Airline offers
no-layoff deal

Flight attendants and machinists
would avoid furloughs if they
approve new contract terms

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By Russ Lynch
rlynch@starbulletin.com

Most employees of Hawaiian Airlines and Aloha Airlines can avoid layoffs if their unions accept several years of new contract terms similar to those they have now, the company setting out to merge the two airlines, TurnWorks Inc., said yesterday.

The company said it made offers to the Association of Flight Attendants and the International Association of Machinists, which together represent some 3,600 employees of both airlines. If they agree to terms close to those in three-and-a-half-year contracts recently negotiated between Hawaiian and its employees, all will keep their jobs, TurnWorks said.

An official at the Association of Flight Attendants said the union would have no comment and the machinists union office said representatives were not available. A news statement issued by a public relations consultant working for TurnWorks included this quote from Randolph Kauhane, assistant general chairman of the local machinists union: "I truly believe the company is committed to minimizing furloughs. The IAM looks forward to further discussions for other work groups the IAM represents."

The initial offer to the machinists, which has not been accepted by the union, covers customer service agents, terminal and ramp agents, cargo handlers, reservations agents and workers in contract services. The mechanics have yet to receive an offer.

TurnWorks said it wants the unionized workers at the two airlines to combine their seniority lists. That would create a single roster of workers ranked by seniority. Seniority counts in both layoffs and work opportunities as those with longer service get the better deals. TurnWorks also wants broad acceptance of the Hawaiian Airlines contract terms "with minor modifications."

There are many similarities between the contracts at Aloha and the recently worked out deals at Hawaiian, including pay rates, TurnWorks said.

Greg Brenneman, former Continental Airlines president and the man putting together the merger deal as chairman and chief executive officer of TurnWorks, said cost savings from quickly resolving seniority and contract issues will be passed on to employees "in the form of furlough protection."

"We are committed to treating the professional men and women of the airlines fairly in the merger process," he said in a statement.

When he announced the $200 million merger proposal Dec. 19, Brenneman said there may be layoffs to create an efficient new combined airline but they would be less than 10 percent of the staff, which meant less than 600 people since each airline has about 3,000 employees.

Now Brenneman is saying most layoffs will be avoided if the unions cooperate.

Representatives of TurnWorks and the management of each airline will work with the unions on contract issues. Brenneman said the layoff protection will not help those already laid off in the travel downturn that followed the Sept. 11 attacks.

When the merger is completed, however, the resulting airline -- which has yet to be given a name -- will grow and create jobs so "everyone can come back to work," he said.

Aloha laid off 250 workers in September and Hawaiian laid off more than 400 as both airlines cut flights because of reduced travel demand.