AA/TWU tentative agreement

[Ed W]

http://blogs.star-telegram.com/sky_talk/2012/07/american-twu-reach-tentative-agreements-for-mechanics-and-store-clerks.html

The Transport Workers Union said it has reached new tentative agreements with American Airlines for its mechanics and store clerks.

The new deals include 3 percent pay raises upon signing for the mechanics, and 3.5 percent pay raises for store clerks. The union said health insurance coverage was also improved over the Fort Worth-based carrier's previous offer.

...The agreements also include equity claims in the new American Airlines, once its parent company, AMR Corp. emerges from bankruptcy, that will be "negotiated between TWU and AMR based on the offer proposed to the APA pilots, subject to court approval."

..."Through this reduction, and a reallocation of profit sharing, we were able to provide additional pay raises, an adjustment to industry pay rates after three years, and changes in active medical benefits," Hicks said." The TWU tentative agreements, along with our tentative agreement with the APA, demonstrate that we can work creatively to reach a resolution that puts our company in a position to move forward quickly and successfully."

[Hoss]

http://blogs.star-telegram.com/sky_talk/2012/07/american-twu-reach-tentative-agreements-for-mechanics-and-store-clerks.html

The Transport Workers Union said it has reached new tentative agreements with American Airlines for its mechanics and store clerks.

The new deals include 3 percent pay raises upon signing for the mechanics, and 3.5 percent pay raises for store clerks. The union said health insurance coverage was also improved over the Fort Worth-based carrier's previous offer.

...The agreements also include equity claims in the new American Airlines, once its parent company, AMR Corp. emerges from bankruptcy, that will be "negotiated between TWU and AMR based on the offer proposed to the APA pilots, subject to court approval."

..."Through this reduction, and a reallocation of profit sharing, we were able to provide additional pay raises, an adjustment to industry pay rates after three years, and changes in active medical benefits," Hicks said." The TWU tentative agreements, along with our tentative agreement with the APA, demonstrate that we can work creatively to reach a resolution that puts our company in a position to move forward quickly and successfully."

Do you guys know what the RIF hit at the Maintenance base here is?  I know you work there, I have a best friend who does also and I haven't heard from him in a while.

[Ed W]

The company's term sheet called for a 20% across the board cut, and since that would happen AFTER the contract was abrogated, there's no easy way to determine the impact here in Tulsa.  Normally, a RIF cuts the employees with the least seniority and then those positions are filled through transfers.  But without a contract, there's nothing to prevent the company from simply picking and choosing who stays and who goes.

That's one reason a tentative agreement is good news.  The contract continues.  But as always, the devil is in the details.  I expect we'll know more tomorrow.

[heironymouspasparagus]

Good luck, Ed.

[Ed W]

Thanks for the good wishes.  I talked with our shop steward today.  He said that the original RIF here was to be about 300.  Alliance and probably KC will be closed. 

TW says we're to get a 15% pay raise....and while that's technically correct, it's 3% each year.  Between inflation and the inevitable increase in our payments for medical insurance coverage, that 3% may be vapor.

As always, the devil's in the details and we haven't seen the details yet.  Besides, USAir may still attempt a merger, and that would change the situation again.

It's that Chinese proverb that can be a curse or a blessing: May you live in interesting times.

[Hoss]

Thanks for the good wishes.  I talked with our shop steward today.  He said that the original RIF here was to be about 300.  Alliance and probably KC will be closed. 

TW says we're to get a 15% pay raise....and while that's technically correct, it's 3% each year.  Between inflation and the inevitable increase in our payments for medical insurance coverage, that 3% may be vapor.

As always, the devil's in the details and we haven't seen the details yet.  Besides, USAir may still attempt a merger, and that would change the situation again.

It's that Chinese proverb that can be a curse or a blessing: May you live in interesting times.

Glad to hear Ed.  Still haven't heard from my friend yet (he works in painting I believe) but he's worked there about 10 years now I believe (maybe a little longer) and hopefully his tenure will help.  While 300 is a lot, it's better than the 1400 I'd heard several months ago.

