AMR Bankruptcy Update from President James C. Little

Buck

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TWU AA/AE Bankruptcy Information Articles Detail AMR Bankruptcy Update From President James C. Little May 21, 2012

Brothers and Sisters,

No one ever said this would be easy. The bankruptcy process is complicated. Making matters worse, the bankruptcy laws are designed to protect assets and not people. In this letter, let me bring you up to date on our continuing efforts to fight back and protect all TWU members at American Airlines.

Our goal, from the start, has been to fight smart and to not get boxed into a corner. Even before bankruptcy was declared, we lined-up top bankruptcy lawyers, economists and investment bankers. In November, the minute bankruptcy was announced we had a plan in place. Our lawyers acted immediately on our behalf. Our bankruptcy website, text messages and special emails lit up your screens. We responded to the company’s announcement through demonstrations and media outreach. You may remember our attack on American Airlines (AMR) $30 million dollar London home as just one example.

Earlier this year, we made some progress when we were able to pressure the company, with major help from the PBGC, into freezing rather than terminating our pensions. Through long and difficult negotiations, and by knowing the company better than AMR’s outside advisors, we also were able to reduce the number of jobs to be cut and we succeeded at chipping away at many concessions. Despite these gains, we’re not fooling ourselves; we know that we’re playing against a stacked deck in a painful and unfair process.

I think we’ve done a good job creating options for our members and keeping the company on the defensive. The company lost their unforgiving grip on our futures, when in a surprise move, we announced our support, along with APA and APFA, for a merger with US Airways. The terms we had reached with US Airways put pressure on the company to further change their offer.

Last week, we entered yet another round. Five of our seven bargaining units voted to accept the company’s last offer. Our lawyers announced to the judge that the offers our members accepted serve as a “floor.” Going forward, any overall improvements that can be gained through judge assisted mediation extends to TWU members through the “me too” clauses (that were included in the last offers voted in last week). The “me too” clauses pertain to any potential gains achieved by APA or APFA as well as any gains any TWU represented unit achieves.

Beginning next week, we will enter into 1113 litigation settlement mediation with the company. Judge Sean Lane in an unprecedented move enrolled the assistance of another federal bankruptcy judge, James M. Peck. This court assisted process will be for both our members who rejected the company’s offers so we can try to obtain for them an equitable and ratifiable contract, and for the units that voted “yes,” in order to enforce their "me too" clauses. Judge Lane also moved the court deadline with approval of the debtors from June 6 to June 22.

We have other rounds ahead of us. And, again, we don’t want be boxed into a corner and we want to keep quickly moving along multiple paths that aren’t always predictable. We need to keep our opponents off guard.

The federal bankruptcy judge, James M. Peck who volunteered to assist in this Section 1113 settlement process, has no involvement in the case itself. He is neutral. He also has a full caseload, so scheduling this process is challenging. The pilots and flight attendant unions precede us in these informal mediation steps. In preparation for our turn, we will meet next week in DFW with the leaders of our negotiating teams for all of our titles.

As you can see, this fight is far from over. I want you to know that I will not sign nor move for court approval of the five tentative agreements until the process is complete. After all, that is why our TWU lawyers negotiated these “me too" clauses in the Fleet, GSI, Dispatch, MCT and Sim Tech offers.

We will redouble our efforts on behalf of all of our members and continue to vigorously litigate the Section 1113 case on their behalf. Our fight to obtain better offers must be stronger than ever.

I cannot emphasize enough that if we’re going to prevail it’s important that we remain unified and together through this union. Any division in our ranks only empowers our opponents. Without question, there is strength through unity.

In solidarity,

James C. Little, International President Transport Workers Union of America, AFL-CIO

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This site is not meant to constitute a legal opinion or legal advice, and does not replace independent consultation with your own attorney as each employer and employee's situation is unique.
 
I dont get this me too crap we took the chance voting no. if we get abrogated they get theres, and if we get something a little better cause we sacked up they get some to, that makes no sense they should be stuck with whatr they get and let us fight for what we can get
 
thanks jim for nothing! Its all on are backs again. Listen to our lawyers, why is M&R taking the biggest cost gap?

Sooner or later I believe the M&R groups will seperate from the twu, because as a work group you continue to hold us back and many feel we don't get the respect from AA or the TWU!

I'm sorry those other work groups that voted in there lbo, that you put out there for them to vote on. What you should have done is never have them vote on a lbo, but vote on a CONSENSUAL AGREEMENT your bad!

Now M&R votes down ther lbo, and we are now going to better all the other work groups that excepted there lbo WTF!
 
AMFA Drive Started at AA, this is just another letter of doom.

We vote NO and now we still have the YES voters on the back of the Mechanic and related group.
 
I agree the 'me too' clause just hoses everyone.
Problem is, I don't know of 'any' unions in BK that "didn't' have a "me too" clause.
IIRC, all UAL unions had a "me too" clause.
B) xUT
 
Exactly....M&R exhibits the intestinal fortitude to vote "No"!, and if contractual enhancements are achieved, the "Yes " voters win.

Damn near akin to crossing a picket line. I realize no strike, but we "man up" & vote No in hopes of continuing nego (w/ TWU!?- I know...)w/ AA & any hard fought gains, they get it too.
I get that right???

If that don't tell all M&R all they need to know....
Not that we can't site a whole page full of examples.....
Sign an AMFA card people, for Gods sake. :-/
 
then whats the point of growing balls and voting no. just vote yes and if someone else gets a better deal so do you, its a win win for the yes groups God this sucks to high heaven
 
We need to go find that TWU Coffin that was at the Brady Theater, I want to be the one to put the final nail in it!!!!!
 
You have got to be kidding!!!! There is not a big enough shovel to move that load of crap the Jimmy is selling. Until we change the group who claims to represent us and the group running this company we are stuck in a never ending loop. I say we let AMP and AMFA pitch the merits of their organizations. Lets make a choice going forward that will help us insted of keeping or future enslaved.
 
then whats the point of growing balls and voting no. just vote yes and if someone else gets a better deal so do you, its a win win for the yes groups God this sucks to high heaven
I agree, that pissed me off to no end in the UA BK. But the logic was the FA's and Pilots hold the most power and if they got a better deal, then everyone else did too. Yes voters loves it and management loves it. That's why it's there.
B) xUT
 
Was this "Me too" clause voted on by the membership? Or was it one of those "without further ratification" James C Little backroom deals?

I signed my Yellow AMFA Card!
 
Where is our "me too"?
I found a few things while going through the other non M&R contracts.
Tech Services get 8 holidays. Where is our "me too"?
Simulator Techs get up to 30 days VC. Where is our "me too"?
Fleet Service gets longevity pay. Where is our "me too"?
Many other groups get 100% sick pay. Where is our "me too"?
If there are other TWU groups that get better than us shouldn't we get a "me too" also? Or does the "me too" just go one way?
 
Where is our "me too"?
I found a few things while going through the other non M&R contracts.
Tech Services get 8 holidays. Where is our "me too"?
Simulator Techs get up to 30 days VC. Where is our "me too"?
Fleet Service gets longevity pay. Where is our "me too"?
Many other groups get 100% sick pay. Where is our "me too"?
If there are other TWU groups that get better than us shouldn't we get a "me too" also? Or does the "me too" just go one way?

Excellent List of Questions
 
I agree, that pissed me off to no end in the UA BK. But the logic was the FA's and Pilots hold the most power and if they got a better deal, then everyone else did too. Yes voters loves it and management loves it. That's why it's there.
B) xUT
Yeah but in this situation our own members screw us with the clause
 

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