WARN letter finally arrives...

[The Goose]

<_< ------ I believe Olesen is quoting what AA did in the past, and has no currant known ledge of what may be coming down!------ Although, that could be one hell of an assumption!!!!

Hell - I read the letter on the TWU site and it still doesn't make much sense re: what options (not stock) those eligible have. I guess they purposely made as clear as mud.

 

[Veritas]

<_< ------ I believe Olesen is quoting what AA did in the past, and has no currant known ledge of what may be coming down!------ Although, that could be one hell of an assumption!!!!

No. The Voluntary Bridge to Retirement is a new program, as explained by Jeff Brundage in his message that appeared in Jetwire and posted here by WingNaPrayer.

In addition to our existing voluntary programs such as leaves of absence and stand-in-stead, we will also offer a Voluntary Bridge to Retirement (VBR) for many U.S.-based and San Juan employees who are age 50 or over with at least 15 years of service.

The particulars of the VBR program are discussed in an email sent by Lauri Curtis, VP of Flight Service, which was posted by jimntx in this post.

Voluntary Bridge to Retirement- To be awarded in advance of other types of leaves of absence. The Company reserves the right to limit the number of Flight Attendants who may accept the program, and to discontinue the program at any time. Full provisions of this program are available on Jetnet, but include;

Eligibility: A Flight Attendant, not currently on furlough, who is at least 50 years of age, with at least 15 years of Company Seniority as of August 31, 2008

Permanent separation without recall rights

Severance: $15,000

COBRA Medical Coverage: The Flight Attendant initially will be offered six months of subsidized COBRA medical coverage at 20% of the normal COBRA rates (subject to the Flight Attendant complying with applicable requirements and conditions). A Flight Attendant who complies with applicable requirements will remain eligible to purchase COBRA medical coverage for another 12 months at full COBRA rates. Subject to the provisions of the applicable retiree medical plan (which controls as to retiree medical matters), the Flight Attendant will become eligible for retiree medical at age 55 if they continue to prefund until that time, provided that s/he began prefunding when first eligible, and has continued to make prefunding payments since that time.

Travel: AA/AE travel only, D2 eligible travelers only and subject to imputed income after 90 days. At age 55, retiree travel will be identical to travel for other retirees.

Broad Based Stock Options: Stock options may be exercised up to 90 days after separation. Stock Options will be forfeited after 90 days

Separation Date: At Onboard Service discretion subject to operational needs

A Flight Attendant cannot take both this Voluntary Program and Article 30.

 

[AAflygirl]

Correction: according to my source, barring unforeseen circumstances, the 900 WARN letters sent today is it.

I doubt that very much! This industry is going down the drain and our leaders are dragging us with it.

 

[jimntx]

As I said, barring unforeseen circumstances. There are no guarantees. I posted that as a correction to something that I posted earlier. I had heard that there would be two waves of furloughs--around 01Sep and around 01Nov. I was assured today by someone who should know that there never was a plan to furlough in Nov. It was always going to be September.

However, the decision to ground 40-45 MD80s and 6 A300s was based on oil that was just under $130/bbl. It closed at over $140/bbl today. The number of airbusses has already been increased to 10. I do not believe that the 40-45 MD80s is necessarily the last word on that subject.

 

[eolesen]

Jim, hopefully the furlough forecast was done on a worst case scenario, i.e. nobody takes any of the voluntary options, and the letters were issued accordingly. I don't have that much faith in the process, though. It wouldn't surprise me at all to hear an announcement later that says "Ooops. We planned on 1100 vacancies, but thought there'd be 200 volunteers.... Here's another 150 letters."

Funny how a guy no longer employed at AA knows more about the deal than employees do?

All you have to do is read what was written, Dave. It's not welding science.

Bridge to retirement was extremely common in the management reductions over the past 15 years... I seriously doubt it's changed much. Based on the letter from Lauri Curtis, it didn't.

If you're 50, you effectively go out on VLOA with pass privileges until you turn 55, at which time you get converted into a normal early retirement at 55. Dunno if the age 55 retirement was available to TWU or APFA, but it has been for agents, support staff, and management for at least the past 20 years.

 

[FA Mikey]

They offering age 50 and over 15,000 to leave. Its a shame since the people like myself who would really be willing to take it are 40 with 15 to 20 years service.

 

[jimntx]

Jim, hopefully the furlough forecast was done on a worst case scenario, i.e. nobody takes any of the voluntary options, and the letters were issued accordingly. I don't have that much faith in the process, though. It wouldn't surprise me at all to hear an announcement later that says "Ooops. We planned on 1100 vacancies, but thought there'd be 200 volunteers.... Here's another 150 letters."

E, it doesn't work that way. Yes, as a matter of fact it is "worst case scenario." When they recall, they send recall letters to 15-25% more than they need because they know that some percentage will have moved on with their lives and will not accept recall. When they furlough, they send WARN letters to the most they need to furlough, assuming that some percentage will be mitigated by contractually required methods--partnership flying and overage leaves. It may even be better this time because of the VBR which caught a number of people by surprise.

