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American Airlines and Labor Negotiations

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Oil prices v profits
 
- bob@las-AA


when i said that i believe that some older fscs seek the stability of a signed contract instead of perpetual negotiations...the 'stability' part means 6 vc weeks or 9% 401k match are done & dusted in writing, guaranteed, and not seeing the company pull these compensation enhancements during negotiations - due to example, multiple terrorism attacks.

for instance, the nightmare scenario of these fscs. no TA...multiple terrorism attacks...business and tourism fall off a cliff and 6 proposed vc weeks now goes back to 5 proposed weeks and a 9% 401k match goes to 7%.

whether it's 5 or 6 contractual vc weeks, you can always say that bk trumps all.

you took it to explain to us that no labor contract guarantees stability, due to bk law. is the horse pulling a cart full of straw?

i find it outside of the sphere of reality that aa will file for bk in the near/medium future and that is why we ended up talking about dl. bk is a non-factor and shouldn't be factored in any current decision making.

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- you just brought up volatility and instability for reasons to accept whatever the company throws at us now.
 
no one is arguing much of that. yes, optimally, oil would be in a $45-$55 price range for airlines. analysts will tell you that higher oil keeps discipline...no fare wars, outrageous capacity growth...etc. with the consolidation in the airline industry, these positives are only compounded to the good.

this whole debate is about $70 oil and how it will impact our contract negotiations. go back and read the nervousness. my contention is that $70 oil will not break our backs, certainly not the company's backs.

sure, if oil goes to $115 by july, there's a problem.

what if oil settles back to $63?
NYer is right. At $71, a 5 year high, the company has taken notice and expressed that. It will affect negotiations. Dont get me wrong, i wanna kick the can, but a window for a quick contract for twu peeps is closing rapidly.
 
NYer is right. At $71, a 5 year high, the company has taken notice and expressed that. It will affect negotiations. Dont get me wrong, i wanna kick the can, but a window for a quick contract for twu peeps is closing rapidly.

It's closing regardless of the oil prices, for TWU Fleet.
 
NYer is right about what? NYer just posted that $70 oil will not impact our jcba.

As a singular event, no.

But there are many moving parts to this and oil prices coupled with instability elsewhere could create pressure in a Mediation type setting.

That doesn't mean we should accept just anything, but we should have that information as a basis to best determine how to proceed. Aggressively, gingerly or just kick the can, as examples.

What would be the best course to get a "fair contract" depending on the outside forces at the time.
 
NYer:
Will the fuel spike make it more likely the company will contract out the five stations impacted by article 1C?

Josh
 
It's called common sense, over here in SWA land we maintained our scope, Mechanics will go to $51, retro paid back to April first. A 91 million signing bonus to be paid $74 million this year, and $17 million in 2019. We have me too clauses for 401k and medical if any other group gets it. We kept the ETOPS in the 48 states. We got language gain for new maintenance stations that they have to keep them open for 3 years. If they close them they have to give you 1 year notice, and pay you $25,000, plus moving expenses.We also gained carry over of Vacation , we never had that before. By the end of the contract if it passes mechanics would be at $57 an hour topped out. The leads 6 % above that, which I am . Maintenance controllers make out the best. If ratified and they have 6 years seniority or more , they go immediately to $64 an hour. Maintenance Training same pay as leads. Yes they are so terrible to us, that Swampy thinks, but don't look at the surrounding circumstances, hold out for a year or more , for that 2% more.
Thats MX right?
 
NYer:
Will the fuel spike make it more likely the company will contract out the five stations impacted by article 1C?

Josh

I don't think they will contract out those cities (except maybe SJU), ultimately, but it can become a pressure point for a vote before Section 6.
 
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