American Airlines and Labor Negotiations

[dfw gen]

You have to admit the mindset of some,they want zero outsourcing the highest pay,best benefits etc.How is the airline supposed to be competitive?We need to go forward with common sense not emotion.

Years ago a 100 million profit was considered a good year. Get out of the america west beat down mode. They are making billions. Stop justifing short changing yourself. You keep doing that we might make you an honorary twu member. To quote a previous intl rep bobby "lower your expectations" gless.

 

[ALUS78]

Years ago a 100 million profit was considered a good year. Get out of the america west beat down mode. They are making billions. Stop justifing short changing yourself. You keep doing that we might make you an honorary twu member. To quote a previous intl rep bobby "lower your expectations" gless.

So if you owned a business you would pay your employees more and have more employees than your competitors?

 

[2ndGENAMT]

Delta’s Advantage in labor costs
From the 10k filings 2018
Delta Salary and related costs $10,743 (in mill)

AA Salary, Wages, Benefits $12.251 (in mill)

Delta $10,743 \ 89,000 empl. = $120,707 avg salary.

AA $12,251 \ 128,900 empl =$95,042 avg

Gless wanted TWU members only lower their expectations for the internationals benefit. If we want Delta wages headcount has to come down and not just ground workers but across the company.

 

[CremaDiLimone]

BTW What happened to that sup. that went off on the AMT's in that video?
Just curious if anything was done or if the co. just overlooked it in time.

no idea. i believe it was in ord. if i remember, i'll ask....otherwise, maybe someone here knows.

the point here is that aa distanced themselves from his angry comments...yet, the assoc. can't distance itself from angry comments made here or on facebook?

 

[CremaDiLimone]

Don't get me wrong, AA sucks in comparison to DL, and even UA has much improved itself. If AA can still be profitable with the Bozo moves that these idiots make, imagine what the numbers could be with things done differently.
AA has great potential, just needs someone at the top who can tap into it.

agree 100%. the airline is capable of so much more.

Not sure I would call the results disappointing considering the Max grounding the poorly run operations.
It seems this is exactly what the guys and gals in charge want or they would be striving for big improvements.
Now with that said those improvements can come with believing in your employees which I’m not sure they really do,
At least they don’t do a good job of showing it.
But our operations will suffer if the employees don’t believe in what your doing, pretty simple stuff

agree here too...aa missed on the top line, revenues. not much, but still a miss.

since the new aa believes in quantity/volume over quality..and our margins are poor compared to dl & ua - then padding revenues is vital.

this is today's delta:

Premium products and non-ticket sources now comprise 52 percent of Delta's total revenue.

refurbishing the 767s for dl's jfk-california flights is paying off handsomely. we have younger 767s in the desert and flying cubed out small airbuses ord-lax.

premium products and credit card deals are propelling delta.

 

[CremaDiLimone]

Why are "we," who want to protect jobs and get the best of the best in pay and benefits worried about their numbers? Especially compared to other airlines with lower labor expenses.

Seems counter to our interests.

so, if you went to war...you don't want to know anything about your enemy? if you had a disease, you wouldn't want to know you had it? if you went to court, you wouldn't want your attorney to study the case?

you're going to negotiate a contract, you don't know the money situation of the entity you are negotiating with?

would i call aa 'the enemy'? no. have these negotiations been adversarial? yes.

therefore, i want to know what aa is up to. it's profits or losses, it's plans. all of us work for aa, many of us are shareholders.

if aa earned $9 billion in one year, would you still ask for 3% more than delta? numbers only matter when they are red and the company wishes to take?

i can't believe you said that.

 

[CremaDiLimone]

It's hard to find an achievement from mgmt.

wow, gold.

here are some of delta's achievements in 3q19:

Culture and People

• Rewarded Delta people through an additional $517 million in profit sharing accrual and paid $12 million in Shared Rewards, recognizing the performance of Delta's more than 80,000 employees through a busy summer.
• Certified as a Great Place to Work for the fourth consecutive year, with 92% of respondents proud to work at Delta and 90% wanting to work at Delta for a long time, emphasizing the importance of culture as a competitive advantage.
• Announced a 4% base pay increase for eligible ground and flight attendant employees, rewarding the best people in the business for industry-leading performance.

