NMB TWU Mediation Update


The Transport Workers Union said it won't be asking for a release into a 30-day cooling-off period until Thursday at least.

The TWU's statement:

NMB Board Member Linda Puchala has asked the TWU and its representatives gathered in Washington today to hold off filing for release from mediation until at least March 11. An announcement had been planned for today.

The union is honoring her request.

The TWU will have further information this Thursday.

From the Ground Up Spring 2010


Read the Transport Workers Union Supplement From the Ground Up here.

Technical Specialists Update - 02/24/10

Mediator: Jack Kane

Technical Specialist Negotiating Committee: Howard McKinney, Gary Moffitt, Steve Luis, and Don Videtich

AA Negotiating Committee: Jim Weel and Bob Dubreuil and John Shelburg.

The company originally presented an outline of proposal to resolve outstanding articles. The outline was just that, an outline, and lacked specific details and contractual language. In fact the proposal raised more questions than answers. It was the opinion that the presented outline lacked the necessary substance to be considered an actual proposal. The company agreed to convert the outline into full text contractual language.

During that recess mediator Kane briefed the Union on National Mediation Board processes under the Railway Labor Act. We were informed that the term “impasse” is frequently misused. Under the RLA parties are required to make every reasonable effort to bargain until an “amicable agreement can be reached.” This can go on almost indefinitely and the determinations of the NMB are greatly deferred to by Federal courts. The NMB does not technically declare an “impasse”, it determines when an amicable agreement cannot be reached, once that is determined a proffer of binding arbitration is given (which has to be voluntarily accepted by both sides) once binding arbitration is refused that triggers a 30-day cooling off period.

At anytime a Presidential Emergency Board may be requested by the NMB to investigate and report on the dispute making recommendations that it deems appropriate. The President will appoint the board members of the PEB.  Once the PEB is formed this continues the “status quo” to remain under the amendable agreement, there is a 30 day period to form the PEB and issue their report, although that 30 day period is often extended to finalize the report. Once the PEB issues their report that starts another 30 day cooling off. Congress may then intervene and implement the recommendations of the PEB, or compel arbitration, or request special panels.

The parties are; of course, free to reach an agreement at any time during this process. At the end of any cooling off period either party is free to engage in self help, including strikes, imposed agreements etc. During self-help the company can impose a contract.

The Company Proposal, Major Points

Article 3 – Hours of Work
Revert to 2001 contract language with 6 on/3 off-8.3 hour day

Union Position
The membership likes the current 4 on/3 off-10 hour day, the company has yet to offer a financial incentive that would give the membership reason to change from the current schedule

Article 4 - Compensation

  • DOS, 3% Lump Sum
  • DOS + 12, 3% Lump Sum
  • DOS + 24, 2% Lump Sum
  • DOS + 36, 2% Lump Sum
  • Develop Variable Compensation in addition to lump sums and base hourly rates

Union Position
The total value over all four years of this proposal is approximately $6600.00. We took a 16.6% reduction in pay to save the company from bankruptcy in 2003. When the lost holidays and the reduction of the holiday rate of pay are factored into the equation we have been loosing approximately $8000.00 per year since 2003. The company proposal does not even make up for one year worth of lost pay. Furthermore this FOUR YEAR proposal will have us earning less per hour when it finally become amendable in 2014 than we were earning in 2001, 13 years without a significant structured increase is far too long. Additionally our industry analysis confirms we are approximately $10.00 per hour below industry standard, the company proposal does nothing to close that gap whatsoever. Had we not sacrificed in 2003 and had we maintained the rate of increase in the 2001 contract we would be at industry standard for our profession.

Article 7 - Holidays

  • Add 2 in 2010 (total 7)
  • Add 1 additional 2011 (total 8)
  • Automatically required to work

Union Position
The industry standard, even amongst those carriers that have come out of bankruptcy, is ten holidays per year. AA management receives ten holidays per year. We are seeking parity with the industry and parity with other AA employees who did not sacrifice holidays in 2003.

Article 8 - Vacation

  • Employees less than ten years may accrue 80 hours

Union Position
We seek reversion to the 2001 contractual accrual rate; this would bring us to parity with the industry and parity with other AA employees who did not sacrifice vacation days in 2003.

Article 34 – Sick Leave

  • 2010, increase from 5 days to 6 days, credited for use in 2011
  • 2011, increase from 6 days to 8 days, credited for use in 2012

Union Position
We seek revision to the 2001 contractual accrual rate; this would bring us to industry parity and parity with AA employees who did not sacrifice sick days in 2003.

Article 40 – Retirement

  • Eliminate defined benefit for new hires
  • New hires automatically enrolled in defined contribution

Union Position
Elimination of the defined benefit plan for new hires flies in the face of one of the central tenants of Unionism: equal benefits for all members. Furthermore, market fluctuations expose the employee to extreme financial risk. Many of you saw you 401k values reduced by up to 50% in 2008, had that investment been your defined contribution plan you would have seen your retirement funds slashed by half. Faced with a contract offering no structured increases, the Union feels its new members cannot afford the risks associated with a defined contribution type retirement plan.

Article 41 – Group Insurance

  • Current retirees, no changes
  • Current employees, refund prefunding and cease contributions
  • Under-65, implement post funding plan in which employee pays up to 25% of premium when the employee starts using the plan, today’s cost is estimated to be $110.00 per person per month, this plan could be modified at will by AA to match management plans
  • Over-65, a company sponsor medigap plan will be made available in lieu of current plan, today’s cost estimated to be between $80.00 and $180.00 per month

Union Position
Faced with a contract that offers no structured increases and no defined benefits for new hires the Union is opposed for any plan that would increase retiree costs and diminish benefits. Furthermore the Union is opposed to any plans that could be unilaterally modified by AA. These benefits are subject to negotiation and any subsequent changes must also be negotiated.

