American Airlines’ pilot union APA-ALPA Merger Exploratory Committee rejected efforts to merge with the Air Line Pilots Association (ALPA).
The Allied Pilots Association (APA) board fell short of the two-thirds vote necessary to commence merger talks with ALPA, the world’s largest pilots’ union.
APA issued this report to its members in an open letter:
DCA Pilots,
The APA-ALPA Merger Exploratory Committee presented their findings this past Thursday and Friday. There was a significant amount of effort made to bring a comprehensive report to the Board. All 2,441 pages are available here. We wanted to explain why the motion, which required a 2/3rds vote (14 Members) to approve and continue the process, was voted down on a ten / ten split BOD vote.
We will only be able to speak to what your DCA reps perceptions were, and we can further say that as many are aware, various people can be presented with all kinds of information and come to very different conclusions. While there are pros and cons to pursuing a merger with ALPA, many of which the committee outlined in the various areas examined all of which we carefully considered. We found that there are several overwhelming cons that made a “No” vote, at this time, for further merger exploration, our final decision.
Your Right of Self Determination
First and foremost, the autonomy to chart our own path, forge our own direction, and represent our membership on ONLY the issues deemed important to our members and in the manner we determine to be best, is far too valuable to give up. That autonomy would be lost at ALPA, as the larger and overarching power structure of the ALPA Board of Directors would always retain final say on the actions of the individual airline MECs. What is best for ALPA, and the 39 other airlines it represents, would likely take precedence over what might be best for an individual airline’s pilots. We have already experienced situations in which APA and ALPA national have taken conflicting positions on issues relating to our industry and our profession. While that does not occur frequently, if we are being candid, there would inevitably be a loss of some level of control and self-determination once you become part of the ALPA structure. Certainly some will belabor this point, but it is a fact that, based on the briefing given and the realities of how ALPA is structured, there is less control of an individual pilot group’s own destiny once you join ALPA. That is one of the reasons APA was founded in the first instance and something that we value too much to agree to give up.
Your Benefits
The Merger Exploration Committee concluded that our APA Benefits were far superior to ALPAs. While many statements were made about what “might happen,” or “could happen,” or “would be expected to happen,” with our benefit plans in a proposed merger, this was another valuable aspect of APA we were not comfortable with putting at risk for any possible negative change at this time.
Your Money
Additionally, the Committee also informed the Board that, under ALPA’s current dues structure, we would each be paying 1.85% dues, compared to the 1% we pay in non-Section 6 times and the 1.5% we pay during Section 6. In the last 23 years, APA pilots have paid an average of 1.32% dues. Using very rough math, with a constant 1.85% dues rate, in 2023 we would generate over $60.8M in revenue for ALPA, yet an AA MEC would only get back 38.5% of those funds, approximately $21.8M, according to the Committee. While it was reported that some of our APA Staff might be paid by ALPA A&S Funds in the event of a merger, that still would leave a shortfall in funding of over $7M from our current operating budget.
Effectively, the larger airlines in ALPA are subsidizing all of the smaller ones. APA, if it merged with ALPA, would take over as one of the largest subsidizers. Another con is that local domiciles in ALPA are unable to give union time off for domicile volunteers doing important union work. This is a matter of policy, which APA would be subjected to and possibly, unable to change due to ALPA policy, if it were part of ALPA at that time. There are certainly other policies inconsistent with the way we are currently doing business, which goes back to the primary reason why we felt a “no” vote was necessary—preserving APA’s autonomy. Finally, further exploration of a merger would cost north of $200,000.
Merger Ahead?
One of the more interesting briefing points we received from the committee, which was recorded in open session, was the following;
The Delta MEC and the Endeavor MEC have an Arrangement. It has been Initiated by the DAL MEC and mutually agreed on between the respective MECs.
• “WHEREAS the best way to ensure proper staffing for Delta’s regional flying is to bring those aircraft, and pilots, to the mainline”
• “WHEREAS the adage “a rising tide lifts all boats” certainly applies in the relationship between our two pilot groups interests, and goals…”
• The resolutions authorizing pursuit of the arrangement expressly provide that the working group established by the resolutions “will neither consider nor recommend any action that would result in any Endeavor pilot being placed on the seniority list ahead of Delta pilots …”
So, in the opinion of this writer, it certainly appears that based on the report given that the Endeavor Pilots have agreed to what some arguably could call a staple. We should exercise extreme caution in the timing of any efforts to pursue any ALPA or other union merger until we see the results of the Delta/Endeavor MEC negotiations and the final seniority list for them – particularly with the possibility that AA could attempt to merge the wholly owned with mainline.
In Closing
The bottom line is, we found the report useful in many ways, in that it showed us some important steps we might take to improve APA. Some structural, process, and governing document improvements are most definitely in order to improve our efficiency and effectiveness, and the Board has already taken steps to commit to consider those changes in upcoming months. The National Officers and Board together are currently forming a Governance Reform Caucus to address these shortfalls, and we encourage those with great ideas to submit them via Soundoff so we can improve the effectiveness of our organization…so that ultimately we will be able to serve YOU, the membership, in the most optimum, efficient, and effective way.
The grass may look greener on the other side, but the truth is that every organization has challenges. APA has its challenges, but ALPA is no different. Those members of the Board of Directors who voted against pursuing a merger found that the costs of possibly merging with ALPA simply outweigh the benefits in this equation, and we did not believe that becoming part of ALPA would be the panacea that some make it out to be.
However, if you want to make a difference, we encourage you to get involved as a volunteer with APA and you can help make our organization a better place. We need your help, and if you feel passionately about the things we can do and change to make our organization better, then we encourage you to step up and volunteer.
Thank you for your patience as we continue to wait for the Negotiating Committee’s language and as we continue to work to make this a better place for all pilots.
In Unity,
Joe and Tim