PNCL, ALPA Trade Charges, PNCL Independence Completed

In the wake of a strike vote by pilots, an Air Line Pilots Association (ALPA) request to the National Mediation Board for binding arbitration and a law suit filed against the union by Pinnacle in U.S. District Court, ALPA expressed outrage saying the suit was “the latest in a long line of attempts to...

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In the wake of a strike vote by pilots, an Air Line Pilots Association (ALPA) request to the National Mediation Board for binding arbitration and a law suit filed against the union by Pinnacle in U.S. District Court, ALPA expressed outrage saying the suit was “the latest in a long line of attempts to put off the inevitable and to misrepresent where the real blame lies – with Pinnacle management – for the failure to achieve a fair contract after three very difficult years,” said Captain Scott Erickson, who chairs Pinnacle’s pilot organization. Related Story
However, Pinnacle expressed equal frustration with ALPA, saying every time they seemed to reach an agreement, the union moved the goalposts. “We feel like Charlie Brown and Lucy with the football,” said President and CEO Phil Trenary. Related Story
Negotiations were further complicated by the company’s acquisition of non-union Colgan Airways which pilots view as a thinly veiled attempt to get them to agree to terms they would otherwise not accept, given a successor clause in the corporate bylaws allowing Colgan pilots to fly Pinnacle routes.
In negotiations since 2005, Pinnacle accused the union of not being truthful about its offers to pilots. “I believe we would have had an agreement already if our pilots had been told the truth about our offer and been allowed to vote on the company proposal as we requested," said Clive Seal, vice president and general manager of Pinnacle Airlines Inc. “On more than one occasion, we agreed to terms that the union said would result in an agreement, and then they moved the goalposts and made additional demands. We need them to come to the table and deal fairly in a genuine effort to get a fair contract for our pilots and their families."
The failure to reach an agreement cost the company additional Northwest flying which would have amounted to some 13 percent of its revenue which shortly transitions to Mesaba, Northwest’s wholly owned subsidiary. Another result, said Seal, was the airline’s inability to bid on new flying. "The failure of ALPA to reach an agreement with Pinnacle resulted in the loss of 17 of our 50-seat jets and a chance to fly 76-seat jets for Northwest Airlines,” he said. “On another occasion, one new customer removed Pinnacle from consideration for 25 new regional jets. We let the union know what was at stake on both occasions and that it was imperative that we achieve a new contract in a timely manner. The union's response was that 'it's your problem.' We have a different view. This would have meant hundreds of new jobs, including 200 new pilot jobs and immediate upgrades for 110 first officers. Success in this industry is based on growth, and we're offering a deal with that in mind. We're simply saying shoot straight with our pilots, share with them what we've offered, not only in formal proposals but in informal meetings where we have agreed to requests. One-sided negotiations can't be successful."
ALPA pointed out that Pinnacle Airlines and its parent company, Pinnacle Airlines Corp., continue to be very profitable, posting a stronger profit margin than other regional carriers – more than 9.6 percent over the last three calendar years. Despite this, it said, negotiations on a new collective bargaining agreement began in January 2005, with no contract achieved after 18 months. ALPA accused the company of having stalled the process ever since its “best and last offer" in December 2005. Mediation began in September 2006, but has not been successful, Prater said, and so he requested arbitration to get the process moving.
Even so, Pinnacle Airlines outlined its history with ALPA in reaching agreements in 1989, 1996 and 1999. “In fact,” said the airline, “Duane Woerth, then president of ALPA, was quoted following 1999 negotiations as saying ‘this is an extraordinary collective bargaining success. This is the way collective bargaining should work all the time. It's a landmark and a very positive result.'' The airline recently reached an initial agreement with the Transportation Workers Union to cover its dispatchers, the United Steel Workers for its flight attendants and has made wage adjustments for all other work groups.
"We want a new contract for our pilots,” said Trenary. “We want to be at the table and bring these negotiations to a close. We have bargained in good faith and have repeatedly responded positively to requests from the union. We have been more than fair. All of us built this company together under the premise that we are a team, and we think it's unfair that our pilots are the only employee group that has not had a raise since 2005. Now, it's time for the union to be fair by putting union politics aside and doing what's in the best interest of our pilots."
Pinnacle is offering them a 20 percent raise to address inequities, according to the Memphis Commercial Appeal, which also reported that in its most recent offer, most would get a four percent increase and one percent annual raises. Pilots called that inadequate in the face of threats to job security wrought by the non-union Colgan Airways acquisition.
"Essentially, it comes down to this,” Capt. Scott Erickson, who chairs Pinnacle’s pilot union, told the newspaper. “They took money out of the coffers of our airline, floated it up to Pinnacle Corp., the holding company, and bought another airline.”
ALPA accused Pinnacle of filing a “baseless lawsuit” as both a delaying tactic and in retaliation for its request to the National Mediation Board for binding arbitration, according to Erickson. ALPA went further. "I'm astounded that Pinnacle management has the gall to accuse ALPA of bad-faith bargaining…,” said ALPA President John Prater. “It's the height of cynicism. I am equally outraged that Pinnacle, charged that ALPA negotiators had not 'told the truth' to pilot members regarding offers Pinnacle had made. Pilots have been fully informed on all details of negotiations throughout the process. Even though many contract issues have been resolved, this management refuses to make any serious improvements in pilot job security protection, pay rates, and work rules that would appreciably improve pilots' quality of life."

Pinnacle Gains Independence
The dispute comes as Pinnacle Airlines Corp. gained complete independence having passed the last milestone in freeing itself from Northwest when it purchased its Class A Preferred Share from Northwest Airlines Corp. for $20 million in accordance with the Airline Service Agreement between Pinnacle and Northwest struck a year ago.
"This is the last step in the process of becoming independent that began with our IPO in 2003, and well-positions us to take advantage of future opportunities,” said Philip H. Trenary, Pinnacle's president and chief executive officer. “We remain firmly committed to Northwest Airlines, our largest customer." Pinnacle's contract with Northwest runs through 2017.