Article 47 –Duration

  • Four years from DOS

Union Position
The Union is seeking a three year agreement effective on May 1, 2008

LOA on Profit Sharing
30% of first 250M
25% of 250M to 500M
20% of >500M

Union Position

The Union appreciates the company’s generous offer on profit sharing and will be glad to take our share of any profits.

>>> To View Company February 24, 2010 Proposal Click Here <<<

Summary
The company and the Union have signed tentative agreements on the following Articles: 1, 2, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 35, 36, 37, 38, 39, 43, 44, 45 and 46. At this time it is the position of the Union that these TAs will stand for the duration of the negotiations.

The company and the Union have reached understandings in principal on the following Articles: 3, 6, 12, 21 and 26. It is the position of the Union that these understandings in principal may be converted to TAs upon satisfactory resolution of all other outstanding articles. In the event that an agreement cannot be reached on compensation, vacation or holidays, or any other outstanding article, any or all of these agreements in principal may be withdrawn or modified by the Union.

The following Articles are still open: 4, 5, 7, 8, 34, 40, 41, 42 and 47.

The Union and the company remain deadlocked over the most significant issues: Pay, Vacation, Holidays, Sick Leave, etc. No breakthroughs took place nor are any expected to take place in the near or foreseeable future.

All full text Tentative Agreements can be viewed at this web-site address: http://aa.twu.org/tentativeagreements/tentative.asp.

Your committee remains dedicated to securing an agreement through traditional negotiation, however, that may not be possible.

Your negotiating committee appreciates your continued patience and support, both of which are essential as we try to secure a work schedule and pay package acceptable to you.

Fraternally,
Howard McKinney
Gary Moffitt

Remember – Tentative Agreements reached during the course of negotiations on one or more articles are not final and binding until agreements are reached on all articles - nothing is final until everything is final.

Stores Negotiations Update - 02/24/10

The Stores Negotiations Committee met in Tulsa on February 22nd and 23rd with AA Management and Federal Mediator Jack Kane. 

As background in the November, 2009 Stores Mediation Session in Chicago comments were made to both the Company and the Union to hypothetically “build a wall” behind both the Company and the Union’s table position. This hypothetical wall would be to prevent either party from regressing on their current table position.

The Company, who had not passed a counterproposal to the Stores group since Mediation started over 1 year ago, finally passed the Stores Negotiating Committee a comprehensive proposal on Monday February 22, 2010. View the February 22, 2010 Company comprehensive proposal to the Stores.

The Stores Committee had hopes that the Company would pass a proposal that would be worthy of consideration to send out to our members. Once again we were disappointed that American Airlines management passed a proposal that is regressive in nature.

A number of additional concessions were sought by the Company. One example is an even greater ASM Cap for Eagle. Initially, the Company had proposed an increase to 8%, now they want an increase to 21.3%. The Company described this need as a way “to keep us from being at an Industry disadvantage”.

Another example in this recent Company proposal would be in Article 8 – Vacations. The 3 D.A.T. (day at a time) vacation days that had been proposed in past proposals, is now off the table. The Company is now proposing that Stock Clerks with less than 5 years seniority would get an extra 5 days vacation. Basically, the Company withdrew an offer to give nearly 1,300 Stock Clerks an additional 3 D.A.T. days a year in order to give 26 Stock Clerks an additional 5 days additional vacation days.

The Company chose not to address any of the Union’s needs in Article 4 – Compensation, Article 5 – Shift Differential, or Article 6 – Overtime. The Company proposed the duration of 4 years from the date of signing (D.O.S.). Therefore, the proposal which does not allow for any structured raises would have Stock Clerks working at Current Wages through the Year 2014.

The Company showed no reconsideration in their attempt to take away current employee’s retiree medical. They also showed no desire to reconsider taking away the Defined Pension for New Hires. The Company’s position is that “they are out of Lock Step with the rest of the Industry” and they are at a “competitive disadvantage”.

Our current agreement has left us at the bottom of the industry in several areas. This proposal would not restore the following to our 2001 levels

  • Sick Days per year – 5 days per year - Least in the Industry
  • Holidays per year - 5days per year – Least in the Industry
  • Vacation Days per year – Stock Clerks gave up 5 days per year in 2003
  • Note In 2003 AA management did not reduce their sick days, holidays, or vacation. 
  • Shift Differential – $0.01/ hour for Afternoon Shift and $0.02/ hour for Midnights, the Industry Standards are $0.51/ hour for Afternoon Shift and $0.58/hour for Midnights

Other new concessions now being sought by the Company include:

  • A TAESL Letter of Agreement which would allow TAESL Employees to be treated as a separate “Type Work” for RIF, Recall or Transfers. (red circle)
  • A DWH Letter of Agreement which would add base work rules to the newly defined Maintenance Base.
  • “Working Together Language” which would change the Voluntary process of Productivity Improvements, to a Mandatory process.
  • And the list goes on.

After reviewing the latest Company Proposal, the Stores Negotiating Committee unanimously rejected American Airlines latest offer and restated our current table position as a formal response.

The Stores Negotiating Committee recognizes these are frustrating and difficult times.  We appreciate your and support as we work towards an agreement. 
As soon as another mediation session is scheduled we will update you.