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Click here: Republic (RJET) Closer to Bankruptcy as Teamsters Ground Proposed Pilot Deal - TheStreet

Republic Closer to Bankruptcy as Teamsters Ground Proposed Pilot Deal
NEW YORK (The Deal) -- Republic Airways (RJET - Get Report) moved one step closer to a potential bankruptcy filing late Tuesday after national Teamsters officials backed a decision by local leaders not to send a proposed labor deal out to pilots for a vote.


Indianapolis-based Republic, which flies small jets for partners Delta Air Lines (DAL), United Continental (UAL) and American Airlines (AAL), in late August made what it called its "last, best and final offer" to try to resolve a long-running standoff with its pilots. Republic management, in a letter to pilots posted on the Internet, warned that the alternative to accepting the deal would be far worse.

"The other path is a non-consensual restructuring in which we no longer control our destiny," Republic wrote. "It is a difficult and unwelcome choice, but it is better than remaining stuck at this frustrating crossroads."

Local union officials, however, chose not to send the offer to members, despite its promise of higher wages and contained healthcare costs, in part because of language that would have handcuffed future union communications with its pilots. The group also complained that Republic failed to provide data to support its wage proposals and modified contract language that had previously been agreed to.

The national International Brotherhood of Teamsters late Tuesday decided against overriding the local's decision, putting Republic's future in doubt. The airline and its pilots have been at loggerheads for more than seven years, with membership voting overwhelmingly to reject a tentative contract in 2014. The standoff has made it hard for the company to find enough pilots to cover existing schedules, leading to lower productivity, poor reliability and mounting unreimbursed aircraft costs.

It has also taken a toll on Republic's stock price: Shares of the company are down more than 79% for the year to date, and opened down nearly 30% to $2.24 Wednesday morning on fears of a bankruptcy. Shares closed Wednesday at $2.96, down 2.3%.
 
Flywheel said:
Click here: Republic (RJET) Closer to Bankruptcy as Teamsters Ground Proposed Pilot Deal - TheStreet

Republic Closer to Bankruptcy as Teamsters Ground Proposed Pilot Deal
NEW YORK (The Deal) -- Republic Airways (RJET - Get Report) moved one step closer to a potential bankruptcy filing late Tuesday after national Teamsters officials backed a decision by local leaders not to send a proposed labor deal out to pilots for a vote.


Indianapolis-based Republic, which flies small jets for partners Delta Air Lines (DAL), United Continental (UAL) and American Airlines (AAL), in late August made what it called its "last, best and final offer" to try to resolve a long-running standoff with its pilots. Republic management, in a letter to pilots posted on the Internet, warned that the alternative to accepting the deal would be far worse.

"The other path is a non-consensual restructuring in which we no longer control our destiny," Republic wrote. "It is a difficult and unwelcome choice, but it is better than remaining stuck at this frustrating crossroads."

Local union officials, however, chose not to send the offer to members, despite its promise of higher wages and contained healthcare costs, in part because of language that would have handcuffed future union communications with its pilots. The group also complained that Republic failed to provide data to support its wage proposals and modified contract language that had previously been agreed to.

The national International Brotherhood of Teamsters late Tuesday decided against overriding the local's decision, putting Republic's future in doubt. The airline and its pilots have been at loggerheads for more than seven years, with membership voting overwhelmingly to reject a tentative contract in 2014. The standoff has made it hard for the company to find enough pilots to cover existing schedules, leading to lower productivity, poor reliability and mounting unreimbursed aircraft costs.

It has also taken a toll on Republic's stock price: Shares of the company are down more than 79% for the year to date, and opened down nearly 30% to $2.24 Wednesday morning on fears of a bankruptcy. Shares closed Wednesday at $2.96, down 2.3%.
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Who cares about these jobs. The IBT will organize a half dozen school bus drivers in North Dakota and publish an article about that in the Teamster magazine next month.
 
mud said:
The present leadership of the Teamsters Union is no longer interested in, or able to, organize LTL trucking companies.
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Hoffa kept his promise. He unionized Overnite. Even if it took UPS buying them to get it done, it still happened. Seems like as far as he's concerned, he's done his part. Don't make it right, what they're doing, but that doesn't seem to be stopping them.
 
