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