Ken, Thought I might help you out 😉 .......See below......
Ken:
I received your list of questions regarding the TWU’s recent mailing. I understand that you also posted the email on numerous Internet bulletin boards.
At the outset of this letter, I want you to know that this will be the last time I respond to you during this AMFA raid. I answered several of your emails in recent months, in addition to speaking to you on the phone. Since we keep rehashing the same old issues, I will not respond further. Enough arguing. In the next few weeks it will be time for AMFA to show its cards. If and when AMFA has collected enough cards, I am confident the TWU will win an election.
QUESTIONS REGARDING TWU:
QUESTION #1: Did the TWU keep three maintenance bases open? Shouldn’t the credit go to the taxpayers and the local city governments that put together financial incentive packages, giving millions of dollars to American Airlines in Tulsa and at MCI.
ANSWER #1: Ken, when we negotiated the restructuring agreement that kept American Airlines out of bankruptcy, we let the company know that we were serious about saving jobs. Arpey knows that we have the power to make this company sink or swim. The TWU’s preference is for the company to swim with all three maintenance bases open and our members’ jobs protected.
Keeping all three bases open has been one of my top priorities. It is not only important to our members on the overhaul bases; it is also crucial for thousands of members at line stations who would be bumped if the bases shut down. By avoiding bankruptcy, we stopped American from implementing plans to downsize Tulsa and shut down MCI and AFW – and eliminate 12,000 jobs.
Even after we eliminated the bankruptcy threat, American continued to threaten to close one of the three bases. We kept the pressure on management, and with the help of the AFL-CIO, we bombarded Arpey with thousands of emails demanding that all three bases be kept open.
As you have noted, we also got city and state officials to help us keep the bases open in Tulsa and Kansas City. This didn’t just happen on its own. With the help of the AFL-CIO, we reached out to the public officials and worked with them to ensure that the bases remained open.
With regard to these efforts, I wish you had read our first mailing that explained the benefits of AFL-CIO affiliation and political involvement. Unlike AMFA, we are fully engaged in the political process and wield considerable political influence. It is through this involvement that we successfully convinced state and local leaders to support our members’ interests. We fought to get the tax initiative passed in Tulsa and the bond initiative passed in Kansas City. If you don’t believe that the TWU played a critical role in getting these initiatives passed, start reading the newspapers.
QUESTION #2: Did the TWU really save 12,000 jobs across the system including bases, line stations and Title II. How many AMT’ jobs have been saved and how many have been laid off? Lay offs are not so much the fault of any particular union. What should be faulted is a union’s inability or failure to fight against layoffs. TEAMTWU has blamed AMFA for losing the Force Majeure I arbitration. The point is that AMFA fought for the membership. Where’s the TWU’s Force Majeure case?
ANSWER #2: When we averted bankruptcy, we saved 12,000 jobs. That includes more than 2,000 Title II members (I note you express no concern for Title II), as well as cleaners, and other support personnel that are part of the mechanic and related craft or class. As for AMTs, the company had every intention of going to bankruptcy court and laying off all AMTs junior to 1989. Thus far in the UAL and USAIR bankruptcies the Companies have gotten everything they have asked for, and I have no doubt that AMTs would have been decimated if we had allowed American to go into bankruptcy.
I disagree with your suggestion that layoffs are not the fault of a union. To the contrary, the real question is whether a union is able to develop a successful strategy to save jobs. In my answer to Question #1, I outlined how the TWU successfully implemented a strategy to minimize layoffs by avoiding bankruptcy, pressuring the company, and working with state and local government to provide additional funds to protect jobs.
I guess you just excuse the fact that AMFA lost almost 50% of its members’ jobs since becoming the bargaining representative at Northwest. Time and time again, I hear AMFA try to avoid responsibility for these job losses and blame the IAM. But the facts are clear. Under an AMFA negotiated agreement at Northwest, almost 50% of AMFA’s jobs are gone, and AMFA is unlikely to ever get those jobs back.
In fact, Northwest was the only major airline that has not recalled any mechanics that were laid off because of September 11, 2001. As you know, AMFA submitted a Force Majeure case to an arbitrator and lost. With the loss of Force Majeure I, those jobs are gone forever.
By the way, the TWU is pursuing some force majeure issues that will be presented next month. But unlike AMFA, since most of our members who were laid off due to the September 11 attack have been recalled, our issues are focused on getting back pay for the period when our members were laid off.
QUESTION #3: American Airlines reduced outsourcing in 2003 while other major carriers increased outsourcing. What about the outsourcing of Cabin Service? What about the outsourcing of AMT work (air starts, push-backs and de-icing), to the Ramp? If my work is taken from me it does not matter who does it, I LOST work. Why did the TWU allow a Maintenance Special Items Work Card, SIC 1900, to be outsourced to the vendor? This work card had an AMT replace the entertainment tape inside the tape reproducer on AA aircraft. Now we do not. I believe Rockwell Collins does this work. This is outsourcing. Why do you not address this in the flyer?
