A Proposal For Change

Decision 2004

Veteran
Mar 12, 2004
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A proposal for change.

After reviewing the current “collaborative modeâ€￾ of the AA and the TWU, I am concerned about our future more than ever.

Even if the $500 Million in profit/savings is reached, that money will simply be applied to the pilots sacred cow pensions or paying off some of the $20+ Billion in airline debt. We will not be sitting across from company negotiators with a mindset of profits.

I think the time has come to ADVOCATE spin-off of Maintenance and Engineering into a subsidiary of AMR.

Think about it, there are huge profits to be made in maintaining aircraft, in fact Burchette and Romano seem to think there is at least $500 Million in the next 18 months.

Well shoot fire fellas, why not demand that we are spun off away from the lack of hedged fuel, the failed "more room throughout coach", value pricing, and management hidden SERP programs. Why not get away from the lack of business plan and focus only on what we do best? Why not charge for placing new galley configurations, overhead bins, and insulation mods, rather than be percieved as an expense to a dinosaur finance department that cannot even calculate our work or bid work properly?

If we are going to become more productive through work rule changes and free ideas programs then lets at least position ourselves where we are bargaining directly for a piece of those gains.

I have FULL confidence that the Aircraft Mechanics at American can produce high quality maintenance, faster, and cheaper than anyone in the business, it would be a shame to not position ourselves to capitalize on these profits at the bargaining table. The current plan leaves you still picking up crumbs after stronger bargaining units in the airline get theirs.

I propose that we attend the next share holders meeting in force and demand that M&E be spun-off. That AMR produce an IPO stock for this new company and that those funds be directly used to upgrade equipment and tooling which the airline never seems to have the money spend on. Each employee of this new company should be given enough stock at start up to insure they buy-in and become owners instead of just employees.

When we reach the bargaining table, we will no longer be splitting the pie with baggage handlers, pilots, and flight attendants. We can fire the inept management and hire and/or promote from within once we convert the management positions into desirable jobs instead of the current good ol’e boy system full of con-artist and liars.

Yes, we can become a profit center instead of a cost center. But we should not be required to share those profits with those that have not earned them when negotiating collective bargaining agreements. We should not have to fund exhuberent Vice-President salaries for services which do not directly related to maintaining aircraft.

How about becoming world class maintenance with our own company instead becoming a cash cow for a mis-managed airline?

If we are going to manage the M&E department for the airline, then we should also own it, and survive or die on our own merits and abilities.

Of course we continue the path of 20 years worth of concessions we have experienced since de-regulation.

Burchette and the TWU would have us believe that the "new collaborative" mode is something never tried before. Ppfffftt, I say, the TWU and AA have been in bed together collaborating for 50 years, and there is nothing new in the plan they present. Under their present plan, we will still be the cash cow, and everyone else shares in all the benefits.

You want us to compete? Then place us directly on the same playing field, with the same overhead as the MRO. Don't leave us hanging where we currently are and claim we are being treatly fairly and equal.

If they want culture change, the quickest and fastest way, is change the company.

Your comments on this matter are welcomed.
 
The spin-off will come in due time in my opinion. Do we really need to speed up the process before we are ready? I don't believe the Brothers and Sister of the rest of AA is going to gain by the changes being proposed.

Lowering costs and increase third party work is a smart idea in todays ever changing environment.
 
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Checking it Out said:
The spin-off will come in due time in my opinion. Do we really need to speed up the process before we are ready?  I don't believe the Brothers and Sister of the rest of AA is going to gain by the changes being proposed.

Lowering costs and increase third party work is a smart idea in todays ever changing environment.
[post="253026"][/post]​


What exactly do we need to do to "be ready"?

You don't have a plan. Except for allow AA and Romano to dictate your future.

Sure CIO, sit and wait until it happens under Bankruptcy so it leaves a bad taste in everyones mouth and appears to be a negative event with no choices.

DO NOT be pro-active and move forward, sit on your duff and wait to react to uncontrollable circumstances, that is the TWU way.

You will sit back and wait until the union is busted and over ran with suck-asses and then try to make the required changes.

Leadership is taking control and admitting the truth.

