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On 4/10/2003 1:13:35 PM eolesen wrote:
Given that this was a hard and fast date, why did it take eight weeks from the time the company provided $ amounts and specific contract modifications to get to the point of a TA?
Something more substantial should have been done (and both sides share that responsibility) during early March, rather than waiting until the Apr.15 date was upon us. At the very least, there would have been time to put a second proposal up for vote.
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Eolesen,
The TA was negotiated in less than 8 weeks. Whose fault is it that the company waited until it was too late? I don''t think the unions share in the blame on this one. It looks to me like they conducted themselves pretty responsibly. If things were that bad, why did Mr Carty blow off the first few "active engagement" meetings?
Keep in mind that the APA had been in negotiations since 8/31/01.
Here''s the timeline for the APA:
August 31, 2001 - AA/APA collective bargaining agreement became amendable.
September 11, 2001 - Terrorist attacks against the United States. AMR begins furloughing pilots and other employees.
January 2002 - APA begins regular “monitoring†of AMR financial health to include some non-public data.
June 13, 2002 - Former CFO Tom Horton leaves along with a handful of employees from AMR’s finance department. Replaced by Jeff Campbell.
August 10, 2002 - US Airways seeks bankruptcy protection.
Fall - Build-up toward eventual war with Iraq.
October 2002 - Fall APA Board meeting. APA retains bankruptcy counsel.
October 2002 - Internal APA financial review team begins more detailed examination of AMR’s financial health.
December 2002 - United Airlines seeks bankruptcy protection. UAL pilots accept 29% pay cut.
December 2002 - AMR asks APFA and TWU to defer pay raises; offers to “open the books†on AMR finances.
December 2002 - US Airways negotiates second round of givebacks with employees under threat of liquidation.
January 10, 2003 - APA forms the Financial Analysis and Review Team consisting of KPMG, SH&E, R.W. Mann & Co., and various APA committee members.
January 15, 2003 - APA’s financial review team has first official meeting with counterparts at AMR.
January 16, 2003 - AMR CEO Don Carty announces “Active Engagement†initiative.
January 20, 2003 - First meeting under “Active Engagement†initiative.
January - Buildup to war continues; fuel prices up sharply; “orange alert†causes 3% revenue decline.
January 27, 2003 - Special APA Board meeting to review preliminary results of financial review. Appoints new Negotiating Committee.
January 31, 2003 - US Airways moves to terminate pilot pension plan.
February 7, 2003 - First time AMR sets specific financial targets ($1.8 billion total; $660 million from pilots).
February 15, 2003 - APA retains investment bankers Keilen & Co to assist with negotiations.
February 17, 2003 - UAL moves to terminate labor contracts
February 19, 2003 - APA gets first presentation of comprehensive restructuring plan.
February 24, 2003 - Fall Board meeting. CEO Don Carty addresses APA Board in closed session. States negotiations for debtor-in-possession (DIP) financing underway and some vendors putting AMR on cash basis. Sets a deadline of March 31st for completion of contract negotiations. APA’s financial review team confirms the severity of AMR’s financial health.
March 10, 2003 - First public report that AMR may be searching for DIP financing.
March 14, 2003 - AMR’s financial deterioration accelerates due to war fears. AMR tells all three unions that if tentative agreements are not reached by March 31st and ratified by April 14th, then AMR will immediately file for Chapter 11.
March 20, 2003 - Iraqi was commences.
March 22, 2003 - APA Board meets in extended session to conclude contract negotiations.
March 26, 2003 - UAL reaches tentative agreement with pilots
March 31, 2003 - Under the threat of imminent bankruptcy filing, APA reaches tentative agreement with AMR.