28 replies to this topic

[yvrusfa]

The new link for AA employees re: BK restructuring plan and the cuts that are coming.

http://www.restructuringamr.com/

I am sure glad not to be in their shoes right now! Of course, twice is enough for anyone!

[Jimmy Neutron]

As for Fleet Service, it seems they took and read the book that US wrote, as it seems almost identical the cuts they want from the ramp at AA: It's a sad day for all involved TWU
Fleet Service Clerks: Our Approach

Our goal is to achieve a consensual agreement with our TWU-represented Fleet Service Clerks that allows us to emerge from restructuring as a profitable and successful company. American needs productivity improvements and flexibility to reach savings targets. Our company bears an extraordinary responsibility to do this right, and do this once. The approach we take will be respectful, open and straightforward.

We conducted a comprehensive review of our operations, our competitive position and our financial structure and designed a business plan to allow us to exit restructuring and vigorously compete and win.

All Employee Restructuring Objectives
Reduce employee costs

Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity or relying on outsourcing
Implement universal changes to active and retiree medical for current employees
Remove and relax restrictions on our business
Remove structural barriers that limit flexibility and ultimately growth
Eliminate pension underfunding obligations
Terminate defined benefit plans to eliminate the company's more than $800 million annual funding obligation
Implement new first-dollar profit sharing plan
Overview of Fleet Service Proposals
Targeted Annual, Permanent Cost Savings: $150 Million (20% of the Fleet Service Clerks' total cost)
Reduce workforce by potentially 40 percent, approximately 4,200 positions
Outsource certain fleet service clerk functions, including dayline cabin cleaning, fueling and cargo handling
Outsource station staffing at airports with fewer than 20 departures/day
Eliminate the ASM cap
Reduce max vacation by one week
Eliminate system and station protection
Establish a five-year recall right limit for furloughees
Rationale
Successful restructuring goes beyond competitive benchmarking. Any previous estimates of our employee cost gap aren't relevant to our current situation. We are facing a far different challenge in the restructuring process, one that requires that we get to a cost and operational structure that allows us to successfully implement our business plan.
Our goal was to make fundamental changes to the Airport Services operation necessary for a long-term sustainable cost structure, while continuing to maintain Fleet Service Clerks' competitive base pay rates.
Outsourcing work where it can be done cost effectively allows us to preserve base pay rates and focus our resources on our largest and most important markets.
Eliminating the ASM cap from all TWU contracts will give American the ability to optimize its network and schedule. Removing the cap allows us to improve the use of our regional network by allowing mainline jets to be redeployed for new opportunities and to place smaller jets on lower demand flights.

[Tim Nelson]

Jimmy Neutron, on 01 February 2012 - 06:15 PM, said:

As for Fleet Service, it seems they took and read the book that US wrote, as it seems almost identical the cuts they want from the ramp at AA: It's a sad day for all involved TWU
Fleet Service Clerks: Our Approach

Our goal is to achieve a consensual agreement with our TWU-represented Fleet Service Clerks that allows us to emerge from restructuring as a profitable and successful company. American needs productivity improvements and flexibility to reach savings targets. Our company bears an extraordinary responsibility to do this right, and do this once. The approach we take will be respectful, open and straightforward.

We conducted a comprehensive review of our operations, our competitive position and our financial structure and designed a business plan to allow us to exit restructuring and vigorously compete and win.

All Employee Restructuring Objectives
Reduce employee costs

Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity or relying on outsourcing
Implement universal changes to active and retiree medical for current employees
Remove and relax restrictions on our business
Remove structural barriers that limit flexibility and ultimately growth
Eliminate pension underfunding obligations
Terminate defined benefit plans to eliminate the company's more than $800 million annual funding obligation
Implement new first-dollar profit sharing plan
Overview of Fleet Service Proposals
Targeted Annual, Permanent Cost Savings: $150 Million (20% of the Fleet Service Clerks' total cost)
Reduce workforce by potentially 40 percent, approximately 4,200 positions
Outsource certain fleet service clerk functions, including dayline cabin cleaning, fueling and cargo handling
Outsource station staffing at airports with fewer than 20 departures/day
Eliminate the ASM cap
Reduce max vacation by one week
Eliminate system and station protection
Establish a five-year recall right limit for furloughees
Rationale
Successful restructuring goes beyond competitive benchmarking. Any previous estimates of our employee cost gap aren't relevant to our current situation. We are facing a far different challenge in the restructuring process, one that requires that we get to a cost and operational structure that allows us to successfully implement our business plan.
Our goal was to make fundamental changes to the Airport Services operation necessary for a long-term sustainable cost structure, while continuing to maintain Fleet Service Clerks' competitive base pay rates.
Outsourcing work where it can be done cost effectively allows us to preserve base pay rates and focus our resources on our largest and most important markets.
Eliminating the ASM cap from all TWU contracts will give American the ability to optimize its network and schedule. Removing the cap allows us to improve the use of our regional network by allowing mainline jets to be redeployed for new opportunities and to place smaller jets on lower demand flights.

Hopefully the TWU doesn't lie to their fleet service like Canale lied to US fleet when he said that the 11c papers [or whatever they were] meant that the company couldn't come back for more. I told folks that those papers weren't worth the paper they were written on and that Canale was a fraud when he told us that. Two concessions later, everyone found out the truth.

[Jimmy Neutron]

AMEN to that!!!!

[baggage engineer]

sounds to me like Parker gave AA his itemized christmas list and they are going to follow it so that Dougie and get a chance to play with the big boys. Everything in that press release Jimmy posted is exactly
like US got right before Doug stepped in.

[Kev3188]

Jimmy Neutron, on 01 February 2012 - 06:15 PM, said:

Outsource station staffing at airports with fewer than 20 departures/day

Wow.

Here's a list of M/L departures by station from about this time last year (credit to Eolesen for compiling it). Some of the numbers have likely changed, and others may have less than 7 departures a day now (the current threshold), but be staffed due to system protection. Still a huge hit:

DFW 474
MIA 221
ORD 169
LAX 82
JFK 72
LGA 49
SFO 31
STL 31
DCA 30
BOS 30
MCO 25
LAS 24
AUS 23
-------------------------------------------------------------------------
SAT 17
TPA 16
PHX 15
ATL 15
DEN 15
SAN 14
SNA 14
EWR 13
SEA 13
BNA 12
IAD 12
MSY 12
RDU 12
PHL 11
MSP 11
MCI 11
ELP 10
ABQ 10
FLL 10
IAH 9
TUS 9
HNL 8
BWI 8
SJC 8
TUL 8

[wings396]

If I were in any of those stations on the lower list, I would be praying for a merger with US....

[28L_or_10R?]

wings396, on 02 February 2012 - 06:17 AM, said:

If I were in any of those stations on the lower list, I would be praying for a merger with US....

These stations would be outsourced before any merger. The American folks could probably be called back after a transition agreement to tpa, bwi, rdu, etc.