Austin, Texas 78711 Office of the Governor Phone (512) 475-1772 TO: POLLY SOWELL FROM: MARGO BRANSCOMB RE: BRANIFF EMPLOYEES MEETING DATE: MAY 24, 1982 MEMO 3-4,000 Braniff employees attended the 2 hour meeting with Congressman Collins. The Labor Protection Policy (LPP) of the deregulation act applies to mergers, sales, acquisitions, and consolidations of airlines. It does not apply to bankruptcies. As this is the first time the act has been tested in this manner, the employees would like the act interpreted broadly to cover bankruptcies. They are most concerned with the auctioning off of their routes. Braniff Airlines ownes the routes and the landing slots. They are assets. The CAB is auctioning them off this Thursday. The employees would like the bidder to have to take the employees with the routes. In other words, if you need 1 pilot and 7 support personnel for a plane to fly from Dallas to Atlanta, 8 people would be tied to the route, to go to the highest bidder. The problem with this is that employees want to be hired at their current seniority level, forcing another company to hire them at a level higher than their current personnel. Specifically, the Braniff employees would like Governor Clements to call President Reagan and order him to either halt the auction of the routes, or order the CAB to interpret the Deregulation Rules loosely to guarrantee their jobs. It was a loud meeting with angry labor people. Jim Collins caught the heat, the Governor did not. MARGO BRANSCOMB Coordinator For Task Forces
