AA and Labor Negotiations-2020

Discussion in 'American Airlines' started by Eagle, Dec 31, 2019.

  1. CremaDiLimone

    CremaDiLimone Veteran

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    from what i read about the bill - commercial airlines will get $25 billion in payroll grants and $25 billion in loans.

    to me, the payroll grants mean there will be no layoffs; at least until aug 31. this was promised by the airlines to secure the grants.

    aa's labor costs were about $12+ billion for all of 2019. looks like all the airlines took a hit in march on labor costs from dramatically lower revenues in march.

    april, may, june, july and august. 5 months. the numbers look right: just for aa - wages and benefits for 42.25% of $12+ billion.

    the govt. has said that a stimulus #4 or #5 in the near future is not ruled out. it's an election year..election year or not, the airlines won't be allowed to fail.

    this fully prepares the airlines for a total 1-2 week shutdown, if necessary. don't think we'd ever see that, probably 1 week at the most, if there is one.

    what do i know? this is the conclusion i have come to.
     
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  2. Kev3188

    Kev3188 Veteran

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    “A self-proclaimed labor leader is spiking the ball...”

    Lol. They misspelled “duly elected AFA President Sara Nelson.”

    Why are 141 peeps so petty?
     
  3. V.O. Reason

    V.O. Reason Senior

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    Do Americans labor cost include the increase from the soon to be passed TA
     
  4. Tim Nelson

    Tim Nelson Veteran

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    #2779 Tim Nelson, Mar 25, 2020 at 9:31 PM
    Last edited: Mar 26, 2020 at 11:57 AM
    Unfortunately, i think delta may have been waiting for our ratification prior to eliminating much of the ramp.
     
  5. CremaDiLimone

    CremaDiLimone Veteran

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    #2780 CremaDiLimone, Mar 25, 2020 at 9:37 PM
    Last edited: Mar 25, 2020 at 9:42 PM
    no, because i have no idea how much it adds per year to aa's labor costs. i understood the deal to be 'worth' $4.2 billion, but not sure if that is in total, after adding in previous wages/benefits, or, an additional $840 million per year addition.

    if you add the $840 million to aa's labor costs and those costs were projected to be $13 billion for 2020..then there is still plenty of money in the payroll grant fund. 42.25% of $13 billion. there's $25 billion for all.
     
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  6. swamt

    swamt Veteran

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    Hey, that sounds like past points after the votes.
     
  7. swamt

    swamt Veteran

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    Unemployment benefits are gaged rather it was within the employees control IF the employee chooses to voluntarily leave, then that is their choice, and very well could be refused to be paid out. The co's are stating that they will not contest any unemployment benefits filings by their employees, but that does NOT mean that your filing will not get rejected as you "chose" a voluntarily action. Think folks.
     
  8. eolesen

    eolesen Veteran

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    I'll post a summary of the Senate Bill that I received over in the Cooler... Short story: no layoffs until after 9/30/2020, and no pay reductions.
     
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  9. Buck

    Buck Veteran
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    Be sure to read the IAM letter concerning the bailout, I smell a rat.
     
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  10. Jester

    Jester Veteran

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    Some Wall Street analysts are stating that if private capital is available, the airlines will go that route instead without being burdened by government controls (and I assume that to mean also furloughing workers, as needed).

    Should additional funds are needed, then either apply for government money (after furloughs) or file in a pre-packaged bankruptcy, and be assured, as it won't be like the GM bankruptcy where CBA's were relatively untouched for current workers.

    Honestly, that's usually how it works where workers' wages and benefits are slashed, and I doubt the Trump Administration would be willing to loan money without re-working CBA's.
     
  11. V.O. Reason

    V.O. Reason Senior

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    According to the IAM the no layoffs is now extended to Sept 30th with some last minute changes to the bill
     
  12. V.O. Reason

    V.O. Reason Senior

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    Ok, again maybe I’m a bit optimistic here but from what I’m reading I believe that with this bill the airlines are going to be ok.
    Remember all the airlines are in the same boat. They have already made the necessary adjustments to schedules, parking aircraft to slow the losses.
    Now they will have the money needed to operate with fewer flights for several more months.
    I don’t see any carrier fling bankruptcy at this point.
    Down the road in a year or so it’s possible if the people don’t come back flying
    This may take longer then after 9/11 but time will tell.
    All the airlines will be a bit smaller after this but I think all will survive to become profitable again
     
  13. dfw gen

    dfw gen Veteran

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    its your story tell it any way you want. personally my opinion is not near as rosy especially for aa
     
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  14. 1AA

    1AA Veteran

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    Just had this sent to me. We will look bad in the eyes of the public through the media. I have a feeling if AA goes through with the agreement if it passes then the government might step in. Honestly it looks bad when you first hear about it. Unless AA can shore up private loans I see roadblocks from the Federal government. You add the past buybacks and equity payouts that AA has been hammered on and now this.

    https://freebeacon.com/latest-news/...ssive-pay-hikes-as-taxpayer-bailout-advances/
     
  15. 1986Mekanic

    1986Mekanic Senior

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    Well, hopefully . no one spent the money before they got it.....
     
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