Transport Workers Union Local 514 » TWU-ATD

ATD Today February 4, 2012

Al Ball — Sat, 04 Feb 2012 21:00:06 +0000

AA Bankruptcy Update
Dear Brothers and Sisters:

As we all know, the AMR bankruptcy has exacerbated an already difficult time for our members. TWU recognizes the anxiety and fear inflicted by their actions on you and your families. Be assured, we are taking all actions possible to protect your job, your wages and benefits.

On Wednesday Feb. 1, AMR announced their restructuring plan, a plan that deals a heavy blow to nearly 9,000 of our members. Their reorganization plan will be evaluated and challenged by our negotiating teams.

AMRs proposed business plan would terminate all existing pension plans, eliminate nearly a third of its maintenance employees at the Tulsa base, and close the Alliance maintenance base in Fort Worth, Texas. Only the Texas Aero Engine Services (TAESL) joint venture with Rolls Royce LTD could remain.

AMR also proposed outsourcing 27 stations that would affect over 4,000 fleet service workers and a variety of other job classifications across the AA system.

In total, the AMR plan will slash at least 13,000 jobs – over 15 percent of its workforce. This is a devastating hit to families already suffering through economic hard times. It is even more troubling for those who gave up so much in 2003 to keep this company from filing bankruptcy.

To counter this unbelievable proposal, the TWUs plan is in full operation. We need you to join us. We all realize that this is the most critical time in our member’s lives and their careers.

Our action plan includes:
Nationally recognized legal counsel specialized in 1113 airline bankruptcy
A team of leading labor attorneys
Expert economists and financial advisors to review AMRs balance sheet
Members mobilization, communication and outreach to business communities
Political and civic leader involvement, locally and nationally
External national media communications plan

We are counting on your support to rally your coworkers, friends and family members. You can help us get the message out – AMRs plan is devastating to working families and our communities. We will continue to update you via the web site, texts and email blasts.

**(AAs Term sheets forDispatch, Fleet Service, Instructors, MCT, Mechanics, Sim Techs, and Storesare posted on the TWU website: http://aa.twu.org/

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AMR Bankruptcy Update – 02-02-2012

Al Ball — Thu, 02 Feb 2012 22:34:13 +0000

Brothers and Sisters,

As we all know, the AMR bankruptcy has exacerbated an already difficult time for our members. TWU recognizes the anxiety and fear inflicted by their actions on you and your families. Be assured, we are taking all actions possible to protect your job, your wages and benefits.

On Wednesday Feb. 1, AMR announced their restructuring plan, a plan that deals a heavy blow to nearly 9,000 of our members. Their reorganization plan will be evaluated and challenged by our negotiating teams.

AMRs proposed business plan would terminate all existing pension plans, eliminate nearly a third of its maintenance employees at the Tulsa base, and close the Alliance maintenance base in Fort Worth, Texas. Only the Texas Aero Engine Services (TAESL) joint venture with Rolls Royce LTD could remain.

AMR also proposed outsourcing 27 stations that would affect over 4,000 fleet service workers and a variety of other job classifications across the AA system.

In total, the AMR plan will slash at least 13,000 jobs – over 15 percent of its workforce. This is a devastating hit to families already suffering through economic hard times. It is even more troubling for those who gave up so much in 2003 to keep this company from filing bankruptcy.
To counter this unbelievable proposal, the TWUs plan is in full operation. We need you to join us. We all realize that this is the most critical time in our member’s lives and their careers.

Our action plan includes:

Nationally recognized legal counsel specialized in 1113 airline bankruptcy
A team of leading labor attorneys
Expert economists and financial advisors to review AMRs balance sheet
Members mobilization, communication and outreach to business communities
Political and civic leader involvement, locally and nationally
External national media communications plan

We are counting on your support to rally your coworkers, friends and family members. You can help us get the message out – AMRs plan is devastating to working families and our communities. We will continue to update you via the web site, texts and email blasts.

AMERICAN AIRLINES 1113(c) PROPOSAL TO TWU: Feb. 2, 2012

Al Ball — Wed, 01 Feb 2012 23:28:36 +0000

Dear Brothers and Sisters,

The following 1113 term sheets were provided to the TWU Negotiating Committees. Although narrow, we will do our best to mitigate the proposals. We are planning to review the Company’s Business plan with our attorneys and the financial analysts hired by President Little. The savings that the Company has proposed is in the form of headcount reduction and work rule changes.

