Article 4 Industry Comparable Pay rate

[dfw gen]

[quote name="Overspeed" post="1086720" timestamp="1400162855"
Define parts
thats kinda of like you didnt inhale!
define parts?

 

[Overspeed]

 
I'm just asking him. It is an extremely relevant question.

 

[700UW]

Do you not understand anything that is in the maintenance budget falls under maintenace spend, from a bolt to a jet engine is all under maintenance?

 

[swamt]

And don't forget, "parts"  also includes any and all "parts" that are required to be purchased to fix any tooling to be used for A/C maint,  could even be computer "parts" that is required to look up maint and work load.  "Parts"  are not just A/C parts as some are thinking.  "Parts" required to fix, replace, remodle and or enlarge the restrooms used by employees while at work performing maint on aircraft.  Parts can and will be a rather large number...

 

[Overspeed]

Do you not understand anything that is in the maintenance budget falls under maintenace spend, from a bolt to a jet engine is all under maintenance?

 
That's where you are wrong. All rotable parts (engines, flaps, fuel pumps, hyd pumps, etc...) are assets. Assets are not part of the maintenance expense because they are repairable. Only the expendable parts and material are used to repair or overhaul those rotable/repairable parts are expensed as part of the maintenance budget. Assets are carried on the corporate profit and loss statement.
 
Therefore an engine is not part of the maintenance expense and does not affect the outsourcing percentage. The bolts are however.

 

[700UW]

No I am not wrong, their is money spent on buying, maintaining and repairing, it comes out of the maintenance budget.
 
You are truly clueless.

 

[1AA]

No I am not wrong, their is money spent on buying, maintaining and repairing, it comes out of the maintenance budget.
 
You are truly clueless.

No more like desperate in defending his personal agenda with the worthless TWU.

 

[Overspeed]

No I am not wrong, their is money spent on buying, maintaining and repairing, it comes out of the maintenance budget.
 
You are truly clueless.

 
If you are running a business and you buy and engine for a spare it is an asset. Assets are a capital expense and carried on the corporate books and depreciated over time. Companies do not expense and engine, fuel pumps, etc... on a cash basis.
 
You need to do some accounting research. If you are going to sit across the table from the management types it would be wise if you knew how the shell game works.

 

[700UW]

You just dont get it, the engine isnt given to AA for free, the money is spent to purchase it.

 

[Overspeed]

You just dont get it, the engine isnt given to AA for free, the money is spent to purchase it.

 
I do get it. In the context of outsourcing percentage engines are not expensed to maintenance, they are capitalized on AA's corporate books. If you are only looking at maintenance expense then you include expendables and you will never see the rotables.

 

[Bob Owens]

So we did get to keep the pension. You were there but I doubt you paid attention. You have already proven that you don't really read the contract.
 
Truth is we could have pushed for full pay to the last day but in the end we would have probably ended up like all the others. UA, US, NW, and HP. Thousands of jobs lost, frozen or terminated DBP, retiree medical stripped, and a very high cost medical back in 2003. Instead the TWU provided an opportunity for you to earn pension credit, thousands to contiune working, a few more failed opportunites for AMFA organizing drives (2004 and 2013), and the opportunity for AMFA to show us at NW and UA how a "real union" fights and gets shafted in BK court.

On day one the lawyers said not to worry about the pension being Terminated Vs Frozen as it was immaterial for us since AA had plenty of money and none of us were over the $54000 cap. They also said that it would satisfy the majority of the ask. The next day, after the International no doubt informed them that their pensions from AA would likely be way, wAAy over the $54000 cap they reversed that position and said we have to give whatever concessions it takes to keep it frozen instead of terminated.

The pension credit was at reduced wages, we worked OT to compensate for the reduced wages but those earnings were not factored into the pension. My best years wear nearly ten years prior to the date the pension was frozen. What the extra years did, thanks to the successful lobbying efforts of Jim Little was allow the company to save millions of dollars in the short term by underfunding the pension, building up the Liability that they would later use as an excuse to go BK and take even more from us.

