TWU Local 564, AFL - CIO
100 West Imperial Ave, Suite R
El Segundo, CA 90245
Office: 310-640-7430FAX:  310-640-7432
Toll Free: 800-657-1097
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BK Update 5-19-12
AMR Judge Sets Ruling Deadline As Unions Present Case

By Lisa Uhlman

Law360, New York (May 18, 2012, 7:58 PM ET) -- The New York bankruptcy judge overseeing American Airlines Inc. parent AMR Corp.'s bankruptcy set a June 22 deadline Friday for his ruling in a drawn-out battle over AMR's bid to reject union contracts, while three unions continued to present their side of the case.

In a housekeeping moment during the unions' presentation, U.S. Bankruptcy Judge Sean H. Lane did the math in the case's calendar and determined that June 22 is the last day he can enter his ruling based on an agreement with the parties and the bankruptcy statute governing the case.

The contentious and lengthy trial — which began April 23 when AMR took a week to present its side, was followed by a two-week breather to give the parties a chance to negotiate, and then resumed May 14 with the unions' week-plus-long case — now has an end in sight. Judge Lane must rule on whether to grant AMR's bid to nix the contracts under Section 1113 of the Bankruptcy Code in order to negotiate new ones on terms better to the airline.

The unions — the Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union of America — had spent the week seeking to convince the judge that AMR's business plan, which involves cutting labor costs by $1.25 billion a year for six years, is unnecessary and unfair.

On Friday, TWU attorney Sharon Levine of Lowenstein Sandler PC opened her case, focusing on what she called a business plan that is not fully formed and her argument that it is unreasonable to expect labor to sign on to cuts at this point in the game, just to be left out in the cold when the actual business plan is ironed out.

She said the current, “not fully baked…#157; business plan is being put forward simply for the purpose of labor negotiations, with the airline seeking to reset its labor contracts before it engages in actual good-faith attempts to reach a final business plan that could include the merger options that the unions have argued are the only viable option for the company.

The unions are therefore faced with “sitting on the sidelines, looking at a process that is seeking labor concessions without any accounting for synergies…#157; that could be presented by a merger with suitor US Airways Group Inc., which “should be explored with labor at the table.…#157;

“No other stakeholder is being asked to commit to take a level of concession based solely on this business plan, which is at best premature,…#157; Levine said.

She further argued that the reason for the timing of the 1113 request now as opposed to later in the case is so-called sequencing, which, she said, her client interprets as meaning AMR will come after labor first, taking “excessive concessions,…#157; and then negotiate the “real business plan, the real exit strategy, the real transaction with whoever the ultimate owner may be…#157; — a process labor will necessarily be excluded from if AMR gets its way.

“We'd like to be seated at the grown-ups' table,…#157; Levine said.

AMR is seeking 20 percent reductions from all labor, consisting of $990 million from its unions and $260 million from nonunion employees, including management.

Should it succeed on its 1113 motion, AMR could then renegotiate deals more favorable to it and more competitive with those enjoyed by market leaders United Air Lines Inc. and Delta Air Lines Inc.

American has been emphasizing that those airlines filed for bankruptcy following its 2003 out-of-court restructuring, which featured $1.6 billion in labor cost cuts, and thereby negotiated their own much deeper cuts, which have enabled them to "leapfrog" American and operate much more profitably than it ever since.

The TWU alone has sent AMR's so-called last and best offer to its members for a vote, with five of seven labor groups voting in favor of it. The largest group, mechanics, notably was on the “no…#157; side.

The unions have largely focused their case on their argument that AMR could avoid the sharp labor cuts by simply taking now what is the inevitable step of agreeing to the US Airways merger.

AMR filed for bankruptcy protection in November. It has lost $6.6 billion since it renegotiated its labor contracts in 2003.

When AMR presented its case in April, witnesses for the airline described an ailing airline saddled with labor costs grossly disproportionate with those of its large-network competitors and of the low-cost carriers such as Southwest Airlines Co. that have been chipping away at its market share.

Further, the experts argued, mergers between United and Continental Airlines and between Delta and Northwest Airlines Corp. have served to shut American, once the largest operator but now the third-largest domestic and fourth-largest worldwide, out of lucrative code-sharing agreements that allow its competitors to outsource regional flights to smaller airlines. American's labor contracts also limit it from engaging in that kind of business, another element of the deals it is seeking to renovate.