[Red Arrow]

Between inflation and the inevitable increase in our payments for medical insurance coverage, that 3% may be vapor.

Welcome to the real world.

[Hoss]

Welcome to the real world.

Let's not forget that these are the same workers that gave up nearly a quarter of their salary to save the company last time, while the higher-ups did squat.  Should that have to be the real world?

[Red Arrow]

Let's not forget that these are the same workers that gave up nearly a quarter of their salary to save the company last time, while the higher-ups did squat.  Should that have to be the real world?

I certainly sympathize with the concessions a few years ago.  My complaint in that regard is that the big wheels started getting bonuses etc and the "little guys" didn't.  I agree that's not right/fair....
In the mid 90s I took a 25% cut so I know what it's like.  Ultimately the company went under but that was after I got RIFed.

At two small companies I worked for, I got profit sharing bonuses even as a rank and file engineer.  The base salary was OK but not fantastic.  When the company did well, so did I.  When the company had a slack period, there weren't instant layoffs.  That obviously depends on honesty in the profit sharing part, something that doesn't always happen.

[heironymouspasparagus]

Welcome to the real world.

Not for the 1%ers.... no where close to their real world!!


Like the former CEO's who ran AA into the ground due to their incompetent management.

[heironymouspasparagus]

I certainly sympathize with the concessions a few years ago.  My complaint in that regard is that the big wheels started getting bonuses etc and the "little guys" didn't.  I agree that's not right/fair....
In the mid 90s I took a 25% cut so I know what it's like.  Ultimately the company went under but that was after I got RIFed.

Then how could you possibly be defending them??

Careful slinging around that "f" word - fair!  Someone might confuse you for a moderate!  Or worse yet, rational!!

And they didn't start getting bonuses when they took the concessions - they KEPT ON getting bonuses!  That were subsidized by you and me and Ed and even guido.

[Red Arrow]

Not for the 1%ers.... no where close to their real world!!

It is the real world for 99% of us.

[Red Arrow]

Then how could you possibly be defending them??

Defending who?  I'm not defending the big wigs.  I at least liked the public presentation of Lee Iacoca (sp) when he was with Chrysler.

Careful slinging around that "f" word - fair!  Someone might confuse you for a moderate!  Or worse yet, rational!!

I know this is a foreign concept to you but not everyone that disagrees with you is a radical or irrational.

And they didn't start getting bonuses when they took the concessions - they KEPT ON getting bonuses! 

Whatever.  They shouldn't have taken bonuses without sharing with the regular guys.

That were subsidized by you and me and Ed and even guido.

Me probably less than some.  I haven't flown anywhere on an Airline since about 2006 and I don't remember which airline but it may have been American to San Diego.

[heironymouspasparagus]

(1)
Whatever.  They shouldn't have taken bonuses without sharing with the regular guys.

(2)
Me probably less than some.  I haven't flown anywhere on an Airline since about 2006 and I don't remember which airline but it may have been American to San Diego.

(1) Exactly what I have been saying.


(2) You ARE subsidizing them even if you never ride AA again - through the big wig tax breaks from the incentive stock option program.

[Ed W]

Welcome to the real world.

There are a couple of worrisome aspects about AA's medical coverage.  First, they want to end it completely for retirees.  We've had numerous employees retire over the last couple of years, and they've counted on that medical coverage to see them up to 65 and Medicare.  It may be legal to do so, but it it ethical to hire someone with the promise of eventual retirement benefits only to see those benefits yanked away after retirement?

Also, AA is self-insured.  They're currently paying United Healthcare to administer the program, but it's not the same as an insurance plan since AA is paying for medical expenses directly.  It's difficult for an employee to verify the claimed increases in overall costs, yet every year the amount we pay for coverage is increased.  As yet, we still don't know what the tentative agreement will bring.

I'm facing a dilemma.  I'm old enough to retire, but without retirement medical I can't afford to retire.  Purchasing medical coverage from AA would cost us about $1000/month.  That amounts to half my retirement benefit.  It's just not possible.  If I have to keep working out there just to see that Mary and I are covered, I don't have any problems with that.