Management at TULE and at TAESL shared information today regarding workforce adjustments. Details of the adjustments are below.
Today, Base Maintenance announced an effort designed to adjust workforce allocations to changing business needs and some solutions for the workforce adjustment. Concurrently, TAESL, a joint venture between American Airlines and Rolls Royce, announced an adjustment for the AA workforce allocations there. We have developed adjustments and solutions that will allow us to avoid involuntary furloughs. Additionally, those in TULE who prefer to take SIS will be given that opportunity. Details of each plan are below.
In TULE, lines for airframe modifications have reached completion, which reduces staffing needs by 278 employees. Because of a reduction of heavy checks and reduced operation of older fleets, staffing in the component overhaul shop will decline by 32. Engine harvesting has reduced JT8 volumes. This drives a reduction in needs of 89 employees.
As TULE develops itself as a center of excellence for the B737 product, it becomes logical to move a B737 acceptance line from DWH to TULE, operating on a seven-day basis. That move also permits additional focus at DWH on other new aircraft inductions and drop-in aircraft to support the airline. Staffing at DWH will not be impacted by this move. Maintaining five-day coverage at TAESL would have resulted in a staffing reduction of 70 employees. Enhanced seven-day coverage at either location is cost effective, saves jobs, and provides opportunities for our employees. In addition, the increased flexibility provides both organizations the ability to absorb additional work, if necessary.
For TULE, a B737 Acceptance line and a new MD80 Rib Crack line require approximately 28 people. TULE would use the remainder of the reallocated work force to enhance its seven-day operations in a substantial fashion. Enhanced seven-day operations would match the successful, existing operations in Hangar 1/2, with five-day coverage on Monday through Friday and four-day coverage on ten-hour shifts over the weekends. There would be no split weekend coverage. TAESL would employ a four days, ten hours, seven-day coverage plan.
The Stand-in-Stead (SIS) is an option we will use in this process. The SIS is open for TULE ONLY and the SIS window will close on March 10, 2014. SIS is not necessary at TAESL because the enhanced seven-day operations will utilize everyone. Grants for the SIS will occur in April. This is to ensure that all employees who signed up and were granted the SIS would be eligible for the planned American Airlines 2013 profit sharing payout and equity distribution. In addition, those who receive the SIS grant will receive severance benefits, unused vacation payout, and the contractually applicable payout of unused sick leave. The company’s recent enhancements to retiree travel provide benefits previously unavailable to many employees. Employees electing the SIS may also have additional health insurance options available to them through the Affordable Care Act, which may be of greater benefit than traditional COBRA programs.
American Airlines has shared these plans with your TWU leadership. The SIS signup for those interested TULE employees is at new Jetnet > Department > People Reduction Information > TWU Represented Employees > Stand-in-Stead TWU SIS. You may also look at Who’s offering? / Election Form and other information, which is available through various links on the TWU SIS webpage. If you have any questions, please see your supervisor or manager.