AMR is represented by Harvey R. Miller, Stephen Karotkin, Alfredo R. Perez and Stephen A. Youngman of Weil Gotshal & Manges LLP and John J. Gallagher, Scott M. Flicker, Jon A. Geier, Neal D. Mollen and Todd C. Duffield of Paul Hastings LLP.

The TWU is represented by Sharon L. Levine, S. Jason Teele, Paul Kizel and Wojciech F. Jung of Lowenstein Sandler PC.

The case is In re: AMR Corp. et al., case number 1:11-bk-15463, in the U.S. Bankruptcy Court for the Southern District of New York.

--Additional reporting by Max Stendahl and Sindhu Sundar. Editing by Lindsay Naylor.


AMR Bankruptcy Update for May 18, 2012
May 18, 2012

American Airlines - TWU Begins Its Case

At the conclusion of the APFA's case today, the TWU cross examined Jeffrey Brundage, the former Senior Vice President of Human Resources for American. On cross examination Mr. Brundage admitted that the Debtors did not seek to address labor cost gaps in making their “asks” and that this method had not been used in other bankruptcy cases.

At the conclusion of the cross, the TWU opened its direct case. The TWU argued that the business plan, which the Debtors argued drives the demand for these deep concessions, is at best, premature. The TWU noted that no constituency affirmatively supports the business plan and even those constituencies that support the Debtors, have reserved their rights to challenge the business plan at a later time. Indeed, even the Debtors have admitted that they are looking at the other options, including the possibility of merger.

The TWU argued that to take a business plan that no one is telling the court is going to be the business plan and to say that you first have to make sure that labor takes a disproportionate cut so that the benefits of a merger, or the real business plan can be better realized by other constituents, is unprecedented and frankly an abuse of the process. The TWU argued that labor should be permitted to fully participate in the vetting of the true business plan or any alternative transaction.

The TWU then called labor economist Thomas Roth to testify about the value of the Debtor's proposals. Mr. Roth testified that the Debtor's demands were gross overkill.

The Court indicated that it would need additional time to render a ruling. The Court requested that the parties submit proposed finds of fact and conclusions of law on June 6. The Court will then issue a ruling on June 22.


Retirement seminar to be hosted by AA May 23, 2012 in LAX
To see the flier, please click HERE .  If you are unable to attend the May 23, 2012 date, you can still participate on May 29, 2012 via Webinar or phone-in.  To see the times and call-in information, please click HERE .

Five named to American Airlines retirees committee in bankruptcy case
Terry Maxon/Reporter
tmaxon@dallasnews.com | Bio

10:55 AM on Sun., Apr. 22, 2012 | Permalink

The U.S. trustee in the American Airlines bankruptcy case has picked the five representatives who would sit on an official committee of retirees. That list includes:

•    Laura Glading, flight attendant and current president of the Association of   Professional Flight Attendants
•    Jim Sovich, retired pilot and former president of the Allied Pilots Association
•    Bobby Gless, deputy director of the Transport Workers Union's air transport division
•    Charles Marlett, former corporate secretary for American and AMR, for the non-union retirees
•    Rita Keeple for the non-union retirees


What’s Next?
May 16, 2012

AS TO THOSE UNITS THAT VOTED YES TO ACCEPT THE LAST OFFER:

Q. When does the offer actually go into effect?

A. First, the court has to ultimately approve the five agreements. This is certainly expected to happen, but there is no time set for this to occur. Second, TWU and AA have an understanding that the new agreements, even after court approval, will not go into effect until all the other union labor groups, (including M&R and Stores,) have resolved their 1113 bankruptcy asks. The groups that voted yes will not have to experience the concessions until all contract groups have completed their 1113 process, either by ratifying a deal or by having their contract rejected. All groups will be treated equally as to the start time of any concessions.

Q. What happens if another group gets a better overall ask than the one to which our bargaining unit agreed?

A. Through the "me-too" clause contained in the ratified contracts as well as pursuant to the understanding we have with AA, each group who voted yes will receive the same percentage reduction in their total give back amount as does any other bargaining group. However, AA maintains that all groups must still meet their full ask amounts.

Q. While we await the outcome of the 1113 process for the remaining bargaining units, what working conditions and terms do we work under?

