As for Fleet Service, it seems they took and read the book that US wrote, as it seems almost identical the cuts they want from the ramp at AA: It's a sad day for all involved TWU
Fleet Service Clerks: Our Approach
Our goal is to achieve a consensual agreement with our TWU-represented Fleet Service Clerks that allows us to emerge from restructuring as a profitable and successful company. American needs productivity improvements and flexibility to reach savings targets. Our company bears an extraordinary responsibility to do this right, and do this once. The approach we take will be respectful, open and straightforward.
We conducted a comprehensive review of our operations, our competitive position and our financial structure and designed a business plan to allow us to exit restructuring and vigorously compete and win.
All Employee Restructuring Objectives
Reduce employee costs
Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity or relying on outsourcing
Implement universal changes to active and retiree medical for current employees
Remove and relax restrictions on our business
Remove structural barriers that limit flexibility and ultimately growth
Eliminate pension underfunding obligations
Terminate defined benefit plans to eliminate the company's more than $800 million annual funding obligation
Implement new first-dollar profit sharing plan
Overview of Fleet Service Proposals
Targeted Annual, Permanent Cost Savings: $150 Million (20% of the Fleet Service Clerks' total cost)
Reduce workforce by potentially 40 percent, approximately 4,200 positions
Outsource certain fleet service clerk functions, including dayline cabin cleaning, fueling and cargo handling
Outsource station staffing at airports with fewer than 20 departures/day
Eliminate the ASM cap
Reduce max vacation by one week
Eliminate system and station protection
Establish a five-year recall right limit for furloughees
Rationale
Successful restructuring goes beyond competitive benchmarking. Any previous estimates of our employee cost gap aren't relevant to our current situation. We are facing a far different challenge in the restructuring process, one that requires that we get to a cost and operational structure that allows us to successfully implement our business plan.
Our goal was to make fundamental changes to the Airport Services operation necessary for a long-term sustainable cost structure, while continuing to maintain Fleet Service Clerks' competitive base pay rates.
Outsourcing work where it can be done cost effectively allows us to preserve base pay rates and focus our resources on our largest and most important markets.
Eliminating the ASM cap from all TWU contracts will give American the ability to optimize its network and schedule. Removing the cap allows us to improve the use of our regional network by allowing mainline jets to be redeployed for new opportunities and to place smaller jets on lower demand flights.