TWU is reactionary and edits video like the one played from CNN about outsourced work. I notice the AMFA representatives were cut from the video to insure the "brothers and sisters" only saw the part of the CNN report that AA and the TWU wanted them to see. And then they have the nerve to ask us to "trust" them.

I did not hear anything about "spin-off" in the PJP video, or the base conference. All I saw was innuenedo and edited videos trying to manipluate the minds of the workers.

Tell us CIO, why was the CNN video edited and the AMFA Safety and Stanard Reps' removed before showing it at the Tulsa Base Conference? And do you know who the mechanic was in the video and which airline the "obtained documents" showing shoddy third party maintenance were from?

And now, to a story you will only see right here on CNN.  In an effort to save money and possibly stave off bankruptcy, many of the nation's airlines have been sending their maintenance work to outside repairs shops. But are they compromising passenger safety as well? Well, CNN investigative correspondent Drew Griffin has been looking into this and he joins me now with a special investigative report -- Drew.

    DREW GRIFFIN, CNN CORRESPONDENT: Carol, a lot of the airlines would like you to think that this is all just about union workers complaining about lost jobs. The airlines have been saving hundreds of millions of dollars by laying off their own union mechanics and sending the work out. The airlines say their record proves it's a safe practice. But as we found out, it's not just the unions anymore raising warning flags about maintenance on the airplanes you fly.

    (BEGIN VIDEOTAPE)

    GRIFFIN (voice-over): By the numbers, it's the safest way to travel in the United States, but don't tell that to this man.

    UNIDENTIFIED MALE: The public really doesn't know what's going on inside the industry.

    GRIFFIN: He's a senior mechanic with one of the nation's biggest airlines, working at a main hub. He's afraid to tell you his name, his airline or even let us show you his face, because he fears he'll lose his job. But he wants you to know he's afraid for your safety if you fly his airline or any other airline that sends its maintenance work to outside repair shops.

    UNIDENTIFIED MALE: We haven't had a lot catastrophic crashes yet but according to the trend we see, it won't be that long.

    GRIFFIN: Trends to outsourcing maintenance he says are generating serious quality problems, problems supported by these documents obtained by CNN. Record after record of what people throughout the industry agree is shoddy repair work, poor maintenance and even negligence. The head of safety for the largest aircraft mechanics union in the country, Frank Boxsanske calls the records frightening.

   FRANK BOKSANSKE, AIRCRAFT MECHANICS UNION:  And the reports that I see coming in are very serious in nature that I've not seen in my 28 years in the industry.

    GRIFFIN: Why do airlines do it?  It's simple. They are trying to save money. Many outside contractors use non-union mechanics, can focus on specialized work and according to the Air Transport Association, can save airlines hundreds of millions of dollars a year. But that doesn't mean the cheaper work has led to less quality, less safety or less oversight, according to the ATA.

    BASIL BARIMO, AIR TRANSPORT ASSN: So airlines are very careful at making sure that they maintain a safe operation and really there's no distinction statistically when you talk about safety, between work performed within the airline or work performed by a third party maintenance provider.

    GRIFFIN: Outsourcing of specialized maintenance has been going on for more than 30 years, but it has been mostly specialized, like engines going back to the manufacturer.  Now all kinds of work is being sent out by the airlines. Air carriers are outsourcing anywhere from a third to 3/4 of their maintenance to outside companies.

    BARIMO: What you're seeing now is more at the air frame level. It's the airplane itself.

    GRIFFIN: The Air Transport Association says airlines last year lost $8 billion and says the group, trimming maintenance costs has help alleviate some of that economic pressure, without sacrificing safety. But the former head of the National Transportation Safety Board, Jim Hall, says cutting back on maintenance costs is cutting back on safety.

    JIM HALL, FORMER HEAD NTSB: It's one thing to pull back essentially on the -- passing onto the passengers they cost they pay (ph) for tickets or eliminating the pretzels and the nuts. But the nuts and bolts of maintenance you can't ignore.

    GRIFFIN: Hall points to the crash two years ago of a commuter plane in Charlotte, North Carolina, that killed 21, partially blamed on a contractor's failure to properly adjust a cable. Mechanics, Congress, union leaders, two critical reports by the inspector general and even some of the FAA's own inspectors now agree, commercial airliners are not being adequately cared for and the consequences could be tragic.

    (on-camera): And what's more, critics say the Federal Aviation Administration is failing the flying public because they say the FAA inspectors, the watchdogs are incapable of policing this booming industry.

    (voice-over): Why?  According to the inspector general, there just aren't enough of them. What's at stake?  Take a look at documents obtained by CNN. The documents are maintenance reports were prepared by the airlines own maintenance departments and cite dozens of examples of bad work by outside repair companies.  The sub-standard work ranged from a plastic bottle wedged in an aircraft landing gear door to problems with wing flaps, cabin doors and engines.

    The mistakes were later caught and documented by the airlines own mechanics but only after the outside repair shop had given the plane a maintenance release and in many cases after the plane had carried passengers. The documents show that at one flight, an aircraft door wouldn't shut. On another, fuel was leaking into cargo bays, landing gear struts were worn through, hydraulic fluid leaked and wing flaps would not extend. On one airplane, the nose gear was so out of alignment a mechanic wrote the airline was lucky this plane didn't lose control on take off or landing.

    Everyone of the planes cited in these documents had recently been worked on at an outside maintenance facility. Here at Purdue University school of aviation technology, students are taught on the school's own Boeing 737s that safety is the mechanics responsibility and safety is enhanced when skilled technicians oversea each others work.

    Professor Thomas Wild (ph) is showing us an aircraft engine borisco (ph) plug. A mechanic can unscrew the plug and use this small scope to inspect the interior of an engine. According to Wild, the most important part of the inspection is putting the plug back properly. But according to the documents we obtained on two separate flights from San Francisco to Hawaii, the borisco plugs were either missing or in one case simply left hanging with Teflon tape and sealant to try to hold the plug in place.  The crews on both flights reported engine surges, the unexpected racing of an engine in flat.  A mechanic we spoke to called the mistake inexcusable.

    UNIDENTIFIED MALE: You're talking about extremely high pressure, hot air being expelled to the inside coverings or the (INAUDIBLE) of the engine, causing, probably causing a lot of damage inside the (INAUDIBLE) itself.

    GRIFFIN: I just can't believe why an airline would allow this to happen.

    BOKSANSKE: Well, they're going through hard times.  They're practicing risk management. They're taking a chance.

    GRIFFIN: Not so says the Air Transport Association who says the unions are simply worried about their jobs.  Outsourcing work to non-union repair stations has cost thousands of union jobs, but Boksanske says this is not just a labor dispute, but a critical safety issue and he claims, not only the airlines, but also the industry's Federal watchdog.

    BOKSANSKE: The FAA is very, has a critical shortage of (INAUDIBLE) inspectors.

My position is a factual position.


    GRIFFIN: Nick Sabatini is the FAA's administrator for regulation and certification.

    NICK SABATINI, FAA: So the concerns are not substantiated by the facts. The fact is, it is the safest air transportation system in the world. But you know what, we take this business very seriously. If the inspector general thinks that there are issues, then we take those issues very seriously and we follow up.

    GRIFFIN: In fact, Sabatini says, the FAA has already begun changing the way it inspects outsourced maintenance shops and it's increasing the number of those inspections and he also says the agency routinely includes surprise inspections.

    SABATINI: We can make all the unannounced visits we want ad infinitum. There is absolutely no requirement anywhere for those inspectors to announce that they're coming.

    LINDA GOODRICH, FAA'S INSPECTORS UNION: We are lucky to go to each of the facilities once a year.

    GRIFFIN: Not a surprise visit?

    GOODRICH: No. We would love to be able to do surprise visits. It's not possible.

    GRIFFIN: Linda Goodrich is vice president of the Federal union that represents FAA inspectors.

    GOODRICH: You can't just keep cutting away at the safety margin and expect nothing to happen.

    GRIFFIN: For 21 years, Sarah McLeod has run the Aeronautical Repair Station Association, a group that represents about 500 of the 5200 outsource repair stations worldwide.

