The TWU Equity Distribution Committee has completed its work of developing TWU’s plan for distribution of the equity TWU will received once American Airlines emerges from bankruptcy. After consideration of the input provided by members at the road show meetings, as well as the comments received by mail and email, the Committee re-affirmed the outline of the draft Plan that was described at the road show meetings, with some minor adjustments. The Presidents Council approved the recommendation of the Equity Committee. The principal change is that Title II Cabin Cleaners/Utility Persons, whose classifications were eliminated during the eligibility period and had no ability to exercise their seniority to another position in the company, will be eligible to participate in the equity distribution. The Committee has now finalized the TWU Equity Distribution Plan. A copy of the Plan and a revised Power Point which also contains illustrative examples showing how the distribution formulas would work in hypothetical cases are both available below.
It appears that TWU’s advocacy concerning American’s plans regarding when and how shares are liquidated to pay withholding taxes and when employees will be able to sell shares has been successful. American recently advised TWU representatives that shares should be able to be sold on the day of allocation or the day after. And the withholding tax liability will likely be fixed at the time the shares are issued, or the value of the shares and the tax liability will both be averaged over a period of time so employees do not bear the risk of a fixed tax liability in the event the share price declines.
The next step in the process will be that persons who were American Airlines employees represented by TWU on November 29, 2011, and current American Airlines employees who are represented by TWU will soon receive a Notice from TWU by mail regarding their eligibility to participate in the equity distribution. The Notice will also describe the payroll data TWU has received from American about each employee on such matters as their years of service, craft/class, status as full time or part time on November 29, 2011 and whether they were on payroll or approved leave on November 29, 2011 and on July 26, 2013. Anyone who was a TWU represented employee on payroll, approved leave or furlough on November 29, 2011 or July 26, 2013 who does not receive a notice regarding their eligibility to participate in the equity distribution and payroll information by August 15, 2013 should write to the TWU Equity Distribution Committee at the following address:
TWU Equity Distribution Appeals Committee
c/o The Labor Bureau, Inc.
1420 King Street, Suite 500
Alexandria, VA 22314
Anyone in that situation should also notify his/her local President, but must contact the Committee if they believe they should have received a Notice.
The Notice will also provide information regarding the Equity Distribution Plan appeals process, as well as forms for appeals and provision of corrections of payroll data. Appeals challenging eligibility determinations and corrections to payroll data are due thirty days after the notices are issued and they should be sent to the address above. Appeals concerning the shares allocated to them are due thirty days after issuance of the shares and should be sent to the same address.
A sample copy of the Notice, with the necessary forms to appeal, and sample notifications concerning employee eligibility are available below.
American will soon be notifying employees telling them that they will need to fill out IRS W-8 or W-9 forms. Completion of these forms is necessary to avoid additional withholding taxes (called back-up withholding). To complete these forms employees will certify that he/she is not subject to back-up withholding, and provide basic identifying information. American will provide more details on this in the next two weeks.
On behalf of the TWU Equity Distribution Committee
Donald M. Videtich
Deputy Director Air Transport Division
AA System Coordinator
Transport Workers Union of America, AFL-CIO