A. We will still operate under the current existing TWU contract that we have been working under for years. There is no change in the status quo.

Q. When will the 1113 process be completed?

A. While the court has announced it will issue a ruling in early June, there is no way to actually know when the judge will issue a final order with regard to AA's 1113 motion to reject and cancel the contracts as to the other contract groups.

Q. Does our yes vote affect the pursuit of a possible US Airways merger by TWU and the other unions?

A. No, we remain very supportive of this possible merger.

Q. Will our TWU lawyers still present a case in bankruptcy court regarding the five units that voted yes?

A. No. By ratifying the last ask, each of those units ended the risk of the judge canceling their contract. New successor agreements have been tentatively reached awaiting court approval.

FOR THE TWO GROUPS THAT VOTED NO AND REJECTED THE LAST OFFER:

Q. Are the TWU lawyers still presenting the union case contesting AA's 1113 motion to reject the M&R and Stores collective bargaining agreements?

A. Yes.

Q. When will the judge issue his final ruling on AA's 1113 motion to reject our two contracts?

A. While the court indicated that its ruling is due in early June, there is no way to know exactly when the decision will issue.

Q. Will there be additional 1113 negotiations between TWU and AA before the judge rules on the motion seeking to reject our two contracts?

A. The judge has consistently encouraged all parties to negotiate and reach a consensual deal. He has even offered to have another judge informally assist the lawyers in the talks. The pilots and flight attendants have been in talks over the last week and are in front of us at this time. We anticipate that there will be more court settlement talks.

Q. If no settlement agreement is reached, what happens next?

A. We await the judge's final ruling on the 1113 motion to reject the two CBA’s.

Q. If the judge does in fact reject our contracts, what terms will we then work under?

A. The terms of the AA March 22 1113 term sheet filed in court. (That term sheet does not include raises, the 401k match, profit sharing and other items including the return of pre-funding company contributions, if such is approved by the court).

Q. While the 1113 process keeps unfolding, are we still pursing the possible US Airways merger?

A. Yes, we are operating on multiple tracks and are very supportive of that possible merger.


M&R, Stores reject AA Management's Last Best Offer.  Fleet Service accepts deal.
The Maintenance and Related group, along with Stores rejected AA's Last Best Offer.  Fleet Service accepted the terms.  To see the voting tally, please visit our Local 564 Facebook link (upper right)  or you can access the Official TWU BK website by clicking HERE


Additional Question and Answer Information - Please Read
Additional question and answer information was recently submitted.  To read the additional question and answer sheet, please click HERE .  To see additional question and answer information regarding the Early Out Package, please click HERE .

Local 564 Executive Board and Chairmen from SEA, LAX, SAN, PHX Recommend a NO vote on AA's Last Best Offer
To see the signed letter, please click HERE .


Retiree and Former SFO AMT Crew Chief Bob Cohen Passes Away
Sad news to report.  Local 564 regrets to inform you former SFO AMT Crew Chief Bob Cohen has passed away.  To see the posting that was made, please click HERE .  Please keep Brother Cohen's family in your thoughts.


TWU Local 561 President Jorge Rojas (MIA) Letter Supporting a NO Vote

5/1/12

Brothers and Sisters,

The release of the company’s Final Best Offer (FBO) for all TWU Title groups signifies the end of an extremely long and arduous journey. As a member of the Negotiations Team I have worked alongside our fellow Locals in an attempt to mitigate the Company’s very clear mission to erase years of collective bargaining language under the cloak of Bankruptcy Protection. This process has truly been an unfortunate spectacle to witness. As President of Local 561 I cannot endorse this FBO. Make no mistake; I certainly understand the ramifications of such a decision particularly as a Negotiations Committee Member.

Nonetheless this process now moves from our negotiations table to your tables. You are the next piece of the puzzle. You must now ponder the limited options before you and either accept or reject this Final Offer. I ask that each and every member take the time to not only read the side by side comparisons but also take the time to review the full text language. All materials can be found in the TWU website TWUbkfacts.org. Thursday May 10th we will hold Special Informational Meetings at Local 561 starting 7:30, 12:00 ,15:00 to go over the offers and answer any question you may have pertaining to the proposed contract and voting procedure. Within the next several days you should begin receiving the instructional mail out directing you to the voting web-site. Voting will commence at 12:01AM May 10th and close 11:59PM May 14th. You may also vote by phone and change your vote up until the vote deadline.

