Aloha Airline Pilots Condemn Management

http://www.alpa.org/DesktopModules/A...=1458&Tabid=73

Release #05.048
October 16, 2005

Aloha Airline Pilots Condemn Management’s Request to Terminate Labor Contracts in Bankruptcy Court

Management Flip-Flops; Files 1113 Motion After Assuring Pilots They Wouldn’t

HONOLULU – The Aloha Airlines unit of the Air Line Pilots Association, International (ALPA) today denounced Saturday’s 1113 motion filing by Aloha Airlines, calling it disappointing, unnecessary and inappropriate. The filing, which attempts to void labor contracts as part of the bankruptcy process, comes at a time when management gave assurances to the pilot group that they would avoid filing the motion and would work with the pilots to reach a consensual agreement.

The company’s 1113 motion also follows months of negotiations and numerous concessions given by the pilot group putting Aloha’s pilots in a significantly poorer financial position than those at Aloha’s competitors. These concessions have succeeded in making Aloha very profitable over the past months, and have created a stable labor environment for the potential new investor groups: Yucaipa Cos. and Aloha Aviation Investment Group LLC.

“We have made every attempt to negotiate in good faith with this management team for a labor contract that benefits both the pilots and the company, and would create a seamless transition for the new investors,” said David Bird, chairman of the master executive council for the Aloha pilot group. “Why they now would go back on their word, ask the Court to reject our contract, and risk having the new investors walk away from the table is beyond reason.”

Bird continued: “The Aloha Airlines management has failed to demonstrate the need for us to take these drastic concessions at this time. While we are aware of the cash crunch our company faces, management should be negotiating with us rather than trying to use the courts to raid its own workers who have worked so hard to make Aloha successful."

“Our goal was, and remains, to reach a consensual agreement with Aloha management to allow the airline to successfully emerge from bankruptcy court protection. We met with management as recently as Friday afternoon, and we continue to believe a satisfactory agreement can be reached. The company’s attempt to seek bankruptcy court intervention is both inappropriate and completely unnecessary.”

Under Section 1113, employers can seek to reject labor contracts as part of the bankruptcy process, in effect modifying the terms of any provision in those agreements, including pay, benefits, work rules, and scope. Any proposal must be limited to necessary modifications and any request must treat all parties fairly and equitably.

As part of the most recent round of concessions this past spring, Aloha pilots agreed to a twenty-percent pay cut, productivity enhancements and a two-year “freeze” on their pension plan. In return for nearly $12.5 million in pilot concessions, Aloha Airlines management on May 13, 2005 signed a Letter of Agreement expressly agreeing not to seek rejection of the pilot collective bargaining agreement in bankruptcy court. Merely five months later, the company not only is seeking complete termination of the pilots’ pension plan, but rejection of the entire contract.

The Air Line Pilots Association, International, is the world’s largest pilots union, representing 64,000 pilots at 41 airline carriers in the United States and Canada. Visit the ALPA website at http://www.alpa.org.

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ALPA CONTACT: Capt. David Bird, 808-838-0022; Ron Lovas, 703-481-4468

Re: Aloha Airline Pilots Condemn Management

http://www.bizjournals.com/pacific/s...y9.html?from_r

Aloha seeks pilot contract set-aside

Aloha Airlines, which promised in writing it would not ask to scrap its contract with pilots, has done precisely that.

Re: Aloha Airline Pilots Condemn Management

What I want to know is how HAL was able to emerge from bankruptcy WITHOUT having to take the kinds of actions that Aloha claims it needs to make in order to satisfy owners.

Alaska Air just negotiated a 4-year settlement with its machinists that give the rank and file an 11.8% pay increase this year and 1.5% raises every year after that for the contract life.

Alaska is also in financial trouble due to soaring fuel costs and bad publicity about maintenance of jackscrew components on its MD83s (most of their fleet is now comprised of newer Boeing 737s), but they haven't had to ask for the kinds of give backs that Aloha wants from its employees.

Meanwhile, machinist strikers at NW Airlines were handed a defeat when management last week offered an alternative package to the one that caused the strike which was mean more machivellian than the original package. The company has been getting by with the use of temporary workers and outsourced services and assumes that since things have gone well for them since the strike began, there's no reason to be generous to the strikers. When airline companies talk about saving money, it means cutting corners on amenities and sometimes cutting corners on safety, too.

Aloha should grandfather in all employees and retirees who are currently on a defined benefit plan and give them the option of either staying with a pension or converting to a 401(k). Any new employees should be forced to pay into a 401(k). Not giving the retirees and long term employees a choice is tantamount to stealing money from the backs of loyal employees. Now that Aloha is owned by outside investors, they obviously have no clue of what "Aloha" and "Ohana" mean.

