Letter on Air Traffic Controller Concerns to the 2007 Supplemental Appropriations Bill

March 22, 2007

The Honorable Robert C. Byrd

Chairman

Committee on Appropriations
United States Senate
Washington, DC 20510

The Honorable Thad Cochran
Ranking Member
Committee on Appropriations

United States Senate

Washington, DC 20510

Dear Chairman Byrd and Ranking Member Cochran:

The U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region, strongly urges you and your colleagues to oppose any amendment to the fiscal year 2007 Supplemental Appropriations bill that would require the Federal Aviation Administration (FAA) to revert to a 1998 contract with the National Air Traffic Controllers Association (NATCA) and force the agency to enter binding arbitration with its unions.

Beginning with the expiration of the existing air traffic controller contract in September 2005, FAA and NATCA made efforts to negotiate a new contract. When those discussions reached an impasse, FAA invited the Federal Mediation and Conciliation Service (FMCS) to join the discussions to help reach a deal. Even with the involvement of FMCS in the negotiation process, the impasse persisted and negotiations broke down in early April 2006.

Under the Federal Aviation Reauthorization Act of 1996 (P.L.104–264), the controllers were allowed to bargain over pay. In return for this right, the law required that in the event of an impasse, the FAA could implement its final offer after a 60-day congressional review. Last September, after Congress chose not to take action, the FAA implemented the current contract with the controllers.

Now, NATCA is seeking to force the FAA to roll back the current contract implemented lawfully under a process created by Congress and enter binding arbitration.

The U.S. Chamber strongly supports and appreciates the efforts air traffic controllers make every day to make our airways safe. But the facts are that since the last labor agreement in 1998, controllers have received a 75 percent pay increase. The average controller now earns $173,000 in pay and benefits. The current contract fully protects the salary and benefits of every current controller and controls costs for new controllers by offering up to $127,000 in salary and benefits in the first five years.

Controlling costs is important because this year Congress must reauthorize the FAA. In addition to modernizing the nation's air traffic control system, this reauthorization must make airport investments to meet growing aviation demands. All stakeholders in the aviation industry, including the controllers, support the modernization and improvement of the nation's aviation system. Securing the funding for the modernization is one of the biggest challenges during this reauthorization period. If FAA's ability to follow existing law and continue with the current lawful contract is undermined, its ability to modernize the air traffic control system is diminished. Also, the efforts of FAA Administrator Marion Blakey to force the agency to operate like a business, with higher productivity and accountability, would be severely compromised.

No compelling reasons have been presented to justify overturning existing law. Undoing the current contract would divert a significant portion of FAA's budget away from modernizing the nation's air traffic control system, which is already breaking down under the strain of increased traffic.

The U.S. Chamber urges you and your colleagues to oppose any amendments of this nature to the fiscal year 2007 supplemental appropriations bill. Thank you for your consideration.

Sincerely,

R. Bruce Josten