Trustee Update – March 21, 2025
Allegiant Pilots:
Over the last two weeks, we have finalized and filed our Locals Department of Labor Annual Financial Report (LM2). With a new set of eyes on our books, we have also made strides to standardize our processes and implement what should be plug-and-play procedures on all administrative work done at the local. Of note, we checked box 13 on the LM2 report, asking if we had discovered a loss of funds or assets in the reporting period. The explanation is in #69, which states:
“Question 13: Effective March 19, 2024, the Local was placed in an emergency trusteeship due to financial misconduct regarding the operation and administration of the Local. In August 2024, charges were filed against six members of the former Executive Board alleging that the former President devised, implemented and subsequently attempted to improperly conceal a scheme to embezzle approximately $982,437.70 from the Local in the form of a disguised salary. A hearing was held in October 2024. In January 2025, the General President of the International found these charges to be upheld. As a result, policies have been changed by the Trustee to strengthen the internal controls of the Local. In addition, the Local filed a claim against their bond for the loss incurred of $982,437.70 (above) and an additional $157,000 for embezzlement of union assets based on authorized expenditures, totaling $1,139,437.70. The Office of Labor-Management Standards has been notified.”
The full report can be found on the OLMS Website: https://olmsapps.dol.gov/query/getOrgQry.do
The FLP and other financials do not match the 2024 calendar year due to the modified cash accrual accounting method. This is a snapshot of December 31, 2024.
We had anticipated putting the Bylaws out for ratification on March 20th; as we communicated, the ballots are printed. Two last issues needed to be resolved
- The new minimum dues for a pilot of an LOA of $25 need to be in the Bylaws and;
- We need a legal determination to include electronic voting during the General Membership Meeting for members participating via Zoom. We will be the first Teamster Local to have this provision.
LAX Base Closing
I received a “LAX Closure MOU” from Allegiant today. It was a signed, final executed PDF awaiting my signature. After we had discussed what the union and the company needed (weeks ago).
We will review the document and determine what, if any, changes are needed from the LAX pilots perspective and respond next week.
Issue of the Decade
In 2013-2015, after implementing a Merlot PBS system, that did not produce the schedules that Allegiant sought, Allegiant’s Issac Mavis created the “mavis solver” as a process step after Merlot. It’s method of solving bidlines violated the most basic premise of seniority using “Must Work Days”. “MWD’s” were issued in the solve at the point when the number of assignments (not flights) is equal to or greater than the pilots available for a particular day.
When it determined it was a “MWD” it solved that next, regardless of whether a pilot bid on or off that day, hopping all over the calendar month. These days were added through the solve, as the solver worked to get the most efficient result. This wrecked the idea of seniority. The most senior pilot in the base was often assigned a trip on his most important day to have off, to have a junior pilot get that day off, Christmas or other.
We grieved this system because it did not award pilot preferences in seniority order. Arbitrator Block agreed as set forth in his award. The Block Award provided significant relief from the erosion of seniority rights and remains in effect today albeit in tandem with the Company’s below industry standard, non-commercial PBS system known as CBI
In Allegiant’s official proposals, the company has rejected continuing our existing , post-Block Award protections. Previously, across the bargaining table, management claimed that new “scheduling efficiencies” were required to “pay” for a new contract—efficiencies that, as proposed, would significantly degrade your quality of life and reduce the value of your seniority. At the same time, what management is proposing would erode the Block Award protections, not maintain or improve them.
Even if our pilots wanted to preserve the current scheduling rules and CBI provisions, the company has removed them completely. Any suggestion by management or others that the Union could simply accept existing rules and “move on” grossly misrepresents the current bargaining state.
Much misinformation also surrounds the issue of “unstacking.”
Seniority is sacrosanct for professional pilots, governing two core areas: equipment/status and schedule preferences. Unstacking directly impacts the second, undermining the effectiveness of seniority in schedule bidding.
- Unstacking at most airlines typically doesn’t exceed the low single digit range (0-5%) when solving schedules. In other words, even with their contractual 30 or 50% unstacking limits, they virtually never get close to those numbers. Seniority and pilot’s preferences are properly honored. Suggesting that 70% unstacking is not only required but should be standard operating procedure (i.e., 70% unstacking will be a regular occurrence) is offensive. It’s not only worse than current book, it’s worse than any other U.S. airline.
- CBI does not have 100% unstacking as has been claimed. CBI is a 0% unstacked solution on its 1st pass and honors seniority and pilot’s preferences in accordance with the Bloch award. On the second pass, CBI then has the ability to add additional trips to your schedule after your preferences are honored (with restrictions) and has no ability to remove awarded trips from your schedule to create a “better solve”.
Without the appropriate protections, unstacking makes your seniority largely irrelevant, with virtually no opportunity to adjust or improve your quality of schedule/work life. Unstacking also has significant financial implications.
Even minor adjustments to unstacking percentages have significant consequences. For example, a 10% increase in unstacking can eliminate more than 90% of Open-Time flying, cutting opportunities for premium pay while simultaneously driving downline values through PBS efficiency gains and removing the most basic flexibilities you have.
For context, most airlines do not use unstacking as a day-to-day tool to schedule an airline, like Allegiant desires. It’s a safety valve that allows the airline to cover flying in irregular and abnormal circumstances.
Unstacking is not a minor detail in a pilot contract. Unstacking limitations are central to your seniority rights, schedule integrity, quality of life, and earning potential.
When you see on the message boards, “The union needs to move on and TA scheduling,” it’s essential to understand what those messages are conveying, i.e., the false proposition that competitive pay rates, quality of life and seniority rights are mutually exclusive and the price pilots must pay for a job at Allegiant.
Fraternally,
Greg Unterseher
Trustee, APA Teamsters Local 2118