Trustee Update – January 31, 2025
Midair Collision
We extend our deepest sympathies to everyone affected by the midair collision and loss of life involving a PSA Airlines CRJ700 regional jet and a Sikorsky H-60 helicopter on approach to DCA airport. We stand in unwavering solidarity with our Brothers and Sisters at ALPA and AFA-CWA as they navigate this difficult time.
Aviation is a close-knit community, and moments like these remind us of the importance of supporting one another. We recognize the emotional toll such incidents can have on those working in our profession, and again, we want to encourage anyone who would like to speak with someone to contact our Peer2Peer/CIRP Committee.
Liana Hart 702-809-3757
Christian Aracena 352-221-2557
Tim Ruitian Sun 310-431-7965
Los Angeles Wildfire and Disaster Relief
I want to take the opportunity to thank the G4Pilot Assistance Fund and your Peer2Peer/CIRP committee for assisting our members as they navigate truly historic and devastating loss. Working with Joint Council 42’s Charity Fund, your G4Pilots Assistance fund was able to distribute JC42 money in a day’s time. If you have not joined, please consider signing up; this is truly worthy of your participation. G4paf.org/become-a-member
Non-FAA Required CBTs
The Union filed a grievance in accordance with the recent federal litigation settlement agreement over the Company’s decision to unilaterally require Pilots to complete three non-FAA required computer based trainings (Preventing Harassment and Discrimination, the Allegiant Team Member Handbook, and the Allegiant Code of Conduct and Ethics) during non-work time by January 30, 2025 and at pay rates unilaterally determined by the Company. The completion date has been extended to March 30, 2025. You can read the grievance here.
The grievance seeks a minimum of 4 PCH for the training, in addition to other remedies. The grievance states, in part:
In a message to Pilots on January 27, 2025, the Chief Pilot stated, “The Company will continue to pay pilots who complete those trainings 1 hour based on the rates provided in Section 3.Q, which we believe represents an appropriate amount given the lack of any express term in the CBA addressing non-FAA mandated CBTs” (emphasis added). However, as set forth in a January 3, 2025 message to Pilots from the Chief Pilot, the Company apparently believed that Pilots’ time was worth more than the rates in 3.Q. In that message, the Chief Pilot stated, “This set of modules will be accompanied by 3.0 PCH when completed …”, which included, FAA-required Hazardous Materials Recognition Fatigue Risk Management Program (FRMP). Less than 24 hours later, in a January 4, 2025 message to Pilots, the Chief Pilot announced that management had changed its mind, stating, “We will start compensating you at the rates specified in CBA 3.Q.”, which are significantly less than 3.0 PCH.
The multiple, conflicting messages sent by the Chief Pilot to Pilots betray the error of the Company’s position. Regardless of what the Company believes Pilots should be paid to complete the three non-FAA required modules, the Company refused and failed to bargain over the rate of pay Pilots will receive for completing the training, refused and failed to even provide the Union with advance notice that it intended to establish a pay rate and ultimately imposed a pay rate does not properly compensate pilots for their time or labor in violation of the CBA.
The Union will process the grievance to arbitration if the parties do not reach an agreement on the rate of pay for the three non-FAA-required CBTs covered by the settlement agreement.
Bylaws
I was scheduled to meet with the General Secretary’s office in Washington, D.C., last week to gain approval for Local 2118’s revised draft bylaws. Unfortunately, I was out of commission with the flu the entire week and into this week. The meetings have been rescheduled for next week. We will publish the bylaws for comment and review as soon as they are approved.
Ratification of the amended Bylaws will set the nominations of your future Executive Board in motion.
Negotiations
This week, members of the Negotiating Committee concluded 3-days of small group sessions at Allegiant headquarters in Las Vegas outside of Mediation. The sessions focused on working through critical scheduling issues, commercial PBS software, and moving the parties closer to an agreement. The sessions were productive, and we suggested follow-up sessions as soon as practicable so our mediation in February can be as productive as possible.
Membership Meeting February 11, 4 PM PT
Please join us to discuss the Bylaws, New Policies and Procedures, and our plan for elections.
Non-Cash Write Down of Sunseeker
Allegiant disclosed that, within weeks, all Sunseeker-secured debt will have been repaid and that “the repayment of debt and the impairment charge are part of the Company’s ongoing process of exploring strategic alternatives for the Resort, including a potential sale or stake sale.”
We think the news regarding Sunseeker changes little for the airline and may, in fact, be a positive for the airline if, as your union has advocated for, the Company seeks to divest itself of Sunseeker. Sunseeker has been a drag on Allegiant, and the Company is right to consider an exit from this venture. By the Company’s own admission, the impairment was timed to coincide with the debt repayment. This may mean the company is clearing the decks to facilitate a cleaner sale of Sunseeker. If they didn’t take a special charge now, they would only have to do it later after selling the asset for a discount and, at that time, booking a loss on the transaction. In effect, they have shifted the impact to 2024.
With that considered, we don’t think news about Sunseeker impacts the operation of the airline as a going concern, nor the capacity of the Company to pay for the cost of significant CBA improvements. Impairments like these are one-time special charges, meaning they would not be reflected in future years as a headwind on corporate profits. Particularly in this case, provided a sale transaction occurs, and the debt repayment is mostly or entirely offset by proceeds from a
sale. We do not expect the Sunseeker news to have any bearing on contract negotiations.
Fraternally,
Greg Unterseher
Trustee, APA Local 2118