The following update was written by John Hughes on Bloomberg.com.
July 9 (Bloomberg) -- Air-traffic controllers and the U.S. government took a three-year labor dispute to a panel that will issue a binding decision within 30 days.
The conflict over pay has frustrated efforts by President Barack Obama’s administration to deliver on a campaign promise to restore controller morale. Transportation Secretary Ray LaHood has called resolving the issue his “No. 1 priority.”
“The process is going very well,” Jill Zuckman, LaHood’s spokeswoman, said in an e-mail yesterday. The sides reached “agreement on a lengthy list of articles and work rules. The issues that could not be agreed upon have been turned over to mediators, who will have 30 days to render a decision.” The Federal Aviation Administration is part of LaHood’s department.
Both sides presented proposals July 6 to the three-member panel, led by former FAA chief Jane Garvey, according to an Obama administration official. The primary differences between the sides are economic, said the official, who declined to be identified because the talks are private.
Patrick Forrey, president of the National Air Traffic Controllers Association, declined to comment, according to his spokesman, Doug Church.
Forrey said June 29 on his re-election campaign Web site that three differences remained between the sides -- pay, annual leave and regional-national officer representation. The two sides have agreed on more than 100 contract issues, he said then.
Reining in Wages
The nation’s 15,000 controllers have been at odds with the government since President George W. Bush’s administration imposed work and pay rules in 2006. The move cut controller starting pay 30 percent and was to save the government $1.9 billion over five years, the FAA said at the time.
Bush’s FAA said when it imposed the contract that it was trying to rein in wages that had become excessive under a contract agreement reached during President Bill Clinton’s administration in 1998, when Garvey was FAA administrator. Bush’s FAA said in 2005 that controller wages had risen 74 percent in seven years.
Controllers earn $50,000 by the end of their first year and $94,000 after five years, excluding benefits, the FAA said in a September fact sheet. The top-earning one third of controllers make at least $168,000, excluding benefits, and including overtime and other types of additional pay, the FAA said.
The workers have said the Bush rules exacerbated retirements among a group of controllers who replaced workers fired by President Ronald Reagan in 1981 in a labor dispute. Controllers under federal law aren’t allowed to strike.
‘Playing Hardball’
That Garvey couldn’t guide the union to a voluntary pay deal shows it “is playing hardball,” said Robert Poole, director of transportation studies at the Reason Foundation, which advocates free markets and limited government.
“She apparently could not get them to accept the economic and fiscal reality that the FAA has limited resources and just can’t give them the moon,” Poole said.
In addition to Garvey, the three-person panel charged with settling the remaining issues is made up of mediators Richard Bloch and Dana Eischen. The panel’s decision on those issues will be binding and not subject to a ratification vote by controllers.
The mediation talks began May 18. Both parties had agreed to a binding resolution of any issues not resolved in mediation sessions, according to a May 19 FAA statement. The parties aren’t barred from reaching a voluntary agreement while the panel is deliberating.