on the highlights of the TA for IAM represented employees, brief preparations of the committee by representatives of the Airline Division, and an article by article review of open items.  Additionally an overview of benefits information was given by our Gaelle Gavotte of Cheiron, our actuary, and established a baseline for continued talks regarding benefits including medical, dental , vision care, flexible spending accounts (FSA), and healthcare spending accounts (HSA, VEBA).  The committee was also briefed on United’s current financial situation as it relates to the industry at large and our competitors by our financial analyst Dan Akins.  

Members from the ranks of the Flight Simulator Technicians and Engineering Groups on sCO and sUA discussed their integration into our agreement. The union committee was given a presentation by the FST’s regarding the supplemental changes needed to integrate these groups into the mechanic’s agreement.  For those that are unaware the NMB recently ruled that the FST group is a standalone craft and class and an election was held where the two subsidiary groups chose the IBT as their representative.  The sUA group has been a part of the agreement since the 1969 agreement.

Negotiations continued through the week with progress being made to close out several articles with open items from the previous round of talks.  The committee will next meet with United in Chicago for the week of November 4^th to continue negotiations.

Scope Committee Meeting 
As previously reported the scope committee will convene in Houston on October 17^th. Both the sCO and sUA committees will meet with the company to review the hangar plan each subsidiary.

Negotiations Update

Preparations for Next Round of Negotiations Begin 

 

In preparation for the re-engagement of negotiations, the union bargaining committee convened at Local 19’s union hall in Houston this week to discuss strategy as we prepare to meet with United Airlines in negotiations on October 7^th. 

Among the topics of discussion, the negotiators received a briefing from Attorney Ed Gleason on Scope and open Article One items.  Additionally, the committee was also given a presentation by Ms. Gaelle Gravot, an actuary from Cheiron, on benefit issues. She also discussed the unilateral changes to our medical benefits by United as well as the Affordable Care Act (ACA) and how it affects our current and future medical plans as well as a strategy for negotiating a comprehensive benefits package for our members.  

Other items on the agenda included discussions on grievance activity for scope violations regarding the APU teams on the ramp side and how they affect our negotiating strategy, COLA, and issues surrounding United’s wish to implement the use of the Utility Specialist Classification in our ranks; especially in the Facilities Maintenance and GSE classifications.  We were also briefed by Local 210 Business Agent Ralph Salzano on the current status of proposals made previously to the carrier and given a comprehensive,  article by article, overview of items that have been agreed to in principal, and open items in each article that require resolution during the coming round of talks. 

The Negotiations Team will convene on October 7^th in Phoenix, Arizona for our first face to face discussions with United since early June.  We will resume negotiations on that date using traditional bargaining methods as opposed to the expedited process that was used earlier this year.  

The Committee wishes to extend our gratitude to Local 19 Principal Officer Bob Clever as well as the Officers and staff for their hospitality and the use of their facilities for our meetings over the past week.  

 

Scope Committee Scheduled to Meet

Representatives from both sUA and sCO are scheduled to meet October 10^th through 17^th in IAH. A report of the meeting will be released to the membership shortly afterwards. 

APU Burn Team Grievance 

In preparation for an expected arbitration case regarding the APU Burn Team a fill in form has been created. This form will collect relevant data in regards to ramp/fleet service personnel performing the work of mechanics in violation of the scope of the agreement. Here is a link to the form: 

https://docs.google.com/forms/d/1b_oED-RKNIWOi2UcLkSnr8ERozxJzIE6uqZfcQvxZC8/viewform 

Negotiations Update

Today the committee was notified that the company will be unable to meet with us the week of September 23^rd due to a scheduling conflict.

The union committee is scheduled to meet in Houston next week to work on a counter to the last company economic offer. It is expected that the negotiations session scheduled for the week of October 7^th with the company will still be held. That meeting is slated for Chicago.

UAL, CAL Simulator Techs Vote Overwhelmingly for Teamster Representation

 The National Mediation Board has announced that flight simulator technicians at United Airlines voted for sole representation by the Teamsters Union. The 98 technicians were previously represented by the Teamsters at United in Denver and the Transport Workers Union at Continental in Houston prior to the 2010 merger. 

The workers overwhelmingly voted for the Teamsters by a 6-1 ratio with 93 percent of the unit participating in the election which began on August 20th. The technicians will be represented by Teamsters Local 455 in Denver and Local 19 in Houston. 

“We’re looking forward to working toward an amalgamated agreement for the entire flight simulator craft technicians and class and craft,” said James Prout, chief steward of the Denver-based unit. 

“On behalf of the Teamsters Airline Division, I’d like to thank the flight simulator technicians for their overwhelming vote of confidence in our ability to represent their interests,” said Captain David Bourne, Director of the Teamsters Airline Division.

