American Airlines and Labor Negotiations

[WeAAsles]

The Sky's not falling it just makes it easier for the company to not give as much money. Especially if they screwed up and did not hedge fuel.

There are already pretty much set market rates that the Company will apply. They’re never going to go much above them and they can hold out for a pretty long time too if our Negotiators are being unreasonable as you yourself went through.

If overly high Oil prices continued to be a norm then sure the bottom line of the Airlines will begin to suffer. But we’re also no longer in the days when OPEC had a tight grip on where prices would go.

And there are also multiple avenues available to the Airlines to control costs still besides just Labor expenses (What do you think those Bankruptcies were actually for)

https://www.google.com/amp/s/www.bl...e-ally-europe-takes-a-stand-on-trade-and-iran

 

[OldGuy@AA]

Yes. I agree. With the rising fuel cost the co. will use that to their advantage big time. MM, I hate sat it but if you guys do not get something soon it may very well be a long, long time. This is a very bad timing for the rise of fuel cost as you guys are pretty close to having something.

We are nowhere near a conclusion to this.

 

[B737 driver]

There are already pretty much set market rates that the Company will apply. They’re never going to go much above them and they can hold out for a pretty long time too if our Negotiators are being unreasonable as you yourself went through.

If overly high Oil prices continued to be a norm then sure the bottom line of the Airlines will begin to suffer. But we’re also no longer in the days when OPEC had a tight grip on where prices would go.

And there are also multiple avenues available to the Airlines to control costs still besides just Labor expenses (What do you think those Bankruptcies were actually for)

https://www.google.com/amp/s/www.bl...e-ally-europe-takes-a-stand-on-trade-and-iran

The TWU/ IAM is not stupid weazz they have negotiated alot more contracts than AMFA they will not go forever like we did, and who knows how our vote will come out. Still don't have a T/A a month later. They will drive to the market rates, probably 3% above Delta, get some stuff you lost in bankruptcy and call it a day. Now only you guys can decide if it is good enough.

 

[WeAAsles]

The TWU/ IAM is not stupid weazz they have negotiated alot more contracts than AMFA they will not go forever like we did, and who knows how our vote will come out. Still don't have a T/A a month later. They will drive to the market rates, probably 3% above Delta, get some stuff you lost in bankruptcy and call it a day. Now only you guys can decide if it is good enough.

Oh no driver. Doesn’t matter from what everyone is saying here. Even if they’re up to the Economic Articles we still got years and years to go and all of our Negotiators are abject Morons including all of their Lawyers and Economists.

Ok.

 

[NYer]

We are nowhere near a conclusion to this.

Either we're voting in the next 3 months or we'll be in Section 6 for at least a couple of years. IMO.

 

[bob@las-AA]

Bob when are you going to put out your detailed breakdown summation of why if it was released as a TA as stated it would pass?

What’s the point of putting anything out if it has a strong likelihood of failure.

Strong chance of failure is only your opinion, and name one contract that has been defeated because it was abominable. I’m not at my desk, but when time allows I will do that.

 

[WeAAsles]

Strong chance of failure is only your opinion, and name one contract that has been defeated because it was abominable. I’m not at my desk, but when time allows I will do that.

Would you consider a 93% NO Vote only 2 years ago to be abominable Bob?

https://www.teamstersunited.org/united_airline_mechanics_say_hell_no_to_concessions

 

[Tim Nelson]

Either we're voting in the next 3 months or we'll be in Section 6 for at least a couple of years. IMO.

If Sito doesn't counter the airline offer {As Sito said the "Take it or leave it"] then look for the company to play SEVERE hardball. I've been told by fly that the company is NOT the least interested in negotiating against it's last offer. In other words, the Association has to respond and counter. Otherwise, gloves come off according to Fly. This happened last year when Sito claimed he threw the company July offer in the trashcan where it belonged (TWU convention speech) but he was forced to take it out of the trash and counter, which he did, and things moved forward. But were then blocked by the 'new election' announcement. Now that we are in a similar situation where Sito's election was NOT certified and it appears a date of April 2019 is likely (Could be sooner), the is stalling again.