    SARAH MCLEOD, REPAIR ASSN: Our record indicates that work being done by repair stations either in house maintenance done by repair stations or carrier repair stations or the air carrier themselves, versus work being done by a outsource maintenance provider are no different.

    GRIFFIN: No one in this report could provide complete data comparing in house versus outsourced maintenance, though the inspector general has found the FAA does a much better job watching maintenance at the airlines than it does at outside repair shops.  American Airlines agrees. The company invited us to Fort Worth, Texas, to tell us that it's decided to buck the trend and put more work back in the hands of its own mechanics. When the airline was trying to avoid bankruptcy, the union agreed to wage cuts to keep more of the work in house. About 80 percent of American's work stays with American, including all heavy maintenance.

    DAVID CAMPBELL, AMERICAN AIRLINES: Having control of this highly technical machine, the maintenance of that and the engineering of those products, having that control, we believe gives us greater ability to mitigate safety risks.

    When that airplane goes out the door after I've seen it, (INAUDIBLE) we know what kind of quality has gone into that and we know the workmanship that's gone into it, because we've had it from cradle to grave.

    GRIFFIN: Any day now, the Transportation Department's inspector general is expected to release yet another critical report on poor maintenance and poor Federal oversight of how commercial airlines keep their planes flying.

    (END VIDEOTAPE)

    GRIFFIN: And that report in the hands of congressional oversight members of the transportation committee, is expected to get at least a hearing up on Capitol Hill, but nobody's holding out hope that this trend is going to change.

    LIN: Right, because it really sounds like, short of the conscience of American Airlines setting a trend, that short of an aircraft actually crashing and then being able to trace it to poor maintenance, outsourced maintenance, what incentive do the other airlines really have to follow American's suit.

    GRIFFIN: Unfortunately, that's true, but American is finding that it is actually saving money because a lot of the mechanics that I talked to on the floor said they were having to make repairs again and again and again to planes that would come back in from outside repair shops. So they actually found an economic incentive as well as a safety incentive to keep that work in house and in its certified mechanics and union mechanics.

    LIN: Drew, you travel a lot to work. You get on a airplane. How do you feel about it now?

    GRIFFIN: You know, it is a safe way to fly Carol and they are practicing risk management and so far, it's working but after doing this report, it's certainly in the back of my mind every time I jump onboard.

    LIN: Thanks very much, Drew. Stay safe and good reporting.

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And this

FOR IMMEDIATE RELEASE March 11, 2003





FOR MORE INFORMATION CONTACT:

O.V. Delle-Femine, AMFA National Director
603-527-9212

Frank Boksanske, AMFA National Safety and Standards Director
603-591-7726



AMFA VOICES CONCERN OVER OUTSOURCING

OF AIR CARRIER MAINTENANCE TO REPAIR STATIONS


Laconia, NH – Aircraft Mechanics Fraternal Association National Safety and Standards Director Frank Boksanske presented, on March 5, 2003 a paper, titled "Safety Management and Outsourcing" to the "3rd Aircraft Maintenance Outsourcing Conference" in Zurich, Switzerland facilitated by aviation-industry conferences in London.

Federal regulations governing oversight of U.S. air carriers in the United States was discussed along with the current trend to expedite outsourcing of aircraft maintenance to repair stations in spite of safety concerns voiced by thousands of FAA certified aircraft mechanics.

The events of 911 have created an environment for air carriers to push for the reduction in the cost of aircraft maintenance unparalleled in the history of civil aviation. Ironically, this trend follows the January 2000 crash of Alaska Airlines Flight 261 in California, the February 2000 crash of Emery Worldwide in California, the Swissair MD-11 crash in 1998, and the May 1996 ValuJet crash in the Florida Everglades, to name a few. These accidents were determined by the NTSB to have resulted from a lack of regulatory oversight of repair stations or air carrier maintenance programs.

"Oversight of faulty repairs is the responsibility of the air carrier when an aircraft is sent to a repair station for maintenance, but disclosing of maintenance data by the air carriers to the FAA is voluntary, which raises the question as to how something can be fixed if it appears not to be broken", stated Boksanske.

