Medical Premiums up? Yes. Thanks to Don and the International in Negotiations the company presented how benefits at AA compared, not to how all other airlines, but other similar sized companies in other industries, you know where people work regular 9 to 5 jobs in climate controlled environments where the biggest danger is a paper cut or carpel tunnel syndrome. I objected to the change in tactics since every other comparison all through the talks was with a limited number of other carriers we needed to stay with that on Medical as well, because in our industry medical tends to be better. I threw out there that they didn't want to compare shift premiums between AA and other industries where they run anywhere from 10% to 50% vs the point-zero-two-eight percent(0.028%) to one=point four eight percent (1.48%) that AA pays for working shifts that result in all sorts of health maladies such as Cancer, high blood pressure, heart disease etc. Yes Premiums are going up, we have the worst medical in the industry.
Outsourcing? Well thats what they voted for. "Lets vote for outsourcing to save our jobs" is what they said in Tulsa. I don't get it.
That said I don't think we will see a big change as far as outsourcing OH, there really aren't a lot of options out there for NB and they admitted that in negotiations. The company has all the outsourcing they want, thanks to Don and those who voted YEs, and the lowest compensation on top of that. Our headcount already below 8000 total Title I so probably around 6000 A&Ps (3500 of which are on the line). (Our A&P to aircraft ratio is much closer to other carriers than most think). AA can probably do it cheaper in house with a seasoned workforce that is very familiar with the equipment, but as that equipment goes away so will the jobs. Tulsa is down around 170 mechanics YOY without any additional layoffs. Thats around double the decline that was seen on the line and more than 591 and 567 combined. The decline on the line is due to the inability to attract talent because they have been backfilling, most of the line has blown their OT budgets. If they have a layoff in Tulsa its more than likely an attempt to drive younger A&P s out to the line where they are needed, New York needs 40 mechanics. I suspect that the younger mechanics in Tulsa, if there are any, would likely go to Spirit before they go to New York, $20/hr in Tulsa will keep you in a home, $35/hr will get you a basement apartment with four other guys in NY. So management has put themselves in a tough spot. The need to add headcount in MIA just made things worse as far as headcount in NY. They may find themselves running shorthanded elsewhere in the system just to prevent de-staffing the NE as mechanics transfer to lower cost areas. They really need the synergies of a single operating system to make up for the declining headcount, US' workforce is even older than ours, even with a crappy pension you can only work so long, Al Blackman is an anomaly, most of us won't even live to 87, let alone work at that age. Preventing the synergies of a combined workforce is pretty much the only leverage we have in negotiations for a joint contract, UALs joint agreement is still dragging on for three years, UAL still has a cushion of furloughs, we need to make sure we get full value for it. The IAM already gave away half of that leverage by agreeing that we could do their work, thats another reason why we want nothing to do with an alliance with them. Lose that and the company has zero reason to bring us up to the rest of the industry with a single contract.