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Alaska Airlines-Virgin America Merger Update: September 7, 2016

AFA International has guided several Master Executive Councils (MECs) through mergers at their respective carriers over the years, and each one has been different. The only commonality is the shortage of details throughout the merger process, and the patience that must be exhibited to wait out the long stretches of uncertainty and information voids.

Management has yet to make several key decisions regarding the merger such as brand identity and aircraft cross training. Remember, this is still very early in the merger process. This lack of information compounds our challenges in providing definite answers to your questions. Given that the Virgin America Inflight Teammates (VX ITMs) are voting on their first contract, AFA is doubly hesitant to speculate on future events and risk appearing to influence their TA vote.

That said, there are a few safe bets we can rely on given that management has committed to merging the AS FA and VX ITM groups:

  • Seniority will be integrated by “competitive seniority (bidding) date” with appropriate training credit as set forth in Section X “Merger Policy and Related Employee Protective Provisions” of the AFA-CWA Constitution & Bylaws (C&B). *
  • AFA will be the legal representative for both groups once the National Mediation Board (NMB) declares that there are sufficient common indicators to rule that Alaska Airlines and Virgin America are a single transportation system (“Single Carrier”). The NMB solely makes the decision of when that will happen based on progress made by Alaska Airlines management. The only influence the unions have here is deciding when to file—everything else is up to management and ultimately the NMB.
  • At some point, the VX ITMs will be covered under the AFA Alaska contract and pay rates.

* 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 (hereafter “seniority date”). AFA has previously referred to competitive seniority date as “date of hire,” for simplicity’s sake. 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 F/As receive their seniority dates following initial training. In order to make an “apples to apples” merging of the seniority lists into one, the Merger Representatives at each carrier 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.

Will the outcome of the VX Tentative Agreement (TA) vote affect any of the items listed above?

No.

What items would be affected by a YES or a NO vote on the VX TA

AFA cannot comment or speculate on items that would or would not be affected for three reasons:

  1. The Transport Workers Union of America (TWU) is the representative union for the VX ITMs and it is TWU’s place to address any questions their members have concerning the TA and the Merger.
  2. It would be highly inappropriate for AFA to put forth opinions that could potentially sway voters one way or another. The VX ITMs should base their decision on the provisions in the TA and supplemental information from TWU.
  3. There is just not enough information concerning management’s plans to make solid predictions or forecasts. AFA could make suppositions based on incomplete facts and rumors, but that would do no good when so many pieces of this merger are in flux.

Is it helpful when AS FAs get on social media and comment on the VX TA or speculate as to what will happen if the VX TA fails or passes?

Probably not –

There are no definitive answers to many of the questions being discussed on social media. If AFA is stating that there is not enough information (or we are too early in the merger process) to answer those questions, then an individual who is not currently involved at a leadership level would likely not have sufficient information or background to answer correctly.

We can all agree that the uncertainty is frustrating and certainly there is comfort in engaging in a dialogue to discuss the situation. However, it is important to remember that the views expressed are assumptions and if that speculation, however well-intentioned, turns out to be incorrect and it sways a VX ITM to vote a specific way, then that will have been a disservice to the voter.

The VX ITMs must get information and guidance from TWU. However, some of the questions they are asking cannot be answered with certainty right now.

Are there other things that will happen regardless of a YES or NO vote on the VX TA other than those listed at the beginning?

Yes –

  • AFA will go to the table and fight to improve the AFA Alaska Collective Bargaining Agreement (CBA), and all improvements will accrue to both groups when everyone is under the same contract. VX ITMs will be represented on the Seniority Integration Committee and Joint Negotiating Committee (JNC) as mandated in the AFA-CWA C&B.
  • Typically in a merger, even after a joint contract is achieved it takes a period of time to merge the two work groups operationally to ensure a smooth integration of the groups. During this period, the two groups are kept separate until operational integration.
  • AFA will have to negotiate how the VX ITMs are transitioned over to the AFA Alaska CBA (e.g. uniform credits, training, hours to TFP conversion for sick leave, etc.).

What are the plans for integrating the two groups and what is the timeframe? 

At this time, there are no firm plans communicated from management on how or when integration is planned to start. Remember, the Department of Justice (DOJ) has not even approved the merger at this point, so the merger is not final.

When the NMB decides that AS and VX are a “Single Transportation System” then will the two Flight Attendant groups be integrated?