Miulang

Re: Aloha Airline Pilots Condemn Management

HAL did threaten their pilots with the same 1113 but backed off. Anything beyond that is uncharted territory for airlines & BK law. The entire industry is watching Aloha today to see who blinks first. If pushed further, BK law will run headstrong into the wall of the Railway Labor Act. Which will take precedent? Will Judge Faris take a side? Will he force the two sides to negotiate? High drama in hawaii this week as all eyes are on Aloha. This is huge, the Advertiser and Star Bulletin are, as usual, the last to get the story.

Re: Aloha Airline Pilots Condemn Management

Reply from SB Business Section: Thanks for that Blaine. We did the story on Saturday in the business section, so I honestly have no idea what that guy is talking about.

http://starbulletin.com/print/?fr=/2...s/story02.html

>Hi guys (Star-Bulletin Business Section),
>
>ALPA guy is posting on a public forum and says you guys are the last to get the story.
>
>http://www.hawaiithreads.com/showthread.php?p=45675
>
>Blaine

Re: Aloha Airline Pilots Condemn Management

Hi Blaine:
I concur with the reply the Biz Sec guys gave you to your query. I actually did start a thread on Oct. 8 about this. So anyone who went to the thread already knew 10 days ago what Aloha was about to do. I cited the Advertiser, but I remember also seeing the SB did a piece in their biz section too.

Miulang

Re: Aloha Airline Pilots Condemn Management

Good thread you started muilang! I didnt dig deep enough on this board! my bad.

Re: Aloha Airline Pilots Condemn Management

I saw your story in the biz section on Saturday. Column along the right side I think... It was very good and it got posted in our crew room. I was referring to the press release late yesterday. Aloha actually filed the motion at 12 midnight yesterday so as to miss the Sunday newspapers and hopefully have it old news by next Sunday. They are playing dirty!

Aloha Airlines

It looked like every pilot who wasn't on the flight schedule was at today's informational picketing event. Every local newsroom was represented, with at least a dozen video and still cameras recording the event. Our media representatives had nearly lost their voices due to several hours of constant interviews with newspaper and television reporters. The showing was all the more remarkable considering we made the final call yesterday afternoon.

CLICK HERE FOR PICTURES

Should be on all the news tonight. Some of the signs we held said;

THE GREED EXCEEDS THE NEED
OUR PENSIONS ARE NOT FOR SALE
NO CONTRACT NO PILOTS
NO PILOTS NO ALOHA

From www.alpa.org

The bankruptcy court hearing is tomorrow morning at 1132 Bishop Street, but it is easier to find from Fort Street Mall, the foot-traffic-only mall on the Ewa side of Bishop street. The courtroom entrance is directly opposite the Subway Shop on Fort Street Mall. Every Aloha pilot that isnt on the work schedule will probably pack the courthouse tomorrow morning. The media will all be there too. History in the airlines is being made in Hawaii. Lines have been drawn, we will see how Judge Faris rules and what precedent he sets.

Re: Aloha Pilots picket / court ruling tomorrow

Interesting. Good Luck.

Mahalo,

Auntie Lynn

Re: Aloha Pilots picket / court ruling tomorrow

tanks auntie! http://www.thehawaiichannel.com/mone...87/detail.html

Coming on the news in 5 minutes. I watched 2/4 & 9 already. I'm gonna check out Ch 8 to see if they were any better in their report. Our two papers better not bury this news in the business section! Front page A1 you dogs!

Aq Pilots Call Banmillers Bluff

Top of the page at www.alpa.org

Courtroom drama continues all Halloween day at 1132 Bishop Street.

Re: Aq Pilots Call Banmillers Bluff

I hope ALPA sticks to its guns. AQ couldn't fly an airplane without the pilots...the new owners are in a pissing match with you guys. I think you have the upper hand because any "scab" pilots AQ might hire would fall under the rules that the management now wants to impose on its current pilots and retired pilots. And I'm thinking ALPA is a pretty aggressive union compared to some others.

Onipa'a!
Miulang

Re: Aq Pilots Call Banmillers Bluff

I have actually lost some sleep now because I am 100% certain ALPA WILL INDEED stick to its guns. This will probably go all the way to the end. A Strike Vote may be called this week at ALPA and upon the imposition of the 1113c ALPA pilots flying for Aloha will simply set the brakes and walk off their airplanes.

ALPA's offer to the company was to freeze the pensions of the current employees and protect the benefits of our retirees. That would cost Aloha the equivelent of a drop in the price of fuel $0.03 a gallon. Basically a days fluctuations in fuel prices could fund the DB plan for the retirees. (($0.10 drop in the price of fuel could fund the DB plan for the entire membership)).

The retirees paved the way for us younger guys and we wont leave them out to dry. The greed exceeds their need. Thanks for your support.