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        You are here: Home / Archives for AS/VX Merger

        Alaska Airlines-Virgin America Merger Update: January 31, 2017

        January 31, 2017 05:00

        There have been concerns raised to your Master Executive Council (MEC) leadership about what exactly the acquisition of Virgin America by Alaska Air Group and the subsequent merger between Alaska Airlines and Virgin America will mean for the AFA Alaska contract. Specifically, the question on the minds of many: If the Virgin America In-flight Teammates (ITMs) ratify a second tentative agreement between the Transport Workers Union of America (TWU) (the union representing the ITMs) and Alaska Airlines management, will our joint contract negotiations result in a deterioration of the “legacy Alaska” compensation and/or work rules? These concerns have been brought about by a recent communication from Alaska Airlines management to the Virgin America ITMs that hints an impending second tentative agreement (TA) and provides management’s perspective regarding the TA.

        Be assured our bargaining objectives will not be negatively affected if the Virgin America (VX) ITMs have a contract, because the “floor” for our talks will be the AFA Alaska contract. In our preliminary discussions so far, Alaska Airlines management has indicated they want to simply assimilate the Virgin America ITMs into our contract with minimal or no changes. It is clear from executive management on down that they are not expecting to “negotiate” any changes to the AFA Alaska contract.

        For example, check out the video of the Alaska and Virgin America Day One Town Hall in which MEC President Jeff Peterson asks Alaska Air Group CEO Brad Tilden about expectations related to the merger for enriching the Alaska labor group contracts. The video can be accessed by going to “AS+VX Day 1 roundup: Photos, videos and celebration” on Alaskasworld.com (login required), scrolling down to “Employee and teammate town hall” and clicking on the link to the full version of the town hall. Jeff’s question is found between 51:15 and 52:00 and Brad’s answer is between 52:00 and 53:15.

        In spite of this prevailing opinion amongst management, we have indicated there must be improvements for the Alaska Flight Attendants as well as for the Virgin America ITMs.  The recent communication from Alaska Airlines management to the VX ITMs spoke of them getting the AFA Alaska pay and work rules, not lesser ones. Management also referred to our contract as “industry leading.”

        Certainly, management recognizes there is no going backwards. We all want make this merger a success.  Undermining the pay, protections and benefits in our contract would be a disastrous for the merger. Finally, all AFA Alaska and AFA Virgin America members in good standing (dues current) will get to vote on the joint contract, so we are going to move forward in solidarity to improve the legacy Alaska contract.

        Beyond providing this information to our membership, it is important that AFA Alaska does not speculate any further on TWU VX’s ratification process and how it may affect the merger of our groups. The VX ITMs should have the space to take part in their democratic vote without influence or interference from anyone, including us. The MEC encourages the VX ITMs to talk to their TWU leadership for any specific concerns or questions regarding their contract negotiations.

        Until the NMB makes the determination that AFA is the representing union for Virgin America, the MEC affirms the right of TWU VX to achieve a historic first contract. As a reminder, AFA filed for single carrier status with the NMB on January 5, 2017. AFA looks forward to representing the Virgin America ITMs in the near future!

        In Solidarity,

        Your MEC – Jeffrey Peterson, Brian Palmer, Linda Christou, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Tim Green and Brice McGee

        Filed Under: AS/VX Merger, Latest News Tagged With: 2017, merger, TWU, Virgin America, VX

        AFA Files for Single Carrier Status with the National Mediation Board

        January 9, 2017 05:00

        There are still many unanswered questions about exactly how the merger with Virgin America will unfold. While the path may be long and drawn out, recently some significant milestones have been reached, and we are finally starting down the path of merging the two airlines.

        On December 14, 2016, the corporate transaction was completed, and the airlines are now officially under the Alaska Air Group umbrella.

        On December 30, Alaska management filed their “Notice of Merger” with the National Mediation Board (NMB), citing several indicators such as common ownership, Board of Directors, corporate officers and management; financial integration; and centralized labor relations. These conditions signal to the NMB that “like” employee groups from each carrier (such as pilots, customer service agents, dispatchers and Flight Attendants) may be ready to be represented by one labor union. Both Flight Attendant groups will ultimately be represented by AFA.

        On January 5, 2017, AFA filed its “Application for Determination of Representation Dispute” (official title) or “Finding of Single Carrier Status.” The NMB has the sole discretion for making this determination and, once made, will mean that AFA will also represent the Virgin America Inflight Teammates (ITMs).

        How long will it take the NMB to make this decision? There is no hard and fast rule and no concrete deadline. Looking at the timelines for past determinations suggests that it will be a number of months.

