AA cutting 900 attendant jobs
- Thread starter FWflyer
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jimntx
Veteran
From the Flight Service website:
This is Lauri Curtis, and today is Wednesday, July 2, 2008.
Last month we announced a number of actions designed to help us overcome near-term challenges and secure our company’s long-term future. These included significant reductions to our schedule and retiring a number of aircraft. As you recall from our announcements on May 27 and June 25, we are cutting capacity by 11 percent to 12 percent compared to 2007 levels and our fourth quarter American Eagle capacity by 10 percent to 11 percent compared to 2007.
Now that we have decided on the reduced flying schedule, let me share with you what I know about the impact of the schedule reductions on our people --- which of course is the most difficult and disheartening aspect of this situation.
As you would expect, our reduced flying schedule will translate to needing fewer people. We anticipate an 8% reduction in force for Management and Support Staff throughout the company and we will also have an overage of flight attendants.
Consequently, earlier today we delivered an official “WARN†letter to APFA. Federal law requires employers to provide specific advance notice, under the Worker Adjustment and Retraining Notification Act, in cases when employees may experience involuntary loss of employment. Please know that the WARN letter was not a layoff notice for any particular individual — rather, it ensures compliance with the federal WARN law while we continue to hope that the number of actual layoffs will be minimized. Also today, we are sending “Subject to Furlough†letters to the 900 most junior active flight attendants on the system seniority list.
In the meantime, we are doing the best we can to minimize the actual number of involuntary flight attendant furloughs, by offering voluntary options to eligible flight attendants who would like to take some time off of work. The voluntary options include a new Voluntary Bridge to Retirement option in addition to the other provisions provided for in the Collective Bargaining Agreement (CBA).
Voluntary Options
There are five voluntary options, all with different eligibility parameters, that flight attendants may consider.
Voluntary Bridge to Retirement- To be awarded in advance of other types of leaves of absence. The Company reserves the right to limit the number of Flight Attendants who may accept the program, and to discontinue the program at any time. Full provisions of this program are available on Jetnet, but include;
Eligibility: A Flight Attendant, not currently on furlough, who is at least 50 years of age, with at least 15 years of Company Seniority as of August 31, 2008
Permanent separation without recall rights
Severance: $15,000
COBRA Medical Coverage: The Flight Attendant initially will be offered six months of subsidized COBRA medical coverage at 20% of the normal COBRA rates (subject to the Flight Attendant complying with applicable requirements and conditions). A Flight Attendant who complies with applicable requirements will remain eligible to purchase COBRA medical coverage for another 12 months at full COBRA rates. Subject to the provisions of the applicable retiree medical plan (which controls as to retiree medical matters), the Flight Attendant will become eligible for retiree medical at age 55 if they continue to prefund until that time, provided that s/he began prefunding when first eligible, and has continued to make prefunding payments since that time.
Travel: AA/AE travel only, D2 eligible travelers only and subject to imputed income after 90 days. At age 55, retiree travel will be identical to travel for other retirees.
Broad Based Stock Options: Stock options may be exercised up to 90 days after separation. Stock Options will be forfeited after 90 days
Separation Date: At Onboard Service discretion subject to operational needs
A Flight Attendant cannot take both this Voluntary Program and Article 30
Overage Leaves- (Flight attendants who receive a Subject to Furlough letter are not eligible to proffer for an Overage Leave). Crew Resources will be able to forecast flying for each base. Overage leaves are offered by base and awarded to eligible flight attendants by base in occupational seniority order. Overage Leaves of up to a year in length will be offered. We anticipate that the proffer for Overage Leaves will open on July 7 and close on July 21. Once granted, Overage Leaves of Absence are irrevocable. Please see Article 16 of Collective Bargaining Agreement for full details on Overage Leaves.
Partnership Flying- (Flight attendants who receive a Subject to Furlough letter are not eligible to proffer for Partnership Flying.) If a surplus still exists after Overage Leaves have been granted, Partnership Flying assignments will be offered to eligible flight attendants at individual bases at which a surplus still exists. Partnership flying is for an irrevocable period of three (3) contractual months. Eligibility criteria can be found in the Appendix F of the CBA.
Retirement-The current AA/APFA Collective Bargaining Agreement lowers the age at which an eligible flight attendant can elect to retire from 62 to 60 without any reduction in your pension benefit, and the pension benefit is calculated on your top four years of earnings, rather than the top five.
Article 30 Early Retirement-Provides for early retirement for eligible flight attendants at age 45 (but less than age 55) with 20 years of company seniority. This option provides a $25,000 lump-sum payment; specified life insurance and specified medical benefits; and 10 round-trip D2 passes per year.
I encourage those of you eligible and interested in any of these options to consider them carefully. Hopefully, there will be sufficient numbers of flight attendants participating in these voluntary options to either offset the entire overage or greatly reduce the eventual number of necessary furloughs.
