IAM in staff agreement ratification at US Airways

Three workgroups at US Airways, which are represented by the International Association of Machinists, have ratified three collective bargaining agreements that in total cover more than 11,000 employees. The agreements will remain in effect for US Airways’ employees until a joint collective bargaining agreement (extending to the 30,000 employees of the new American Airlines) has been reached.

Doug Parker, Chairman and CEO of American Airlines, expressed his pleasure in reaching the agreements. He added that these agreements would allow the company to focus on the next steps for the airlines’ fuller integration, and in so doing, would pave the way for bringing the two employee groups together.

Whilst it has been a long haul for the two airlines to get this far, other staff negotiations and agreements are in place, or at least are in the pipeline.

Delta hoping to profit from domestic crude

Monroe Energy, one of Delta Air Lines’ subsidiaries, has signed into a five-year agreement with Bridger (a midstream energy company), to supply 65,000 barrels of domestic crude oil daily to its refinery in Pennsylvania.
This agreement, which will supply about a third of the crude oil that is refined every day at the facility, is a significant step forward in Delta’s strategy to manage its jet fuel expenditure. This cheaper domestic crude oil from the Bakken fields in North Dakota will replace the more expensive crude that historically has been imported to the refinery.

Newark Liberty wages still undecided

According to sources, the matter of workers’ wages at Newark Liberty International could be resolved in the near future.

United Airlines, the airport’s primary carrier, has said that it still questions whether the agency has the legal power to impose a wage hike. But the airline has also said that its vendors may be contractually bound to comply with the order.

The Port Authority in January ordered wage increases of US$1 an hour after July 31 for workers who were making less than US$9 per hour; this category included baggage handlers and cabin cleaners. The agency also said that workers could be earning US$10.10 an hour by February 2015 and might see subsequent increases tied to the Consumer Price Index.

Improved service for Calgary

Cathay Pacific Airways has said that it will be enhancing its freighter services in Canada with the introduction of a twice-a-week scheduled service to Calgary: this is set to get underway in October this year. The Calgary service is to be operated with Boeing 747-8 freighters, which will be transporting machinery and perishables from Calgary to Hong Kong.

Job cuts at Buffalo create uncertainty

United Airlines has said that it will be outsourcing jobs at Buffalo Niagara International airport to a vendor. This cost-cutting move is likely to affect upwards of 70 employees and comes in the wake of the carrier posting a loss of US$609m in the first quarter of this year.

The action isn’t in isolation, though: United is going through the same process at a dozen US airports in all. The change will take effect in October this year, and will involve a range of employees such as baggage handlers and ticket and gate agents.

The impending outsourcing will create a degree of uncertainty for United employees at the airport. The vendor (PrimeFlight Aviation Services) will make the staffing choices and it is expected that those signed up will be on a lower salary level than at present.

On the plus side, all senior staff have been offered jobs, albeit not necessarily at the same station. Workers could well find posts at other United bases, such as Denver, Honolulu, Phoenix and Dulles, where staff are actively being sought. It is understood that severance packages are also available.