The Department of Transportation Inspector General’s Office is currently conducting a review into the airlines use of repair stations.

USA Today stated in a March 10th article that the General Accounting Office is launching an investigation into the federal government’s use of thousands of repair stations in the United States and abroad.

According to Boksanske, "Federal Air Regulation Part 145, which regulates repair stations, has been minimally updated since 1962".

AMFA is an independent craft union not affiliated with the AFL-CIO. AMFA currently represents more than 13,000 FAA aircraft certified technicians and related personnel employed at Alaska Airlines, American Trans Air, Atlantic Coast Airlines, Horizon Air, Mesaba Airlines, Northwest Airlines and Southwest Airlines.

For more information, visit AMFA on their web site at www.amfanatl.org.


The TRUTH!

AMFA Safety and Standards Reps were in the CNN report. The TWU reps were NOT!
 
Checking it Out said:
The spin-off will come in due time in my opinion. Do we really need to speed up the process before we are ready?  I don't believe the Brothers and Sister of the rest of AA is going to gain by the changes being proposed.

Lowering costs and increase third party work is a smart idea in todays ever changing environment.
[post="253026"][/post]​


What exactly are we getting back in return for this $500 million concession or shall I say gift to AA? Are other workgroups required to give up $500 million? If AA goes into BK, does this $500 million get subtracted from their next want list?

Now don't say my job because outside of the forgotten TWAers and a few others, everyone else is guaranteed a job per the twu.

When do we get to vote on this $500 million concession package? Why do you sound like the compAAny more then the union?
 
if AA spins off it's maintenance,it will probably go the way SABRE did.That will profit no one but HQ,the folks in Tulsa will in deed be third party
 
AMFAMAN said:
What exactly are we getting back in return for this $500 million concession or shall I say gift to AA? Are other workgroups required to give up $500 million? If AA goes into BK, does this $500 million get subtracted from their next want list?

Nothing. But if AA doesn't get it, look for more outsourced maintenance.


AMFAMAN said:
When do we get to vote on this $500 million concession package? Why do you sound like the compAAny more then the union?
[post="253299"][/post]​

Why should you or anyone else get to vote on whether AA is able to attract $500 million in new maintenance revenue to Tulsa?

And if AA fails to attract the new revenue, why should you be able to vote on whether AA cuts costs in Tulsa?

You get to vote on your contract and changes to it.

You don't get a vote on every decision AA implements. That's for the Board of Directors of AMR.
 
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FWAAA said:
Why should you or anyone else get to vote on whether AA is able to attract $500 million in new maintenance revenue to Tulsa?

And if AA fails to attract the new revenue, why should you be able to vote on whether AA cuts costs in Tulsa?

You get to vote on your contract and changes to it. 

You don't get a vote on every decision AA implements.   That's for the Board of Directors of AMR.
[post="253430"][/post]​


Then tell us why the TWU/AA dog and pony show?

If this is not needing some form a union buy in, or sell out, depending on how you look at it, then whats the big deal and why didn't they do this instead of cutting 50 years of pay and benefits?

Then why didn't the board of directors just do so?

Why spend mega-bucks on Overland Resources Mediation Services?

Why spend mega-bucks making videos, and on the time-clock presentations?

Maybe you are correct and AA Management is just wasting away more cash and time stroking the union bed partners for no reason at all. But that smells amost as bad as 3 day old road kill.
 
FWAAA said:
Nothing. But if AA doesn't get it, look for more outsourced maintenance.
Why should you or anyone else get to vote on whether AA is able to attract $500 million in new maintenance revenue to Tulsa?

And if AA fails to attract the new revenue, why should you be able to vote on whether AA cuts costs in Tulsa?

You get to vote on your contract and changes to it.

You don't get a vote on every decision AA implements. That's for the Board of Directors of AMR.
[post="253430"][/post]​


Baring a BK judge decision on terminating our contract, I am contractually guaranteed a job until 2008 or later. This new revenue comes from the workforce who has greatly increased produtivity since 9/11, now we will be doubling that productivity again with no reward. I am due a vote as my work rules are being changed with AA now being able to terminate me or others on the new guidelines for work performance. The status quo is broken if I am no longer able to use past precedence of grievances for future work performance terminations as will be the case here. If AA wants to work me like a SWA AMT, they should pay me like one.
 
