« American unveils employee incentive plan to get flights to leave on-time | Main | Air, Land & Sea: Invasion of the Drones!!! »

January 23, 2014

ALPA settles lawsuit with ex-TWA pilots for $53 million

The Air Line Pilots Association settled its decade-old lawsuit filed by former TWA pilots earlier this week.

Under the settlement agreement, the union will pay $53 million to the pilots who had won their suit in a jury trial. The pilots alleged that the union did not adequately represent them during the seniority integration process after American Airlines' purchased the carrier.

At issue was how the pilot seniority list was merged with the list of members of the Allied Pilots Association, which represents American's pilots. While some of TWA's pilots were merged into the list, many were simply added to the bottom of the seniority list and ended up being furloughed after the terrorist attacks of 2001.

"With initial damages sought in the billions, this settlement, while significant, is far less than what the plaintiffs pursued. And because of our preparation and risk management, ALPA will make our portion of the payment without impairing our operations or services, without assessing our members, and without raising dues," ALPA president Lee Moak told members in a letter sent on Thursday.

ALPA said its insurers will pay a "significant portion" of the $53 million to the plaintiffs and attorneys.

Keep reading for the full letter from ALPA.

-Andrea Ahles

January 23, 2014

Fellow ALPA members:

ALPA goes to great lengths to plan for its future to ensure that your union remains strong in our defense of your career. Our risk management program and meticulous financial planning provide the necessary safeguards against unforeseen circumstances so we can seamlessly provide the services our members rely on and deserve.

Today, we settled a long-standing 2002 lawsuit. Some alleged that Brady v. ALPA, with initial damages sought in the billions, could impair our future. It won’t. In fact, the settlement we secured in the lawsuit, a case that has been in the courts for more than a decade and the subject of wild speculation, allows your union to move forward in a strong position and continue our work on your behalf. This is positive progress for you and for your union and will close a difficult chapter in ALPA’s history.

ALPA settled this case as a pragmatic business decision to preserve the long-term health of the union and is in no way an admission of guilt. The settlement agreement reached is for a fraction of the amount sought by the plaintiffs in the litigation and one that ALPA planned for and in no way affects our work on your behalf.

Despite speculation, the facts are as follows:

  • Your dues will not go up. In fact, your dues rate went down on January 1, 2014 as planned.
     
  • There will be no assessment of our membership. You bear no personal liability for the settlement.
     
  • The settlement will in no way impair or affect ALPA’s ability to continue its tireless advocacy on your behalf.
     
  • The settlement will close a difficult chapter in ALPA’s history, dating back more than a decade, that some alleged would lead to ALPA’s demise. That chapter and those riotous rumors are behind us now and ALPA remains strong going into our future.

Through diligent strategic and financial planning under the guidance of our elected governing bodies, our risk management program allows us to resolve Brady in a way that protects ALPA’s future. Our reinsurers will pay a significant portion of a shared payment of $53 million to the plaintiffs and their attorneys and we are currently engaged in discussions with the reinsurers that we expect will increase the amount of their contribution even more. With initial damages sought in the billions, this settlement, while significant, is far less than what the plaintiffs pursued. And because of our preparation and risk management, ALPA will make our portion of the payment without impairing our operations or services, without assessing our members, and without raising dues.

We have a settlement agreement and the judge now has to approve it. But the progress we have made on the Brady case allows your union to move forward in a strong position, without affecting our members’ financial obligations in any way. ALPA continues its more than 80 year history of never assessing our membership due to litigation.

To read more about Brady v. ALPA and how your union protects itself against litigation, go towww.alpa.org/brady, where you can read more about the history of the 2002 lawsuit, the settlement agreement, and ALPA’s insurance program, which helped to significantly defray ALPA’s financial obligation.

Despite unfortunate cases like this where pilots sue pilots, your union, under the direction and guidance of your democratically elected representatives, goes to great lengths to protect your career. At the bargaining table, in Washington, DC and Ottawa, and in scheduling with safety, we are your voice to ensure that your chosen profession is the safest in the world, and one that you can be proud of.

Sincerely,


Lee Moak
President

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef01a73d605dbe970d

Listed below are links to weblogs that reference ALPA settles lawsuit with ex-TWA pilots for $53 million:

Comments

Sheila Reott

Thousands of great TWA employees lost their jobs because they were thrown to the bottom of the seniority list by AA.
None of their unions helped them. Unions are a useless money grabbing machine that will someday soon be gone.
And good riddens!

CeoCrookWannaBe

The astronomical concessions and pay cuts and benefit cuts that were put on the backs of AA employees to bring on the cancer of the TWA employees is still to this day absolutely unbelievable. The unions sold out to AA for the benefit of these worthless employees and TWA. And it is GOOD RIDDANCE when the last one is gone.

Jim

1. American Airlines,/AMR corporation purchased the assets of TWA in April of 2001, THIS WASN'T A MERGER!

TWA employees were offered jobs at American, an offer American Airlines did not have to make.

2. TWA declared bankruptcy in January 10, 2001...so this had NOTHING to do with 9/11! TWA hadn't made

money in ANY quarter for over 13 years! TWA had also declared bankruptcy in 1992 and 1995. TWA was a

money loser, for many years and many reasons.

3. The local TWA ALPA and ALPA national did the best they could negotiating from an extremely weak

bargaining position. AMR had every right to take a "take-it-or-leave-it" approach. They didn't owe TWA

anything. TWA employees are lucky for the consideration they received. The only other alternative was

Chapter 7 bankruptcy, and then all TWA employees would have been out of work.

4. The biggest TWA complainers, the number one being the gentleman interviewed in this article (Alan

Altman) and repeatedly for this case,was hired during the final few years of TWA's existence and would

have held a junior position or worse furloughed at any other airline. This junior employee and others

sought employment at TWA knowing the airline was teetering on the brink of collapse. It was a gamble to

work there. The only reason TWA was doing any hiring in those final years was due to attrition of

employees "jumping ship" to healthier airlines. Yet he still feels ALPA, TWA and American owe him

something.

5. What killed TWA was Carl Ichan, not ALPA, 9/11 or the Airline Deregulation Act of 1978.

6. I have listened to former TWA employees complain about this for years! With every passing year the

facts of this case have become more and more embellished. Bottom line, look at the state TWA was in

during the 1990's. They were closing their doors for good in

7. Where do the former TWA pilots think this money is coming from? American Airlines pilots, the

TWA/ALPA? No. Half the money comes from insurance, the other half comes from the dues money collected

over the last decade from ALPA pilots at other airlines that have had nothing to do with this case. So

the former TWA pilots are penalizing the pilot groups of United, Delta, FedEx, Alaska and a dozen or so

regional airlines. The TWA pilot group has no become the pariahs of the airline industry. What a bunch of

whiners!January 2001, when AMR decided to snap up the assets. The rest of their story is all BS.

Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.