Weighing In: Learning From the Past
By Capt. Randy Helling, ALPA Vice President–Finance/Treasurer
I’m sure you’ve all heard some version of the quote, “Those who cannot remember the past are condemned to repeat it.” It’s a warning to all of us not to ignore past mistakes lest we make those same mistakes again.
The inverse of the quote, however, is the silver lining. If we remember the past, we can both learn from it and repeat it. And as ALPA celebrates its 85th anniversary, it’s important to learn from our past, celebrate it, and repeat it, too. But just the positive aspects.
The lessons we’ve learned from the past 85 years have put us in a strong financial position today. We’ve learned the importance of unity. We’ve learned the importance of being “Powered by Pilots”—a phrase you’ve been seeing all year. And particular to my position, we’ve learned the absolute necessity of being responsible with our pilots’ dues money. ALPA is run by your dues dollars and your trust, and we need to be respectful of both to continue forward.
From the beginning, members’ dues have made ALPA possible. The Association’s original Organization Log includes a requirement for an initiation fee of $50 per pilot plus annual dues of $60, payable quarterly. Also included is a long set of instructions for ALPA’s treasurer to responsibly handle those monies, including monthly audits for the first year and quarterly audits thereafter—all performed by a CPA. These tenets continue today, underscoring the uncompromising principle of fiduciary responsibility.
Since the recessions of a decade ago, we’ve slowly built back our financial muscle. At May’s Executive Board meeting, I reported to your master executive council leaders on our financial standing, and we remain on an upward trajectory. I’ve made that same report every year for the last few years now; and while it’s a tad bit repetitive, it’s the type of repetition we like to hear.
Our finances have allowed us to effectively advance our motto of “Schedule with Safety” and to take some important proactive measures to safeguard our ability to do so in the future.
We’re in the midst of our second year of Project AMBER, our system modernization effort, which has already returned some valuable benefits to ALPA members (see page 36). We’re replacing the organization’s 20-year-old patchwork software and data information-storage network—which supports the union’s finances and other key functions, including the member database.
When Project AMBER is completed, the Association will have a new system that provides a broader array of capabilities, improved efficiencies, better ability to interact with pilots, and greater security. Members will be able to better share, update, and receive information. And hopefully their union “user experience” will be enhanced.
The Association continues to rebuild the Major Contingency Fund (MCF), which we began in 1985 in response to deregulation, as well as the Operating Contingency Fund (OCF). The MCF is our most visible strategic asset, our “war chest” in place to assist pilot groups as they approach the endgame of contract negotiations. It’s a show of strength, and one that’s important to maintain.
ALPA’s OCF is one of our most important strategic resources, with fund surpluses carried forward into subsequent years. And we’ve been successfully replenishing the OCF over the past decade.
We’ve not only been able to budget money directly into these funds, but we’ve also been able to put surplus funds in as well as reallocate expenses to the Administrative & Support Account. All told, it’s allowed us to strengthen the Association and put us in a better place—and better prepared for the future.
In 1931, when the “Key Men” sat down and formed the Air Line Pilots Association, I’m sure they knew their work would impact airline pilots for years to come, but I doubt they envisioned the far-reaching effect of their efforts. Through the hard work, commitment, and dedication of ALPA pilots throughout the past 85 years, this union continues to be the nucleus of our profession—one that we’re all proud of today and will be proud of in the next 85 years to come.
