I doubt it. In fact, APA's Blankenship said as much in the article - "absolutely not". Keep in mind that AA had a valid reason for forgiving the $26M that APA still owed over the sick-out. AA realized that holding APA's feet to the fire and forcing them to keep paying on that, on top of lost dues revenue with a ton of furloughs coming, could have bankrupted APA. Most likely outcome would have been an ALPA takeover, which AA would hate. AA believes it's much easier to deal with a small, private Union like APA than a larger, more organized ALPA MEC.
APA, on the other hand, has no reason in the world to forgive this $23M fine. If APA really wanted to benefit its pilots, it would use this as a bargaining chip. They could offer to forgive the fine if, for example, AA gives back a piece of the concessions made last year (i.e. maybe make the daily value of a vacation day 3 hours and 25 minutes instead of 3 hours and 15 minutes). However, my gut tells me that APA is still strapped enough for cash that they will probably just tell AA to pay up. Not sure what benefit that will be to the rank-and-file pilots, other than maybe the next APA domicile meeting being catered.
Something doesn't smell right about this one. I anticipate a lot of behind the scenes bargaining will ensue over this.
In any event, AMR will have to recoup this loss somewhere, I wonder where it will come from, but even more importantly, I wonder how it will be paid out.
The judgment was $46M. Original terms were for APA to pay $20M upfront with the next $26M financed over 15 years. APA may have made a payment or two on the $26M, but AA forgave whatever the balance was (probably $23M or $24M) in the summer of 2003 after the concessions.
Well, I guess CBS wasn't the only one lying to the public then.
American forgives $26 million debt
By CBS.MarketWatch.com
Last Update: 2:09 PM ET July 19, 2003
DALLAS (CBS.MW) -- AMR Corp. has agreed to forgive a $26 million debt owed the carrier by one its three unions, the company said in a regulatory filing.
According to the complete story, AMR FORGAVE the last $26 million of a $60 million fine.
In connection with the Modified Labor Agreements, the Company agreed to forgive a $26 million receivable from one of its three major unions. During the second quarter of 2003, the Company recorded a $26 million Special charge to write-off the receivable.
The outrageous fine should have NEVER been levied against the APA pilots union.The government,in various forms, stole the pilots right to self help during their labor disputes.[Remember Bill Clinton and the 8 minute strike and the Ft.Worth judge that probably was AMR's golfing buddy]. AA management is always looking for ways to circumvent the labor agreements and here in Tulsa they are pushing the limits.I've got 18+ years with AA and I've never seen the morale so bad among all work groups.Even if the concessions were given back it would still leave a bad taste in mouth of the AA employees.Ann Landers once said it best"Once a persimmon turns sour it can never be sweet again". I wish the pilots the best in regaining everything they have given up because then there's hope for the other work groups.
Shoulda, coulda, woulda. After 1500 years of fighting among those Balkan hill tribes thereshouldn't be unrest in Yugoslavia, but there is. The court levied the fine. The union either didn't appeal or lost the appeal. Therefore the union owed the fine.
Joe Kendall, the judge in the case, was nominated by that infamous Democrat, Senator Phil Gramm and appointed by that other infamous liberal, President George H.W. Bush.
The fine resuloution was negotiated in exchange for multiple grievance settlements that were obtained prior to the 2003 contract. The union felt that those were checks they couldn't cash under the circumstances. This settlement however is a check they definately can and should cash, whether for contractual improvements or actual dollars.