The language that says what is normal. Normal for a 600 aircraft airline was set based on the attachment concerning what work was intended to be outsourced. If the new normal for a airline double that size is double the facilities it has for the 600 aircraft airline, than the locals must argue that was the intent of the language.
 
 
The STL/MCI work was downsized because we no longer have an 825 fleet. We also have a newer fleet. The CBA Art 1 language has to do with a measure of work being done annually by AA. If the work is reduced due to fleet size shrinkage then facilities and AMTs would also shrink.
 
Unintentionally undersized? Doesn't matter. If the capacity to normally do 65% of the work inhouse isn't there, then AA has violated the intent of the language.

Guess you don't know the meaning or "or" either. If AA doubled in size they can increase the percentage of outsourcing. You know as well as I that the burden of proof as to the intent is on the Union. Even prior to BK AA only ever had language that sought to protect workers presently employed and never had language that said that they had to increase headcount or acquire facilities along with expansion.

So thats three pretty basic words you don't know the meaning of;
"are"
"parts"
and "or".

 

[Bob Owens]

Do you not understand anything that is in the maintenance budget falls under maintenace spend, from a bolt to a jet engine is all under maintenance?

The contract does mention "capitalized parts", it does not however define them. So while a new engine may be capitalized part one that has been fully depreciated and rebuilt may not be. How that is monitored is anyones guess. So lets say AA buys parts and materials and sends them to El Salvador with an agreement to pay a premium on labor in exchange for the lost markup on the parts and materials, the cost of the parts and materials could completely offset the cost of the outsourced labor, in other words they could outsource labor but it would not add to the percentage outsourced.

 

[Overspeed]

The contract does mention "capitalized parts", it does not however define them. So while a new engine may be capitalized part one that has been fully depreciated and rebuilt may not be. How that is monitored is anyones guess. So lets say AA buys parts and materials and sends them to El Salvador with an agreement to pay a premium on labor in exchange for the lost markup on the parts and materials, the cost of the parts and materials could completely offset the cost of the outsourced labor, in other words they could outsource labor but it would not add to the percentage outsourced.

 
Wrong. The repair invoice cost includes labor an material.
 
And the TWU is responsible for monitoring outsourcing. It's in the contract.

 

[Overspeed]

On day one the lawyers said not to worry about the pension being Terminated Vs Frozen as it was immaterial for us since AA had plenty of money and none of us were over the $54000 cap. They also said that it would satisfy the majority of the ask. The next day, after the International no doubt informed them that their pensions from AA would likely be way, wAAy over the $54000 cap they reversed that position and said we have to give whatever concessions it takes to keep it frozen instead of terminated.

The pension credit was at reduced wages, we worked OT to compensate for the reduced wages but those earnings were not factored into the pension. My best years wear nearly ten years prior to the date the pension was frozen. What the extra years did, thanks to the successful lobbying efforts of Jim Little was allow the company to save millions of dollars in the short term by underfunding the pension, building up the Liability that they would later use as an excuse to go BK and take even more from us.


Guess you don't know the meaning or "or" either. If AA doubled in size they can increase the percentage of outsourcing. You know as well as I that the burden of proof as to the intent is on the Union. Even prior to BK AA only ever had language that sought to protect workers presently employed and never had language that said that they had to increase headcount or acquire facilities along with expansion.

So thats three pretty basic words you don't know the meaning of;
"are"
"parts"
and "or".

 
AA funded higher than the max many times. You'd know that if your read the notices that were sent to us.
 
AA cannot double their outsourcing percentage. It's based on 35% of what it takes to pay to run a normal operation.
 
I like how you waited for me to define parts first. That's classic Bob, let some else talk and throw rocks. Fact is capitalized parts are not included in the calculation.

 

[Rogallo]

Overspeed, please refresh my memory. What exactly is your job description at AA?
 
Just asking!