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Copy of Bargaining @ Magic Carpet Airlines: A Union's Perspective

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Prakash Ganapa

on 26 July 2013

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Transcript of Copy of Bargaining @ Magic Carpet Airlines: A Union's Perspective

Back to the Bargaining Table
Davida Jackson, Sandy Saburn, Renata Sims
Dixie Lee - National Bargaining Representative (NBR)

Ruth Boaz – LFA MEC president at Magic Carpet Air

Peggy Hardy – LFA union president

Marie Phillips – LFA union president

Jody Rogers – LFA union president
League of Flight Attendants (LFA)
Negotiating Team
Bill Orleans – director of labor relations

Ross Irving – director of human resources

Kristine Lamb – director of in-flight services

Christian Andrew – executive vice president

Willie Sanders – senior vice president of operations

Tom Windham – chief executive officer (CEO) and president
Company Negotiating Team
Magic Carpet Airlines (MCA) -1961
History of Merger
1. Keeping union members informed of negotiation progress.

2. Getting union members involved.

3. Convincing the company that the union’s demands were serious.

4. Setting an issue only with the unanimous consent of the negotiating committee.
Strategies of the Union
The merger of the two airlines created a small “national” airline (define as a carrier with sales between $100 million & $1
billion) with sales of $140,265,000.
River City Airlines (RCA) - 1969
January 1987, Magic Carpet Air purchased River City Airlines and merged two operations.
In May 1988, Magic Carpet Air entered into a marketing agreement with a major national carrier and became a “feeder”airline for that carrier.
Prior to 1989, the flight attendants at neither company were unionized.
Both MCA & RCA flights worried about how management resolved personnel issues such as merging personnel seniority lists.
Workers contacted the League of Flight Attendants (LFA).
The LFA won a union certification election with 82 percent vote.
March 31, 1997
Dixie mailed a letter to MCA requesting changes in the contract.

May 1997
The first negotiation was scheduled.
The Union presented the company with its contract proposal.
On the fourth day, management presented their initial offer to the union.

July 16, 1997
The union received a letter from management requesting to meet in two days later.

July 18, 1997
Ross Irving proposed using the same language for a revised grievance procedure as that printed in the pilot's contract

Timeline of Negotiation
US Airways vs. Pilots
2005 - U.S. Airways & America West Merger

Point of contention - Seniority ruling
U.S. Airways

Date of hire
Top ranks

In this corner...
America West

Series of ratios
Top ranks
EPIC FAIL: Arbitration

Pilots united to form new union
The West sued new union

U.S. Airways stepped in & the fight began
Years later...
In considering possible outcomes we looked at the approach of both sides including:

Company Negotiators unwilling to meet in a neutral city. Playing Hardball
Company Negotiators were late to the meeting or didn’t show up at all and treated the union representatives unprofessionally (“Don’t get your panties in a wad”). Intimidation
Flight Attendant Negotiators set up Duty Rig request to be the same as what has already been accepted by the Company for pilots. Fair Strategy
Flight Attendant Negotiators already proceeded through the first 5 types of Consumer Power
Company Negotiators are still on the first type of Company Power. Avoidance
Possible Outcomes....
Positive Outcome:
Flight Attendants Union

Wage concession from the airline likely to minimal
 Uniform issues were an area they made progress ending with the Company paying for one coat every three years and an increase in maintenance to $18 per month
Lead time on trip trading lead time is likely to be agreed to since the Company has little to lose
Holiday pay not likely to be agreed to in full, but might be given some as a token

Negative Outcome:
Flight Attendants Union

Company continues to operate in Avoidance and postpones meetings and using Hardball tactics.
Concessions already agreed to on uniform issues and grievance procedures are as far as they get.
Talk of a strike continues as talks continue to stale mate.
Flight attendants may end up working without a contract for quite a while if company continues to refuse to give concessions.

Thank you for flying with us...
Full transcript