        A drawn out timeline is not unusual in airline mergers. Even after we have an agreement on a merged contract, the two groups cannot be combined until management is successful in attaining a Single Operating Certificate and achieving the ability to put both groups under one crew scheduling system. Only then can the groups be combined operationally and under one contract—both of which could be quite some time away in the future.

        We will keep you updated on merger-related events as they happen, and we thank you for your continued patience.

        In Solidarity,

        Your MEC – Jeffrey Peterson, Brian Palmer, Linda Christou, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Tim Green and Brice McGee

        Filed Under: AS/VX Merger Tagged With: 2017, merger, Virgin America, VX

        Department of Justice Approves the Virgin America Acquisition

        December 6, 2016 19:30

        Today the Department of Justice (DOJ) approved the acquisition of Virgin America by Alaska Air Group (AAG) after AAG agreed to certain modifications of its codeshare agreement with American Airlines.  This approval removes one of the final hurdles to the acquisition and officially starts the journey towards merging Alaska Airlines and Virgin America. AFA expects the transaction (hereafter also referred to as the “merger”) to be completed within the next few weeks following resolution of pending litigation. The Master Executive Council (MEC) looks forward to representing Flight Attendant members at both carriers in the near future as we begin our journey towards merging into one carrier.

        What is the timeline for the merger to close?

        Although the court filings refer to a 60-day public comment period required by the Antitrust Procedures and Penalties Act (Tunney Act), this waiting period is routinely waived by the Department of Justice.   Alaska Air Group management has indicated the merger will close shortly—subject to resolving an anti-trust lawsuit scheduled to be heard in court next week. Therefore the deal will likely be consummated within the next few weeks.

        What happens next after the merger closes?

        After the merger closes, the next step in the process is for the National Mediation Board (NMB) to issue a single carrier ruling. To facilitate that process we anticipate Alaska Airlines will supply the NMB with an outline of its plans to merge the operations. Once that is filed shortly after closure of the merger, AFA will promptly file with the NMB for the single carrier ruling. The NMB’s single carrier ruling will trigger a determination that AFA is the representative of all Flight Attendants at the combined carrier.

        When will AFA negotiate a merged agreement?

        We can negotiate with Alaska management for a merged agreement once the NMB has issued a single carrier ruling that AFA is the representative of all Flight Attendants at the merged carrier. If all goes according to plan, AFA hopes we can be at the bargaining table during late first quarter or early second quarter 2017.

        In Solidarity,

        Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Satterlee, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Tim Green, Brice McGee; and MEC S/T-Elect Linda Christou

        Filed Under: AS/VX Merger, Latest News Tagged With: 2016, merger, Virgin America, VX

        TWU/AFA Seniority Integration Protocol

        September 26, 2016 17:00

        Seniority Integration will be by Competitive Seniority Date

        AFA and the Transport Workers Union of America (TWU), the union that currently represents the Virgin America Inflight Teammates (ITMs), signed a seniority integration protocol confirming the two Flight Attendant groups will be merged in accordance with the AFA Constitution and Bylaws’ Merger Policy. AFA’s Merger Policy sets forth that seniority integration is by competitive (bidding) seniority date.

        >>> Click here to view the TWU/AFA Seniority Integration Protocol document. <<<

        What is competitive seniority date?

        Competitive seniority date is the date from which each Flight Attendant accrues competitive (bidding) seniority as a Flight Attendant on her/his current seniority list. AFA has previously referred to competitive seniority date as “date of hire,” for simplicity’s sake and because it is a common term in the industry.

        Who oversees merging the lists?

        The AFA Merger Policy dictates that two merger representatives will be appointed by the MEC for each carrier. The MEC has already selected Sandra Morrow and Marie Maxwell to represent Alaska Airlines Flight Attendants. The Virgin America (VX) merger representatives will be selected after AFA has been certified as the union representing both carriers following single carrier determination by the National Mediation Board (NMB). (For more information see “Alaska Airlines-Virgin America Merger Timeline” on afaalaska.org.) This committee oversees the process of merging the seniority lists in accordance with the Merger Policy. The list will not be given to management until the Joint Collective Bargaining Agreement is negotiated and ratified.

        Are any adjustments made to the seniority dates before the lists are merged?

        In order to make an “apples to apples” merging of the seniority lists into one, the merger representatives will be responsible for appropriately adjusting seniority dates by accounting for training credit while ensuring that no Flight Attendant’s relative seniority moves compared to her/his classmates.

        Alaska Airlines Flight Attendants will receive a “training credit” adjustment to their respective seniority dates because Virgin America ITMs receive their seniority dates on the first day of initial training whereas Alaska Flight Attendants receive their seniority dates following initial training.

        Each half of the committee is tasked with sending letters to the Flight Attendants on its respective seniority list so that seniority dates can be verified.

        Does the fact that the VX ITMs voted down their Tentative Agreement (TA) impact this process at all?

