Teamsters bring turbulence to airline deal - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
Subscriber Content Preview | Request a free trialSearch  
  Go

Restructuring

Print  |  Share  |  Reprint

Teamsters bring turbulence to airline deal

by Lou Whiteman  |  Published May 9, 2013 at 9:50 AM
AMR-shares-down-10-on-pilot-proposal227.jpgThe International Brotherhood of Teamsters on Tuesday, May 7, signaled its intention to try to represent mechanics at merger partners US Airways Group Inc. and AMR Corp., attempting to dislodge unions in place and potentially disrupting the airlines' hope for post-deal labor peace.

The IBT said it has asked the National Mediation Board to hold a representation election at US Airways, and said it eventually plans to request a similar vote at AMR unit American Airlines Inc. US Airways mechanics are represented by the International Association of Machinists and Aerospace Workers, while American workers are under the Transport Workers Union.

The Teamsters have been working to represent mechanics at US Airways since October 2012. Jim Blanton, a US Airways mechanic involved in the process, at a press conference Tuesday in Charlotte, N.C., praised the union's "solid, documented track record" and said it "is the best and most logical choice to represent us for the future."

The move is part of a broader turf war going on between unions seeking to increase their membership. The TWU is battling Southwest Airlines Co. mechanics union Aircraft Mechanics Fraternal Association over representation at American and Southwest.

The Teamsters, who already represent mechanics at United Continental Holdings Inc.'s United Airlines Inc. and a range of other, smaller airlines, are attempting to add the 15,000 mechanics and related employees at US Airways and American to the 18,000 mechanics it serves.

The two unions that would be replaced fired back immediately, with IAM district president Tom Higginbotham in a statement saying that the Teamsters action would threaten pensions for US Airways mechanics and bring to a halt ongoing wage talks.

"This dumb and dangerous move is designed solely to benefit the IBT at the expense of workers at US Airways," Higginbotham said.

TWU Air Transport division director Garry Drummond in his own statement said that he was "outraged and disgusted" by the plan.

"Let's call this what it is: The IBT is behaving like a parasite," Drummond said. "They are desperately attempting to feed off another organization to cover up their own failures."

While the battle does not figure to threaten AMR's plan to emerge from bankruptcy via a merger with US Airways, the conflict could cause turbulence for the combined company. US Airways is still living with two pilots unions more than seven years after its merger with America West Holdings Corp.

US Airways officials have for years maintained that they would benefit from labor peace despite a corresponding increase in wage rates that would follow a union agreement because it would allow the airline to streamline operations and simplify scheduling.

A battle between unions can lead to leaders over-promising to try to win votes, and in turn can create more difficult negotiations between labor and management as union leaders try to make good on those promises.
Share:
Tags: American Airlines | AMR | Southwest Airlines | The International Brotherhood of Teamsters | United Airlines | US Airways

Meet the journalists

Lou Whiteman

Senior Writer: Transportation

Contact



Movers & Shakers

Launch Movers and shakers slideshow

Ken deRegt will retire as head of fixed income at Morgan Stanley and be replaced by Michael Heaney and Robert Rooney. For other updates launch today's Movers & shakers slideshow.

Video

Coming back for more

Apax Partners offers $1.1 billion for Rue21, the same teenage fashion chain it took public in 2009. More video

Sectors