ANSWER #3: Ken, you don’t seem to question the fact that American reduced outsourcing in 2003 while other major carriers including, Northwest and United, increased outsourcing. The TWU’s success with reducing outsourcing is demonstrated by the fact that we have maintained all of American’s heavy maintenance capacity, kept all of our heavy checks in-house, and as we speak, we are aggressively moving to keep all overseas light checks done in-house at the line stations. In addition to these significant accomplishments, our success with keeping work in-house is clearly documented in the Department of Transportation’s 2003 outsourcing data.
As for Overnight Cabin Service, Title III does the vast majority of this work. It is unfortunate that when faced with bankruptcy, the Title III group agreed to outsource this work. However, I find it ironic that you focus on this group since AMFA has consistently attempted to exclude this group from the mechanic and related classification.
In reference to the SIC 1900 card, the TWU at the Local or International level did not agree to this work being outsourced. In fact, my International staff assigned to AA has been working with some TWU Local officers to bring this work back in-house.
Despite the TWU’s success with restricting outsourcing, you are dissatisfied because YOU LOST WORK. Ken, your comments typify the AMFA mentality that the union is about “me†instead of being about “us.†Yes, you can attack the TWU for allowing (in 1983) air starts, push-backs and de-icing to be shifted from TWU represented AMTs to TWU represented ramp workers. But in my book, that’s a hell of a lot better than seeing thousands of jobs shipped to non-union and foreign contractors. Again, all of American’s heavy checks are being done in-house by TWU mechanic and related workers. In comparison, the last time I checked at Northwest, 8 out of 12 heavy checks were being outsourced to non-union domestic contractors and contractors in Asia.
QUESTION #4: By avoiding bankruptcy, American’s financial position is stabilized and the company is making a small profit. Well, a big difference of opinion here Jim. Are we making a profit or not? Who are the TWU leaders listening to? Hopefully not the same people who looked over the company's books prior to the concession package. You know, the people who seemed to have overlooked that tiny SERP fiasco.
ANSWER #4: In the third quarter 2003 reporting period that ended on September 30, 2003, American Airlines reported a $1 million profit. This compares to a $924 million loss during the same period in 2002. If you think these numbers are bad for our members, then we have a much different vision with regard to what is in our members’ interests.
Yes, Don Carty did attempt to secretly enrich top managers with special bonuses and supplemental pensions. No expert for any union found this out because it was not filed with the SEC until April 16, 2003. You seem to forget that we caught Carty ripping off the company and the TWU and AFL-CIO played a major role in his resignation. In addition to stripping Carty and senior management of their bonuses, we used this incident to leverage profit sharing for our members and an early contract re-opener that is now just two years away. Ken, by the way, when the TWU was challenging management at AMR’s last annual meeting, where was AMFA?
QUESTIONS REGARDING AMFA:
QUESTION #1: AMFA lost 20,000 jobs – including more than 6,000 mechanic and related craft and class at United. Again, why does this flyer not continue to inform the reader that these jobs were a direct result of industrial unions, ( IAM, IBT), lousy/poor contract language? It was industrial union negotiated contract language that AMFA inherited at the airlines they represent. Go ahead and point out NWA's laying off AMTs at their Class II Maintenance Stations. AMFA fought against this and had NWA restaff! Just like AMFA's FM cases. They fought for the membership. Just like in life Jim, when you fight you win some, and you lose some. But if you don't fight you lose them all.
ANSWER #1: Ken, when you talk about Northwest, you play an interesting game. AMFA is quick to take credit for the wage rates that it negotiated in 2001, but all of the jobs lost between 2001 and 2004 are the IAM’s fault. These lost jobs and the closure of the Atlanta maintenance base occurred under an AMFA negotiated contract, not an IAM contract. Your argument simply doesn’t stand up to scrutiny.
At United, two bases were shut down and 6,000 maintenance and related jobs were lost while the IAM was the bargaining agent. But those are not all of the facts. As you are well aware, the base closures and jobs lost at United occurred when the company went into bankruptcy. What you prefer to ignore is that while AMFA was not the bargaining representative at United, AMFA activists were a significant force on United’s property urging IAM members to reject a restructuring agreement that would have kept the company out of bankruptcy. The AMFA organizers told the machinists that they would be better off taking their chances in bankruptcy rather than accepting an IAM negotiated restructuring agreement that included a 7% pay cut.
Unfortunately, the machinists made the decision to take the advice of the AMFA organizers. This caused the company to go into bankruptcy and created the circumstances where 6,000 jobs were lost and two maintenance bases were shutdown.
Two years later, AMFA organizers had the very same advice for TWU members who faced bankruptcy at American Airlines. AMFA supporters urged our members to reject the restructuring agreement, but unlike United, our members made the right decision. If our members had taken AMFA’s advice, I have no doubt that we would have lost two bases and thousands of mechanic and related jobs throughout the AA system.