We do not know when the NMB will make its ruling; however, in almost every situation, the “Single Carrier” ruling comes well before integration of the employee groups. The NMB’s determination was made years ago in the United Airlines (UAL) – Continental Air Lines (CAL) and American Airlines (AA) – US Airways (USA) mergers, and those Flight Attendant groups at those carriers are still many months away from integration. Admittedly, the merger of those groups involves much greater and more complicated negotiations and software/operational changes than AS-VX, but there will be challenges and ‘speed bumps’ that will most certainly delay the full integration of the AS-VX group.

Since most of the integration from the management’s side is finished, doesn’t that mean that integration of the other employee groups will follow soon? 

Integration of the management positions does seem to have happened rather quickly – so quickly that its all contingent upon the merger going through. Whether that is a prudent move or not will be shown as this merger rolls out. But do not take fast action on the management positions as an indicator that the Flight Attendant group will also be quickly integrated. So much has to happen before full integration takes place: Seniority integration, negotiating a process agreement for the merged contract negotiations, negotiating the JCBA, branding decisions, operational changes and software upgrades, aircraft livery, etc.

Is this slow pace and lack of information unusual for an airline merger? 

Unfortunately, it is completely normal, and it has been AFA’s experience that mergers often play out like this. All mergers are unique and take a different path and timeframe. There is little use in speculating how the AS-VX merger will eventually happen. But do know that through the delays and lack of information, AFA will continue to push for answers and will advocate for members interests just like AFA did in the below mergers.

  • UAL-CAL merger: DOJ approval in 2010, Flight Attendant groups on target to be merged in several months (2017).
  • AA-USA merger: DOJ approval in 2014, Flight Attendant groups on target to be merged in several months (2017).
  • AirTran Airways (ATR) – Southwest Airlines (SWA) merger: DOJ approval in 2011, Flight Attendant groups were merged slowly over a 4-year period. The end of the integration period was in 2015.

The final DOJ approval has not happened, so while management is working through the merger process, they are not going to release any details until they feel it is the appropriate time. Of course this makes AFA’s job of keeping you informed along the way very difficult. When we know details, we will pass them on.

In Solidarity,

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

TWU Virgin America Tentative Agreement and the Merger

Several Alaska Airlines Flight Attendants and Virgin America Inflight Teammates (ITMs) have contacted the Association of Flight Attendants-CWA to inquire why AFA—specifically the Alaska Master Executive Council (MEC)—has not made any statements about the current Tentative Agreement (TA) between Virgin America and the ITMs over and above “TWU Virgin America Announced a Tentative Agreement” posted on afaalaska.org on August 17, 2016.   Since Virgin America ITMs are represented by the Transport Workers of America (“TWU”), neither would it be appropriate for AFA to contact Virgin America ITMs directly to discuss the TA; nor would it be appropriate for AFA to engage in detailed discussions with our own members about the TWU VX TA.  AFA cannot be seen as influencing the TA vote, even if such influence is in a roundabout way, e.g., providing information to our members who then post such information on social media, which is subsequently read and discussed by VX ITMs and ultimately affects decision-making.

AFA looks forward to representing Virgin America ITMs once the merger is complete, and AFA is recognized by the NMB as the exclusive bargaining representative for all the post-merger Flight Attendants.  Until that occurs, however, the Virgin America ITMs should continue to direct questions about their TA and/or the merger to their TWU representatives. The MEC plans another merger update for our members shortly after the holiday weekend.

If VX ITMs wish to voluntarily sign up for AFA Alaska communications, or AFA Interactive (communications to all AFA members), please visit http://afanewsletters.org/subscribe/. (This is also the same link for Alaska Airlines Flight Attendants to subscribe.)

We understand this merger has raised many issues and concerns. Rest assured that AFA is committed to representing all Flight Attendants and ITMs once it is appropriate to do so. AFA’s primary goal is to ensure that the post-merger Alaska/Virgin America Flight Attendants will work together under one of the best Flight Attendant contracts in the industry.

In Solidarity,

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

TWU Virgin America Announced a Tentative Agreement

Earlier this morning the Transport Workers Union Virgin America (TWU VX) Negotiating Committee announced they reached a Tentative Agreement (TA) with Virgin America management on an historic first contract. At this point their TA must be voted on and ratified in order to become effective, a process that AFA estimates would take around a month.

As a reminder, AFA will be the surviving union representing the unified group if the merger is finalized. There will be no representational election. Management will need to negotiate with AFA to address the merger of the work force, and this can be an opportunity for Flight Attendants to achieve improvements.

It is important that AFA Alaska does not speculate on TWU VX’s ratification process and how it may affect the merger of our groups. Virgin America Inflight Team Mates (ITMs) should have the space to take part in their democratic vote without influence or interference from anyone. We obviously support their right to vote without outside interference. The Master Executive Council (MEC) believes the next merger update will be sometime in September after the TWU VX TA ratification vote has concluded.