So, NYer, I think 3 months is being pretty hopeful. Sito and Alex would rather refuse to make the right calls and instead copy and paste love letters blasting Johnson. Nothing is accomplished from their continue name calling.

This goose is cooked and it will be section 6 and it will be a more aggressive company, according to Fly. It may be more than just the 12 LGA 170 flights and the 25 CLT catering flights next time. Could be half of PHL if the company has had enough of Sito babble and it wishes to just make the 170 work go away in to the hands of envoy or a contractor.
TWU needs to be listening as well. It has 5 stations on the line.

All should be taken as third hand hearsay and/or for entertainment value only.

 

[NYer]

...I think 3 months is being pretty hopeful. This goose is cooked and it will be section 6 and it will be a more aggressive company, according to Fly...

All should be taken as third hand hearsay and/or for entertainment value only.

It's certainly possible for nothing to happen until Section 6 but, to me, it seems the airline is preparing itself for one last effort to get something before Section 6.

Ultimately, the decision would be whether to put it out or not.

 

[Tim Nelson]

It's certainly possible for nothing to happen until Section 6 but, to me, it seems the airline is preparing itself for one last effort to get something before Section 6.

Ultimately, the decision would be whether to put it out or not.

it is but its not goin to negotiate with itself. The Association is awol and has REFUSED to counter.

 

[swamt]

BTW to you Mechanics who keep saying that the TWU is a Fleet Service Union. Well it’s starting to honestly get on my nerves how all these releases keep ignoring the very people who are supposedly in charge?

I’m not a Mechanic and I don’t have a Contract either.

But, the truth is it IS STILL a fleet union, NOT a mechanics union, period!!!

Part of the argument is not just about getting something, but also trying to keep something.

Agree 100%

We are nowhere near a conclusion to this.

I figured as such. But, I was indicating that there was movement. You guys are exactly where we were at year 4

 

[WeAAsles]

But, the truth is it IS STILL a fleet union, NOT a mechanics union, period.

Actually it’s a Bus and Rail Union first and then it’s a Flight Attendant Union next if you go by numbers. They also represent NASA Fire Fighter, Vegas Card Dealers and a bunch of other people out there including a few different Mechanics.

 

[CremaDiLimone]

View attachment 12810

11816 / 31603 = 37.38% is mainline labor cost for LAA in 2017. Add in fuel and its 56.77% of expenditures.

bob, don't worry about fuel..we're talking wages, salaries & benefits as a percentage of revenues taken in.

for 2017, aa raked in $42.207 billion in revenue. aa spent $11.816 billion on wages/salaries/benefits. that comes to 27.9% of revenues.

southwest example..2017, southwest made $21.171 billion in revenue. southwest spent $7.319 billion on wages/salaries/benefits. that comes to spending around 35% of revenues.

ua was just under 30% for 2017. $37.736 billion in revenues, $11.045 billion on wages/benefits/salaries. around 29.5%.

at 2017 dl, PS ($1.065 billion) is detached from wages ($10.436 billion). 'passenger service' was pegged at $1.067 billion. add them together it's $12.568 billion. dl's revenues came in at $41.244 billion. that comes to apprx. 31% of revenues.

conclusion? aa is stingy. stingy, stingy.

 

[T5towbar]

https://www.bloomberg.com/news/arti...s-to-add-more-seats-in-1-4-billion-sales-push



“This is an airline and an industry that will be profitable in good and bad years.”

“American won’t lay off employees if the 417 efficiency projects it has on tap reveal some parts of the company are overstaffed, Parker said. Options could include attrition, reassigning workers to other jobs or establishing an early retirement plan, he said.

“That’s really important to us,” Parker said in an interview. “We need efficiency, but not if efficiency disrupts progress with our team.”

Notice the phrase "Efficiency Projects" We have heard this corporate speak before. There will be cost cuts coming. Either via reduction of job functions or by job losses. Don't know how many, but if the shareholders have a say, it will be many.

Bank on that...........

 

[WeAAsles]