Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
Sounds like the hosing is coming! I think you can see where the TWU is heading!
Director's Update
Directors Update 02-21-03
To Local Presidents and AAL Members...
Directors Update 2-21-03
Via Fax-Email
:
We intend to update the membership regularly as we work through
American's reorganization. Accordingly, we want to notify you that, late
on February 19, 2003, we were provided with AA's financial plan for
reorganization, that is, its business plan. Our financial consultants are
reviewing the plan to make sure the Company has provided a viable strategy
for competing in this industry in the post-September 11 environment and we
will provide the Presidents with their analysis. Obviously, without such
a plan, further discussions are pointless. However, in the event the
Company has met this threshold, we will convene the Joint and Mechanic and
Related Bargaining Committees and hear AA's proposals for contractual
relief. All such proposals are subject to membership ratification, and
the Joint Committee and the Mechanic and Related Committee will each
determine whether proposed modifications will be submitted for
ratification by work groups covered by the Joint Committee and by the
Mechanic and Related Committee.
Many members have asked why we are bothering to consider any
discussions with the Company on contractual relief. The reason is obvious
-- the Company has the right to file for bankruptcy and demand the same
relief before a Bankruptcy Court and, possibly, worse. AA has, in fact,
already begun very visible preparations for a bankruptcy filing and the
TWU is, of course, also preparing. Once a Bankruptcy Court takes
jurisdiction over a Company like American, all litigation and even
processing of grievances can be stayed. Virtually all operational
decisions must be approved by the Court. If the Company seeks relief from
our collective bargaining agreements, we can and will resist, but any
chance we have of protecting rates of pay, hours, and working conditions
will be undermined if it is established that we failed to deal in good
faith with the Company when it was attempting to reorganize and avoid
bankruptcy.
No matter what we do, the Company could file for bankruptcy if any
union or major creditor refuses to voluntarily modify its contract with
AA. In that event, the bankruptcy statute provides that, after it files a
bankruptcy petition, but before it files an application seeking rejection
of a collective bargaining agreement, the Company must make a proposal
to
the Union which provides for those necessary modifications in the
employees benefits and protections that are necessary to permit the
reorganization of the debtor and assures that all creditors, the debtor,
and all the affected parties are treated equitably. If the Union rejects
a proposal consistent with the above requirements without good cause and
the balance of the equities favors rejection of such agreement, the
Company's application will be granted and the concessions imposed. The
Company and the Union are required to negotiate in good faith over the
relief necessary to permit reorganization prior to any ruling on an
application to reject a collective bargaining agreement.
Anyone tracking events at United or USAir and the veterans of the
bankruptcies at TWA, Eastern, Pan Am, or Braniff can confirm that creditors in
general and unions in particular tend to fare poorly in bankruptcy
proceedings. Despite this, we will not yield to unfair or unreasonable
demands simply to avoid this process. But, we have an equal
responsibility to keep our members out of the hands of the Bankruptcy
Court if we can, particularly if a superior voluntary agreement is
available. It is, of course, far too early to know how this process will
play itself out and many factors -- such as a possible war -- are unknown.
All we can do is work hard and honestly, bring all of our resources to
bear, and keep you informed.
Sincerely and fraternally,
James C. Little,
Director Air Transport Division
International Administrative Vice President.
CC. ATD staff.assigned
Director's Update
Directors Update 02-21-03
To Local Presidents and AAL Members...
Directors Update 2-21-03
Via Fax-Email
:
We intend to update the membership regularly as we work through
American's reorganization. Accordingly, we want to notify you that, late
on February 19, 2003, we were provided with AA's financial plan for
reorganization, that is, its business plan. Our financial consultants are
reviewing the plan to make sure the Company has provided a viable strategy
for competing in this industry in the post-September 11 environment and we
will provide the Presidents with their analysis. Obviously, without such
a plan, further discussions are pointless. However, in the event the
Company has met this threshold, we will convene the Joint and Mechanic and
Related Bargaining Committees and hear AA's proposals for contractual
relief. All such proposals are subject to membership ratification, and
the Joint Committee and the Mechanic and Related Committee will each
determine whether proposed modifications will be submitted for
ratification by work groups covered by the Joint Committee and by the
Mechanic and Related Committee.
Many members have asked why we are bothering to consider any
discussions with the Company on contractual relief. The reason is obvious
-- the Company has the right to file for bankruptcy and demand the same
relief before a Bankruptcy Court and, possibly, worse. AA has, in fact,
already begun very visible preparations for a bankruptcy filing and the
TWU is, of course, also preparing. Once a Bankruptcy Court takes
jurisdiction over a Company like American, all litigation and even
processing of grievances can be stayed. Virtually all operational
decisions must be approved by the Court. If the Company seeks relief from
our collective bargaining agreements, we can and will resist, but any
chance we have of protecting rates of pay, hours, and working conditions
will be undermined if it is established that we failed to deal in good
faith with the Company when it was attempting to reorganize and avoid
bankruptcy.
No matter what we do, the Company could file for bankruptcy if any
union or major creditor refuses to voluntarily modify its contract with
AA. In that event, the bankruptcy statute provides that, after it files a
bankruptcy petition, but before it files an application seeking rejection
of a collective bargaining agreement, the Company must make a proposal
to
the Union which provides for those necessary modifications in the
employees benefits and protections that are necessary to permit the
reorganization of the debtor and assures that all creditors, the debtor,
and all the affected parties are treated equitably. If the Union rejects
a proposal consistent with the above requirements without good cause and
the balance of the equities favors rejection of such agreement, the
Company's application will be granted and the concessions imposed. The
Company and the Union are required to negotiate in good faith over the
relief necessary to permit reorganization prior to any ruling on an
application to reject a collective bargaining agreement.
Anyone tracking events at United or USAir and the veterans of the
bankruptcies at TWA, Eastern, Pan Am, or Braniff can confirm that creditors in
general and unions in particular tend to fare poorly in bankruptcy
proceedings. Despite this, we will not yield to unfair or unreasonable
demands simply to avoid this process. But, we have an equal
responsibility to keep our members out of the hands of the Bankruptcy
Court if we can, particularly if a superior voluntary agreement is
available. It is, of course, far too early to know how this process will
play itself out and many factors -- such as a possible war -- are unknown.
All we can do is work hard and honestly, bring all of our resources to
bear, and keep you informed.
Sincerely and fraternally,
James C. Little,
Director Air Transport Division
International Administrative Vice President.
CC. ATD staff.assigned