Congratulations to TWU Virgin America for achieving their TA!

In Solidarity,

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

Your AFA Alaska Joint Negotiating Committee – MEC President Jeffrey Peterson, Jennifer Wise MacColl, Lindsey Steele and AFA Senior Staff Negotiator Paula Mastrangelo

AFA Constitution Mandates “Date-of-Hire” Seniority Integration, Protected by U.S. Law

[Note: AFA International prepared the following information for AFA Alaska members regarding the Association’s seniority integration policy in a merger. Specifically, this addresses the proposed acquisition of Virgin America by Alaska Air Group and merger of Alaska Airlines and Virgin America under one operating certificate. –The AFA Alaska MEC]

June 24, 2016

AFA’s seniority integration process reflects:

  • A commitment to ensure fairness with a “fair and equitable process” recognized by U.S. law,
  • Our desire to promote unity,
  • AFA’s decades of experience in promoting and protecting Flight Attendants’ interests in airline transactions.

The principle of ‘date-of-hire’ is codified in the AFA-CWA Constitution to integrate the list according to the schedule competitive bidding seniority that someone brought to the merger.

Page 1 of AFA-CWA Constitution & Bylaws, Article I.C.4. —

To promote the interest of the profession and to safeguard the rights, individually and collectively, of the members of the Union by ensuring that the “seniority date” of a flight attendant shall be the date from which each flight attendant accrues competitive (bidding) seniority as a flight attendant.

U.S. Law Requires Enforcement of AFA Seniority Integration Policy

AFA’s seniority policy is also reinforced by US law. After the TWA Flight Attendants were stapled to the bottom of the seniority list at American, our union advocated for a change to the law that would provide a “fair and equitable” seniority integration for all airline workers affected by a merger. Again, fair and equitable is a process, but it does not ensure a “fair” outcome.

If seniority is left up to an arbitrator, all arguments and positions made by the parties involved will eventually be decided by someone who has no claim or stake in the end result. That is why we ensured that the law would also protect our union’s seniority integration policy. The McCaskill-Bond law states:

“if the same collective bargaining agent represents the combining crafts or classes at each of the covered air carriers, that collective bargaining agent’s internal policies regarding integration, if any, will not be affected by and will supersede the requirements of this section;”

This law affirms that our AFA seniority integration policy is the process that must be used when AFA is the representative of Flight Attendants at the merged airline.

‘Date-of-Hire’ Principle Used, ‘Bidding Seniority’ Actual Term

Section X.C.2.a.(2). of the AFA-CWA C&B ensures that, “…the ‘seniority date’ of a Flight Attendant shall be the date from which each Flight Attendant accrues competitive (bidding) seniority as a Flight Attendant as of the date of the merger agreement between the affected airlines.” The term “date-of-hire” is common terminology among Flight Attendants and is the principle contained within the C&B. This term describes our principle but not the actual wording that refers to bidding seniority.

When Does the Process of Seniority Integration Take Place?

Once there is a “reasonable probability that the [operational] merger will be consummated” (Section X.C.2.i.), the NMB determines the merger has resulted in a single carrier for purposes of representation and AFA is certified as the representative of the combined Flight Attendant group, the AFA-CWA Seniority Integration process begins, Section X, pages 123-127.

The Seniority Merger Integration Committee – Merger Representatives

The Alaska MEC has installed its two Merger Representatives. Upon certification of AFA as the bargaining representative for Virgin America Flight Attendants, the timelines of Section 10.C. shall apply. Virgin America leaders will select their two Merger Representatives within 30 days and a training at the AFA-CWA International Office shall be scheduled for all Merger Representatives, the full Seniority Merger Integration Committee (SMIC), and the seniority list work will begin.

The SMIC consists of representatives from each pre-merger airline. The AFA-CWA Constitution and Bylaws (C&B), which is also reinforced by U.S. law, provides clear instruction on the committee role and authority in merging the seniority lists.

These representatives are responsible for:

  1. compiling the necessary employment data for all Flight Attendants from their respective airlines, and
  2. working as a full committee to compile a single Flight Attendant seniority list.

In terms of compiling the single seniority list, the only two (2) items constitutionally required for resolution by the committee include:

  1. applying credit for initial training while maintaining relative seniority on each respective list, and
  2. methodology for integration of same day seniority dates.

In every case, per Section X.C.3.c.(4) of the C&B “the relative position of the flight attendants on their respective seniority lists shall be maintained and the merger representatives shall not have the authority to alter the relative position of any flight attendant to others on her/his own list for any reason.”  In other words, the existing order or placement on each respective list must remain the same, i.e., no one “leap-frogs” over another.