Negotiations Update August 2, 2013

The steering committee reconvened in Chicago on Wednesday July 31^st and Thursday August 1^st in Chicago to discuss options surrounding the negotiations with United Airlines. 

On Wednesday the committee received several presentations on the status of bargaining when the parties last met in May.  

Clacy Griswold, Airline Division Rep and Chief Negotiator, opened the session and explained to the group all that had transpired since the committee met last August.  

Local 210 Business Agent Ralph Salzano went through article by article all of the non-economic items that were agreed to during the facilitated process. This was followed by a presentation by Peter Hardcastle, of Cheiron, on the VDB (Variable Defined Benefit) pension discussions. He was followed by John Colberg and Jim Holland; both from Cheiron, who gave a presentation on the health and welfare discussions. Dan Akins, economist from Akins and Associates then gave a presentation of the overall economic issues that the negotiating committee both has and will be dealing with. 

At the end of each presentation there were question and answer periods for the committee so that they could clearly understand what was being discussed. One of the items that generated much discussion during the health and welfare discussions was the VEBA program. This program is a tax free account used to offset different medical costs. This account can be carried with the employee through retirement and then willed to surviving dependents. More information about this program will be available in the coming months. 

Close to the end of the session on Wednesday Clacy received word that the company would like to meet with the IBT leadership that evening to discuss negotiations. On Wednesday evening Mike Bonds, Doug McKeen, Jeff Wall and Marcel Delhommeau from the company met with David Bourne, Clacy Griswold, Ed Gleason, Paul Alves and Bob Fisher from the IBT to learn what direction the company was seeking in regards to negotiations. 

Thursday morning the steering committee was given a report on the meeting of the prior evening. The committee was informed that the company desired to get back to the table and that they appeared motivated to finishing what was started in January. Based on this report; the steering committee after much through discussion, determined that the best course of action would be to return to the table as soon as possible to finish the deal. There were concerns however that the company may not be serious and to that end there was a discussion on pulling the resource utilization MOU. After the committee learned that it was the opinion of the Division, through direction of counsel, that the letter could be terminated at any time, the committee tabled a motion to withdraw from the letter and will review progress in October to determine which course of action to take at that time. 

Ed Gleason from IBT Legal gave a presentation on scope. It was determined that a joint scope committee meeting should be held in the very near future to discuss several issues that were brought forward in the question and answer period following Ed’s presentation.  

The day finished with a general question and answer period and the session ended around 2pm. 

After the session, the company was notified that the committee desired to return to the table. The parties will discuss scheduling in the next couple of weeks. It is anticipated that we will return to the table in early September. When dates are agreed upon it will be reported through the Dispatch.

United 757 retirements will outpace replacement 737 deliveries

United Airlines is taking an aggressive approach to removing ageing Boeing 757-200s from its fleet, with its domestic fleet of the type targeted to be all but gone by the end of 2015.
The Chicago-based carrier plans to remove 73 of the type and replace them with Boeing 737-900ERs over the next two and a half years, says John Rainey, chief financial officer of United, during an earnings call on 25 July.
However, United only has 48 737-900ER deliveries scheduled over the same period - 25 less than its planned retirements of 757s - Flightglobal's Ascend Online database shows.
It is unclear how the airline plans to fill this gap. It also has deliveries of Boeing 787 and Embraer 175 aircraft scheduled during the same period but neither could be considered a replacement for domestic 757s.
Leasing additional aircraft could be an option. However, this would be a break from United's typical fleet renewal strategy that involves ordering new aircraft and financing them with secured debt.
In addition, Rainey reiterates management's plan to keep the carrier's "overall fleet count roughly flat over our planning horizon over the next five years", during the call.
United declines to comment.
The airline has 129 757-200s in its fleet and firm orders for 88 737-900ERs, according to Ascend. It has 88 757s powered by the Pratt & Whitney PW2000 turbofan engine, and 29 use Rolls-Royce RB211s.
Most of the domestic 757-200s were made before 1995, with those made after largely concentrated in United's international fleet. Ascend shows that 90 of the aircraft in its fleet were delivered before 1995.
United will sell up to 30 of the outgoing domestic 757s to FedEx, under a deal that was announced in March.
International 757s will remain in United's fleet for the time being. Ron Baur, vice-president of fleet at United, told Flightglobal in May that it had "no plan to replace the international [757s] other than to upgauge".