QUESTION #2: Two Maintenance Overhaul bases closed in Oakland and Indianapolis. Why don't you write in this flyer that it was under the IAM that these bases were closed. That AMFA was NOT on the property at UAL when the language was written to allow these bases to be close. Why don't you explain to the readers that the AMTs at UAL at these bases were placed on Authorized No Pay, ANP, which effectively removed these AMTs from payroll. They were not fired they just did not come to work or get a check. Kinda like creative TWU terminology for laid off. Well, while on this ANP these AMTs were NOT permitted to vote on concession language that allowed the OUTSOURCING of their very jobs? Why is this information not included in the TWU flyer?
ANSWER #2: Again, the IAM may have been the bargaining representative when the Oakland and Indianapolis bases were closed, but AMFA was in the middle of its organizing drive and was urging mechanic and related workers to make poor, short-sighted decisions. There is no doubt that the fate of the Oakland and Indianapolis bases were sealed when mechanic and related workers followed the no concessions under any circumstance “better off in bankruptcy†advice of AMFA’s organizers and took the company into bankruptcy. As for the ANP issue, the IAM, in fact, successfully sued UAL on this matter, but the bottom line was the same – in bankruptcy the bases were closed and the jobs and work was lost forever.
QUESTION #3: Unlimited outsourcing of heavy maintenance -- including a new $2 billion contract to Pratt & Whitney. This was language negotiated by the IAM and not AMFA. AMFA simply inherited bad contract language.
ANSWER #3: Nice try Ken, but your facts are wrong. The $2 billion contract that United signed with Pratt & Whitney was signed in January 2004. That’s six months after AMFA became the bargaining representative at United. Moreover, as stated above, it was the AMFA organizers who urged the machinists to reject a restructuring agreement and go into bankruptcy. AMFA made the bankruptcy bed. Unfortunately for United’s workers, now they are lying in that bed.
By the way, you claim that this outsourcing is because AMFA inherited the IAM’s bad contract language. For argument’s sake, at United, let’s say that AMFA might have negotiated the 38% outsourcing limits that it negotiated at Northwest. Would AMFA’s “great†contract language have stopped any outsourcing at United. Not a chance. AMFA’s 38% outsourcing limit is such a big hole, United could drive more than 1/3 of its entire fleet through it.
QUESTION #4: United’s pension is under-funded – currently asking Congress for a bailout. Why do you once again try to depict this as a fault of AMFA's? It is because of bad management that pensions are under funded.
ANSWER #4: United’s financial problems were not just caused by bad management. I think is fair to acknowledge that our industry was deeply shaken by the events of September 11, 2001. The key question is whether pensions at United would be any safer if the company had not gone into bankruptcy. Any bankruptcy lawyer in the country would agree with me in stating that workers’ pensions would be safer if the company was out of bankruptcy. That’s why I believe AMFA played such a destructive role when its organizers urged machinists to reject a restructuring agreement that would have kept the airline out of bankruptcy.
Speaking of pensions, I should note that the TWU pensions at American Airlines are the best pensions in the industry. Moreover, our pension fund is significantly better funded than Northwest, United and any of the other major legacy carriers.
QUESTION #5: United is imposing new medical costs imposed on retirees. Are you trying to say that AMFA is at fault for UAL trying to screw retirees? UAL is trying to raise these costs to retirees not AMFA. As a matter of fact AMFA is fighting for these retirees. That is exactly what I want from a union. I want them to fight for me while I am employed and while I am retired.
ANSWER #5: While it is United that is demanding that retirees pay more than $700 per month for healthcare, it was AMFA that told the mechanic and related workers to reject a restructuring agreement that would have kept retiree medical intact and take their chances in bankruptcy. The only reason why United is able to demand these concessions from retirees is that the company is in bankruptcy. That’s why the mechanic and related workers at United are so vulnerable. As for AMFA fighting to protect retirees, it is the AFL-CIO unions who have taken the lead. AMFA has done nothing on its own.
Ken, over and over again, your questions focus on bad things that resulted from United going into bankruptcy. Why don’t you finally admit that we made the right decision to keep American out of bankruptcy?
QUESTION #6: United wasted $71 million in the bankruptcy process?
ANSWER #6: Another downside to bankruptcy is that the lawyers and the consultants are the only winners. If bankruptcy had been avoided at United, perhaps that $71 million would have been better used for retiree healthcare.
You ask why we do not write to the members that 3000 AMT’s did not receive pins. That is just inaccurate, and it was further stipulated in the July 2. 2003 (Southern District of New York) court decision by Judge Preska. In fact, after review it was determined that 467 Line C/C did not receive pin numbers, and after the clerical problem was solved eventually 224 did vote. The court also found that error was “clerical and administrative rather that some intentional action on the part of the Unionâ€
Ken, these are the answers to all of your numbered questions. While I realize you ranted off some additional questions at the end of your email, I feel that I have invested more than enough of my time in this exercise.
As I said at the beginning of this response, this is my final note to you for the remainder of this attempted raid. Once AMFA is defeated, I hope we can have more constructive discussions on how we can work together to make the TWU a stronger union.
Sincerely and fraternally,
James C. Little,
Air Transport Director
International Administrative Vice President