Fraternally
Jorge Rojas
President
TWU Local 561
MIA/TPA/FLL


5-10-12 Political News
The Los Angeles Times newspaper is endorsing Janice Hahn for Congress.  To see the article, please click HERE .

5-9-12 Contract Review Information Letter from TWU Deputy Director Robert Gless
To read this letter, please click HERE .


To All Presidents and Benefits Coordinators

If you have any members asking about their Prefunding balances, the information is now on Jetnet.

On the home page in the upper left hand corner is a link to see your prefunding balance.

Greg Mackey
Recording Secretary - Local 567 AFW
Benefits Committee—AA System
817-657-8615


5-6-12 Contract News:  Meeting to discuss Contract Monday, May 7th at union hall
There will be meetings throughout the day and afternoon to discuss the upcoming vote on the company's LAST BEST OFFER.  If you are interested in attending and want to know the meeting times, please click HERE .

5-3-12
American files lawsuit to stop union representation vote for customer service agents
American Airlines wants to stop a union representation vote of its customer service agents because the union did not get enough agents asking for representation, according to a lawsuit filed in federal court on Wednesday.

The Fort Worth-based carrier argues that the Communications Workers of America did not satisfy the 50 percent requirement and obtain enough authorization cards from over 10,000 passenger and customer service agents.The lawsuit asks the federal court to stop the National Mediation Board from holding the election which is slated to begin on May 17.

"Notwithstanding that the union's application does not satisfy that newly-enacted 50 percent standard, the NMB has ignored the statutory mandate and directed a union representation election among American's Passenger Service employees," said the lawsuit filed in U.S. District Court, Northern District of Texas.

At issue is a change in the NMB's statutes as part of the Federal Aviation Authorization bill approved by Congress and signed by President Obama in February. Previously, unions only had to obtain authorization cards from 35 percent of a work group before the NMB would grant a union representation election. The FAA bill raised that standard to 50 percent.

-Andrea Ahles


5-2-12 BK Update
Important Questions and Answers Regarding AA's Last Best Offer (LBO)

Different questions have been raised in the two days since the Company’s Last and Best Offer was finalized. This offer is being put to vote based on the commitment we made at the outset of the Bankruptcy process that the membership would have the opportunity to vote on the LBO. In order to make sure that this vote is based on accurate information about the contents of the proposal and the laws which govern the bankruptcy process, we are putting out answers to commonly asked questions.

1. If our contract is rejected by the Bankruptcy Court, what will be imposed, the Company’s “ask” before the proceedings began on the Company’s motion to reject, or the Last Best Offer (LBO) made after those proceedings began?
The law on rejection of collective bargaining agreements has evolved over the years in ways that are not favorable to unions or working people. In 2007, in the Northwest bankruptcy, the Court rejected the contract covering the flight attendants after they rejected the Company’s LBO. At that time, the Bankruptcy Court stated that the Company could only impose its LBO, not the Company’s prior Ask. That ruling, which I commented on in writing at the time, has since been superseded (as has my comment on it), and is no longer the binding law on the issue in the Bankruptcy Courts of the Southern District of New York. The superseding case is the Frontier Airlines case, which was ruled on in 2009. There, the Federal District Court for the Southern District of New York (the district we are in, and the court which reviews all the decisions of the Bankruptcy Court handling AA’s filing) ruled that proposals made after the beginning of the hearings on an 1113 motion are not admissible to establish the level of concessions necessary for reorganization. What the Court specifically held was that “under the regime established by Section 1113, proposals and supporting disclosures made by a party after the rejection hearing has begun may not form the basis for concluding whether the 1113 standard has been satisfied, except, perhaps, where the parties expressly agree they may be considered.” In other words, absent an agreement to the contrary, the LBO, if it was made after the rejection proceedings began, is not even admissible into the hearings to decide whether to abrogate the contract, much less to define precisely what terms and conditions of employment the company may initially impose.