While I am sorry to be the bearer of such unfortunate news, I am thankful there are options available that will lessen the adverse impact on the careers and livelihood of our people. If you have any questions or concerns, your Flight Service Manager will be available to help.
Please fly safely.
This is Lauri Curtis, and today is Wednesday, July 2, 2008.
Last month we announced a number of actions designed to help us overcome near-term challenges and secure our company’s long-term future. These included significant reductions to our schedule and retiring a number of aircraft. As you recall from our announcements on May 27 and June 25, we are cutting capacity by 11 percent to 12 percent compared to 2007 levels and our fourth quarter American Eagle capacity by 10 percent to 11 percent compared to 2007.
Now that we have decided on the reduced flying schedule, let me share with you what I know about the impact of the schedule reductions on our people --- which of course is the most difficult and disheartening aspect of this situation.
As you would expect, our reduced flying schedule will translate to needing fewer people. We anticipate an 8% reduction in force for Management and Support Staff throughout the company and we will also have an overage of flight attendants.
Consequently, earlier today we delivered an official “WARN†letter to APFA. Federal law requires employers to provide specific advance notice, under the Worker Adjustment and Retraining Notification Act, in cases when employees may experience involuntary loss of employment. Please know that the WARN letter was not a layoff notice for any particular individual — rather, it ensures compliance with the federal WARN law while we continue to hope that the number of actual layoffs will be minimized. Also today, we are sending “Subject to Furlough†letters to the 900 most junior active flight attendants on the system seniority list.
In the meantime, we are doing the best we can to minimize the actual number of involuntary flight attendant furloughs, by offering voluntary options to eligible flight attendants who would like to take some time off of work. The voluntary options include a new Voluntary Bridge to Retirement option in addition to the other provisions provided for in the Collective Bargaining Agreement (CBA).
Voluntary Options
There are five voluntary options, all with different eligibility parameters, that flight attendants may consider.
Voluntary Bridge to Retirement- To be awarded in advance of other types of leaves of absence. The Company reserves the right to limit the number of Flight Attendants who may accept the program, and to discontinue the program at any time. Full provisions of this program are available on Jetnet, but include;
Eligibility: A Flight Attendant, not currently on furlough, who is at least 50 years of age, with at least 15 years of Company Seniority as of August 31, 2008
Permanent separation without recall rights
Severance: $15,000
COBRA Medical Coverage: The Flight Attendant initially will be offered six months of subsidized COBRA medical coverage at 20% of the normal COBRA rates (subject to the Flight Attendant complying with applicable requirements and conditions). A Flight Attendant who complies with applicable requirements will remain eligible to purchase COBRA medical coverage for another 12 months at full COBRA rates. Subject to the provisions of the applicable retiree medical plan (which controls as to retiree medical matters), the Flight Attendant will become eligible for retiree medical at age 55 if they continue to prefund until that time, provided that s/he began prefunding when first eligible, and has continued to make prefunding payments since that time.
Travel: AA/AE travel only, D2 eligible travelers only and subject to imputed income after 90 days. At age 55, retiree travel will be identical to travel for other retirees.
Broad Based Stock Options: Stock options may be exercised up to 90 days after separation. Stock Options will be forfeited after 90 days
Separation Date: At Onboard Service discretion subject to operational needs
A Flight Attendant cannot take both this Voluntary Program and Article 30
Overage Leaves- (Flight attendants who receive a Subject to Furlough letter are not eligible to proffer for an Overage Leave). Crew Resources will be able to forecast flying for each base. Overage leaves are offered by base and awarded to eligible flight attendants by base in occupational seniority order. Overage Leaves of up to a year in length will be offered. We anticipate that the proffer for Overage Leaves will open on July 7 and close on July 21. Once granted, Overage Leaves of Absence are irrevocable. Please see Article 16 of Collective Bargaining Agreement for full details on Overage Leaves.
Partnership Flying- (Flight attendants who receive a Subject to Furlough letter are not eligible to proffer for Partnership Flying.) If a surplus still exists after Overage Leaves have been granted, Partnership Flying assignments will be offered to eligible flight attendants at individual bases at which a surplus still exists. Partnership flying is for an irrevocable period of three (3) contractual months. Eligibility criteria can be found in the Appendix F of the CBA.
Retirement-The current AA/APFA Collective Bargaining Agreement lowers the age at which an eligible flight attendant can elect to retire from 62 to 60 without any reduction in your pension benefit, and the pension benefit is calculated on your top four years of earnings, rather than the top five.
Article 30 Early Retirement-Provides for early retirement for eligible flight attendants at age 45 (but less than age 55) with 20 years of company seniority. This option provides a $25,000 lump-sum payment; specified life insurance and specified medical benefits; and 10 round-trip D2 passes per year.
I encourage those of you eligible and interested in any of these options to consider them carefully. Hopefully, there will be sufficient numbers of flight attendants participating in these voluntary options to either offset the entire overage or greatly reduce the eventual number of necessary furloughs.