FWAAA said:
Nothing. But if AA doesn't get it, look for more outsourced maintenance.
Why should you or anyone else get to vote on whether AA is able to attract $500 million in new maintenance revenue to Tulsa?

And if AA fails to attract the new revenue, why should you be able to vote on whether AA cuts costs in Tulsa?

You get to vote on your contract and changes to it.

You don't get a vote on every decision AA implements. That's for the Board of Directors of AMR.
[post="253430"][/post]​

I am Union-man. I deserve a vote on whether or not I want to do my job. I also deserve a vote on whether or not my company is allowed to bring in revenue. On my way to work this morning, someone cut me off, and I didn't get to vote on that. I don't think that's fair. My wife left me recently, but she did it without even letting me vote on it. Oh, and my daughter wants to get a tattoo, but she won't let me vote on it. The waitress at the restaurant didn't want to honor my discount card on the alcoholic beverages I consumed, and you know what, I didn't get to vote on that either. I'm calling AMFA. That will solve all my problems.
 
I am a company man, I get to do what my boss tells me to do, without input, without recourse, without vote. I allow my boss to slash my wages, without a vote, slash my job market, without a vote. I rise through the ranks by the value of my a$$ kissing, the company way, not the union way. I follow my CEO through any hoop he holds for me, I value my job, I am a company man. I never question the operations of the company that desires concessions, I am a company man.

I will call my CEO, that will solve all my problems.
 
It is the way many airlines have gone, to spin off their maintenance divisions (either as 100% subsid, or with large shareholding)

CX & HAECO
SQ & SIAEC
LH & LH Teknic
SR & SR Teknic
GA & GMF

Seems to work well. Don't know why US airlines don't
 
peasant said:
Seems to work well. Don't know why US airlines don't
[post="253751"][/post]​

There's one US carrier who did this -- Braniff. When they emerged from bankruptcy in 1984, they did so as two subsidiaries -- Braniff the airline, and their overhaul facilities at Love Field became Dalfort Aviation.

Dalfort was eventually bought out by Singapore Aerospace a few years back, and prompltly shut down a few months later.

Still, they survived 10 years longer than the second incarnation of the airline.

One of the reasons that the other carriers you mention were able to do this is due to the relatively small presence they have in their home countries. No real need to do a lot of line maintenance, and they operate in places where labor isn't exactly a force to be dealt with (aside perhaps from LH & LH Technik).
 
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Obviously what happened in 1984 is NO reason to assume anything in today's market.

There are many things happening today that are much different than 1984.

In 1984, there was some third party maintenance work at Tulsa but not $500 Million. Then Crandall decided we should get out of the third party work and take care of our own fleet due to heavy growth.

Who will get the $500 Million if we are still attached to the Airline at the end of 2006?

Will it fund the Pilot Pension Obligation for that year?

I still say spin-off, with an IPO to generate cash for tooling upgrade, and substantial stock into the employees hands at start-up is the best solution to the current situation and will lead to a long term profit center.
 
Decision 2004 said:
Obviously what happened in 1984 is NO reason to assume anything in today's market.

There are many things happening today that are much different than 1984.

In 1984, there was some third party maintenance work at Tulsa but not $500 Million. Then Crandall decided we should get out of the third party work and take care of our own fleet due to heavy growth.

Who will get the $500 Million if we are still attached to the Airline at the end of 2006?

Will it fund the Pilot Pension Obligation for that year?

I still say spin-off, with an IPO to generate cash for tooling upgrade, and substantial stock into the employees hands at start-up is the best solution to the current situation and will lead to a long term profit center.
[post="253783"][/post]​
why a spin off. Why dont you get your union to gather up enough money to make AA happy and purchase your freedom. Pay your own maintenance bills. lease the buildings from AA and see how far you get. And if your Union wont do it why dont you start a campaign with your fellow co workers and gather the money yourself. I wish you luck
 

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