The Company’s “ask” was made before the rejection proceedings began. The LBO was made after those proceedings began. The Company was obviously aware of the Frontier precedent and stated at all times that the terms of the LBO were without prejudice
to its position before the Bankruptcy Court. Therefore, there was no agreement to allow the Court to consider the LBO. We, of course, will pursue all legal arguments should we face contract rejection, but the controlling precedent in New York is that the LBO is not even admissible into the 1113 proceedings and that the Company is not bound by the LBO and can impose its prehearing “ask” if the contract is rejected.

2. If the Court permits the Company to reject our agreement will we be able to strike?
In 2007, the Northwest flight attendants sought the right to strike after their contract was rejected. The Second Circuit Court of Appeals ruled that NWA did not violate the status quo by imposing concessions on the flight attendants because the court had authorized NWA to reject their contract and also ruled in that case the flight attendants had no right to strike.

3. When will the NMB release us or the other AA unions?
It is impossible to know how long we can be kept in mediation, but certain things are clear. The NMB is not quick to issue releases at major carriers. Amtrak workers were kept in mediation for close to ten years and other work groups in the airline industry have amendable dates which precede ours.. The point is that it is impossible to know when we will be able to strike, but it is very unlikely that it will be quick, and in that time much damage will be done.

Sharon L. Levine, Lowenstein Sandler PC


Fleet/Fueler "Final Best Offer" from AA, Along with Comparison Chart
Expect the voting to take place from May 10th to the 14th.  This is a TENTATIVE Timeline.  Please verify by visiting http://aa.twu.org for exact voting timeline. To read the Fleet/Fueler "Final Best Offer" from AA, please click HERE .   To review the comparison chart, please click HERE .


AMR says it lost $807 million in March because of restructuring charges
In a bankruptcy filing made on Monday, AMR Corp. posted a $807 million loss for the month of March.

The Fort Worth-based carrier said it spent $856 million on reorganization items, including $841 million in aircraft financing renegotiations and lease rejections. AMR also spent $15 million on professional consulting fees.

Without the bankruptcy restructuring items, AMR reported a profit of $49 million for the month.

The company had $2.198 billion in revenues in March and ended the month with $4.8 billion in cash and short-term investments.

-Andrea Ahles
***********************************************************************************

1. We are pursuing multiple option with one goal: Protect our members and our families
  • Bankruptcy is fast moving process
  • Legal, political deck stacked against workers
  • From the beginning , TWU Local Union presidents and International Union Bargaining team have worked to keep our options open so we can minimize pain to our members
  • THERE IS NO PAIN-FREE OPTION.
  • This is a damage control operation; we are doing our best to minimize the damage
2. Our multi-part strategy:
  • Work with pilots and flight attendants representing workers at AA
  • Educate politicians in cities where our jobs and families are at risk
  • Use “dream team” of top economists, attorneys to analyze AMR proposals and advocate for our members
  • Public campaigns to win support, including the “Save American Jobs” effort that has won thousands of supporters.
3. We are prepared for court
  • If AMR goes ahead with a court motion to tear up our labor contracts, we’re ready to go to trial
  • Bankruptcy laws, including Section 1113 which governs labor contracts, are favorable to corporations, NOT FAIR to workers
  • It is hostile territory, so settling out of court is a better option.
  • BUT: If AMR won’t settle, we’re ready for an aggressive courtroom fight
4. Due to risks of bankruptcy process, we are working towards a     consensual agreement that would keep us out of court.
  • AMR made demands for huge concessions.
  • Their initial position: Give us this, and ALL of this, or we will go to court and terminate your contracts
  • Our position: Let’s talk. We can do better
  • Since then, we’ve been chipping away at their demands
  • Working to get AMR to back off, win a settlement that is better than outright termination of our contracts.
  • WE ARE CLOSE TO HAMMERING OUT A “FINAL, BEST OFFER” THAT IS SIGNIFICANTLY DIFFERENT FROM THE COMPANY’S INITIAL DEMANDS
  • You will get to vote on this “final best offer” – or Tentative Agreement if it reaches that level.
  • You deserve the right to take this seriously and make a personal decision about what is best for you and your family.
5. We are also talking with USAirways about a possible merger             with American Airlines
  • All three unions are involved: Pilots, Flight Attendants, TWU
  • Worth a look because US Air approached us to discuss possible changes in our labor contract
  • All three unions agreed to conditional support of US Air offer.

