Printer Friendly

ALPA AWARDED $29 MILLION IN EASTERN PILOT CLAIMS

 WASHINGTON, Nov. 24 ~PRNewswire~ -- The estate of Eastern Airlines yesterday transferred $29.5 million into an escrow account to settle lawsuits and grievances brought by the Air Line Pilots Association (ALPA) during the labor dispute and subsequent bankruptcy of Eastern.
 The payment was the result of a settlement engineered last month through the Bankruptcy Court by the Air Line Pilots Association, which represents Eastern pilots. The $29.5 million will remain in the escrow account pending the resolution of a small group of pilot claims by January of next year.
 "This is the best settlement anyone could ever have realistically hoped to get for the Eastern pilots," said Captain Randolph Babbitt, president of ALPA. "The pessimists and malcontents predicted that we couldn't win, that the other claims and legal costs of the bankruptcy would eat up the estate and leave us with nothing. ALPA never lost its conviction that the Eastern pilots were entitled to substantial payments, and now everyone can see that we were right," Babbitt said.
 Yesterday's payments are in addition to $22 million in severance pay that was awarded earlier this year to certain Eastern pilots. Half of that amount is being distributed this month and the second half will be disbursed next year. In accordance with last month's settlement with ALPA, Eastern also will pay its pilots 10 percent of any amounts awarded to Eastern under two separate lawsuits that the airline has filed against the government and against an insurance carrier. Estimates of the possible payoff for the pilots under these claims run as high as $5 million.
 The settlement also protects pilot pension benefits from future reductions caused by the Eastern bankruptcy and preserves all individual pilot bankruptcy claims against the estate.
 "The Eastern takeover, strike and bankruptcy was far and away the biggest battle this union has fought in its 61-year history. ALPA and its members spent over $100 million to defend the Eastern pilots. We assessed our members to pay substantial strike benefits to striking pilots. Entire departments of ALPA's professional staff were mobilized and deployed in the field. Even after the strike ended, ALPA continued to pour massive amounts of its resources into the bankruptcy hearings and the dozens of lawsuits that erupted in the wake of these events. After the dust settled, we helped hundreds of Eastern pilots find jobs at other carriers. While ALPA can't bring back the proud airline that Frank Lorenzo took from the Eastern pilots, I am pleased to say that this settlement vindicates ALPA's long struggle in the courts on behalf of the Eastern pilots," Babbitt said.
 Babbitt said that ALPA will appoint "an independent and neutral labor relations professional of national standing" to oversee the development of a distribution formula for the $29.5 million award. Eastern pilots will be asked to comment on a proposed distribution formula.
 The settlement with Eastern calls for both sides to halt various other lawsuits that have been pending between them, but the moratorium specifically excludes ALPA's pending legal actions against Continental Airlines. The union initiated an arbitration case against Eastern's then corporate sibling to enforce certain "labor protection provisions" of the Eastern pilots' labor agreement. Continental may be liable for additional damage awards to Eastern pilots as a result of these proceedings.
 "I want to thank the many former Eastern pilots who supported our efforts as we pursued these claims through the courts. This has been a long and difficult process, and it would have been all too easy to just abandon the Eastern pilots once the public's focus on the strike and bankruptcy had shifted away. As a former Eastern pilot, I can say unequivocally that I am immensely proud of the way ALPA plunged in with a 100 percent effort right from the beginning," Babbitt said.
 -0- 11~24~92
 ~CONTACT: John Mazor of the Air Line Pilots Association, 202-797-4060~


CO: Eastern Airlines; Air Line Pilots Association ST: District of Columbia IN: AIR SU

TW -- DC017 -- 1218 11~24~92 16:07 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 24, 1992
Words:668
Previous Article:STI EXPANDS WORLD LEADERSHIP IN AUTO-INJECTORS WITH ACQUISITION OF MEDIMECH INTERNATIONAL
Next Article:KMART LAUNCHES TORNADO RELIEF IN MISSISSIPPI
Topics:


Related Articles
AIR LINE PILOTS ASSOCIATION REPORTS SAN FRANCISCO JURY REJECTS CLAIMS OF UNITED 'PILOT SCABS'; RULES IN FAVOR OF ALPA
ALPA SEEKS DISMISSAL OF APPLICATION FOR LORENZO'S FRIENDSHIP AIRLINES
RIGHT TO WORK ATTORNEYS SCORE AGAINST UNION BOSSES' PENSION THEFT IN APPEALS COURT
HEARINGS RESUME ON LORENZO AIRLINE APPLICATION; FORMER CONTINENTAL CHIEF BLASTS LORENZO AS UNFIT
US Airways Reneges on Tentative Agreement Between Subsidiary Allegheny and Its Pilots.
ALPA Wins Court Reinstatement of Pilot Terminated for Following FAA Rules on Rest Requirements.
Northwest Airlink Pilots to Demonstrate at Shareholders Meeting.
ALPA seeks to have arbitration award vacated.
ALPA to continue working for representation for SkyWest pilots.
United Airlines makes its case for preliminary injunction against ALPA and four pilots.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters