Here Comes the 'term sheet"

[chris perry]

"yet, you & your peers keep them in power" ERIC ,We had more than enough cards to be rid of the TWU and the company supplied a list to the NMB that had well over 18,000 names on it including dead people. The company didn't want the TWU off the property.Besides all that we cannot remove Little or any international rep for that matter. I have signed every card put in front of me since 1991 to oust the TWU and the company has fought for the union in every battle.

 

[xUT]

Very well said Eric. It's a shame the unions are not ready to reset and go forward. I understand for a union leader it is next to impossible to "consent" to what the company needs and sell that to your members, and I believe the company understands that too. I think that is why APA Bates said something to the effect that "sometimes it is just easier to have a solution imposed only than to negotiate it". Believe me everyone is loosing on this deal. I am in disbelief though the unions have not taken on the most onerous elements and made the best of them, so that when the contract is abrogated, and it will be, you'll all come out with a better deal than you would have otherwise. They are wasting valuable time and your money by not getting down to business. Perhaps more is going on than what I hear, but it seams like they are just spinning there wheels paying lists of legal expenses and not getting anything done, meanwhile the clock is ticking loudly.

AA still has a deep talent pool and if given the chance to exit will come out of C11 a terrific competitor and will most likely grow back to nearly what it once was within a few short years. Believe me Delta, UAL, SWA and LCC DO NOT want to see that. The longer it takes to get on with it though, the less likely AA exits independently or at all.

WOW, where have I heard this before...
Did you use to work for UA?
B) xUT

 

[TWU informer]

March 22, 2012 Fellow pilots, During a hearing in bankruptcy court today and in a related Jetwire message from American Airlines Senior Vice President-Human Resources Jeff Brundage, management indicated that they plan to file 1113(c) motions with the court next week to reject current collective bargaining agreements with APA, APFA and TWU "if we are unable to reach consensual agreements." Once management files 1113(c) motions with the court, a hearing may take place within 14-21 days unless the parties agree to another schedule. Throughout the ongoing restructuring negotiations, APA has focused on making reasonable, industry-standard proposals, with the overriding goal of reaching a consensual agreement with management. With today's announcement by management, it has become abundantly clear that they are seeking to use the restructuring process to extract deep concessions from APA based on their 1113(c) term sheet. The result would be a contract that is below industry standard. Make no mistake--APA will use all available legal means to strongly resist any such outcome. Court Approves Extension of AMR's Exclusivity Period During today's hearing, the bankruptcy court also "conditionally" ruled in favor of management's request for a 180-day extension of the exclusivity period during which only AMR can propose a plan of reorganization. The original 120-day exclusivity period expires next week. The Unsecured Creditors' Committee can terminate the extended exclusivity period at any time if they decide to consider alternative business/reorganization plans. APA Motion for Summary Judgment
Also during today's hearing, the court heard arguments from APA and management concerning APA's motion for summary judgment in our lawsuit regarding rejection of collective bargaining agreements under Section 1113 of the U.S. Bankruptcy Code. The court also heard arguments concerning management's motion to dismiss our lawsuit. The judge responded by stating that he would not issue a ruling from the bench, but would instead issue a written ruling. He further stated that he would try to issue his ruling before management files 1113(c) motions.

As previously noted, the goal of our lawsuit is to preserve APA's ability to continue negotiating under the provisions of the Railway Labor Act prohibiting airline management from changing rates of pay, rules and working conditions until the National Mediation Board (NMB) finishes mediating toward an agreement. Also, the Railway Labor Act represents the more promising path to a consensual agreement by offering multiple options for dispute resolution.

Our offer to accept a proffer of binding interest arbitration from the NMB was likewise designed to preserve our ability to remain under the Railway Labor Act's provisions. In responding to our offer, management announced late last week that they would not accept a proffer of binding interest arbitration, indicating their preference for the 1113(c) path. Management's continued adherence to heavy-handed bargaining tactics will not produce effective solutions to American Airlines' serious problems.

Thank you for your continued involvement and support.

In unity,

Captain Dave Bates
APA President

 

[Duke787]

I'm not taking swipes at you guys. I'm taking swipes at your union leaders -- the blowhards who promised you "restitution & more" and retro. In the case of the TWU, they've failed you repeatedly, by some accounts since 1983.

And yet, you & your peers keep them in power.

This bankruptcy was perhaps unavoidable as far as cleaning up the balance sheet goes, but I'm still a believer that the term sheets could have been averted.

It's unfortunate that nobody, and that includes Arpey et al, was willing to make the tough call in 2003, and nobody had the guts to do anything about it until now.

