Early Out Package?

[daisyblue]

Anybody hear anything about early out packages?
Heard something on the news but missed most of the story

 

[Imagolfer]

Anybody hear anything about early out packages?
Heard something on the news but missed most of the story

[post="205608"][/post]​

Can't quote others, but Management offerd 18 weeks plus accrued VC if you have 13+ years of service. Also 18 months of travel

 

[Drippy Quill]

Anybody hear anything about early out packages?
Heard something on the news but missed most of the story

[post="205608"][/post]​

Try this link....... http://www.forbes.com/feeds/ap/2004/12/02/ap1689180.html

 

[aafsc]

Can't quote others, but Management offerd 18 weeks plus accrued VC if you have 13+ years of service. Also 18 months of travel

[post="205636"][/post]​

I don't understand why they don't offer 5 and 5 (5 years to your age and 5 years to your seniority) like they did about 2 contracts ago. If they did this, the senior people (those with the highest wages, vacations, and who get sick more) would leave and they could keep the junior people (bottom of the pay scale, little vacation, and has less accrued sick time). If they did this, they would not have to pay severence, moving expenses, the moving allowance, etc. This would save them a lot of cash. It would also help morale by people not having to move. They would have to take an accounting charge for this 5 and 5, but I would think it would be a non-cash charge. The only thing I think would happen is the pension plans would become more underfunded (but this can be made up if the assets in the plans increase plus AA could contribute cash in the future if/when things get better). But AA would not have to contribute cash now. If they offered 5 and 5, there would be a stampede for the doors. Now I'm sure someone will say that some of the senior AA people that take the 5 and 5 will be replaced by recalled former TWA people who are on layoff but are at top pay. This is true to a degree but there are also a lot of origional AA people on layoff at the bottom of the scale. Plus some, if not many, of the former TWA people may take the 5 and 5 also.

 

[Drippy Quill]

I would tend to agree with you if we lived in a perfect world....but I know for a fact that there are those that would turn down 10 and 10, and in the same motion give the guys, hitting the street ,their condolences.

I know of a couple that could have taken SIS here, turned it down, yet they are retiring in Feb '05....go figure!

 

[WingNaPrayer]

American Air Offers Some Employees Incentives To Leave



DALLAS (AP)--American Airlines, which has indicated it will make layoffs to help speed a return to profitability, is offering incentives to some employees if they leave the company.

Many employees with at least five years seniority will be able to leave in exchange for longer travel benefits or higher severance payments.

In an October memo to employees, American said it planned to lay off up to 650 maintenance workers and 450 pilots in the coming months. Gerard Arpey, chairman and chief executive of American and parent AMR Corp. (AMR), has indicated that there could be further layoffs.

AMR has lost more than $6 billion since the beginning of 2001. The company has been squeezed by higher fuel prices - it would be profitable this year if oil prices remained at year-ago levels - and by tougher competition that has prevented American from raising fares as much as it hoped.

Under the incentive offer, employees who leave the company could get travel benefits for up to 10 years but no severance; they could get some severance and up to two years of extra travel benefits; or take both severance and travel perquisites and retire after the benefits end.

The company didn't disclose how many employees would be offered the incentives to quit. Pilots will not be eligible for the offer because they have a similar provision in their labor contract, said Gregg Overman, a spokesman for the Allied Pilots Association union.

Under a deal with the airline in December 2003, pilots who expect to be laid off can leave for another job without losing their seniority at American. That way, Overman said, if American rehired pilots later, they can return without falling behind more junior pilots.

Officials of the Transport Workers Union, which represents mechanics and other ground workers at American, and the flight attendants union didn't immediately return calls for comment.

 

[NewHampshire Black Bears]

Every fisherman/women(worth their tackle box) KNOWS that "the better/bigger the BAIT, the BIGGER the fish"

Right now, AA is on schedule to catch a few MINNOWS !!!!!!!!!!!

NH/BB's

 

[Senor Pelon]

I don't understand why they don't offer 5 and 5 (5 years to your age and 5 years to your seniority) like they did about 2 contracts ago. If they did this, the senior people (those with the highest wages, vacations, and who get sick more) would leave and they could keep the junior people (bottom of the pay scale, little vacation, and has less accrued sick time). If they did this, they would not have to pay severence, moving expenses, the moving allowance, etc. This would save them a lot of cash. It would also help morale by people not having to move. They would have to take an accounting charge for this 5 and 5, but I would think it would be a non-cash charge. The only thing I think would happen is the pension plans would become more underfunded (but this can be made up if the assets in the plans increase plus AA could contribute cash in the future if/when things get better). But AA would not have to contribute cash now. If they offered 5 and 5, there would be a stampede for the doors. Now I'm sure someone will say that some of the senior AA people that take the 5 and 5 will be replaced by recalled former TWA people who are on layoff but are at top pay. This is true to a degree but there are also a lot of origional AA people on layoff at the bottom of the scale. Plus some, if not many, of the former TWA people may take the 5 and 5 also.

[post="205748"][/post]​

If they came with this plan, I would leave faster than a bullet!!!

 

[DFWCC]

Hell I'd leave with a 3 & 3 nad I don't need the 3 yrs.

 

[AAmech]

I don't understand why they don't offer 5 and 5 (5 years to your age and 5 years to your seniority) like they did about 2 contracts ago. If they did this, the senior people (those with the highest wages, vacations, and who get sick more) would leave and they could keep the junior people (bottom of the pay scale, little vacation, and has less accrued sick time). If they did this, they would not have to pay severence, moving expenses, the moving allowance, etc. This would save them a lot of cash. It would also help morale by people not having to move. They would have to take an accounting charge for this 5 and 5, but I would think it would be a non-cash charge. The only thing I think would happen is the pension plans would become more underfunded (but this can be made up if the assets in the plans increase plus AA could contribute cash in the future if/when things get better). But AA would not have to contribute cash now. If they offered 5 and 5, there would be a stampede for the doors. Now I'm sure someone will say that some of the senior AA people that take the 5 and 5 will be replaced by recalled former TWA people who are on layoff but are at top pay. This is true to a degree but there are also a lot of origional AA people on layoff at the bottom of the scale. Plus some, if not many, of the former TWA people may take the 5 and 5 also.

[post="205748"][/post]​

The reason they don't do it is because it IS a BIG cash charge. The Pensions are alreadys underfunded by 24% and offering incentives to people to retire takes people off your payroll and puts them right into the underfunded pension. This aggrevates the underfunding because now these people drawing from the pension plan for 5 years longer than planned. This means AA would be required to inject scarce cash into its pension. Something it just can't do right now.

 

[Wretched Wrench]

This aggrevates the underfunding because now these people drawing from the pension plan for 5 years longer than planned. This means AA would be required to inject scarce cash into its pension. Something it just can't do right now.

[post="226710"][/post]​

Not exactly. A 5 and 5 offer would not cause AA to pay for five years longer, but would mean some would indeed leave earlier. But AA would be paying more per month for anyone taking a 5 and 5.

And AA is more than 24% underfunded.

 

[goingboeing]

AA did not throw out large enough incentives to really get many results.Typical AA management of trying to get something for nothing.If they offered some real incentives they could lose a 1000 people pretty quick off the payroll.

 

[tkelly911]

Agents and management are being offered up to ten years of D2 travel (extended leave), while the TWU is only being offered eighteen months of D2P(SIS). As a result, a whole lot of senior part time FSC's here at SJC, all of whom have other careers, won't be going anywhere and the low-paid newer hires will get the boot.