Operational Reliability

• Delivered 202 days of zero mainline cancellations and 115 days of zero system cancellations through the first nine months of the year, an improvement of 12% and 19% respectively versus 2018 (based on Delta internal reporting for flights scheduled systemwide).
• Reached record completion factor through the September quarter on a system and mainline basis, with mainline completion factor of 99.79%.
• Carried an all-time record 55.2 million customers in the September quarter, 6% more than prior year.

Network and Partnerships

• Announced plans for a strategic alliance with LATAM Airlines, combining the strengths of the leading airlines in North and South America that together will be the strongest competitor in five of the top six Latin American markets from the U.S. and serve 435 destinations worldwide.
• Increased equity investment in Hanjin-KAL, the largest shareholder of Korean Air, to 10% demonstrating the airline's commitment to the success of its joint venture with Korean Air, which provides customers with seamless access to a robust trans-Pacific network.
• Announced expanded trans-Atlantic service in 2020, including Boston to Rome, London-Gatwick and Manchester, broadening travel choices for customers across the Atlantic and offering the Delta One experience to customers on trans-Atlantic flights over six and a half hours in 2020.
• Relocated to the new Satellite Terminal at Shanghai Pudong International Airport, creating a more seamless and convenient experience for customers, flying over 1,350 codeshare domestic flights per week to more than 40 cities across China.

Customer Experience and Loyalty

• Debuted a refreshed portfolio of Delta SkyMiles American Express Cards, rewarding our customers in new and innovative ways to elevate the travel experience, with a variety of benefits ranging from double miles on restaurants worldwide, to Delta Sky Club access and one-time guest passes, to earning Medallion status faster.
• Released the latest version of the Fly Delta app, providing customers with an improved travel experience through integrated security wait times in select markets, the option to pre-select meals in Delta One and domestic First Class, seat maps for all Delta and Delta Connection aircraft, and the auto-check-in feature on certain international routes.
• Extended business traveler benefits for customers flying Virgin Atlantic and Aeromexico through Corporate Priority benefits, allowing better seat choice, priority boarding and priority service recovery, further removing seams in the travel experience.

here are some of united's achievements in 3q19:

Operations

• Achieved No. 1 in on-time departures in all hubs where United faces large hub competitors: Denver, Chicago and Los Angeles.
• Completed introduction of ConnectionSaver to all of seven domestic hubs, saving over 35,000 connections in the quarter.

Employees

• Honored with being recognized by search site indeed.com as a "Top 50 Workplace" for 2019.
• Recognized for fourth consecutive year as a top-scoring company and best place to work for disability and inclusion with a perfect score of 100% on the 2019 Disability Equality Index.
• Expects to hire about 8,000 people by the end of 2019.

Network

• Announced 12 new and expanded international routes from Chicago, Denver, New York/Newark and San Francisco including Nice, France; Palermo, Italy; and Curacao.
• Announced nonstop service to Tokyo Haneda with routes from Chicago, Los Angeles, New York/Newark and Washington, D.C., beginning March 28, 2020.
• Resumed daily nonstop service between New York/Newark and Delhi and Mumbai on September 6.

Fleet

• Launched Boeing 767-300ER ultra-premium United Polaris business class configuration on all flights between New York/Newark and London-Heathrow starting Sept. 15, 2019.
• Took delivery of six used Airbus A319 aircraft and nine new Embraer E175 aircraft.

as far as aa in 3q19, i believe i read this achievement:

aa took delivery of 1 new 321neo, made in the usa.

 

[CremaDiLimone]

Yes how dare the company wanting to be competitive with our competitors.

how are we competing with our competitors? who exactly are aa's competitors?

how have we competed in bos and jfk with delta?

delta says, you have phl...thanks, but, no thanks.

