Welcome to ALPA, Intl. FastRead for February 4, 2005

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In this issue:

1. ALPA President Speaks for Pilots in Government Pension Forum

2. United Pilots Approve Concessions, Warn Airline to Use Them Wisely

3. Mesa Air Group Pilots Picket Shareholders Meeting

4. Airlines Concerned about Possible Ticket Tax Increase

5. ALPA Doesn’t Miss a TWIC in Pressing for Biometric ID

ALPA President Speaks for Pilots in Government Pension Forum

ALPA's president, Capt. Duane Woerth, conveyed the Association's views on pension reform to a blue ribbon panel of experts in Washington, D.C., on February 3.

U.S. Comptroller General, David Walker convened the day-long forum to seek solutions to the growing pension crisis. The list of attendees was a virtual Who's Who of representatives from leading industry groups, academics, labor organizations, consumer groups, and government agencies that deal with pension issues.

The U.S. Government Accountability Office conducted the forum. The GAO is examining the problems that have emerged with defined-benefit pension plans and how those problems affect the Pension Benefit Guaranty Corporation, which insures the plans.

Speaking as a voice for labor at the forum and the only representative from the airline industry, Capt. Woerth was representing the interests of pilot groups with defined-benefit plans, especially the United pilots, whose plan is in imminent danger of being terminated. His comments focused on ALPA's previously published proposals to reform the pension funding rules.

Specifically, ALPA wants Congress to lengthen the employer's amortization period for unfunded liabilities, allow reasonable interest rate assumptions in calculating the required contributions for unfunded liabilities, and limit the PBGC's exposure if a plan is terminated under the revised rules.

United Pilots Approve Concessions, Warn Airline to Use Them Wisely

United pilots, on January 31, ratified the revised tentative agreement between ALPA and United management. The new agreement amends the pilots' current collective bargaining agreement, effective Jan. 1, 2005, and will provide $180 million in annual labor savings to the company.

Approximately 77 percent of the eligible United pilots cast votes on the new labor agreement, approving it by a vote of 75.46 to 24.54 percent. Bankruptcy Judge Eugene Wedoff had previously indicated he will approve this agreement.

United MEC chairman, Capt. Mark Bathurst, issued the following statement in reaction to the TA vote results: "Again, this pilot group stepped up to the plate and made the responsible decision to accept the revised tentative agreement. We understand the tremendous financial challenges facing our airline and have once again assumed a leadership role in guiding United toward an eventual exit from bankruptcy. As we did when United pilots accepted the original tentative agreement on January 6, we call on management to use the savings obtained in this agreement wisely and to apply them toward returning this airline to a financially healthy enterprise.

"We will be relentless and steadfast in holding management to an unprecedented degree of accountability as they now have all of the tools they claim they need to exit from bankruptcy," Capt. Bathurst said. "We will accept no excuses and no undue delay in moving this company forward in the coming months to regain our rightful place at the top of the U.S. airline industry."

The United MEC stated that the new agreement is designed to accomplish three principal goals-to preserve the basic economic terms of the TA with improvements for the pilot group; to conform the technical bankruptcy aspects of the agreement to the decision of the bankruptcy court without exposing the pilots to unfair treatment in the bankruptcy process; and to ensure that the pilot group fully participates with the other United employee groups and management in further pension discussions during the next 90 days.

Some of the provisions in the new agreement include the following:

• A letter confirms that United will explore, and work with the pilot group to explore, alternative solutions to terminating the pilots' A plan during the next 90 days. Further, that the MEC does not have to withdraw opposition to pension plan termination until all alternatives have been exhausted.
• This contract has less of a salary reduction (11.8 percent) than in the previous agreement (14.7 percent).
• The agreement has a similar duration provision to the previous agreement with an amendable date of 12/31/09 and negotiations to begin no later than 5/1/09.
• The agreement clarifies that pilots will receive the enhanced C plan contribution and $550 million in convertible notes if either the company or PBGC terminates the A plan. It also clarifies that contributions to the C plan will begin no later than June 1, 2005.