        No. Seniority Integration would occur using competitive seniority date regardless of the outcome of the TA. AFA’s Merger Policy of “merger by competitive bidding seniority” is fair and satisfies the McCaskill-Bond requirement of “fair and equitable.” TWU agreed that AFA’s Merger Policy is the appropriate application under the circumstances prior to finalizing the TWU VX TA.

        If you have any merger-related questions, contact your Local Executive Council president.

        In Solidarity,

        Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Satterlee, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Tim Green and Brice McGee

        twuafaseniorityintegrationprotocol

        Filed Under: AS/VX Merger, Latest News Tagged With: 2016, integration, merger, seniority, TWU, Virgin America, VX

        Alaska Airlines-Virgin America Merger Timeline

        September 22, 2016 17:30

        AFA confirmed with Alaska Air Group (AAG) management that the dates already publicly established are still valid targets, so we have put together a brief timeline and explanation of how the merger might play out.  It is important to keep in mind that the timeline could change and the below dates are estimates.

        Timeline for the Corporate Merger

        The Department of Justice (DOJ) must approve the acquisition and determine that it does not violate any anti-trust laws or regulations.  The actual conclusion of the financial transaction will happen a few days after the DOJ blesses the deal. Virgin America (VX) is anticipated to officially become a subsidiary of AAG in early October 2016.

        What will happen to Virgin America teammates after the close of the merger in early October?

        Some Virgin America management personnel have been offered a role at the combined company contingent upon the acquisition closing.  All non-management teammates who are represented by labor groups will continue to have employment.

        What exactly is “integration” and when will it happen?

        It is important to understand that “integration” applies to many steps along the way to completely combining the two carriers:

        • Integration of corporate managementand departments (Labor Relations, Legal, Finance, etc.) is one aspect of integration and will happen quickly after the close of the corporate merger.
        • Operational integration of policies, maintenance procedures and manuals, etc., which leads up to a Single Operating Certificate (SOC), takes over a year. In most previous mergers achieving SOC has taken even longer.
        • Labor Integration—including seniority list integration, negotiating the Joint Collective Bargaining Agreement (JCBA) and finalizing a process agreement that allows for a smooth and orderly combining of the two labor groups—will be implemented only after operational integration (above) is finalized.

        There is no absolute date or totally predictable time frame for any of these processes to roll out.  Management has set benchmarks as to when they would like to see these milestones achieved:

        • Integration of corporate management will start in October.
        • Operational integration is slated for the first quarter of 2018.
        • Labor Integration will depend on many variables:  the actual timetable for operational integration, the National Mediation Board’s ruling on single carrier status (see below), vetting the seniority lists leading up to seniority integration and the actual negotiating of the JCBA.

        When will AFA represent both Alaska Airlines Flight Attendants and Virgin America Inflight Teammates (ITMs)?

        Once the corporate merger closes and Alaska Air Group management has taken sufficient steps to merge the airlines, AFA will then petition the National Mediation Board (NMB) to rule that Alaska Airlines and Virgin America constitute a “single transportation system,” or commonly referred to as a “single carrier” or “single carrier status.” The NMB has a well-established standard to determine whether carriers constitute a single transportation system, which looks at factors such as the integration of operations, advertising, and the merger of management including labor relations and personnel functions.

        This process could take several months or more after the close of the corporate transaction.  While the unions control the timing of filing for single carrier determination, the NMB controls the timing of the decision.

        Once the NMB determines that there is a single transportation system, AFA will become the representative of VX ITMs. The Transport Workers Union of America (TWU), the union that currently represents the VX ITMs, has agreed to support AFA’s position before the NMB.

        After the single carrier ruling, a joint negotiating team comprised of Alaska Airlines Flight Attendants and Virgin America ITMs will negotiate with management to achieve a transition agreement, which will govern how the two groups will be integrated.  The Joint Collective Bargaining Agreement will come later in the process.

        AAG management’s plan is to combine Alaska Airlines and Virgin American into one airline. There has been a lot of speculation and rumor–but management has consistently stated—and reconfirmed to AFA—that the plan is to bring both carriers together under one operating system or “Single Operating Certificate.” Elements unique to each carrier may be combined in the final product that will be the new Alaska Airlines. Management’s target for this milestone is 1st quarter 2018.

        Does the fact that the VX ITMs voted down their Tentative Agreement change anything about this timeline or integration?

        No. The result of the vote does not change the situation.

        Future updates as information becomes available

        When AFA has more information, we will distribute that news. At this moment, the communication above represents what is known about the merger situation and timeline targets.

         

        In Solidarity,

        Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Satterlee, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Tim Green and Brice McGee

        Filed Under: AS/VX Merger, Latest News Tagged With: 2016, merger, Virgin America, VX

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