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21 017996 [[image]] CAPT E GARGES*JR
142 MILL SPRING RD
MANHASSET NY 11030
FIGHT ASTHMA


REPORT OF THE MERGER COMMITTEE

The purpose of a report at this time is to give the Council a review of the trend of airline mergers to date and a summary of present ALPA policy as to the last Convention so as to give the membership a sounder knowledge of our merger problem. Due to the large volume of material covered this report by necessity must be but an outline.

One thing to note is that in the earlier mergers where there was no equipment differential, the smaller groups did not fare as badly as in the more recent ones.  The trend seems to be toward merging on the basis of current pay checks and disregarding length of service.  It is also worth noting that the recent mergers ran the full course of action as set forth by the then current ALPA policy and were finally resolved by the last step - arbitration.  In this step, the results were binding on the parties involved.  The neutral arbitrator in the past has favored the arguments of the larger airline.

UNITED AIR LINES:

Integration policy and procedure agreed upon by pilot representatives at a meeting on December 5, 6, 1940. Seniority list to be composed of pilots from four predecessor companies.  Generally speaking, the list was compiled as follows:

(1) Top group of names on seniority list assigned position based on date of assignment to flight as Captain.
(2) Next group of names assigned position on list as of their date of promotion to Captain.
(3) Remainder of list assigned position on final list as of their date of hire.

AMERICAN AIRLINES:

First system seniority list published in 1938 and was compiled on the basis of date of employment as a pilot with American Airlines or with predecessor or absorbed companies.  AA is the result of many mergers and purchases.  As these companies were merged, the pilots were given seniority credit for their length of service with their company.

PAN AMERICAN WORLD AIRWAYS:

System seniority position was awarded based on the length of service with Pan American, or with acquired companies as of the date they were owned or controlled by PAA.

Transcription Notes:
image: AMERICAN LUNG ASSOCIATION LOGO emoved per SI instructions [[UNDERLINED]]