Of course AA was in a worse situation. AA had a lot more employees than either airline too and really needed about 20% less even with no pandemic. AA did no major merger related staffing cuts like both DL and UA did. AA was letting natural attrition take over that excess but COVID interrupted those plans and forced their hands.
American looking to "right-size" the company and staffing levels for the Fall and 2021
- Thread starter jimntx
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Of course AA was in a worse situation. AA had a lot more employees than either airline too and really needed about 20% less even with no pandemic. AA did no major merger related staffing cuts like both DL and UA did. AA was letting natural attrition take over that excess but COVID interrupted those plans and forced their hands.
a few years back i met an original usair worker in DFW. he was shaking his head when we were bitching he said they did the same thing at usair after the america west merger they purged most management at usair. and they wil do the same thing at american. they have a great opportunity to accomplish the purge. wait util the bankruptcy that will be the finale! and we have the association representing us.
just a side note he did go on to explain that the banks owned equity in both america west and usair and that they forced the merger. the america west team remained because they were most cooperative in the bankruptcy. wall street loved em.....
What I don't get is JetBlue can come up with an agreement to protect their Pilots with "No Layoffs" thru May 2021. Why can't the other airlines do the same? At least thru to the spring to get past all the holidays.
https://finance.yahoo.com/news/jetblue-pilots-union-reach-deal-010724087.html
Then we get this article saying more layoffs will be coming and how bad they are way over staffed. I do get that AA is in the worse position as they were already too fat after the merger(s) were done, but, how did JB come to those terms with their Pilots? And why can't other airlines follow JB's lead here??
https://finance.yahoo.com/news/american-airlines-warns-overstaffed-8-024404611.html
Would be nice to know the details of this agreement and how it was all brought about. If anyone runs across this memo please share...
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eolesen
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- Jul 23, 2003
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That wasn't a merger of equals, it was an acquisition by HP. US was on the verge of extinction and got a lifeline...
They have a quicker road to recovery. No reliance on Europe/Asia/South America, and they also have a simpler fleet and network. They'll be back to a 75% schedule a lot quicker than any of the Big Three.
Opportunity? You don't think we where overstaffed? You don't think we are over staffed now? DP has been very reluctant to lay people off.
Rest assured they have no problem laying off. If there was no government bailout most would be on the street already.
eolesen
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- Jul 23, 2003
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No problem laying off management, but didn't Parker say no layoffs during the lead up to the merger?
Pilots are a completely unique work group due to mandatory retirement and training requirements. AA will not layoff many if any pilots either.
Yea, size has a lot to do with it also. The next few months will get rough as we go. I just hope all can find something to replace until they can get back to work.
Getting even more worried with the uptick in C-19 cases and deaths. Did they open too early? Maybe not. Just wear the mask when around people to help stop the spread. You folks that think there is nothing to worry about needs to start reading up on all the deaths coming in as of lately. People are dying following big gatherings and parties. Alcohol can make folks relax their worries about safe distancing and wearing mask and they are paying for it big time.
1AA
Veteran
This article has been out for a couple days. So let me post the link and highlight one part of DP's quote.
Very concerning when he says this.
What is the intent if he is not targeting the 30% mark or 20,000 total layoffs?
"Parker makes it clear that there won’t necessarily be 20K+ layoffs, as the company will try to work with unions to get creative. "
I see pay cuts and concessions coming again similar to 2003.
We had layoffs and pay cuts in 2003.
Recovery took 17 years for the TWU members. BOHICA all over again.
https://onemileatatime.com/american-airlines-too-many-employees/
Very concerning when he says this.
What is the intent if he is not targeting the 30% mark or 20,000 total layoffs?
"Parker makes it clear that there won’t necessarily be 20K+ layoffs, as the company will try to work with unions to get creative. "
I see pay cuts and concessions coming again similar to 2003.
We had layoffs and pay cuts in 2003.
Recovery took 17 years for the TWU members. BOHICA all over again.
https://onemileatatime.com/american-airlines-too-many-employees/
Kev3188
Veteran
I’m not naive, but I wonder if AA is more interested in using VLOAs, early outs, etc. first.
In an interview Vasa Raju basically said the “old way” (my term) of doing things was out the window, if for no other reason than they need an engaged workforce to recover from this.
In an interview Vasa Raju basically said the “old way” (my term) of doing things was out the window, if for no other reason than they need an engaged workforce to recover from this.
agreed.
the post is very ominous with this:
the author of the article wrote this, quoting parker:
creative solutions that involve voluntary leaves and early-outs.
didn't say anything that involves union wage/benefit concessions.
i can't say i know what will happen. no one can. i wouldn't doubt the company's dream is cutting 10% of labor costs on top of layoffs. that can't happen without two things - the assoc. agreeing to a vote on concessions and the workers voting that in.
i think the post has more to do with amfa vs twu.
the post is very ominous with this:
the author of the article wrote this, quoting parker:
creative solutions that involve voluntary leaves and early-outs.
didn't say anything that involves union wage/benefit concessions.
i can't say i know what will happen. no one can. i wouldn't doubt the company's dream is cutting 10% of labor costs on top of layoffs. that can't happen without two things - the assoc. agreeing to a vote on concessions and the workers voting that in.
i think the post has more to do with amfa vs twu.
Talos
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- Nov 23, 2013
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I agree this could get really ugly. The amount of time it took to get a contract and then this. The company put themselves in a bad spot with the way they handled finances after the merger and will look to make any gains they can. They left the LAA people hanging with an inferior contract which shows they don't care much about employee morale. If the covid situation does not show a light at the end of the tunnel all the airlines will be in a bind, and if one goes the bankruptcy path the others may have to. They may just do an initial layoff and then expand it as needed if things don't improve.
An engaged work force? Thats funny, took them 5 years to negotiate a contract during the most profitable period in aviation history. Wonde how long it will take to help this time?
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