Canadian Flyer said:
Hoffa kept his promise. He unionized Overnite. Even if it took UPS buying them to get it done, it still happened. Seems like as far as he's concerned, he's done his part. Don't make it right, what they're doing, but that doesn't seem to be stopping them.
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Hoffa unionized Overnite at a terrible cost. He gave UPSF a sweetheart contract that destroyed the NMFA and hurt the pension funds. If the IBT were to ever organize another LTL carrier they would demand a similar stand alone contract. Some will say it's because UPS didn't want to be a part of the Teamsters MEPFs. If that be the case they why is it that UPS only withdrew from the CSPFs? Why is it that they still participate in the other healthy Teamster Multi Employer Pension Funds? Hoffa and Hall probably got the best deal they could get from UPS. Remember UPS is the powerhouse and calls the shots. They are so powerful that they bought a $2 billion pension exemption from Congress for apparently just a measly $200,000 in political contributions.

As for the Republic Airways pilots problem what do you expect. Seven years without a contract and nothing but empty promises.
Making matters worse for Republic is an increasingly bitter dispute with its pilots over a contract that has been amendable since 2007. Republic has promised what it calls "industry leading" pay for its fliers in a new deal, but the pilots are fighting for pay more similar to what their peers make at larger airlines.
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You can't blame the union because the company's wage and benefit package can't attract enough pilots to fly it's planes. You can't blame the pilots who have waited seven years for the company to fulfill it's empty promises. This sounds like the Allegiant Airline situation. Blame the pilots and their union for the corporate greed and mismanagement
 
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:usa:
 
Crystal said:
Hoffa unionized Overnite at a terrible cost. He gave UPSF a sweetheart contract that destroyed the NMFA and hurt the pension funds. If the IBT were to ever organize another LTL carrier they would demand a similar stand alone contract. Some will say it's because UPS didn't want to be a part of the Teamsters MEPFs. If that be the case they why is it that UPS only withdrew from the CSPFs? Why is it that they still participate in the other healthy Teamster Multi Employer Pension Funds? Hoffa and Hall probably got the best deal they could get from UPS. Remember UPS is the powerhouse and calls the shots. They are so powerful that they bought a $2 billion pension exemption from Congress for apparently just a measly $200,000 in political contributions.

As for the Republic Airways pilots problem what do you expect. Seven years without a contract and nothing but empty promises.


You can't blame the union because the company's wage and benefit package can't attract enough pilots to fly it's planes. You can't blame the pilots who have waited seven years for the company to fulfill it's empty promises. This sounds like the Allegiant Airline situation. Blame the pilots and their union for the corporate greed and mismanagement
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Yeah! Hoffa and Hall touted that they got "card check neutrality" at UPS Freight, but it was in exchange for allowing UPS to pull 75,000 Teamsters out of the Central States Pension Fund!

kpXme9i.jpg

Hoffa and Hall celebrate their now infamous "card check neutrality deal" with UPS!
:chairshot:
 
Crystal said:
<snip>
You can't blame the union because the company's wage and benefit package can't attract enough pilots to fly it's planes. You can't blame the pilots who have waited seven years for the company to fulfill it's empty promises. This sounds like the Allegiant Airline situation. Blame the pilots and their union for the corporate greed and mismanagement
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The Union refuses to allow the membership to vote on the latest offer. That's the part that troubles me.
 
What gives the union the right , to take away the right to vote on it from it members ?? Oh sorry that's right , as the union always says if you don't like it Quit , as we are" god oh mighty "!!! or maybe they should give back -15% and weeks vac time & cut pensions too ?? what you think Mr. Hoffa ??
 
Triplex said:
The Union refuses to allow the membership to vote on the latest offer. That's the part that troubles me.
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I don't blame the union for not endorsing and sending a bad offer to the membership. They have supposedly been in negotiations for 7 years and now the company wants to modify previously agreed to contract language.

