AA and Labor Negotiations-2020

[CremaDiLimone]

from what i read about the bill - commercial airlines will get $25 billion in payroll grants and $25 billion in loans.

to me, the payroll grants mean there will be no layoffs; at least until aug 31. this was promised by the airlines to secure the grants.

aa's labor costs were about $12+ billion for all of 2019. looks like all the airlines took a hit in march on labor costs from dramatically lower revenues in march.

april, may, june, july and august. 5 months. the numbers look right: just for aa - wages and benefits for 42.25% of $12+ billion.

the govt. has said that a stimulus #4 or #5 in the near future is not ruled out. it's an election year..election year or not, the airlines won't be allowed to fail.

this fully prepares the airlines for a total 1-2 week shutdown, if necessary. don't think we'd ever see that, probably 1 week at the most, if there is one.

what do i know? this is the conclusion i have come to.

 

[Kev3188]

“A self-proclaimed labor leader is spiking the ball...”

Lol. They misspelled “duly elected AFA President Sara Nelson.”

Why are 141 peeps so petty?

 

[V.O. Reason]

from what i read about the bill - commercial airlines will get $25 billion in payroll grants and $25 billion in loans.

to me, the payroll grants mean there will be no layoffs; at least until aug 31. this was promised by the airlines to secure the grants.

aa's labor costs were about $12+ billion for all of 2019. looks like all the airlines took a hit in march on labor costs from dramatically lower revenues in march.

april, may, june, july and august. 5 months. the numbers look right: just for aa - wages and benefits for 42.25% of $12+ billion.

the govt. has said that a stimulus #4 or #5 in the near future is not ruled out. it's an election year..election year or not, the airlines won't be allowed to fail.

this fully prepares the airlines for a total 1-2 week shutdown, if necessary. don't think we'd ever see that, probably 1 week at the most, if there is one.

what do i know? this is the conclusion i have come to.

Do Americans labor cost include the increase from the soon to be passed TA

 

[Tim Nelson]

“A self-proclaimed labor leader is spiking the ball...”

Lol. They misspelled “duly elected AFA President Sara Nelson.”

Why are 141 peeps so petty?

Unfortunately, i think delta may have been waiting for our ratification prior to eliminating much of the ramp.

 

[CremaDiLimone]

Do Americans labor cost include the increase from the soon to be passed TA

no, because i have no idea how much it adds per year to aa's labor costs. i understood the deal to be 'worth' $4.2 billion, but not sure if that is in total, after adding in previous wages/benefits, or, an additional $840 million per year addition.

if you add the $840 million to aa's labor costs and those costs were projected to be $13 billion for 2020..then there is still plenty of money in the payroll grant fund. 42.25% of $13 billion. there's $25 billion for all.

 

[swamt]

Bullet point list:
1- Vote yes to pass contract.
2- Release court injunction against IAM/TWU.
3- Corral all the groups under unified contract.
4- Declare FORCE MAJEURE.
5- Mass layoffs and paycuts.
6- Huge bonuses to executives.
7- Massive stock buybacks to enrich shareholders.
8- American emerges on the other side of this a much smaller company. Just without you.

Hey, that sounds like past points after the votes.

 

[swamt]

What really sucks is that some people that work in other fields were sent home but not layed off. The company will tell you that they will call you to work as needed. So now you can't file for unemployment because you were not let go. You were put on standby working one or two days a week for four hours a day.

Unemployment benefits are gaged rather it was within the employees control IF the employee chooses to voluntarily leave, then that is their choice, and very well could be refused to be paid out. The co's are stating that they will not contest any unemployment benefits filings by their employees, but that does NOT mean that your filing will not get rejected as you "chose" a voluntarily action. Think folks.

 

[eolesen]

I'll post a summary of the Senate Bill that I received over in the Cooler... Short story: no layoffs until after 9/30/2020, and no pay reductions.

 

[Buck]

I'll post a summary of the Senate Bill that I received over in the Cooler... Short story: no layoffs until after 9/30/2020, and no pay reductions.

Be sure to read the IAM letter concerning the bailout, I smell a rat.

 

[Jester]

Federal-Aid-Package IAM 141 Letter

Some Wall Street analysts are stating that if private capital is available, the airlines will go that route instead without being burdened by government controls (and I assume that to mean also furloughing workers, as needed).

Should additional funds are needed, then either apply for government money (after furloughs) or file in a pre-packaged bankruptcy, and be assured, as it won't be like the GM bankruptcy where CBA's were relatively untouched for current workers.

Honestly, that's usually how it works where workers' wages and benefits are slashed, and I doubt the Trump Administration would be willing to loan money without re-working CBA's.

 

[V.O. Reason]

from what i read about the bill - commercial airlines will get $25 billion in payroll grants and $25 billion in loans.

to me, the payroll grants mean there will be no layoffs; at least until aug 31. this was promised by the airlines to secure the grants.

aa's labor costs were about $12+ billion for all of 2019. looks like all the airlines took a hit in march on labor costs from dramatically lower revenues in march.

april, may, june, july and august. 5 months. the numbers look right: just for aa - wages and benefits for 42.25% of $12+ billion.

the govt. has said that a stimulus #4 or #5 in the near future is not ruled out. it's an election year..election year or not, the airlines won't be allowed to fail.

this fully prepares the airlines for a total 1-2 week shutdown, if necessary. don't think we'd ever see that, probably 1 week at the most, if there is one.

what do i know? this is the conclusion i have come to.

According to the IAM the no layoffs is now extended to Sept 30th with some last minute changes to the bill

 

[V.O. Reason]

Ok, again maybe I’m a bit optimistic here but from what I’m reading I believe that with this bill the airlines are going to be ok.
Remember all the airlines are in the same boat. They have already made the necessary adjustments to schedules, parking aircraft to slow the losses.
Now they will have the money needed to operate with fewer flights for several more months.
I don’t see any carrier fling bankruptcy at this point.
Down the road in a year or so it’s possible if the people don’t come back flying
This may take longer then after 9/11 but time will tell.
All the airlines will be a bit smaller after this but I think all will survive to become profitable again

 

[dfw gen]

Ok, again maybe I’m a bit optimistic here but from what I’m reading I believe that with this bill the airlines are going to be ok.
Remember all the airlines are in the same boat. They have already made the necessary adjustments to schedules, parking aircraft to slow the losses.
Now they will have the money needed to operate with fewer flights for several more months.
I don’t see any carrier fling bankruptcy at this point.
Down the road in a year or so it’s possible if the people don’t come back flying
This may take longer then after 9/11 but time will tell.
All the airlines will be a bit smaller after this but I think all will survive to become profitable again

its your story tell it any way you want. personally my opinion is not near as rosy especially for aa

 

[1AA]

Just had this sent to me. We will look bad in the eyes of the public through the media. I have a feeling if AA goes through with the agreement if it passes then the government might step in. Honestly it looks bad when you first hear about it. Unless AA can shore up private loans I see roadblocks from the Federal government. You add the past buybacks and equity payouts that AA has been hammered on and now this.

https://freebeacon.com/latest-news/...ssive-pay-hikes-as-taxpayer-bailout-advances/

 

[1986Mekanic]

Well, hopefully . no one spent the money before they got it.....