JULY 2012 TO: ALL TWU MECHANIC & RELATED AND STORES AMERICAN AIRLINES MEMBERS You have the opportunity to consider the full text of the proposed tentative agreement between the TWU and American Airlines covering our mechanic & related and stores membership. If the agreement is approved, the Company will withdraw its motion to reject our collective bargaining agreement now pending in Bankruptcy Court. If the proposed agreement is rejected, Judge Lane will issue his decision on, or around, August 15, 2012. The Company offered the APA a contract that moderated its concession demands; the TWU work groups with ratified agreements were contractually entitled to the same treatment. After considerable discussion, the Company agreed to apply the same principles to all TWU represented work groups. Among other things, the tentative agreement you are now considering offers enhanced protection against outsourcing, better pay and better health care than the May LBO and is far better on all these matters than the “Ask” which the Company will be authorized to impose in the event our contract is rejected. The agreement also offers a wage adjustment based on industry standard after 36 months. This is not a wage “opener”, but rather a contractually required adjustment based on wages paid by competing major carriers. We would urge you to keep several facts in mind. First, this agreement was not the result of normal Section 6 negotiations under the Railway Labor Act. The negotiations occurred pursuant to Section 1113 of the Bankruptcy Code, which requires us to negotiate over those concessions necessary to permit the successful reorganization of the company in bankruptcy. Negotiations with bankrupt companies under this statute do not produce industry leading or industry standard contracts, nor will a Bankruptcy Court accept that the refusal of a bankrupt company to offer such an agreement is a reasonable basis for rejecting a consensual agreement. Second, while the TWU hired highly qualified professionals to handle our case before the Bankruptcy Court, no professional working on the case believes that the Court will not grant the Company’s motion to reject. There are numerous reasons for this, starting with the fact that such motions have been virtually uniformly granted by the courts over the last decade. It is also the case that the court only delayed its decision to give the various AA unions an opportunity to ratify consensual agreements. There would be no reason for this delay if the court were prepared to rule against the Company. Rejection of our contract in court is almost inevitable if this proposed agreement is not ratified. We recognize that there are those who are urging that you absorb the pain associated with this rejection and imposition of the Company’s “Ask” on the theory that, at some point down the road, the Company will be compelled to withdraw its concession demands and provide an industry leading agreement. The theory that there will be either expeditious negotiations or a quick release in the wake of the rejection of our contract by the Bankruptcy Court is, at best, pure speculation. What is not speculation is that, while this process is playing out over the course of years the membership will be deprived of pay and benefits, work which could be saved will be outsourced, and people will be unnecessarily furloughed or downgraded. The bottom line is that no work group has ever fared better after having its contract rejected in bankruptcy and those advocating such strategy will be unable to point to a single instance in which it worked. Airline bankruptcies typically produce mass outsourcing, job loss, and pension terminations. We will not hide the fact that this proposed agreement calls for more sacrifice from a Company that has demanded too much. However, the proposed contract protects the membership against the worst consequences typically inflicted on employees in bankruptcy. When voting, you should carefully consider whether you want to risk this protection to pursue a strategy that will inflict enormous pain without any realistic possibility of success.
Fraternally,
Garry Drummond Director
Air Transport Division
All,
Now that another T/A is out, many people will no doubt be asking the question: What’s the Local’s position yes or no? I will only speak for myself since we haven’t met as an Executive Board yet to fully discuss an “official” position. I for one will be voting to REJECT this so called proposal and I will explain why.
I know there will be members who disagree and they have that right, but I can’t in good conscience give up what took so long for past union members to gain. We have done nothing but concede to company demands since 2003, all the while, the top executives raked in the money from our sacrifice. We gave up things in my opinion we had no right to give up, we didn’t earn it. We had it because our brothers and sisters before us either with this union or another in the industry fought for it. We simply had the privilege of enjoying it, the ten holidays, double time, two weeks sick accrual just to name a few; all of which are gone today!
These are hard times we face in today’s economy and the fear of the unknown is a real issue, but there comes a time when you have to stick to what you believe. Now is one of those times. If we continue down the path we’re on, there will be no such thing as a career in aviation. People use to say to me “Wow you’ve got it made working for an airline.” Now I must say, most people are surprised that I haven’t left and gone into a new career. I haven’t given up hope just yet. I believe we can still stand together and regain what we lost and strive to achieve a career worthy enough for the next generation to participate. We may not get it all back this go around, but we surly can’t continue to regress. It may take having to have the contract abrogated through bankruptcy in order that we may continue to negotiate under the RLA, but to make great gains one must be willing to make great sacrifices.
Of all the concessions, our defined pension has to be one of the biggest issues. If we are going to freeze it and settle for a matching 401(k), then why are we not jumping up and down screaming for the same level of company match as the pilots are currently being offered in their T/A 14% versus our 5.5%. That is what we call a substantial difference! You throw in the fact that over a five year period a 777 Captain goes from $204.83 an hour to $235.19, a $30.36 raise not counting what they may get over and above with their 36 month wage adjustment. A topped out AMT today only makes $32.20 with license premium, that’s a raise worth almost as much as one year’s salary! If it’s worth that much to have that Captain’s experience sitting in the left seat, then how much is that AMT worth that makes sure it’s safe for that plane to depart? Now before you say it, I know there aren’t many topped out 777 Captains running around, but look at the rest of the pay scales. For example a S80 First Officer goes from $109.64 to $125.89, a $16.25 per hour pay increase. It’s a slap in the face that the person maintaining the aircraft is only worth a raise of about $3.43 (assuming 3% wage adjustment) over the same five year period. That means it will be 2017 before we get back to the same base pay we would have topped out under the 2001 agreement! Who’s laughing at us now?
Among other reasons to reject this T/A, another would be the fact that this is the same offer we voted down sans moving around the pieces of the proverbial pie. The company might have added money to the pay, made minute reductions to benefits contributions, but we paid for them by giving up other things. They completely removed job security, stating in negotiations that why do we want it, this union has shown they are willing to lift it whenever we (AA) need them to. This statement was made by Jim Ream with no response from the International, but then again what can you say when it’s a factual statement? They also changed the full pay for sick time use back to half pay for the first day. Are we to rejoice that at least we got one day back? I think not! I won’t even begin to go into the amount of out sourcing that’s going to be allowed and for Tulsa to think that it’s going to stop there is laughable. What do you think is going to happen once the 737 starts to go away and the 767 begins to be replaced with the 787? The folks in Tulsa better wake up and start smelling the coffee before it’s too late. Under this agreement the Facilities department will be almost non-existent, you’d have to be a fool to vote for your own job to be out sourced.
These are just a few of the reasons this T/A needs to be voted down. There’s so many more, but this email is long enough already. I know it’s a scary thing to ask, I know we all have families to feed, but if someone in this country and in this union doesn’t start fighting back, we will leave nothing but a legacy of failure behind for future generations to come. Those generations will be made up of our children, or children’s children. Please consider this when the time to vote comes. I for one will be voting NO.
In solidarity,
KP
Kenneth E. Powell
Section Vice President Aircraft Maintenance
Air Transport Local 567
Transport Workers Union of America AFL-CIO
Cell: (817)690-3207
Well, well, well! gary drummond who was NOT
elected into office by the membership and will
NOT live under the concessions he is telling us
to accept and live under puts out a letter saying
vote yes.
But Ken Powell who WAS elected by the membership
and WILL live under the concessions, if voted in,
expresses why we should vote no.
"enormous pain without any realistic possibility of success."?
Only if we stay with the twu.