Local union officials, however, chose not to send the offer to members, despite its promise of higher wages and contained healthcare costs, in part because of language that would have handcuffed future union communications with its pilots. The group also complained that Republic failed to provide data to support its wage proposals and modified contract language that had previously been agreed to.
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Triplex said:
You like someone else taking away your right to decide for yourself? That's scary.
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Say what? The members voted on this numerous times. The company stopped negotiating in good faith. The union leadership is spot on in snubbing the $&%$$(*'s in management.

You forget. The author of that article is not a friend of labor. They are deliberately trying to make the union look like monsters.

Never let anyone into your cab or hearth unless he's a friend of labor. --Jimmy Hoffa

God speed to those pilots.
 
Slim_ said:
Say what? The members voted on this numerous times. The company stopped negotiating in good faith. The union leadership is spot on in snubbing the $&%$$(*'s in management.

You forget. The author of that article is not a friend of labor. They are deliberately trying to make the union look like monsters.

Never let anyone into your cab or hearth unless he's a friend of labor. --Jimmy Hoffa

God speed to those pilots.
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Re-read the article. The company made a revised offer (last, best etc.) in late August which was NOT voted on numerous times. It was NEVER voted on by the members because the Union refused to allow a vote.
 
We'll have to disagree on that. But after going 7 years without a new contract If I were the pilots I wouldn't want my union to bring me a bad contract that they don't endorse. Don't forget that the pilots overwhelmingly voted down the last off in 2014 and now this latest last best final offer is worse because it has previously agreed to contract language taken away.

I don't think this article in "The Street" gives a fair assessment of the situation. After all it a pro business publication. I doubt that we got labor's side of the contract negotiations. Republic is in partnership with the big 3, Delta, United and American so I doubt that money is the main issue. A threat of bankruptcy because of the Teamsters makes a great headline and blaming unions is the in thing to do. But I didn't see where it explained why Republic couldn't come to terms with it's pilots and is now "closer to a potential bankruptcy" and in this financial difficulty.
 
Triplex said:
Re-read the article. The company made a revised offer (last, best etc.) in late August which was NOT voted on numerous times. It was NEVER voted on by the members because the Union refused to allow a vote.
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Just did. Seven year dispute. Over welmingly voted down by members and "Republic failed to provide data to support its wage proposals and modified contract language that had previously been agreed to."

There is no reason for union leadership to continue to dignify something this demeaning.

To vote on this would be battered wife syndrome.
 
Triplex said:
You like someone else taking away your right to decide for yourself? That's scary.
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The union isn't taking away their right to decide by not offering a bad contract to vote on. The pilots sent a message loud and clear by overwhelmingly voting down a better contract last year. Why would the union even bring a worse contract back to the pilots for a vote?
 
Slim_ said:
Just did. Seven year dispute. Over welmingly voted down by members and "Republic failed to provide data to support its wage proposals and modified contract language that had previously been agreed to."

There is no reason for union leadership to continue to dignify something this demeaning.

To vote on this would be battered wife syndrome.
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They voted down a previous proposal in 2014, not this particular one. That's what negotiations are all about. Regardless of any particular details, the Union "represents" us, it shouldn't prevent us from voting on a proposal IMHO.
 
Crystal said:
The union isn't taking away their right to decide by not offering a bad contract to vote on. The pilots sent a message loud and clear by overwhelmingly voting down a better contract last year. Why would the union even bring a worse contract back to the pilots for a vote?
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Can you provide documentation that a "better" contract was rejected? The article clearly states that "Local union officials, however, chose not to send the offer to members, despite its promise of higher wages and contained healthcare costs, in part because of language that would have handcuffed future union communications with its pilots. The group also complained that Republic failed to provide data to support its wage proposals and modified contract language that had previously been agreed to.
 
How in hell can I provide documentation? The only information I have is from the same biased article that you read. But do you have any information on whether any of the pilots are as upset about this as you appear to be?
 
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