By:   Edward Russell Washington DC

Source: 

Mechanic's Dispatch July 11, 2013

Principal Officer and Business Agent Meeting 

Teamster Business Agents and Principal Officers representing the combined carriers met in Washington, DC on July 8^th to discuss the current status of the negotiations at United Airlines. Collectively, the group decided it would be best to reconvene the steering committee prior to any interaction with the carrier. The group decided that reconvening the full committee would allow for discussions both about what transpired during the facilitated talks as well as an opportunity to fully explore options moving forward. Dates and locations were then discussed for the reconvening of the steering committee. The second half of the day was spent discussing scope related issues as well as how the company is currently interpreting the language in the three agreements. It became clear that there were several issues that would need to be moved into the grievance process.

Seniority Update 

Two members of the Seniority Integration Committee (SIC) met for several weeks during May to start the construction of a merged sUA/sCO/sCMI seniority list. The two committee members worked hand in hand with the company representatives assigned to blending the three lists covering mechanic and related classifications into one. While progress was made in applying the recommendations of the full SIC, there are unresolved concerns that still prevent us from having a finalized merged Seniority list. Some outstanding questions related to merging the seniority lists have required additional clarification from IBT Legal.  Other changes will be dependent on the outcome of negotiations leading to a Tentative Agreement. 
A majority of time was spent applying the provisions of the Consent Decree, on sCO and sCMI technician dates, in preparation for an integrated Furlough/Recall Date (Consent Decree Date) list. This process requires building an entirely new Furlough/Recall Seniority Date list for sCO and sCMI, and involves a time consuming review of records in order to comply with the Consent Decree. Company personnel files detailing employment history have been made available in order to ascertain accurate dates and methods for Seniority list integration. 

The work on combining the list will continue in agreement with the parties on the first opportunity regardless and separate of the anticipated negotiating schedule.

Airline Industry News

Governmental and Regulatory 

Rep. Rick Larsen (D-Wash.) said in a letter to DOT Secretary Anthony Foxx on Tuesday that the new Transportation secretary should make finishing the pilot training regulations that were not completed under the DOT's previous administration a top priority.

Airlines, Industry and Labor 

US Airways spokesman Ed Stewart said the carrier expects the merger with American Airlines to close, as planned, in the third quarter despite a lawsuit seeking to block the proposed merger. 

United Airlines CEO Jeff Smisek said the carrier is "very pleased" with the Boeing 787 Dreamliner. United spokeswoman Mary Ryan added: "The 787 is going through a fine-tuning process." She likened the Dreamliner to the 777, which she noted has turned out to be a highly reliable airplane. “We see the 787 evolving into one as well,” she said. 

A study by the International Air Transport Association said airlines are increasing profitability but still face challenges attracting investors despite the economic contributions of the aviation industry.  

Boeing has formed a partnership with Google Earth to launch a website that allows users to track locations of all Boeing Dreamliner 787 flights. The website includes 360-degree views of the aircraft, as well as direct booking on 787 flights.

Does the Government Work (Sometimes)

Made misleading disclosures to investors
about mortgage-related risks and exposure 

Citigroup - SEC charged Citigroup's principal U.S. broker-dealer subsidiary with misleading investors about a $1 billion CDO tied to the housing market in which Citigroup bet against investors as the housing market showed signs of distress. The proposed settlement would require a payment of $285 million by Citigroup that would be returned to harmed investors. 

Goldman Sachs - SEC charged the firm with defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter 

J.P. Morgan Securities - SEC charged the firm with misleading investors in a complex mortgage securities transaction just as the housing market was starting to plummet. J.P. Morgan agreed to pay $153.6 million in a settlement that enables harmed investors to receive all of their money back.

Wells Fargo - SEC charged Wells Fargo's brokerage firm and a former vice president for selling investments tied to mortgage-backed securities without fully understanding their complexity or disclosing the risks to investors. Wells Fargo agreed to pay more than $6.5 million to settle the charges.

American Home Mortgage - SEC charged executives with accounting fraud and misleading investors about the company's deteriorating financial condition as the subprime crisis emerged. Former CEO settled charges by paying $2.45 million and agreeing to five-year officer and director bar.

Bank of America - SEC charged the company with misleading investors about billions of dollars in bonuses being paid to Merrill Lynch executives at the time of its acquisition of the firm, and failing to disclose extraordinary losses that Merrill sustained. Bank of America paid $150 million to settle charges

Number of Entities and Individuals Charged	157
Number of CEOs, CFOs, and Other Senior Corporate Officers Charged	66
Number of Individuals Who Have Received Officer and Director Bars, Industry Bars, or Commission Suspensions	36
Penalties Ordered or Agreed To	> $1.53 billion
Disgorgement and Prejudgment Interest Ordered or Agreed To	> $756 million
Additional Monetary Relief Obtained for Harmed Investors	$400 million*
Total Penalties, Disgorgement, and Other Monetary Relief	$2.68 billion

http://www.sec.gov/spotlight/enf-actions-fc.shtml