In separate documents, the Company has confirmed their intention to close Alliance Maintenance base over the next 12 to 18 months. They have not made a decision on the TAESL Shop.

Other changes the Company wants to make are proposed to apply to all work groups, such as Health Care Insurance, Sick Leave, and Overtime and Field Trip rules. We will keep you up to date with the most complete and informative information as possible.

Below are the term sheets provided to the TWU Negotiating Committees.

1113(c) Dispatch – AA Proposal 2-1-2012 – PDF
1113(c) FleetService – AA Proposal 2-1-2012 – PDF
1113(c) Instructors – AA Proposal 2-1-2012 – PDF
1113(c) MCT – AA Proposal 2-1-2012 – PDF
1113(c) Mechanics and Related – AA Proposal 2-1-2012 – PDF
1113(c) SimTechs – AA Proposal 2-1-2012 – PDF
1113(c) Stores – AA Proposal 2-1-2012 – PDF

Today’s the day of the bad news at AMR, American Airlines and American Eagle

Al Ball — Wed, 01 Feb 2012 16:40:37 +0000

This from: Dallas News

Here’s what we expect, in general:

Around 10 a.m., chairman, president and CEO Tom Horton will begin describing the company’s business plan for reorganization as he meets with leaders of the Allied Pilots Association, Association of Professional Flight Attendants and Transport Workers Union.

Beverly Goulet, vice president, treasurer and chief restructuring officer, will discuss the plans as well, as will Jeff Brundage, senior vice president of human resources.

When that briefing finishes up around noon or 12:30 p.m., they’ll take a break. Then, American Airlines managers and each union will break off into separate meetings to get further details on what American is proposing for employees represented by those unions.

Separately, American Eagle president and CEO Dan Garton and Goulet will go through the same exercise with the unions that represent American Eagle employees: the Air Line Pilots Association, the Association of Flight Attendants and the TWU.

To repeat our previous predictions, American plans to close the Alliance maintenance base and significantly reduce other maintenance personnel; significantly reduce the number of ground workers; seek more hours each month from pilots and flight attendants; outsource a lot of maintenance and ground work.

We’ve heard a vague number of a 20 percent reduction in headcount. Based on the 80,800 employees as of Sept. 30, that would mean more than 15,000. But don’t rely on that number until the company says something.

We’ve heard from several people that management ranks would be trimmed by 15 percent.

This comes from the Dallas News website.

PBGC files liens on American assets as the carrier didn’t make its full pension payment in Jan.

Al Ball — Tue, 31 Jan 2012 17:41:48 +0000

The Pension Benefit Guaranty Corp. said it has placed liens on some of American Airlines’ assets in Texas and overseas since the carrier did not make its full $100 million pension payment due in January.

The agency said it filed over 70 liens, totalling $91.7 million, on behalf of the four pension plans that American has.

The carrier made only a $6.5 million payment on January 15 instead of its full pension payment. At the time the Fort Worth-based airline said the partial payment allowed the company to preserve its cash during the bankruptcy process.

“That’s what we can do in order to protect the integrity of the ongoing contributions that companies are required to make,” said PBGC director Josh Gotbaum on Tuesday. “It does nothing to change the fact that American is also getting ready to propose that its pension plans be terminated.”

The PBGC, which insures pensions based on employer contributions, has been publicly challenging American to keep its pensions ever since the airline filed for bankruptcy Nov. 29.

The agency said that American has made 37 years of premium payments to PBGC totalling $260 million to cover its pensions in the event the plans would be terminated. Gotbaum said that those payments cover the $9 billion in pension benefits that the PBGC will have to fund if the plans are terminated.

The PBGC estimates that American has $8 billion in assets in its pension plans to fund $18 billion in pension obligations, meaning there is a shortfall of $10 billion. Since the PBGC has maximum pension payouts, about $1 billion of the shortfall will not be covered.

Gotbaum pointed out that American and its labor unions lobbied Congress three years ago to get its pension funding requirements reduced, which Congress granted, reducing American’s obligations by about $1 billion. When American filed for bankruptcy, the company stated it had $4 billion in cash on hand to use during the reorganization process.

“The case, if you will, that 130,000 people to have their pensions killed in order for American to survive is not a strong case,” Gotbaum said.