TWU Reaches TA with company!

[strikeforce]

I would advise fleet service workers to vote against the concessionary deal. The pre-funding alone is a deal breaker...the company is CHEATING you out of guaranteed medical coverage YOU have been paying for years. It's an affordable medi-gap coverage that is there for YOU. The trust account is yours, not AA's. The TWU leadership has failed to recognize the importance of this medical coverage. Some may argue that it's only 300K of coverage if you retire before 65.....but it is medical coverage you paid for. Once you're eligible for medicare, coverage is reduced to 50K....but again it's medi-gap coverage YOU paid for. With AA's proposal, if you retire at 60 you will pay approx. $58-92 per month per person until medicare kicks in, and you will continue to pay for medi-gap coverage at the same rates, if not more with inflated insurance costs.
These additional costs will drain your pension benefits. It's common sense people....think before voting yes just because of the wage increases.....you will pay through the nose for medical coverage when you already are guaranteed it through the pre-funding. Your TWU folks sold your guaranteed medical coverage down the river....because they don't understand the severity of medical insurance coverage when you retire.

What the TWU should have done is agree to terminate the plan.....AA pays back your contributions plus earned interest and then use the matching company contributions to pay the monthly rate for the value plan until those funds are exhausted. For example, let's say you have $9000 plus interest....AA pays that portion back to you and then provides you with AA's portion so you can pay for the monthly rate for coverage....at $58-92 per month per person...5 years of coverage will be paid for with the company's contributions, if married. 10 years if your single. That's a fair deal. If you apply your contributions towards the value plan.....you're talking about 10 years worth of coverage, if married, and 20 years for single. And, AA stops contributing to the plan which is what they want out of the deal anyway.

Either way you look at it...AA's proposal is a BAD deal.......jobs gone....medical coverage gone....

 

[TWU informer]

I am still waiting for the Mechanic and Related deal to get better from the NO VOTE.
not Happening

 

[Mr Red]

Right now you have $18'000 put away in a trust and as long as you continue to prefund you will not have to pay for medical coverage when you retire. If he company decides to terminate prefunding you retain the whole fund. What the company wants us to agree to is give them back the match, that's our money, part of our compensation that we have earned since we started Prefunding. So for around $6000 today, of your own money, you would lose around $12000 plus if you dont retire till 65 and live to 80 it will likely cost you an additional $90,000. So in other words you would lose around $100,000.

Pretty steep price to pay for an increase that doesn't even come close to inflation (9% / 7. 5 years = 1.2 %). The lump sum, 6% of base comes out to around $2500, a fraction of the Prefunding match. This isn't a cost neutral contract for the company, between the matches, the headcount cuts, the rewritten ot rules and the liabilities they get to write off they will have lower labor costs than they do now.

By the way ,Obama care has a provision for early retirement medical reimbursment.AA and the state of Texas already participate!

 

[wrencher]

By the way ,Obama care has a provision for early retirement medical reimbursment.AA and the state of Texas already participate!

JUST VOTE NO ON THE CONTRACT MAN this company has screwed everyone so much and you think they are going to do the right thing now PLLLLLLLLLLLLLLLLLEAAAAAAAAAAAAAAAAAAAAAAAASEEEEEEEEEEEE

 

[700UW]

Yes, but under the old law. There's more of a "show cause" required for abrogation now than there was prior to 2005. It's only my opinion, but I don't think double dipping is going to be as easy as it was before.

Not true, Section 1113 was not changed in the last bankruptcy law. The standards and steps are still the same.

 

[B737NG]

Just got my balance from JP Morgan/Chase ,my contribution balance is 9000.00 The company match is supposedly in a separate account controlled by AA.
Seems like this info should be readily availiable through Jetnet,Bob maybe you can find out why it isn't.

How did you find out what your balance was? I would like to find out what my prefunding account holds.
Thanks,

 

[Mr Red]

How did you find out what your balance was? I would like to find out what my prefunding account holds.
Thanks,

Call JP Morgan get rep on line and tell them u want your medical pre fund balance,
they will have to reserch and send an e-mail the next day to call them back,their balance
is your contribution.the company match is in another account administered by AMR

 

[comatose]

It's amazing that your employer after continuous concessions still wants to screw you with a TWU blessing.

 

[Hopeful]

It's amazing that your employer after continuous concessions still wants to screw you with a TWU blessing.

Why not? That's what a company union is there for... To give the company whatever they want to perserve union dues.

 

[Buck]

It's amazing that your employer after continuous concessions still wants to screw you with a TWU blessing.

Not so amazing, Hopeful hit it right on the nose. That is what the TWU is about, not making those who are currently members more comfortable but at the expense of those members, aquiring dues payers as their pantner the company allows them to have.