Read Between the Lines April 19th

[410OhOne]

Case in point: Managers at AMR Corp.'s American are eligible to share what could be $80 million or more in cash this April because the company's stock outperformed five competitors last year, three of which were in bankruptcy court.

The payout, which will depend on AMR's stock price on April 19, has become a major test of collaborative labor relations at American, coming as executives were asking unions to agree to more cost-saving changes by boosting productivity. Those talks have slowed, and unions representing pilots, flight attendants and mechanics have jointly filed grievances, claiming the company agreed to align management compensation with workers when unions consented to $1.6 billion in annual pay cuts to avoid bankruptcy in 2003.

Now here this;

Now I am just a dumb mechanic, havent been to all those fancy business schools. I have a college education, though technical, but I still drive a pickup truck. Lets see now. We take massive cuts, suffer massive layoffs, listen to our company leaders cry poor mouth over gas prices, the war on terror (define terror please?), the reduction in traffic post 9/11. Hmmm numbers I have seen have stated otherwise on the traffic issue. Anyway.


I called the American Century folk over there in KC. See they are the ones managing the company issued stock options. Now lets look back over the past year or so at the performance of this stock. Miserable to outstanding in just a short amount of time. Hmmm What I asked the representative was this. I see I am vested on this many stock options. How long until I am fully vested on the rest? She said in April.........!!!!!

Now, again. I am sitting here in my Wranglers, actually have a dip of skoal in my mouth as we share this time together. BUT ISNT ABSOLUTELY AMAZING HOW ALL THESE BONUSES ON STOCK PERFORMANCE COME DUE ABOUT THE SAME TIME AS THE STOCK OPTION PROGRAM REACHING MATURITY??

Again I appreciate the "gift" as I was sent packing back a couple of years ago.

I would just like everyone to hear this ole rednecks advice.

Watch the stock price run up as we approach April 19th. Then watch the massive sell off and dip in the stock price. You will then see who actually owns the stock. It isnt "joe public", it is the institutions, it isnt you and I, it is the greed mongols, and those who will benefit most. You see, when I was handed just 498 stock options to go packing. I bet they were handed thousands of stock options.

Time will tell

 

[410OhOne]

February 3, 2006
Mr. James C. Little
Executive Vice President
Air Transport Director
Transport Workers Union of America, AFL-CIO
1791 Hurstview Dr.
Hurst, TX 76054
Dear Jim:
As you know, American Airlines and the airline industry have suffered record losses over the past several years. With the growing competition from low-cost carriers and the continued pressure of astronomical fuel prices – made even worse by the rapidly escalating price of oil – we must continually review every aspect of our operation to ensure we remain competitive. We are working hard to help American return to profitability and ensure our long-term competitiveness.
In today’s competitive landscape, we must continue to find ways to lower our operating cost. In reviewing our Maintenance Operations at Reno/Tahoe Airport (RNO) Nevada, we have made a very difficult decision. The decision has been made to close our AA Maintenance Operation on or around April 7, 2006 which will potentially impact one aircraft cleaner, three crew chiefs maintenance, 39 mechanics, one crew chief stock clerk, five stock clerks and one inspector.
The Federal Worker Adjustment and Retraining Notification Act, also known as WARN, and some similar state laws, require a company to give employees who may be affected by involuntary job reductions advance notice that they will experience an employment loss. In providing this notice to you today, we are giving you and your membership the most current and best notice that circumstances have allowed.
Of course, any involuntary reductions that affect your membership will be governed by the applicable terms of the AA/TWU collective bargaining agreement, including your seniority lists and any terms regarding “displacement rights.â€￾


This ought to really drive the stock price up as this "magical" April 19th stock performance date/option fully vested date arrives. Wallstreet loves cutbacks and layoffs.