Against the Wind - National Air Traffic Controllers Association

from a couple of associates who declared the trust to
be sound. Other board members were leery. Several
thought it sounded like a pyramid scheme. But they
nevertheless approved it as a membership benefit in
the fall of 1988.
Their fears proved correct a year later. The
plan’s promoters claimed that NATCA’s initial contribution
would be 5.35 percent of dues and never
exceed 10 percent. However, consultant Joe Kilgallon
discovered the union would need to allocate at
least 20 percent to make the plan financially viable.
An embarrassed NATCA sued and was able to recover
all contributions as well as most of its legal
and actuarial costs.
Another Mullin proposal has lived a long and
useful life. Early on, he successfully persuaded the
board to set aside 6 percent of income as a contingency
fund. Known as the “Southwest Rule,” Mullin’s
budgetary foresight proved invaluable in 1998. By
then, the fund had swelled to $800,000 and enabled
NATCA to avoid going into debt as it spent heavily to
finish a facility reclassification project and complete
its third contract with the agency. That same year, the
Southwest Rule was reduced to 4 percent of income.
Although dues revenue grew as membership
climbed, NATCA’s first two years were awash in red
ink, forcing the union to borrow another $400,000
from MEBA in July 1989. Regional reps using a common
credit card occasionally had to dig for other
6
means of payment when merchants rejected the
union plastic.
Spickler, who was in charge of finances, grew
so concerned about expenses that he finally told Bell,
“Nobody can buy a paper clip in this office unless I
approve it.” Bell instituted “mini-minutes”—summaries
of National Executive Board meetings reduced
on a photocopier to save paper. Those with less than
perfect eyesight could barely read them.
Aside from the additional loan, MEBA agreed
to halve its 15 percent affiliation fee for six months
shortly after the first National Executive Board took
Feb. Feb.
Samuel Skinner takes over as transportation secretary from
James H. Burnley. Skinner, an Illinois lawyer, served as chairman
of the state’s Regional Transportation Authority.
17
Chapter 4: The House that NATCA Built
NATCA archives
Paying off the debt: Strapped for cash in its early years, NATCA’s finances quickly improved. In October 1995, President
Barry Krasner, right, and Executive Vice President Michael McNally presented MEBA with a final loan payment.
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FAA Administrator T. Allan McArtor leaves office after serving
since July 22, 1987.