Our conditions:
A. US Airway’s demands for labor concession have to be less drastic than AMR demands
B. Bankruptcy Court must agree to allow US Air into the process to propose a formal plan to take AMR out of bankruptcy
  • Do not know how this will play out, many factors out of our control
  • We will do what is WITHIN our control to get best possible deal for TWU members and families.

6. We will continue to pursue multiple options
  • Our best bet is to control our own destiny
  • Best solution is one that does not leave our contracts up to the decision of the court – that’s hostile territory
  • Outside of court, TWU members have the final say
  • Inside the courtroom, the judge has the final say
  • This situation will continue to change; we will continue to keep you informed
  • Our best weapon is SOLIDARITY – continue to communicate and act TOGETHER.



US Airways Term Sheet Summaries for TWU-Represented AA Employees

April 27, 2012


In the event of a possible merger between American Airlines and US Airways coming to fruition, the respective term sheets covering TWU represented work groups, is now available for members to review. Please note, that this possible merger is not related to and has nothing to do with the upcoming 1113 voting on AA’s final offer.

US Airways M&R Sheet - Click HERE

US Airways Stock Clerk Sheet - Click HERE

US Airways Fleet Sheet - Click HERE

US Airways Maint Control Techs Sheet - Click HERE

US Airways Flight Dispatch Sheet - Click HERE

US Airways Instructors Sheet - Click HERE

US Airways Sim Techs Sheet - Click HERE


American Eagle Bankruptcy Update for April 26, 2012

TWU Negotiators reconvened meetings with the company on Tuesday April 24 at Flagship University. The TWU did not meet with Eagle negotiators the previous week, in order to give them time to gather requested documents. The TWU negotiators continued reviewing the few documents that had been provided and updated by the company.

Labor attorney Christina Gornail continues assisting the TWU Negotiating Committee’s in meeting with Eagle negotiators and drafting specific questions regarding the company’s proposals.

On Tuesday the company provided TWU negotiators revised financial models. TWU’s economist, John Donnelly, has been reviewing and analyzing the economic forecasts and financial assumptions outlined in these revisions. Company financial models are quite detailed and require an in depth assessment, often generating even more questions of the company’s methodologies.

The TWU will continue meeting with Eagle through the week trying to reach a consensual agreement. Our negotiators will reconvene pre 1113 negotiations again next Tuesday May 1 at FSU.


AMR Bankruptcy Update for April 25, 2012

TWU MEMBERS TO SOON VOTE ON AA FINAL OFFERS.

Our negotiators are still in Dallas awaiting the final full text language on AA's last concessionary ask. We are still attempting to mitigate parts of the Company's last offer. We anticipate these talks to continue through most of this week.

If this timeline holds up, we expect to then announce a ratification vote schedule on the AA's last ask. Such a vote could take place very soon. We cannot give exact dates until all the language is produced by AA, as it is their final offer.

Once we know and announce the exact dates, we will mail all members highlighted information and voting instructions. Members will vote electronically or by phone. We will also post for review the last term sheets of the AA offers of April 4, along with an electronic PDF full text contract. It is this language that goes into place if the bargaining unit votes "yes."

We will additionally provide on-line copies of the Company's 1113 court filing, which goes into place if we vote "no" and the judge rejects the contracts. You will be given side by side comparisons so you can analyze the differences and make an informed vote.

Please take note that the judge DOES NOT write a new contract. He does not rule on any individual contract items at all. He simply grants or denies the AA motion to completely reject and cancel our contracts.

As you know bankruptcy law is very labor unfriendly, and in the vast majority of cases large corporations win their 1113 cases. This is the harsh reality of the prior court rulings.

Finally, we will soon be posting information on the USAir terms. NOTE THAT THE AA 1113 RATIFICATION VOTE HAS NOTHING TO WITH THE POSSIBLE USAIR MERGER. The issues are legally unrelated. Even a yes vote on the AA final offer will not prevent a possible merger, which still faces many hurdles unrelated to labor issues.

Let our negotiators finish their work this week. We will then get our directions from the membership --- you will soon be voting.

BANKRUPTCY COURT MOVES INTO THIRD DAY

AA continued with its 1113 case again in court today. The main AA witness yesterday was Beverly Goulet, the airlines' Chief Restructuring Officer. She faced intense cross examination by the union lawyers.

