How Does LOA 16 Impact the Air Wisconsin Arbitration Decision?

In the 1990s, AFA won an arbitration that management violated the existing scope language by operating a wholly owned subsidiary. This required a payout to United Flight Attendants.

However, United management had an easy fix. They simply continued flying regional flights through capacity purchase agreements, which allowed the company to control the inventory and schedules of the United Express Carriers. Management had an easy workaround on the arbitration decision, and they used it. There is nothing in the current Flight Attendant agreement that limits the amount of regional flying, the number of aircraft, or the size of aircraft.

If the current AFA scope language prohibited regional flying, we would not see any United Express flying. However, management conducts a whole operation of flights under the regional banner, similar to its major competitors. Additionally, Alaska, American, and Delta all own one or more regional airlines. Nothing in this TA expands their ability to conduct regional flying, and in fact, by tying us tighter to the pilots’ language, we are actually provided greater protection.

The only meaningful limitations on United Express flying come from the ALPA-United agreement, which specifies how many aircraft can be operated, the number of seats, and even the routes. Under the Pilot agreement, whether United Express operates under a wholly owned subsidiary of United or is contracted out to a carrier such as Republic, Commute Air, GoJet, or SkyWest, it does not change the amount of regional flying.

In terms of value, United management would like to own a regional carrier, but they don’t have to have it. They were willing to settle past negotiations without it, as they simply run United Express flying through regional partners. That’s why thirty-year-old economic calculations are of little value as they ignore the impact of alternatives for the company as the regional airline industry evolved over time, or that the flying already exists today.

Job security provisions we benefit from today are already tied to the Pilot agreement restrictions on United Express operations. But the tie is imperfect and does not protect us from situations where United farms out flying with only United pilots operating those flights. That is a real concern and we close that loophole with this Tentative Agreement.

The scope language agreed to is a major improvement to our job security.