Y'all have spent the last eight years in denial, worrying about minutae like executive compensation, instead of facing the fact that AA was now the fattest kid on the block.

Bankruptcy is your intervention. Your detox. If you don't get your collective crap together now, it's all over, guys.

This isn't 2003-2005. It's much worse. Jetblue was still growing at the time, and so was Southwest. They're done growing for a while... they may even wind up contracting a bit if fuel prices don't abate.

If you're OK walking away from your house & starting out at the bottom all over again somewhere else, great. You'd better buy something first, because it will be a long three to seven years renting while you wait for a foreclosure to clear from your credit.

Burning it to the ground might sound great, but it's really not going to affect the guys in senior management -- we've already seen Del Valle getting a job with G2 within days of his forced retirement, and Arpey had a job lined up before he resigned. The rest of them will find something or probably have enough of a cushion to float for a while.

The rest of HDQ doesn't have that luxury. There are thousands of analysts, programmers, etc. who never played a part of your grievances against management. Some I worked for, some I hired & promoted. There are dozens for whom we shared weddings, funerals, birthday parties for our kids...

They're effectively screwed, especially those who spent their whole adult life working at an airline, and really don't know a whole lot else. They'll eventually find something, but it will come nowhere close to a replacement income, even post 2003 pay-cuts.

So yes, I'm taking swipes.

It's because I'm pissed.

This isn't just happening to a bunch of faceless people -- this is happening to close friends.

You guys have had plenty of chances, and you've all been too bitter about trying to settle grievances from the past, instead of making sure y'all had jobs five years from know.

It took both sides working really hard against each other to fully and truly f**k up the airline Crandall built.

As I said, this is your one chance at detox & intervention.

And instead of trying to look out for what you need five years from now, you've got the union leaders engaging in delay tactics, and apparently still living in the same type of denial that some on this board exhibited up until the point the company actually called their bluff & filed Chapter 11.

Until the union leaders start acting like adults and facing the seriousness of the situation, I'll continue to be pissed.

Well said, my feelings exactly............

 

[ord78]

AA announces intent to file
Section 1113 motion

During a Bankruptcy Court hearing this afternoon, AMR’s attorneys announced
that the Company will file a Section 1113 motion next week unless substantial
progress is made in negotiations over the next few days. Considering that the
Company has been unwilling to reduce its demand of $230 million in annual Flight
Attendant concessions, we expect a Section 1113 motion covering the Flight
Attendants will be filed the week of March 26.

Section 1113 of the Bankruptcy Code allows the debtor (AMR) to petition the court
to scrap the existing collective bargaining agreements with its workforce. Once the
debtor files the Section 1113 motion with the court, a hearing will be scheduled to
begin on an expedited basis, as early as within 14 days of the filing date unless the
parties mutually agree to a later date or the judge determines an extension is
necessary based on the case’s particulars. Following the hearing, the bankruptcy
judge will make a determination within 30 days. Discussions between the Company
and the Unions may continue in an effort to reach an agreement prior to the judge’s
ruling. No schedule has yet been set by the Court for its consideration of the
anticipated motions.

The APFA is disappointed that the Company believes negotiations are stalled to the
point that this drastic action is necessary. Our negotiating team has been working
with the Company steadily since we received management’s term sheet on February 1.
Our team has offered significant efficiencies to the Company in the hope that a truly
equitable path forward could be found. For example, we have presented an aggressive
early-out proposal that our financial experts estimate could save the Company over
$100 million.

Most importantly, the Company’s demand of $230 million is totally divorced from the
market rates or contract costs of Flight Attendants at other airlines. Over the past decade,
the Company has constructed and implemented a business plan that has produced a
much-publicized $10 billion hole, and now management expects labor to fill it.

Time and time again we have proven to the Company that the cost of our CBA has
converged with those of our peers. In fact, after years of improving the Flight
Attendants terms of employment, the average of our competitors’ CBAs will soon be
far more expensive than American’s contract. Nonetheless, in an extraordinary effort
to reach a consensual agreement, APFA proposed substantial savings to specific areas
where American is not in line with its competitors. Management’s response was to
repeat its mantra: “If it’s not $230 million in annual savings, we’re not interested.”

In addition, APFA, APA and TWU have been working to resolve our disputes fairly and
equitably. Each union offered binding arbitration as the least disruptive path to an agreement,
but that idea was summarily dismissed by Jeff Brundage. Apparently, American has no
interest in achieving a constructive relationship with labor, based on trust and respect.
Instead, it is perpetuating its long-standing practice of preferring contention over
consensus. That is truly regrettable.

