TWU 514’s Recording Secretary
Jay Potter
MRO Americas 2017
Pat Kinnamon, Ray Wilson, and I attended MRO Americas 2017. We attended several sessions including Annual Industry Analysis and Forecast, American Airlines State of the Airline, and The Need for AMT’s. Growing the Next generation.
- MRO spend is expected to grow from 67B to 100B worldwide in the next ten years.
- Engines account for 41% of total spend, Components-22%, and Airframe-14%.
- Forty percent of today’s in-service aircraft will be retired by 2027.
- Next generation aircraft will require less maintenance.
- David Seymour spoke of a “Leap of Faith Revisited” saying he wanted employees to feel valued, regain pride in working for the company. He also spoke on TRUST, having a more engaged and excited workforce.
- The need for highly skilled AMT’s globally will grow to 679,000 mechanics through 2035. In North America the need will be 127,000 mechanics for same period.
- The wage gap between MRO’s and Airlines will continue to narrow.
TAESL Adjustment to Outsourcing
Per our CBA, the company has the right to adjust the outsourcing cap when TAESL closed.
- Article 1.(e) “In the event that the TAESL joint venture shrinks by 25% or more versus the full year 2011 period, or is terminated, the outsourcing limits will be adjusted accordingly. Further adjustments will be made at each additional shrinkage of 25%, or more, versus the full year 2011 period.”
The TWU JCCOW ( Joint Committee on Contracting Out Work) met with labor relations regarding this adjustment. The company proposal to increase the thirty-five percent cap was significant, however our committee did not agree with the company methodology and countered with our own methodology of a proposed adjustment. Labor relations agreed to analyze our proposal and let us know their position moving forward. To date the company has not exceeded the limits of our counter proposal. Per our agreement the company must report the percentage of outsourcing to the TWU in January and July of every year.
- Article 1.(e)(3) The Company will provide the Director of the Air Transport Division, in January and July of each year, a report which indicates the percentage of total Aircraft-related Maintenance work and the percentage of Line Maintenance work that has been contracted out under paragraph (e) above in the prior 12-month period.
Retiree Equity Lawsuit
The 9th Circuit Court of Appeals released a decision on the December 13, 2016 hearing. The full decision is available on the Local 514 website.
The court had to decide whether the TWU decision to distribute the proceeds of the bankruptcy settlement to all of its members unevenly violates its duty of fair representation. On appeal, Retirees argued that the district court erred in dismissing their duty of fair representation claims because TWU’s equity distribution scheme was (1) arbitrary, (2) discriminatory, (3) made in bad faith.
- Was the Union’s action arbitrary?
- The court found: “Therefore we are satisfied that the district court did not err when it held the TWU’s equity distribution scheme was not arbitrary.”
- Was the Union’s action discriminatory?
- The court found: “Based on the facts alleged by retirees and attested to their complaint, we hold that the district court did not err when it found that allegations of discrimination were implausible.”
- Did the Union act in bad faith?
- The court found: “Finally, we agree with Retirees that a union’s decision to buck its own internal procedures may , in some circumstances, support an inference of bad faith. See United Bhs. of Carpenters, 770 F.3d at 852. Here, however, Retirees have failed to put before us any internal rule or policy that TWU violated during the equity distribution process.”
- Conclusion: “The district court did not err when it dismissed Retirees’ allegations that TWU violated its duty of fair representation through conduct that was arbitrary, discriminatory, or dine in bad faith. AFFIRMED.”
The TWU International will have to answer questions regarding what the Retirees (plaintiffs) may have left at their disposal moving forward in regard to any future hearings or appeals.
In addition, I’m sure everyone wants to know when we can expect to receive a check.
We will put out any information as soon as we get a timeline from the International. You can be assured we are asking the questions. The distribution formula or methodology will stay the same.
Solidarity
First, I would like to thank every member who has been wearing the black TWU shirt on Tuesdays and encourage everyone who may not be, to please reconsider. You can get a shirt at the hall or grievance office and start participating in your union, it matters more than you know.
Now is the time, more than ever to put aside any personal differences and grievances from the past and UNITE TOGETHER TODAY to support getting a JCBA done.
While the company is saying how much they want to bring back PRIDE in the employees and regain TRUST, we will yet again be working this Memorial Day. We are the only unionized workgroup at American Airlines and possibly the entire airline industry without parity on Holidays. The time is now to correct our Holiday disparity. Who could have imagined this JCBA would drag out this long; believe me when I say, our Board is just as frustrated as each of you.
It is apparent Mr. Parker is okay with correcting contract disparity for Pilots and Flight Attendants while they have been enjoying all the benefits of their respective CBA’s for several years. Meanwhile our management team continues to be indifferent to the hard working men and women of the TWU. This is just plain WRONG!
CONTRACT NOW!
If you have any questions for me, you can reach me at (918) 845-8059 or jpotter@twumail.org
Fraternally,
Jay Potter
Local 514 Recording Secretary
8 comments for “Local 514 – Recording Secretary Update, May 23, 2017 ”