WARN letter finally arrives...

[eolesen]

I can understand the leaves, since you might be returning out of seniority, but not be able to take the crappy VBR. Thats an insult.

Yes, but if you give VBR to a few of of the 9OO but someone senior winds up getting RIF'd, you just gave the junior FA a better separation.

 

[Boomer]

I'm sure that someone will correct me if I'm wrong, but I attended one of the retirement workshops where they discussed the following:

For every employee of AMR, in the Policy and Procedures Manual, there is a 50-55 option that allows most employees aged 50 AND with 15 years of service the option to retire from AA with full benefits provided they following rules and contact HR prior to application for the 50/55 rule to obtain the necessary requirements, in WRITING; AND,

1) Continue to fund their medical retiree prefunding, monthly from the month of separation and the month after attainment of the age of 55; and,
2) CONTINUE TO PREFUND THEIR SUPPLEMENTAL MEDICAL RETIREE INSURANCE, monthly from the month of separation and the month after attainment of the age of 55.

It is vitally important that those labor groups/individuals that retained medical retiree insurance and purchased the supplemental retiree medical insurance continue to pay the required monthly premiums for the month of separation from AA and the month after the covered beneficiary reaches the age of 55: no matter the condition of the beneficiary, the payments must be made for the supplemental to remain in force(emphasis added).

Under the 50/55 plan, as long as required payments are made: all conditions of a "normal early retirement" are status quo so long as the company remains solvent.

Wanna know why an EETC on the 60+ 737-800's arriving over the next two years would be a good thing?

 

[The Goose]

Wanna know why an EETC on the 60+ 737-800's arriving over the next two years would be a good thing?

Let me guess, Mr. Boomer.

The EETC (Enhanced Equipment Trust Certificate) is a financial agreement the company can't as easily worm out of in the event of a Chapter 11 filing - right?

I've held some of the AMR PINES (Public Income NotES, symbol AAR) securities over the past few years for that very reason, not to mention the dividends paid (coupon 7.875%, at the present price, 14.43% effective yield) of $.49 per quarter/share or $1.96 per year/share.

It's a good idea, but Little Jimmy would never consider it - too much upside for the rank and file and far too much like making the company put their money where their mouths are. Besides that, he's probably been well paid to ensure something like that never happens.

 

[kirkpatrick]

Yes, but if you give VBR to a few of of the 9OO but someone senior winds up getting RIF'd, you just gave the junior FA a better separation.

The junior FA taking the VBR wants a separation, and has no recall rights. I asssume the furloughee wants his job, and has recall rights. Two very different things.

MK

 

[Veritas]

I made a call last night to an APFA official. I promised not to say who it is. If you received a WARN letter they said you ARE NOT eligible for the VBR, OVL or Partnership Flying. You must be active and not have received a WARN letter. Call the APFA or Flight Service if you don't believe me.

P.S. This week's APFA hotline directly contradicts what that union official told you:

Questions are pouring in regarding the voluntary options currently available to help mitigate potential furloughs faced by the 900 most junior of our members. Most inquiries concern the Voluntary Bridge to Retirement. Also called the VBR, this one-time offer is extended to all Flight Attendants not currently on furlough who will be at least 50 years old and who will also have at least 15 years company seniority on August 31, 2008. Please note, there is no upper age limit to the eligibility and Flight Attendants who have received a notice of potential furlough, as well as those on paid or unpaid sick, IOD or M4 status, are eligible provided they meet the age and seniority requirements. The “FA Reductions – Volunteer Optionsâ€￾ section on the Flight Service website links to informational documents as well as a tool for eligible Flight Attendants to elect the VBR. These documents are reprinted on the “Reduction in Forceâ€￾ page of the APFA website. The deadline for submission is 2300 central time on Monday, July 21.

Unlike the VBR, the Overage Leaves of Absence under Article 16 and Partnership Flying under Appendix F are open only to those Flight Attendants who are not subject to furlough.

Since there is no upper age limit to the eligibility and participants may take the VBR and immediately retire, I was wrong in writing in my earlier message that qualification to participate in this program is probably a non issue for the currently active former TWA flight attendants.