The carrier's case is expected to continue tomorrow and possibly through the rest of the week. AA continues to testify about its business model and its claim that management wants the airline to emerge as a stand-alone air carrier from bankruptcy.


4-25-12 Bankruptcy Informational Meeting Update To Be Held In DFW
Local 513 (DFW Fleet Local) is holding an informational bankruptcy update meeting this Friday and next Monday.  To see where, please click HERE .

4-25-12 BK Court Update from Tulsa World Newspaper
To read an article by Tulsa staff writer Don Stewart, please click HERE . The article clarifies the timeline for the TWU contract vote.

USAir CEO Doug Parker letter dated 4-20-12 to USAir employees
To see the letter Doug Parker sent to his USAir employees regarding the AA situation, please click HERE .

BK Update Tuesday Apr 24, 2012 - Vote on AA's Last Offer Coming Soon

(Reuters) - The union representing seven work groups at bankrupt American Airlines will vote starting next week on the carrier's best and final contract offer, with results expected before unions testify in a hearing on the airline's request to void their contract, three sources said on Monday.

American, a unit of AMR Corp, is finalizing the language of the offer, which features fewer job cuts than the 8,500 originally proposed, airline spokesman Bruce Hicks said.

AMR filed for Chapter 11 bankruptcy protection in November, citing labor costs that were higher than its peers. The carrier has about 74,000 full- and part-time workers. The company has said it must cut 13,000 jobs as part of a plan to trim its labor costs by $1.25 billion a year.

The sources, who are close to the talks, said the timing of the vote will yield results around May 14 before the unions make their case in court to block the airlines attempt to scrap their current deals. The sources requested anonymity because the negotiations are confidential.

AMR began making arguments in U.S. Bankruptcy Court in Manhattan supporting its request.

The proposal would be sent directly to the workers, an unusual step because unions frequently bless an offer as a "tentative agreement" before submitting it for a vote. AMR has yet to reach deals with its pilots unions or flight attendants.

Ratification of the proposals by the TWU work groups would erase the airline's need to end their contracts.

A spokesman for the Transport Workers Union, which represents 26,000 members, declined to comment on the state of negotiations.

(Reporting By Kyle Peterson)


What US Airways has promised American flight attendants
The term sheets that American Airlines unions agreed to with US Airways have started to leak out and Sky Talk got to take a look at what the Phoenix-based carrier promised the American flight attendants.

The proposal includes no furloughs and wage increases throughout the 5-year contract. The pension plan would still be frozen, just as it is under American's proposal to the Association of Professional Flight Attendants. However, there would be automatic 401(k) contributions with no match required for five years.

And then there is this... "Negotiations for a market based contract will take place immediately following a single-carrier certification.  If an agreement cannot be reached within 60 days of the certification the matter will be submitted to final binding arbitration."

American management currently has the exclusive right to file a restructuring plan with the bankruptcy court until late September and the judge could extend that exclusivity period until May. The judge could also terminate that period early if the unsecured creditors committee asks that a better proposal be considered by the court.

Here's the term sheet proposal:

Early Out APFA's proposal accepted

No Furloughs

Wage Increases: 2.5% on effective date.  1.5% annually over next 5 years.

Retirement: Pension plan frozen. Replaced with a 401(k) contribution. Current employees will receive automatic 401(k) contributions for 5 years, with no match requirement.  Contribution levels as follows: 9.9% age 50 +, 6.75% age 40  50, 5.5% age 39  below. At the conclusion of the 5 year period, all FAs would receive a 3% contribution with up to a 5.5% match.

Active Health Benefits: Better than AAs proposed plan

Retiree Health Benefits: Implementation of Voluntary Employee Beneficiary Association (VEBA).

Bidding: Preferential Bidding System (PBS) with our input

Reserve: Incorporate earlier Reserve assignment notification, Add AM/PM Ready Reserve shifts. Allow Reserve pick-up on days off to be paid on top of guarantee. Current reserve rotation will be maintained.

Sequence Pay Protection:  APFA proposal

Schedule Maximum: Minimum of seventy (70) credit hours and a maximum of ninety (90) credit hours per bid period. Flex in the maximum line value by an annual amount of twenty (20) hours, but in no case more than five (5) hours during any given month.

