Negotiating Update (8/12/2024)

Allegiant Pilots:

Your Negotiating Committee is traveling to Columbus, Ohio today for mediated bargaining with the company. The sessions start on Tuesday, August 13, and end Thursday, August 15. Our goal for the week is significant progress towards a Tentative Agreement on Section 14 – Hours of Service, Section 15 – Scheduling, Section 16 – Reserve, and the Preferential Bidding System (PBS) Letter of Agreement (LOA). We will also pass Section 1 – Scope.

Mediation Expectations

In the past, members observed that management seemed to adjust their bargaining behavior and messaging based on the calendar: doom and gloom during slower months (September-November) when peak flying season is over – only to once again spread messages of hope and optimism when our critical holiday flying season approaches. Although this pattern may repeat this year, we trust that the new additions to their negotiating team will abandon this negotiating “tactic” and work with your union to achieve significant progress on getting to an agreement.

We look forward to receiving the company’s response to Section 15 – Scheduling and the PBS LOA, which were previously passed by the union at the end of June during mediation. Additionally, we expect to receive a response to our last pass on Section 14 – Hours of Service and Section 16 – Reserve. As previously stated, Section 1 – Scope is ready to be passed this week as well.

Disarming Misinformation: Monitor and Report

We continue to receive reports that certain management individuals may be spreading misleading or false information regarding the status of negotiations – especially at the training centers. Regardless of whether the manager is part of negotiations or hasn’t stepped foot in the room with us, it’s not the job of any manager to talk to rank and file union members about negotiations. When they do it, they are doing it for one reason – to spread misinformation and create division in our ranks to weaken our bargaining power as a pilot group. If a manager discusses negotiations with you:

1. Inform the Union. Use the Who, What, When, Where, and Witnesses format. Tell us what they said. Provide as much detail as possible. Send information to: negotiations@apa2118.org.
2. Verify the information with a Union representative or your Negotiating Committee. Rumors raise doubt and destroy unity – which may be their intended purpose. AVOID RUMORS – you have direct access to the facts. Your union representatives and Negotiating Committee will always provide you factual, reliable information to the extent that our NDA allows us to do so.

Recent management-aligned rumors claiming that your NC is purposely dragging out negotiations, that we are seeking “perfection” or “Delta with Day Trips”, or that our Trustee and the IBT are “holding us back” from getting a deal are completely baseless and false. Our top priority is to get the right contract done as soon as possible. Our Trustee has provided us with every resource we need (legal, economists, media, etc.) to achieve that. Frustration with the pace and tone of negotiations is not unique to Allegiant – it happens with every pilot group at every air carrier. Negotiations will end when the company agrees to the improvements that are necessary in your pilot contract – it’s that simple.

Growth and Profits Requires Pilots

The incoming CEO stated in the most recent earnings call that management wants to return to, and possibly exceed, 2019 aircraft utilization levels. That is a 30%+ increase from the present. Not only will this increased utilization boost revenue and drive future growth, according to management it will increase our operating income by 6 points. That all sounds good. However, a new pilot contract is the key to the Company’s short-term and long-term success. It takes pilots to grow an airline, and a carrier can’t expect to retain and recruit pilots if it can’t compete for their labor. You – and your vote – are the linchpin of Allegiant’s future growth and profitability. If profits and growth are a priority, management must prioritize a pilot contract that meets your standards and reflects your value to this organization.

What is “Prep” and Why Do You Do So Much?

Some questions we’ve seen regarding prep are “what prep does the NC actually do?” and “why does it take so long to work on a couple sections?”. The short answer: there’s a lot to do on every remaining open section – not just those being negotiated.

Preparation is the foundation of readiness. We need to be prepared to negotiate effectively on Day 1 of mediation. Tasks like data research, testing and validation, and writing contract language must be completed before we step into a negotiating room. Time is precious; we have a relatively limited amount of face-to-face time with the company. We prepare to maximize every bargaining opportunity and move us closer to an agreement as quickly as possible. We meet frequently throughout the week as a team with our legal counsel and economic experts, to make sure that both our data-based assumptions, intent, and negotiating strategy are valid. Here’s a more granular view of some of our tasks throughout the week:

1. Data Analysis and Economics: Data and research are the anchor of our bargaining position. Captain Jim Cole works diligently with our economists parsing and maintaining a significant amount of operational, productivity, and economical data from a variety of sources. We use this data to confirm our granular understanding of the operation and drive data-based decision making during bargaining. We also meet with our costing analyst and economist during the week as needed to better understand the financial picture, the impact of Union and company proposals and establish a Zone of Possible Agreement (ZOPA).
2. Develop Intent and Strategy: Intent is what we want, Strategy is how we get there. We meet throughout the week to discuss each remaining open section of our contract, not just the ones that we are currently negotiating. Our objective is to ensure that we thoroughly understand our bargaining position and reasonable alternatives (if any), that our bargaining position is operationally feasible and achievable, and that our intent – what the contract language should do – is well thought out and properly aligns with your needs and preferences.
3. Draft Contract Language: We meet frequently with our legal counsel to draft the contract language for each pass that meets our intent and avoids unintended consequences – what the contract language will do. This language is modified as necessary when we make a pass to or receive a pass from the company.

Language: Getting it Right MATTERS

We need non-ambiguous, enforceable contract language. This must be an understatement to any of our pilots who lived through the implementation of CBA 2016 or some similar iteration at a regional carrier. For reference, it has been 2,933+ days (approximate) since CBA 2016 took effect and the company agreed to implement an industry standard, automated PBS system. Eight years later and it never happened. This situation, as with many with our current contract, highlights the need for having solid language in our contract.

Pay rates can only hide the pain for so long. Every working condition, or lack thereof, is gained or lost through contract language. Solid contract language protects you against false promises and improves your working conditions, scheduling ability, and quality of life. Eliminating ambiguity forces the company to honor its commitments and prevents grievances, which are undesirable for both the company and the union.

We are not seeking perfection. Perfection has never been achieved in any pilot contract and ours certainly won’t be the first. What we are seeking is strong, specific, and enforceable legal language in our next contract. So-called “boilerplate” language that is standard across major airlines and delivers the gains and protections that our pilots have earned. It is important to get this right. We appreciate your patience while we make it so.

Message from the Chairman – Captain Joshua Allen

Hello, Fellow Pilots. We have enjoyed meeting you all at our recent base visits. For those that couldn’t attend, we hope to catch up with you sometime soon. Let me start by saying that there’s no truth to the rumor that either my team or Greg (our Trustee) are trying to drag these negotiations out or to achieve “perfection”. That’s not true. There is no such thing as a perfect contract. All we want is a contract that meets your standards and reflects your worth to this company and its success. It’s on the company to step up to the plate to finish this. Thanks for supporting your negotiating team to get the CBA you deserve. Stay united. -Josh

Closing Thoughts

We are ready to hit the ground running again on Tuesday, thanks in large part to your continued unity and support. We will continue to work as hard as we can to deliver a contract that reflects your value to this organization and allows Allegiant Air to continue to be successful. Your trust and unity remain critical as we get through these most contentious sections of the contract. Thank you for all that you do.

In Unity,

Captain Joshua Allen
Negotiating Committee Chairman

Captain Jay Killen
Pilot Negotiator

Captain J.R. Lynch
Chief of Staff

Captain Jim Cole
Recording Analyst