Mesa Air Group Pilots Picket Shareholders Meeting

Mesa Air Group pilots, who include pilots flying for Air Midwest, Freedom, and Mesa, will conduct informational picketing in front of the Mesa Air Group's corporate headquarters in Phoenix, Ariz., at 10 a.m. on March 8, to demonstrate their frustration with management's refusal to comply with their contract. The picketing coincides with the Mesa Air Group shareholders meeting being held at corporate headquarters.

Management routinely touts the Mesa Air Group's growth and success. Pilots have demanded that management follow and live up to the collective bargaining agreement that they signed, rather than continue to violate pilots' contractual rights.

"It's time to say, enough is enough!" says MEC chairman, Capt. Andy Hughes. He notes that 23 months ago the pilot group and management signed a contract that allowed for unprecedented growth in an airline environment of instability and furloughs. "Since that time," he charges, "numerous contract violations have led to an abundance of grievances increasing labor unrest." The pilots, who entered into negotiations with management in November 2004 to resolve contract violations, agreed to discuss management's issues. "Management has since closed the door on these discussions," Capt. Hughes says, "and has not yet resolved the large backlog of outstanding grievances."

Airlines Concerned about Possible Ticket Tax Increase

Reports that the White House budget proposal, due out on February 7, details plans to more than double the federal security tax per flight from $2.50 to $5.50 have raised concern among U.S. airline industry officials who have, to date, been unable to maintain higher ticket prices to offset massive fuel costs. According to news reports, an airline industry trade group representative said the Department of Homeland Security must be unaware of the airline industry pricing environment or does not understand the economics of our industry.

Opportunity Knocks, ALPA Answers to Promote TWIC

An investigative report by a Chicago-area cable news station, CLTV, recently demonstrated how easily any individual could use an Internet connection and a credit card to order a pilot uniform delivered right to the person's door.

Once alerted to the CLTV story, ALPA worked with the journalist to help make it clear that, while the unauthorized use of airline pilot uniforms is a serious concern, it is only one method of impersonating transportation workers. ALPA recognized the story as an opportunity to promote the Transportation Worker Identification Card (TWIC) system, and took advantage of it.

The United MEC's vice-chairman, Capt. Wendy Morse, represented ALPA in an interview for the story. She delivered the union's message that TWIC is designed to counter any attempt by unauthorized individuals to gain access to secure areas and equipment, whether by wearing an unauthorized uniform or using another means. The TWIC includes fingerprints, facial features, and other biometric information that make it an extremely secure method of identification.

ALPA is committed to ensuring that pilots benefit from the most advanced technology possible for secure and efficient identification. The Association's safety and security, legislative, and communications teams have worked together with the federal government for several years to help make the TWIC program a reality.

As a result of the CLTV story, and ALPA's driving home the TWIC message, U.S. Sens. Dick Durbin (D-Ill.) and Barack Obama (D-Ill.) asked Congress and the Transportation Security Administration to investigate the easy availability of airline pilot uniforms online and the technologies available to address the issue.

The Illinois Senators said in the letter to Sen. Susan Collins (R-Maine) and Joe Lieberman (D-Conn.), chairman and ranking member of the Senate Homeland Security and Governmental Affairs Committee respectively, that: "We urge the committee to fully investigate this matter to determine why it is so easy for civilians to buy uniforms, how a civilian could get through security in disguise and whether tighter security measures for airline personnel need to be implemented. ...We would also like to know how new and, as yet, unimplemented technology, such as the biometric identification card for transportation workers, could help in this regard."

ALPA will continue to advance pilots' perspectives on TWIC and call on the government to expeditiously implement it as a national program for identifying and confirming the employment status of aviation workers.

Questions? Comments? Give us your feedback at communications@alpa.org.