The Company appears intent on converting the Section 1113 process from one that
focuses exclusively on negotiations to one that seeks rejection of our entire CBA.
Now, as management tries to map its way out of bankruptcy, they are resorting
to the take it or leave it tactics which never result in real success but only resentment
and turmoil. Apparently, in preparing its business plan, American has left out one of
the elements most critical to a successful reorganization – treating its employees with
decency and respect. New aircraft, lie-flat seating, and elegant first class meals do not
an airline make. It takes 80,000 workers. Should American continue to forget that
fundamental principle it will be left with only the shell of a company.

In Unity,
Laura Glading

 

[Duke787]

I'm sure that AA is bluffing, just like they were bluffing about BK....... <_<


There is more money on the table.

You get the best deal at the 11th hour.

 

[Buck]

One thing for sure, is that many employees here at TUL believe that with the C 1113 filing that the union contract is dissolved. The union needs to be clear when explaining what the filing means. Some comments have.even been "good no more dues"

 

[TWU informer]

One thing for sure, is that many employees here at TUL believe that with the C 1113 filing that the union contract is dissolved. The union needs to be clear when explaining what the filing means. Some comments have.even been "good no more dues"

Why educate the members? They are busy saving us from ourselves, we have no need to know.

 

[Duke787]

One thing for sure, is that many employees here at TUL believe that with the C 1113 filing that the union contract is dissolved. The union needs to be clear when explaining what the filing means. Some comments have.even been "good no more dues"

After the 2003 contract was passed, there was a TUL field trip to ORD, the TUL guys were sitting around waiting for the double time to kick in, they were promptly told no more x2 pay, how much does the TULE mechanics not know what is going on?

 

[odie01]

I'm sure that AA is bluffing, just like they were bluffing about BK....... <_<


There is more money on the table.

You get the best deal at the 11th hour.

Keep blamin' Bob and the NO voter's for turning down a TA that destroyed over fifty years of sacrifice from our predicessors. Even if we voted it in, does 14 thousand dollars get you out of your double-wide and change your lifestyle? We would still be in Bankruptsy because AA was going after the pilot SCOPE. Get over it

 

[bigjets]

Keep blamin' Bob and the NO voter's for turning down a TA that destroyed over fifty years of sacrifice from our predicessors. Even if we voted it in, does 14 thousand dollars get you out of your double-wide and change your lifestyle? We would still be in Bankruptsy because AA was going after the pilot SCOPE. Get over it

That is why AFW is closing and TULE is losing 2100 mechs, and 40% maintenance is being outsourced. <_<

The airline industry was different then from what it is now, when airlines started flying their aircraft overseas for OH, our world was destined to change.

 

[Bob Owens]

Yep. just like they folded up at UA, NW, DL, and US.

Oh, wait. Those employees continued to show up to work, and that was with low unemployment.


Seriously, it's been 7 weeks since the term sheets were released, which is around twice as long as you had in 2003, no?...

Just how long did you really expect the company to sit around waiting before they decided to moved on without the unions?

You seem to not realize that they did not even come down to where we were. What the company is looking to do is drive us lower than ever before. Remembers what Gordon Bethune said about mechanics in his book. You are not going to attract more premium passengers when the gadgets they pay for do not work and the plane never arrives or departs when it says its supposed to.

When UAL went through BK overall unemeployment may have been lower but the nuimber of unemployed from the airlines was at an all time high, now the industry is running on OT and mechanics are getting harder and harder to find.

 

[Buster CRC]

After the 2003 contract was passed, there was a TUL field trip to ORD, the TUL guys were sitting around waiting for the double time to kick in, they were promptly told no more x2 pay, how much does the TULE mechanics not know what is going on?

If it wasn't for this board and maybe a few updates on Facebook from the APFA most of the local 514 woundn't know anything now. My shop Steward was told by the local union brass they would rather us be mad than tell us something that might jeopardize their strategies.

 

[odie01]

That is why AFW is closing and TULE is losing 2100 mechs, and 40% maintenance is being outsourced. <_<

The airline industry was different then from what it is now, when airlines started flying their aircraft overseas for OH, our world was destined to change.

It's a message board, we all have our opinions.
I blame it on our Amway style of mis-management.

 

[TWU informer]

If it wasn't for this board and maybe a few updates on Facebook from the APFA most of the local 514 woundn't know anything now. My shop Steward was told by the local union brass they would rather us be mad than tell us something that might jeopardize their strategies.

Strategies?

ROLLING ON THE FLOOR LAUGHING AND CHOKING ON MY DINNER SPEWING MT DEW OUT OF MY NOSE!