 

[CremaDiLimone]

So if you owned a business you would pay your employees more and have more employees than your competitors?

if you have more flights and planes, yes...you'll need more employees.

what is assumed is that you'll make more revenue, due to your greater volume.

 

[ALUS78]

if you have more flights and planes, yes...you'll need more employees.

what is assumed is that you'll make more revenue, due to your greater volume.

Ratios my friend,look at the ratios.Company says will match contracts with any of our competitors....no you say we deserve more.Its a friggin business.

 

[Matt1200]

The company always made a profit since the Merger. That is why Robert Isom was at some negotiations. The Board of Directors are watching their “A” stock drop. I personally feel the Association and company have come to an agreement. The next few weeks is writing every article so they can be ready for a road show by Thanksgiving and vote right before Christmas. IMO

 

[1AA]

The company always made a profit since the Merger. That is why Robert Isom was at some negotiations. The Board of Directors are watching their “A” stock drop. I personally feel the Association and company have come to an agreement. The next few weeks is writing every article so they can be ready for a road show by Thanksgiving and vote right before Christmas. IMO

If true, how convenient after we get our medical done for 2020 and our vacation selections for 2020. It's all obviously planned this way should we have a JCBA before years end.

 

[CremaDiLimone]

Delta’s Advantage in labor costs
From the 10k filings 2018
Delta Salary and related costs $10,743 (in mill)

AA Salary, Wages, Benefits $12.251 (in mill)

Delta $10,743 \ 89,000 empl. = $120,707 avg salary.

AA $12,251 \ 128,900 empl =$95,042 avg

Gless wanted TWU members only lower their expectations for the internationals benefit. If we want Delta wages headcount has to come down and not just ground workers but across the company.

yes, last year delta's salary and related costs were $10.743 billion.

delta's profit sharing costs were $1.301 billion.

combined, a little over $12 billion for delta.

aa paid $175 million into our profit sharing..add both, comes to over $12.4 billion.

 

[NYer]

Delta’s Advantage in labor costs
From the 10k filings 2018
Delta Salary and related costs $10,743 (in mill)

AA Salary, Wages, Benefits $12.251 (in mill)

Delta $10,743 \ 89,000 empl. = $120,707 avg salary.

AA $12,251 \ 128,900 empl =$95,042 avg

Gless wanted TWU members only lower their expectations for the internationals benefit. If we want Delta wages headcount has to come down and not just ground workers but across the company.

This is why I don't understand why we would be arguing about not having the same profits as DL. It's counterproductive. Labor expense is part of the reason they profit less and labor is the one crying about it. Mind boggling.

 

[NYer]

so, if you went to war...you don't want to know anything about your enemy? if you had a disease, you wouldn't want to know you had it? if you went to court, you wouldn't want your attorney to study the case?

you're going to negotiate a contract, you don't know the money situation of the entity you are negotiating with?

would i call aa 'the enemy'? no. have these negotiations been adversarial? yes.

therefore, i want to know what aa is up to. it's profits or losses, it's plans. all of us work for aa, many of us are shareholders.

if aa earned $9 billion in one year, would you still ask for 3% more than delta? numbers only matter when they are red and the company wishes to take?

i can't believe you said that.

Dude. Numbers don't only matter when it's red.

Pay attention to the earning reports coming out from different companies. Notice how stock prices go down because profits don't meet Wall Streets targets. It isn't about making a profit, it's about making the profit Wall Street thinks you should make.

Someone on this forum was complaining about paying .07 a gallon in fuel more than Delta. That was seen as a failure. Well, what do you think Wall Street and the shareholders think about profits being lower than other airlines but expenses higher? What do you think the expectation would be?

If you want to analyze that stuff try to do it without inserting yourself. Look at what the expectation around you is. The Executives of all corporations have a legal obligation to the shareholders, not the employees or the public.

Corporate America is about maximizing profits & shareholders returns and doing it quarter after quarter. That's what we're fighting against.