Incentive Pay/Per Diem: Incentive pay eliminated.  Per diem rates increased to: Domestic: $2.00, International: $2.20

International Override: $3.00 per hour for each international leg. Override for deadhead, trip and duty rigs and trips not flown consistent with CBA

Combined Domestic & International Operation

Current Duty Rigs Preserved

Expedited Negotiations for New Contract:  Negotiations for a market based contract will take place immediately following a single-carrier certification.  If an agreement cannot be reached within 60 days of the certification the matter will be submitted to final binding arbitration.

Maintain all other provisions in our current Contract including: Vacation accrual and pay, Current PVDs, Sick hour use and current sick policy, Current Hotel language, ATC/ Code 59, Galley pay

-Andrea Ahles



APFA and TWU Protest AMR Bankruptcy at New York City Courthouse
April 23, 2012

Under cloudy skies this morning, over 700 union members gathered in New York City’s Battery Park to protest American Airlines (AMR) legal motion that seeks to abrogate their collective bargaining agreements. From across the country, flight attendants, fleet service workers, mechanics and others came to New York to voice their personal opposition to the company’s abhorrent request in bankruptcy court.

The Association of Professional Flight Attendants and Transport Workers Union partnered and planned today’s successful rally and protest just a block away from the U.S. Bankruptcy Courthouse. TWU Local 100 based in New York City, was instrumental in securing police permits for today’s event.

Union members distributed t-shirts, signs, buttons and whistles, while safety marshals volunteered directing hundreds of brothers and sisters safely across the street. TWU members from local transit and rail divisions attended in support of their airline division members.

President John Samuelson of TWU Local 100 emceed and introduced speakers, Laura Glading President of the APFA and James C. Little International President of the TWU. A native New Yorker, Glading remarked on the struggles endured by American Airlines employees over the last 12 years, and specifically talked of the tragedy that took place just a few blocks away on September 11, 2001. “We worked hard to overcome that devastating day, we gave our hearts and souls to save this company from bankruptcy in 2003. We sacrificed so much to save this company.” Years of greed have caught up with AMR and brought us all to this point she said.

TWU International President James Little chastised AA’s management team for its mismanagement and not taking care of those who make an airline successful – its people. “Their focus appears to be on themselves and they have drug out negotiations for years knowing they could always file for bankruptcy,” Little said. “In Europe, when a company files for bankruptcy the first thing the court does is remove the management team that put them there, but not here! - No, not here! We gave them our blood, sweat, tears and our money - and this is what we get?”
 
Little believes that TWU, APFA and APA stand a better chance with a possible merger with U.S. Airways because its management team agreed to save thousands of jobs at the three represented work groups. Their business plan would keep TWU members skill level premiums and pay grades intact, rather than have employees downgrade to lower paying classifications. And, many of the cities American Airlines wants to close, U.S. Airways wants to keep open and sees potential growth in many of those locations. Little explained that the TWU will always look at all the alternatives that could benefit the members.

Union employees are angry as hell over management’s squandered costs savings given to them over eight years ago. The savings amount to almost $7 billion dollars today. Now in bankruptcy, their pensions, medical coverage, contractual rights and thousands of good paying jobs are at the mercy of the courts. Over the years, employees could do nothing but watch, as AMR executives arrogantly rewarded themselves with bonuses even when the company was unprofitable. But today they came out in force and sent a message to CEO Tom Horton and the others.

As protesters left Battery Park headed for the federal courthouse, chants began, “Enough is enough,” while whistles blew loudly, and hundreds of members carried signs and American flags flew proudly as they crossed Manhattan city streets.

The protest continued in front of federal bankruptcy court for more than an hour, where members voiced their outrage over the very anti -worker unfair bankruptcy laws the judge is following. These harsh laws basically give the judge one decision - whether or not to terminate and get rid of the labor contracts. This section 1113 legal process, which almost always ends in a favorable ruling for corporations, started at 10 am eastern at the court on the 7th floor in lower Manhattan. The trial is expected to last until earlyJune, with the judge making his ruling by June the 6th.


Member Update 4-23-12
Please keep Brother Roy VanVreeswyk (LAX AMT) in your thoughts and prayers.  Roy recently lost his father.  Any kind words would be appreciated.

4-20-12 Letter from Jim Little
To read the letter from TWU International President Jim Little, please click HERE .
LAX Improvement Project