AMR Bankruptcy Update for February 24, 2012

TWU Negotiating Committee

This week TWU Negotiators started passing first round counter proposals to the company after hours of relentless study, some of it over the past two weekends. All seven work groups drafted proposals for their respective units, responding to AMRs ask of $390 million dollars in cost savings from TWU represented workers.

The Negotiations Committee wants members to know that we are entrenched in 1113 bankruptcy negotiations, which are by bankruptcy law – concessionary – and not an easy task for any one of your leaders, and of course it is not easy for anyone of you.

Under the bankruptcy law – section 1113, your negotiation teams are required to try and reach a consensual concessionary agreement. The court will weigh in and make a final decision in order to protect the company’s ability to reorganize, if we do not reach a deal during these expedited negotiations.

As we pass our counter proposals, please note that on advice of our attorneys, such specifics, strategically and legally, will not be communicated. We are in the battle of our lives, and it will compromise our strategies before a tentative agreement is reached. Remember however, that International President James Little has assured the membership that they will vote on any tentative agreement reached with AMR, or, in the alternative, they will vote on the company’s last offer.

A brief rundown of our daily negotiations

AMR bankruptcy negotiations begin each morning at Flagship University with a briefing from TWU labor attorney Mark Richard. Richard updates negotiators on the day’s schedule, the progress made, and focuses our work groups on open items that need immediate attention. An afternoon debrief session is held as well, and daily communications are drafted for bankruptcy updates for the membership.

TWU negotiators have access to a fully staffed TWU administrative office, supplied with printers, fax machine, and internet. Another phone line provides conference call capability, and immediate coordination of internal and external communications as needed. TWU staff administrators log specific work group questions for the company into one binder. Other binders catalogue all requests for company documents per work group, and yet another holds all documents the company has provided thus far. To date, negotiators have requested well over 100 important documents from AMR. The company has provided some but not all of these documents. We keep track daily of all requests and follow up to get this material.

Our TWU economists and financial advisors also work from the administrative office when they are not meeting internally with individual work groups. They are experts in many areas. First, they attempt to determine if the company’s cost model is accurate. Next, they provide support to your negotiators in costing out our TWU counter proposals.

Across from the TWU office is one of the four work rooms used by TWU Negotiators. These are break out rooms and are used daily for advisors to give their presentations. The main room has overhead projectors, flip charts and internet access for larger presentations to the entire negotiating committee.

Much of the company provided documentation is accessible only through their own internal Intra-link system. Due to legal confines, much of the material being shared by AMR cannot be published or distributed because of its proprietary nature to their business operation. All TWU negotiators and staff were required to sign confidentiality agreements with AMR prior to February 1st in order to be able to review their business materials. This is standard procedure in bankruptcy cases.

This bankruptcy has put over 65 years of invaluable contract language at risk. Our contracts provided important protections for our members. Your negotiating teams will do what is best for all TWU members. This is a tough challenge, given the fact that these are concessionary negotiations.

The Negotiations Committee wants everyone to know they are working hard to mitigate the job and economic losses to our members outlined in the AMR ask. They are fighting to protect our collective bargaining agreements.

During this process many rumors, inaccurate blogs and misleading information will be found on Facebook and other social media outlets. Please keep this in mind when reading erroneous posts.