The former AA/TWU (Early Outs) employees who were excluded from three (3) components of the equity are in fact claiming this equity is theirs. Class action lawsuits have been filed on their behalf.
In preparation to defend against these lawsuits and prevent a possible injunction to halt any further distributions to active members, the International Administrative Committee (IAC), comprised of the top five TWU International officers have increased the reserve to 14%. This increase is to cover any future appeals, administrative cost, legal fees and pay former AA/TWU employees should they prevail in court.
I know that in the spirit of transparency the equity committee and the IAC have issued statements about adjustments which were made concerning the equity distribution. At first the only foreseeable issues were appeals due to attendance, seniority and minor “one off” challenges. They were to be handled by the 5% reserve. When the first lawsuit was filed it was increased to 10%. Now, after detailed review of the facts related to the three lawsuits that have been filed, the IAC has determined that it is both prudent and in the memberships best interest to require the reserve be raised to 14%.
Former AA/TWU employees are currently eligible for two (2) of the five (5) components that make up the Equity Distribution.
- Health Care Premium Grievance Eligible
- B757 Overhaul Grievance Eligible
- Scope / Rule Changes In Court
- Pension Freeze In Court
- Me –Too Agreement In Court
If the former AA/TWU employees were awarded, in court, the remaining three components of the Equity, the approximate value could be more than ten percent of the total equity.
I know there are emotions about the increase of the reserve to 14%, I share them with you, it affects all of us. I am just trying to clarify the Internationals actions.
In Solidarity,
Dale Danker,
President, TWU 514