While I am sorry to be the bearer of such unfortunate news, I am thankful there are options available that will lessen the adverse impact on the careers and livelihood of our people. If you have any questions or concerns, your Flight Service Manager will be available to help.
Please fly safely.
I am really glad that the company is offering some "early out" options this time for F/A's. This will be a great help in reducing the number of furloughs systemwide..Rumor has it that wish these options being offered no furloughs will take place...I hope that is the case...Goodluck to all!
jimntx
Veteran
Well, if I am reading the new Seniority List correctly, this misses me by 38 people. However, I also heard that WARN letters were to be sent out in two waves. First wave (this one) for furloughs right after Labor Day. Second wave to be sent around 01Sep for furlough on/around 01Nov.
With the economy as it is right now and gas prices through the roof, I don't have much hope of many people taking the options which would mitigate the furloughs. (A lot of people are in my situation...I have enough money to last me the rest of my life. As long as I die by noon tomorrow.
)
Not being furloughed may be worse than being furloughed. I'm thinking force-transfers to the bases where most of the furloughs would occur. Though the flying at LGA is really good (especially compared to some other bases), the commute to NYC plus having to cover 3 airports does not sound attractive.
With the economy as it is right now and gas prices through the roof, I don't have much hope of many people taking the options which would mitigate the furloughs. (A lot of people are in my situation...I have enough money to last me the rest of my life. As long as I die by noon tomorrow.
)Not being furloughed may be worse than being furloughed. I'm thinking force-transfers to the bases where most of the furloughs would occur. Though the flying at LGA is really good (especially compared to some other bases), the commute to NYC plus having to cover 3 airports does not sound attractive.
jimntx
Veteran
I agree. I am truly surprised that the offer is as generous as it is. If only they had not put a minimum age of 50 on the early out, I think there are a LOT of f/as who are in the 15-25 year range who are just sick and tired of continuing to have to serve reserve. However, most of them are not yet 50.
Does anyone know if the offers are limited to just Domestic, or can International f/as take advantage also?
eolesen
Veteran
- Jul 23, 2003
- 15,940
- 9,371
I can't imagine they'd be limited by base (I vs. D), but stranger things have happened.
Article 30 has been around for quite a while, so anyone 45+ with 20+ years can take that if they're not eligible for the 5+5. It offers more cash up front, but fewer passes.
Side note... my wife and I flew back from VC on AA over the weekend, and as we were walking thru the terminal in ORD, she commented "when did all the AA FA's get so old? Have they really laid off that many of the junior people?"
Article 30 has been around for quite a while, so anyone 45+ with 20+ years can take that if they're not eligible for the 5+5. It offers more cash up front, but fewer passes.
Side note... my wife and I flew back from VC on AA over the weekend, and as we were walking thru the terminal in ORD, she commented "when did all the AA FA's get so old? Have they really laid off that many of the junior people?"
LOL...Tell her the very junior are the "old" f/as. The former TWA recalled are at minimum in their late 40's and "our" number 1 was 72 at recall.
NewHampshire Black Bears
Veteran
- Aug 20, 2002
- 10,154
- 681
Wishing/Hoping..for the very best luck possible, for those who lose their jobs(hopefully NOT permanent) !!!!!!!!!!
The company had who's input for this bridge to retirement? I would take it in a New York minute but I am not eligible as I am 30 months shy of 50 as of the 30th of August!
Daamn it! I am going to send an e-mail to the company and APFA. I suggest that those of you who want to see us gone do the same. Most of us that are 15-20 years in seniority are probably ages 42-48. I hope I am wrong but with these guidelines, I don't see alot of takers.
I am so dissapointed, I really am going to cry.
Daamn it! I am going to send an e-mail to the company and APFA. I suggest that those of you who want to see us gone do the same. Most of us that are 15-20 years in seniority are probably ages 42-48. I hope I am wrong but with these guidelines, I don't see alot of takers.
I am so dissapointed, I really am going to cry.
It looks like a side letter of agreement between AA and the APFA.
The Bridge to Retirement Letter
And from the union hotline:
T
The Goose
Guest
I'm really happy to see some consideration for the f/as out of the company. Hopefully, all is as it appears.
CubsFanJohn
Advanced
- Mar 30, 2008
- 227
- 0
Any idea when they will announced any for the Pilots or Mechanics yet?
jimntx
Veteran
Math not being my strong suit, it turns out that the WARN letters miss me by 67. Whew! Also, I have been told by my base manager that unless Laurie is lying to the base managers, the 900 is all the WARN letters that will be sent out. Now, that is with the caveat that anything might happen if jet fuel continues to go up in price so drastically (oil hit $144/bbl today, btw).
jimntx
Veteran
All we know is that if there are any furloughs among pilots and mechanics, those subject to furlough will have to be sent WARN letters a minimum of 60 days prior to the expected furlough date. Now, the other shoe will drop......when? :down:
WingNaPrayer
Veteran
Do the letters have to be individual, or do they just have to notify the union? I thought it was just the union who then notifies X amount of members that their ticket might get punched.
