All through negotiations we heard Don saying the same BS line about how we all have to work for much much less than our peers or half of us would be gone, thing is half are gone, and we are still working for much much less, especially when you factor in lost holidays and vacation. Please explain the thought process behind the claim that giving up a week of vacation saved jobs. The fact is for every 50 guys that gave up a week it eliminated one more job. So when we had 18,000 mechanics that concessions eliminated over 350 jobs. They were out to give AA anything they wanted, and thanks to the YES voters they succeeded.
Notice how you carefully limit your claims to Airframe Overhaul, and leave out Powerplant, leave out the fact that UA still has a pretty big operation in SFO and so does Delta. Powerplant OH is where the big dollars are spent, thanks to you and your maintenance spend the only thing stopping AA from outsourcing almost all airframe OH is industry capacity, they have no place to send the work.
During bankruptcy the company admitted that they could not farm out all OH, or if they did they would have to pay such a high premium that they would not save any money, they had no intentions on eliminating any more than they did, even if we hadn't agreed to the worst deal in the industry. What you and Don always leave out is that our average hourly labor costs in OH are in fact very low. In fact it was the lowest among all the legacies before 9-11 and remains the lowest cost among all the legacies, even prior to BK , sure TIMCO may be a little lower but Timco builds a profit into that labor and they charge the carrier more than what it costs them, more than what AA pays its in house. In their own words there was plenty of capacity out there to do wide body but narrowbody was "tight".
So in reality AA didn't need concessions from us at all, but Don and Jim made sure they got even more than they asked for, more than any other work group gave because we were the only group that was at the bottom of the industry going into BK, then like the cherry on top he threw in the "maintenance spend" cap instead of hours. Then on top of that we got the absolute worst deal in the company as far as Equity. We were still working for less than 2003 wages and had not received any increases in pay for three years, we did see plenty of increases in what it cost for Medical though, so in other words we took pay cuts. Then we paid three times as much as the pilots paid for Equity, the pilots received 1% of the company for every $23 million in concessions while we paid nearly $69 million for each 1%. The only group that paid more for Equity than we did was Non-union, but they also received annual raises while our rates were frozen, have more vacation and Holidays and sick time than we do and still get profit sharing.
We paid three times more in concessions for equity than the pilots did. Pitiful.
Does anybody know why Don isn't back to work? One would think if he was proud of his handiwork he would be anxious to enjoy the fruits of his efforts.