-T / T / +T | Comment(s)

Monday, January 15, 2007

Regional Cargo Airlines Avert Expanded Scope

With new pilot agreements with both UPS and FedEx now in place, regional cargo carriers averted the imposition of expanded scope clauses, according to the Regional Air Cargo Carriers Association (RACCA) which reported that such a move would drastically limit growth opportunities for its carriers.

"Overall, neither of the new labor agreements should pose any significant barriers to domestic feeder flying, or to business opportunities to our carriers," said RACCA in its labor article authored by Ford & Harrison Partner Marc Esposito. However, it cautioned its members that more success will likely mean more union attempts to organize crews. "Carriers should take the proper precautions to accommodate [successful] growth," said Esposito. "Employers must not only have the financial and operational resources to support more flying and additional employees, they also need the tools required to handle the issues accompanying a larger workforce. A growing, financially-stable carrier is an attractive target for unions."

Although the industry is now largely non-union, the industry's growth, said RACCA, is certain to place it on union radar scopes. It pointed out of 19 union elections among aviation employees conducted by the National Mediation Board, 11 involved employee groups with less than 150 employees and five were in groups of less than 10.

The new FedEx agreement, said RACCA, establishes a scope clause restriction on aircraft with a max gross takeoff weight of 60,000 pounds or less, restricting the substitution of a smaller aircraft for one weighting more than 60,000 pounds that could result in a furlough of any mainline pilot.

Meanwhile, the UPS contract focused more on international flights restricting the use of subcontractors for international operations. However, it may use them where common carriers are not available, said Esposito. The previous restriction requiring all international flying using aircraft of 12,899 pounds or more be flown in house has been lifted to 19,000-pound aircraft.

Esposito also noted that International Brotherhood of Teamsters (IBT) President James Hoffa won election on promises of aggressive organizing. IBT also has close ties to UPS, promising close attention to its affiliated carriers.