Labor troubles for Skywest, Inc

[weasil]

A Show of Force at SkyWest, Inc.
Pilots from ASA, other groups, joined by Capt. Woerth in demonstration
October 13, 2006 -- More than 100 pilots, arranged in two marching orbits, demonstrated outside of SkyWest, Inc.'s headquarters in St. George, Utah, today. ALPA's president, Capt. Duane Woerth, along with pilots from 11 other pilot groups, were on hand to support their ASA comrades. Atlantic Southeast is a wholly owned subsidiary of SkyWest, Inc.

Skywest, Inc purchased ASA last year from Delta for less money than the value of the company's assets. In other words they got it for a steal while Delta was in bankruptcy. Skywest's own website touts the benefits of being "union free"

Our Union Free Statement SkyWest Airlines has been union-free for over 30 years. It is our desire to remain so. Today, SkyWest is standing amidst the ruins of a once proud industry. Our success is our people. We have accepted the responsibility of open and honest communication. We have maintained an open-door policy that enables any employee access to anyone in management, from your supervisor to our CEO. We want you to be informed. And as SkyWest continues to grow, the continued empowerment of employees through education is what will not only preserve, but improve Our Culture.
We feel strongly that the long-term interests of all SkyWest employees can be best served by maintaining our current environment of open and honest communication without adding an unnecessary layer of outside third party bureaucracy. We should not compromise the environment we have worked so hard to create. The existence of a third party will undoubtedly change the relationship that we currently have of dealing directly with one another.
And while union organizers may want you to believe they have your best interest at heart, the truth is that unions are businesses that generate money by signing up new members and collecting dues. They do not provide wages, benefits, buildings and equipment, or any other asset necessary to keep our company in business. A union can only provide its members with what a company is willing to give. The truth is that a union only has two things it can guarantee its members: its right to strike and make its members pay dues and assessments.
History has taught us that powerful unions, particularly in our industry, do not hesitate to place their companies in financial peril -- ultimately costing thousands of hardworking men and women their jobs. Understand, this is not "just a pilot" issue. Union activity affects every single employee.
Our dedication to fairness in all that we do, coupled with an uncompromising commitment to quality, truly sets SkyWest apart as an airline and an employer. We believe in treating each employee with respect. We have continued to update our policies and procedures to ensure that you will be treated fairly and consistently. By working together, we have created an environment of competitive wages, good working conditions, and opportunity for both personal and professional growth. Together we have built SkyWest; and together we can continue to build a better SkyWest for our fellow employees and ourselves.
I can only wonder if they knew what they were getting into when they purchased an entire company with a labor group that has been negotiating a new contract for 4 years now. (3 at time of purchase).
To make things better ALPA ballots were mailed out recently to the non-union pilots of Skywest Airlines - the other company owned by Skywest, Inc. The last ALPA drive at Skywest was in 1999 and it failed by 6 votes - although 20 votes were received the day after the ballot closed! In other words there were a majority of pilots wanting to unionize. It is going to be an interesting future for Skywest - if the pilots of skywest airlines join ALPA they will then have gone from being union free to having two unionized work groups in the space of 1 year. I wonder if the flight attendants/mechanics will follow suit?

[LMueller]

I didn’t think it would be a likely scenario two years ago when SkyWest Inc. purchased ASA or even a year ago when this thread was first posted. But it seems to be that SkyWest has no interest in completing negotiations with ASA pilots. ALPA has decided to help pilots with their resumes in the event they desire to look for employment elsewhere and SkyWest seems to be positioning to replace them with SkyWest Airlines pilots. SkyWest pilots in the midst of their organization drive with ALPA have been raising concern of the implications of flying ASA legs and their standing with the pilot union. None want to be labeled scabs, but that’s what they will be.

SkyWest is successfully using it’s tried and true technique on ASA. While it is counter intuitive, maintaining high attrition rates keeps seniority and, more importantly, pay low. In doing so, SkyWest effectively puts a cap on it’s biggest expense. In ASA’s case the high attrition has another benefit to SkyWest Inc. In the event there is a contract resolution the back pay owed to pilots will be reduced by the numbers who have left before the new pay scales are adopted. It’s no secret that the cost of pilot salaries is singled out as a major factor in controlling labor costs.

At SkyWest employees are treated as the liability that they are, dispensable and replaceable. Indeed, SkyWest’s business plan relies on continual turnover or continued fast growth. When the employee groups become more senior and command higher pay the labor cost per ASM will move SkyWest into a less profitable position. Though labor cost at SkyWest are reported at 21.6% of revenue compared to Southwest at 29.7%, the cost per ASM is closer at 3.2 cents to Southwest’s 3.29 cents. Labor cost per ASM is driven by the size and salaries of the labor force relative to the size and utilization of the fleet.

It’s apparent that Jerry and Ralph are trying to become airline moguls. From the beginning of SkyWest when Ralph bought Dixie Airlines to Ralphs failed bid for TWA to the purchase of ASA, the Atkin’s are living their dream of turning failing airlines into cash. Look at World Transport Group’s mission statement, it says it all…

From World Transport Group website:
World Transport Group was incorporated in July 1999 in the State of Utah.
Its stated purpose is to "own, hold, and or operate airline companies engaged in the transportation of passengers, cargo, mail, air charter, government contracts and any other incidental service to such air transportation service."
World Transport Group brings management expertise to the airline industry, and we couple our talents with that of financing companies, aircraft leasors, automation vendors, system integrators, and other aviation suppliers providing a strong team that is successful in building profitable airlines. We draw upon our experience of over 50 years in this industry to provide the right solutions to the problems faced by commercial airlines worldwide.
World Transport Group has focused itself on the turnaround of distressed airlines. World Transport Group believes that high quality air transportation is important to economic development and quality of life. We are committed to transactions where all participating parties will benefit and only with the highest standards of moral and ethical behavior.

... well, maybe with the exception of that last bit about “all participating parties will benefit”. I don’t think the ASA pilots are benefiting much from the involvement of the Atkin’s and World Transport Group.

Ralph is involved with the Ghana, West African government through WTG to provide air service to Ghana and Eurosky which operated flights in Austria as well as his heavy hand in SkyWest and ASA.

[LMueller]

Jerry Atkin makes an appearance at the ASA contract negotiations and they ink a deal. Wow, after 5 years of head butting they just happen to reach a deal while SkyWest pilots are taking an ALPA representation vote. Coincidence?