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September 13, 2016

Inside this issue:The Joining Of Three MEC's Part 2
Respecting Histories and Bridge Building

Aloha Friends and Greetings from Guam,



Mahalo for staying with us in this reach across the divide to gain understanding.


As you are aware, much of the internal merger was delayed due to the complexities of a protracted negotiation process. That delay had many far reaching, negative consequences to both United and AFA. Aside from the loss of moving the airline ahead of its competitors as a fully integrated carrier with all labor contracts in place, the biggest loss was from an internal perspective.


Respecting Histories and Bridge Building


Those that had more in common politically or geographically, began to build their own bridges. As an example for us, it has been easy to understand the losses and gains of our sister bases in LAX and SFO. Our ties to these bases and members go back many years.

That is called history.


Likewise, it has been easy for us to understand many of the issues of our fellow Island based flying partners on Guam. This kinship has developed over the years as the reach out has been reciprocated on many levels, both from a personal perspective and as a union.

That is called bridge building. Take pride in the fact that you did this from day one.


Key to that success, was showing a mutual respect for feelings as well as histories. The reward has been seeing friendships develop and bonds grow. As it has been said from day one, we have far more in common than differences. (Not to mention food preferences. Ha!)


In any case, pocket the part of how you have set a tone of mutual respect as we delve deeper into the Special meeting and the heart of this report. It’s something that played out over and over.


Learning From Previous Mergers

After Sara opened the meeting with the introduction of MEC members and attendees in the gallery, she explained the 90 day timeline in accomplishing the governance of the C & B Merger Policy. She also explained what had happened in the case of the US Air/America West Merger of MEC’s and that of the Colgan/Pinnacle/Mesaba merger.


Lessons learned... the delayed merger of US Air and separate MEC’s, made it difficult to speak with one voice. The immediate merge of MEC’s at the Colgan/Pinnacle/Mesaba worked well.


Defining A New Corporate Entity 


AFA-CWA International General Counsel, Ed Gilmartin addressed the MEC before proceeding. He spoke to clear up two questions; which is the "surviving carrier" and is there a "new corporate entity"?
These terms are language that define specific applications of the C & B Merger Policy. Defining these terms explained why the events and actions of the MEC were taking place.


Gilmartin explained: On May 2010, the time of the merger, United was part of UAL Corporation. United offered CAL shareholders 1.05 shares of UAL stock for each CAL share. Both sets of Board of Directors approved the deal. Afterwards the CAL stock would cease to exist. At the time of closing, UAL shareholders owned 55% of the merged airline and CAL shareholders owned 45%.


Both carriers remained separate but were corporately controlled by the same leadership. UAL, the Corporation, would eventually change its name to United Continental Holdings which would continue to own a number of subsidiaries.
It took 3 years to integrate the two carriers on paper. In a March 2013 8k SEC filing, United, the airline, was merged into the new corporate entity. For all practical purposes, these name changes were financial, specifically for tax reasons. 


Once the MEC Officers were merged through this election, it would prompt the election at dual councils. The term "new corporate entity" brought in the C & B language that the lower council number would be adopted in the case of dual councils.




The discussion on the Floor was opened.

  • Gilmartin was asked more about the 8k SEC filing, he clarified.
  • A statement was made that dual councils should be able to decide what council number should be adopted.
  • A motion was made that the terms of office should be lengthened for the MEC Officers they were about to elect. This term will run until June 30, 2017.

Sara explains that this election falls under the Category 2 election cycle for MEC elections that run from 7/1/14 thru 6/30/17 per the Constitution. A vote is taken as to whether to change the election cycle and extend the terms. 

8 vote For
9 Against
3 Abstentions
The terms are until 6/30/2017.


Interviews and Elections
It is at this point the interviews of the candidates and the MEC Election took place. This process was lengthy, though interesting. As with ourselves and our own interviews for this airline, you know there is much more to learn about a candidate than what is on a resume. You have the final results. 
Let's move to the business of council numbers. Sounds simple. But it proves to be an emotional one. Stay tuned.



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