Heading to #bankruptcy court for Day 4 of #AMR. Company’s HR head Jeff Brundage (who oversees labor issues) will take the stand.
Brundage to argue biz plan maintains base pay rate as much as possible, outsources certain jobs where necessary. #AMR
Brundage concedes what #AMR unions have argued: that biz plan seeks steeper labor cuts than pre-#bankruptcy negotiations. But justifies:
Back then we were just trying to avoid bankruptcy; now we need long-term stability. #AMR
Back at court now, Brundage on the stand but was banished to hallway so judge could discuss scope of testimony w/ lawyers.#AMR
Debate brewing over how deep we can get into details of union negotiations. #AMR
Brundage now discussing how company’s perspective changed after #bankruptcy. #AMR set new goals for labor negotiations.
Before Ch. 11, company was just trying to avoid bankruptcy. trying to “limp along,” Brundage said. Now seeking substantive change.#AMR
Brundage saying #AMR has tried its best to leave employees’ base pay as is.
Brundage now refuting idea that #AMR has taken a “take it or leave it” approach. Saying has only asked for what’s necessary to be viable.
Brundage defends #AMR‘s unwillingness to back off labor reduction targets, saying they are allocated proportionately to each group…
…based on each group’s percentage of total costs for the company.#AMR
Brundage saying other airlines, including United & Delta, did it the same way. #AMR
Union lawyer points out that Brundage explanation doesn’t detail how he reached the underlying ask, just how they allocated them.#AMR
Rob Clayman now starting cross-exam on Brundage for APFA.#AMR
Clayman questioning Brundage over 2003 labor renegotiations. Points out that unions were accommodating, gave #AMR what it needed.
Brundage saying at the time #AMR thought that was good enough for survival, but didn’t realize competitors would use Ch 11 to overhaul costs
Clayman questioning Brundage on certain profit-sharing/pay increase terms within the #AMR biz plan.
Clayman seems to be laying foundation for argument that, if #AMR has capacity to profit-share, why not just reduce projected labor cuts?
but it’s all still a bit opaque… #AMAR
Break time. Judge Lane discussing possibility of going late tonight as they try to cram a bunch more witnesses by end of day tomoro.#AMR
Follow https://twitter.com/#!/nickpbrown on Twitter for updates.. I do not know how long he will be there…