The fact is we dont really know if thats the case. We have never been given any solid numbers. Our union has never investigated it. The Economist they hired is more sympathetic to the company, when I insisted that we refer to this as a five year deal he said "Well its really only a two and a half year deal when you factor in the early opener". We cant really compare what MROs pay their workers to what AA pays their OH mechanics because if AA sent their work there they would be paying what the MRO charges per hour not what they pay their workers per hour. This means that there's a lot of room for our guys to be paid considerably more than what MROs pay their guys, add in the cost and quality control advantages of keeping it in house and our guys are worth even more. Granted the line at which its no longer cost effective is probably below the $46.99 that UPS offered its mechanics but its certainly higher than what this TA has to offer. Unfortunately they have a lot of people believing that they have to compete with the wages MROs pay instead of the rate MROs charge. The biggest mistake our OH workers could make is to start to consider themselves MRO workers instead of Airline workers. Chasing 3P work for anything more than fill in work can only lead to lower living standards. Yes for now OH will shrink, but that doesnt mean layoffs, attrition will likely outpace the need to cut heads and reduced capacity. When the economy recovers the airlines will likely face a shortage. Mergers may be the only way to aquire enough workers.
Interesting that you acknowledge in this paragraph that $47/hr for overhaul mechanics is probably more than the cost-effective price. What's the difference between AA and all other airlines? The 10,000+ people working at Tulsa and Fort Worth performing heavy airframe overhaul. And which airline is lagging almost all others in AMT hourly pay? AA. It's obvious that the company is resisting efforts to give those guys big raises; after all, they are already paid very handsomely considering that they live in some of the cheapest parts of the country. Don't get me wrong, they aren't overpaid and they did suffer huge paycuts in 2003. But they didn't suffer the fate of IND and OAK like thousands of United employees did.
But the line maintenance AMTs (whose work can be performed only in the higher-cost cities where many of the airplanes spend each day (and night) are worthy of substantially more money per hour than the $33.28 the company says is the max pay rate for AA. So how do you get from $33 to $47? How about unchaining yourselves from Tulsa and Fort Worth?
As I posted a few days ago, one way would be to offer all AA AMTs a pay raise of a dollar or two per hour and increase the line premium to $10 or more per hour. Simple enough, except that the thousands of employees at TUL and AFW would probably defeat it. Unable to recognize that what they do, while valuable, can be performed anywhere on the globe while the line maintenance must be performed in higher cost cities in the US, not in China or El Salvador.