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March 01, 2013

Does the current MOU eliminate the former “me too” language for comparison of wages, benefits and working conditions for non-union hourly and the non-union salaried and management employees of the Company for all “me too” purposes?

The "me too" was only with AA. If AA remained stand alone the "me too" would stay in effect through its defined expiration.

TWU understood that USAir was not a party to the original "me too”. It was important that we captured some key  " me too " protection in the MOU.  USAir reluctantly agreed to " me too" protection.

The TWU reserved its right “to maintain and/or assert a claim in regard to American’s other CBAs (per the “me too” letters) with APA and APFA as well as the other non-union groups through December 19, 2012.”  (That is the date the court approved the last 1113 CBA).  Additionally, this right also applies toward any new agreement entered into between American and APA or APFA between that date and prior to the Merger.

In short, the “me too” provision is maintained for TWU employees with regard to all groups to December 19, 2012;  and after that date to  the other unionized work groups at AA . At the time of merger the "me too" will no longer apply at all.  
 
What is the difference between the earlier “me too” provision and the provisions that remain currently under the MOU?

Read all the Questions and Answers

February 14, 2013

Labor played a key role in enabling the historic merger between US Airways and American, which will create the largest airline in the world.

In fact, the turning point in the merger effort may have come on April 20, 2012 when US Airways said it had gathered support from American’s three major unions for its effort to merge with American. The deal was first reported by TheStreet. Union backing became the key underpinning for the US Airways merger effort, initially opposed by AMR management.

Read the rest of the story

February 13, 2013

What does the Merger announcement mean for our TWU members?

TWU work groups will continue to operate under the American Airlines collective bargaining agreements.

The Memorandum of Understanding (MOU) negotiated last month with American Airlines and US Airways will provide a wage increase of 4.3 percent over and above previously negotiated contract agreements for TWU represented crafts or classes, effective immediately upon the U.S. Bankruptcy Court approval of the merger and a plan of reorganization.

In addition, per the MOU, the equity grant and other contract settlement terms, as approved by the bankruptcy court, will be honored.

Download a PDF copy here.

February 11, 2013

QUESTION: The IBT has said, in a letter dated February 6, 2012, that “Under the Settlement Agreement that ended American Airlines’ concessionary negotiations with the TWU, American mechanics and related employees are to receive 4.8 percent of the total equity in American….that is allotted to a certain class of unsecured creditors.” They further state that “If the IBT replaces the TWU, the IBT will hold and distribute that equity stake….” Are the statements by IBT about the equity true?

February 08, 2013

(Reuters) AMR Corp (AAMRQ.PK) creditors plan to meet on Monday to potentially vote on a merger agreement between the bankrupt parent of American Airlines and US Airways Group Inc (LCC.N), several people familiar with the matter said.

The two airlines are working to finalize an agreement over the weekend so the board of each company could also meet to vote on the deal on February 11, the same day when AMR's unsecured creditors committee is scheduled to convene, the people said.

If the parties meet this potential timetable - as currently envisioned but seen as aggressive - a merger agreement could come as soon as Tuesday, the people said, asking not to be identified because the matter is not public.

February 08, 2013

(Dallas Morning News Airline Biz Blog) The three unions representing American Eagle’s employees asked the U.S. Bankruptcy Court to delay a deal in which competitor Republic Airlines would operate jets under the American Eagle brand.

The deal, signed Jan. 23, would have Republic Airlines operate 76-seat jets to feed American Airlines flights, primarily into and out of Chicago’s O’Hare International Airport. The initial deal involves 53 jets, although Republic could acquire another 47 to operate on American’s behalf in the 15-year deal.

The Association of Flight Attendants, the Transport Workers Union and Air Line Pilots Association filed by their objections before the 4 p.m. EDT deadline to respond to the AMR motion. U.S. Bankruptcy Judge Sean Lane is scheduled to consider the matter Thursday, Feb. 14.

February 08, 2013

(Bloomberg) US Airways Group Inc.’s merger talks with bankrupt American Airlines are intensifying as the sides try to agree on control of a combined company before confidentiality accords expire next week, people familiar with the matter said.

No decisions have been made on how ownership would be split between creditors of American parent AMR Corp. and US Airways investors or who would lead the carrier, said four of the people, who asked not to be identified because the discussions are private.

A deal would create the world’s largest airline, vaulting it past the rivals that eclipsed American amid a consolidation wave during the past decade. A combined carrier would be valued at almost $13.1 billion, according to Dan McKenzie, a Buckingham Research Group Inc. analyst in New York.

February 04, 2013

PAY ISSUES

1. Was profit sharing eliminated? If so, what was it replaced by?

We eliminated profit sharing and replaced with a base pay increase that is substantially more valuable to our members. Profit sharing is a one-time bonus pay conditioned on profitability. It is not base pay which is a permanent part of compensation. We have not received any such profit "bonuses" since at least 2000, because AA has not been profitable since then US Airways strongly resisted agreeing to continuation of profit sharing because it does not provide such a program for most of its own employees. Under the circumstances, it was obvious that guaranteed pay raises, instead of variable non recurring bonuses, made better sense. This was underscored that we faced a one time, quickly closing, window to negotiate this deal before a decision was made in court on a possible merger. We seized the moment to get you real pay instead of dollars that may never come.  

January 31, 2013

There has been a question raised by some members about whether the trade off of profit sharing for the 4.3% base pay increase was a good deal. It's been claimed that the 4.3% raise is not worth as much as the so called 5% profit sharing program.

No profit sharing program has put a cent in our members’ pockets in 12 years. This is because AA hasn’t made a profit since 2000. To put it simply, the TWU gave up nothing in order to get our members a significant raise.

5% profit sharing does not mean a 5% pay raise. Under the program, if the company earns a profit each year, 5% of that profit will be distributed among the employees as a lump sum. Even if the company earns a billion dollars, 5% of profit sharing would be $50 million, and would produce a onetime bonus payment to the average TWU member of about $625. Compare this to the 4.3% GUARANTEED ANNUAL INCREASE THAT PAYS (AMTs) $1.20 per hour, or over $2,500 per year. Also remember that in order for a member to receive the same profit sharing payment the following year, the company would AGAIN have to earn a huge profit. In the meantime, the 4.3% pay increase is always there, compounding as new percentage increases are added each year and also compounding the value of overtime and 401k payments.

FACTS COUNT
 

Read the Letter Regarding the MOU from Robert Gless

Read the Memo from John Donnelly

AMR Bankruptcy Update
January 28, 2013

TWU President Announces New Merger Transition Agreement For TWU Workers at American Airlines.  Ground Workers Could Get an Immediate 4.3 Percent Raise if American Merges with US Airways.  The Memorandum of Understanding explains the details.  Read the MOU here.

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