I'm not surprised that the company reserved the right to limit the number of people taking the VBR. Aside from the fact that there's real cash money involved, I agree with FA Mikey. If there had not been an age limit, there would have been a stampede for the doors in some of the larger bases. I know that at DFW there are any number of f/as in the 15-25 year range of seniority that are OVER still having to be on reserve with no hope of getting off any time soon. The people transferring into DFW tend to be rather senior; so, that is not freeing anyone currently subject to reserve there from having to serve. And, since there are so few people transferring into DFW anyway, the subject to reserve numbers just get more senior every month.

 

[BigBangTheory]

They offering age 50 and over 15,000 to leave. Its a shame since the people like myself who would really be willing to take it are 40 with 15 to 20 years service.

I feel your pain Mikey. Im 44 and I would take the VBR, if I was able.

 

[Veritas]

Jim, hopefully the furlough forecast was done on a worst case scenario, i.e. nobody takes any of the voluntary options, and the letters were issued accordingly. I don't have that much faith in the process, though. It wouldn't surprise me at all to hear an announcement later that says "Ooops. We planned on 1100 vacancies, but thought there'd be 200 volunteers.... Here's another 150 letters."

Please reread this part of Lauri Curtis' letter:

Please know that the WARN letter was not a layoff notice for any particular individual — rather, it ensures compliance with the federal WARN law while we continue to hope that the number of actual layoffs will be minimized. Also today, we are sending “Subject to Furloughâ€￾ letters to the 900 most junior active flight attendants on the system seniority list.

In the meantime, we are doing the best we can to minimize the actual number of involuntary flight attendant furloughs, by offering voluntary options to eligible flight attendants who would like to take some time off of work. The voluntary options include a new Voluntary Bridge to Retirement option in addition to the other provisions provided for in the Collective Bargaining Agreement (CBA).

And Jeff Brundage' Jetwire message:

Each department is continuing to work through ways to minimize the number of employees who are involuntarily affected by a reduction in force. In addition to our existing voluntary programs such as leaves of absence and stand-in-stead, we will also offer a Voluntary Bridge to Retirement (VBR) for many U.S.-based and San Juan employees who are age 50 or over with at least 15 years of service. Each department will decide which job functions and locations will be offered this option.

This week we will begin issuing WARN letters to some employees who may be impacted by workforce changes as required by state or federal law.

WARN is the federal Worker Adjustment and Retraining Notification Act and requires employers to give written notice to employees (or their bargaining representatives) who may experience an employment loss as the result of layoffs or location closures. WARN letters must be issued 60 days prior to the actual date of the reduction in force. Please know that a WARN notice is not a layoff notice - it's a regulatory requirement.

 

[IORFA]

Just curious and I am sure L1011 is going to have issue just because I asked, but are the active TWA F/A's eligible for the VBR? I know that you need 15 years company seniority, but are they counting AA/AMR company seniority only? If allowed, I bet 900 wouldn't be a problem at that point.

 

[L1011Ret]

Just curious and I am sure L1011 is going to have issue just because I asked, but are the active TWA F/A's eligible for the VBR? I know that you need 15 years company seniority, but are they counting AA/AMR company seniority only? If allowed, I bet 900 wouldn't be a problem at that point.

The language is a "flight attendant not currently on furlough." And yes I hope any TWAer furloughed files an age discrimination suit. The Supremes have made such suits more employee friendly. Who knows, the last such suit came within inches of succeeding.

 

[IORFA]

Sounds like you are guessing and/or making assumptions. I am looking for facts. I really am just curious, I really don't have an opinion either way. AA also left themselves an out by stating that "they reserve the right to limit the number of flight attendants who may be offered the program and to discontinue the program at any time."

 

[BigBangTheory]

Sounds like you are guessing and/or making assumptions. I am looking for facts. I really am just curious, I really don't have an opinion either way. AA also left themselves an out by stating that "they reserve the right to limit the number of flight attendants who may be offered the program and to discontinue the program at any time."

IORFA,

Any flight attendant who is subject to a furlough (receives a WARN letter) is not eligible for the following:

1. VBR

2. OVL

3. Partnership Flying

 

[TWU informer]

VBR = 5+5.... leave at 50, get limited benefits & severance, and then qualify as an early retiree at 55.

Actually a 5+5 would be adding 5 years to age and 5 years to seniority which equates to more pay on a monthly retirement check. This is not a 5+5. This is more like a bonus check for taking a stand-in-stead

Most at TUL have already snubbed their noses at a one time payout gimmick.

 

[The Goose]

Actually a 5+5 would be adding 5 years to age and 5 years to seniority which equates to more pay on a monthly retirement check. This is not a 5+5. This is more like a bonus check for taking a stand-in-stead

Most at TUL have already snubbed their noses at a one time payout gimmick.

Agreed - there seems to be a growing tendency to use "bonus bait" to accomplish ends rather than actually help out the workers.

Such is life.