When Nwa Dowsized It Was Amfa's Fault

RV4

Veteran
Aug 20, 2002
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For months now, the TWU has been attacking, and blaming AMFA for the downsizing at Northwest.

Now that AA is downsizing, the TWU places blame on the company.

Why the double standard?

Given the TWU's recent distrubuted material, shouldn't the story read:

"TWU sells the farm in STL, the TWU negotiated industry leading concession that resulted in a loss of 7,000 jobs for the STL area?"


Mechanics' union says American Air turning back on St. Louis

One of the unions that represents American Airlines workers said the airline needs to follow through on its commitment to its St. Louis employees who will lose the most when the airline downsizes the St. Louis hub Nov. 1.


Bill Rody, president of Transport Workers Union Local 529, which represents about 1,800 mechanics and related workers at the airline locally, said it would be an "irreversible loss if American is allowed to pull the plug on this city.

"American Airlines repeatedly told us and the St. Louis community that it was committed to keeping the airport as a valued hub operation," Rody said. "Realizing the value in mutual trust and commitment, we accepted $1.8 billion in annual concessions. Now as American is experiencing better times in the airline industry, the airline is turning its back on us and our community."

In July American announced plans to downsize the St. Louis hub, cutting daily departing flights from 417 to 207 effective Nov. 1. It also closed its St. Louis reservations center Sept. 15, which employed about 500 workers in downtown St. Louis. In all, 2,000 more workers will lose their jobs. The airline had about 12,000 workers in Missouri in 2001, and has 5,000 today.
 
I found this on another web site, which clearly shows the AMFA advantage is working.

(excerpted from the testimony of Mr. Andy Roberts – Senior Vice President of NWA Technical Operations)

NWA outsourced the following:

1997 - $ 117.6 million dollars
1998 - $ 154 million dollars
1999 - $ 154 million dollars

As you can plainly see, Outsourcing Increased with the IAM and the Blue Book.

2001 - $ 132 million dollars
2002 - $ 112 million dollars
2003 - $ 100 million dollars (projected)

Under AMFA and the White Book it is clear that Outsourcing Decreased.

The last question asked of Mr. Roberts by NWA counsel was, quote:

Q. So, outsourcing has gone down in dollar totals for the past two, three years?

A. Absolutely. Significantly after 2001.

Ref: AMFA v. NWA - Force Majuere I hearing transcripts – pgs: 283-284
 
RV4 said:
"American Airlines repeatedly told us and the St. Louis community that it was committed to keeping the airport as a valued hub operation," Rody said. "Realizing the value in mutual trust and commitment, we accepted $1.8 billion in annual concessions. Now as American is experiencing better times in the airline industry, the airline is turning its back on us and our community."

In July American announced plans to downsize the St. Louis hub, cutting daily departing flights from 417 to 207 effective Nov. 1. It also closed its St. Louis reservations center Sept. 15, which employed about 500 workers in downtown St. Louis. In all, 2,000 more workers will lose their jobs. The airline had about 12,000 workers in Missouri in 2001, and has 5,000 today.
Better times!! I know that summer flying was good and the financial performance may have improved but AA is for from experiencing better times that management can sit and say that all of their financial problems are solved because they have some more hurrdles to jump over before they say it is all well and good. Just look at the huge debt load and underfunded pension obligations and add to that they have some big payments to make in 2004 and 2005. Management at AA cannot be satisfied yet, they have made getting AA in the black as soon as possiable a piority since AA cannot be satisfied with posting small net losses or breaking even and along with this piority they have to make huge cuts even though it may be painfull it is necessary to survive this current enviroment.

I feel sad about thoes employees at STL who have family to support but what could management do? ask them to work for even lower salaries and benefits?
but they must understand that in business unusual external enviroment pressures puts company into an unfortunate position of changing plans that they may have set 3 or 2 years ago because they must either try to adapt as soon as possiable to the current enviroment or risk being shot down by other network or lcc carriers.
 

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