Prior Integrations, Contractual Requirements and Training Days

The SMIC may not alter former seniority integrations. Prior decisions are binding upon the Union. In addition, the terms of the contract cannot be altered in this process. The AFA Seniority Merger Integration Process does not provide for adjustments to seniority dates that should otherwise be handled through a grievance.

The C&B strictly prohibits changes, other than to adjust for initial Flight Attendant training. Section X.C.3.c.(1) of the C&B states, “the only adjustment to seniority date as defined in Section X.C.2.a., being reconciliation of differences in policies on the respective carriers relating to seniority accrual for training days so that each Flight Attendant on the merged seniority list receives credit for her/his training days.”

AFA Seniority Integration Policy Used in Mega-Mergers

In both the Delta and American mergers, AFA’s merger policy set the standard for Flight Attendant seniority integration. At Delta, management knew that Flight Attendants would have one more big reason to vote for a union unless management provided the same seniority security that AFA’s policy would provide. The Northwest and Delta lists were integrated according to AFA’s seniority integration principle.

AFA had the cleanest seniority list in the industry at US Airways, where many mergers took place based on AFA’s seniority integration principle. Further, our union had gained seniority protections under the law. In the American merger, APFA agreed to a seniority integration that mirrors AFA’s constitutional merger policy, protecting both pre-merger US Airways and American Flight Attendants.

In these examples, AFA’s policy drove the process used even when AFA was not the surviving union. The difference in the Alaska/Virgin America merger is that AFA will be the surviving union. When AFA is the surviving representative there is no question: the AFA Seniority Integration Policy is used and required by U.S. law.

In the United/Continental/Continental Micronesia merger, the AFA-CWA Seniority Integration Policy is enforced since AFA is the surviving union following a representation election. That seniority integration process is complete and the Merger Representatives from each pre-merger airline simply continue their collective SMIC work to confirm the employment data of new hires and update the list based on retirements, etc. The integrated list becomes effective upon ratification of a Joint Collective Bargaining Agreement.

Recognition of Every Flight Attendant – Unity is What We Need

Our merger policy was put in place nearly 30 years ago following mergers where the issue of seniority did nothing more than create division. This division plays out at a time when it is especially critical for Flight Attendants to stand together in unity. In mergers, our focus needs to be on making our seniority count with the best job security, pay, benefits, work rules and quality of life at the merged airline. Our policy provides a defined and transparent procedure for seniority integration.

The fate of our seniority should never hinge on a corporate decision that is outside of our control. With a detailed process in black and white we can focus our attention on our unity and work towards a single contract that reflects our valuable contributions to the airline.

Alaska Airlines-Virgin America Merger Update: Our Contract, Our Representation

The AFA Alaska Master Executive Council (MEC) and AFA International are closely monitoring the proposed acquisition/merger with Virgin America while management navigates the various approval processes. On May 25, 2016, the MEC and your newly selected Merger Representatives are scheduled to attend a special meeting called by our AFA-CWA international president. Pursuant to Section X [Merger Policy and Related Employee Protective Provisions] of the AFA-CWA Constitution & Bylaws, the purpose of this meeting is to review the merger, our constitutional protections and procedures, contract bargaining, representation and seniority integration. While preparations are already underway on these items, nothing can officially proceed until the financial transaction is final months from now.

 

AFA International President Nelson has met with the TWU International President Lombardo and confirmed that AFA will be the surviving union representing the unified group if the merger is finalized. There will be no representational election. In the meantime, TWU is continuing its regular representation activities as they work to secure a first contract for Virgin America Inflight Team Members (ITMs). We support their efforts to achieve a first contract.

 

In a merger, there is no statutory oversight of contract bargaining. Section 6 negotiations under the Railway Labor Act (RLA), the process we are familiar with under regular contract negotiations, does not apply in a merger. Management will need to negotiate with us to address the merger of the work force and this can be an opportunity for Flight Attendants to achieve improvements. It is important that we not speculate on this process – especially prior to our meeting with AFA Legal and Collective Bargaining on May 25th.

 

AFA-CWA has experience with dozens of mergers. AFA Alaska will leverage this opportunity to achieve the best possible conditions and improvements for all Flight Attendants.

 

In solidarity,

 

Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Satterlee, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Sandra Morrow,  Stephen Couckuyt; LEC Presidents-elect Tim Green, Brice McGee; Merger Representatives Sandra Morrow, Marie Maxwell; AFA Senior Staff Attorney Kimberley Chaput; and AFA Senior Staff Negotiator Paula Mastrangelo

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