AMR Files 1133 motion

[Birdman]

I need to compare my pay/benefit percentages to my peers and management will not allow that.
I wonder why?

That falls under:
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.
It's called a handicap, you know, when you go golfing with a superior player.

Did you read the part about OSM's in the hangar?
The last 450 layed off AMT's will be those OSM's in the hangar? How will it all pan out?

Imagine a topped out AMT at $32.20 an hour losing $10.15 and hour working in the same hangar, same dock, maybe same crew. Just another plan to guarantee failure.

 

[Frank Szabo]

... snip

Imagine a topped out AMT at $32.20 an hour losing $10.15 and hour working in the same hangar, same dock, maybe same crew. Just another plan to guarantee failure.

Failure, perhaps, but it looks good on the charts and multi-colored graphs Centrepork is paying millions to have drawn for them - didn't any of those Texas people take an art class in school?

The high-priced consultants and others probably never had to actually work in their lives and couldn't begin to understand what this "incentive package" is going to do to the company - looks good on paper, though.

 

[FWAAA]

There is a ton of information in the 6500 page brief; perhaps not every detail everyone would like, but a lot of info nonetheless:

http://www.amrcaseinfo.com/pdflib/2041_15463.pdf

Unredacted documents were provided to counsel for each of the unions.

 

[Buck]

There is a ton of information in the 6500 page brief; perhaps not every detail everyone would like, but a lot of info nonetheless:

http://www.amrcaseinfo.com/pdflib/2041_15463.pdf

Unredacted documents were provided to counsel for each of the unions.

So I can contact my union local for any of those documents?

 

[TWU informer]

1113c Motion Main Document Page 92

American recognizes that it cannot achieve long term success without the enthusiastic
support of and commitment from its employees. Thus, even if rejection is granted, American
intends to continue to negotiate with each union to reach new consensual agreements.

1113c Motion Main Document Page 92

In this case, American has demonstrated by its “conduct . . . an honest purpose to arrive
at an agreement as the result of the bargaining process.” In re Blue Diamond Coal Co., 131 B.R.
633, 646 (Bankr. E.D. Tenn 1991) (§1113 case). Few employers have studied its competitive
situation as completely as has American, few employers have shared more information with their
Unions in an effort to reach agreement as has American, and few employers have demonstrated a
more genuine desire to find common solutions than has American. See Sol-Sieff Produce Co., 82
B.R. at 795; Bowen Enters., Inc., 196 B.R. at 745 (“debtor genuinely sought to reach agreement
at the bargaining sessions and seriously attempted to negotiate reasonable modifications to the
existing [CBA]”). American has satisfied its good faith obligation because it “has seriously
attempted to negotiate reasonable modifications in the existing [CBA] with the union prior to the
rejection hearing.”77

Amazing the employer claims to have studied its competetive situation more so than other employers.

Yet, within the last 180 days has hired millions in consulting firm services, many of which are hired to study just that.

I think this should have read, the employer has hired consulting firms and outside analyist to now study the company in detail.

In other words the study may have begun, but has hardly been on going.


1113c Motion Main Document Page 63

American simply cannot afford to continue its current active employee medical plan
without significant change.47 In order to address this ever-escalating cost, the Company’s
Section 1113 proposals ask its employees to contribute more and seek to make a uniform
medical plan available to all of its employees, union and non-union alike.48 Under the proposals,
employees will be able to select from three medical plan options: The Standard Option, the Core
Option, and the Value Option.49 Wright Decl. ¶¶ 28-29. Employee monthly premiums under the
Standard Option and the Core Option will be set actuarially at 21%, with a 17% employee only

1113c Motion Main Document Page 14

25. First, American has attempted to preserve base pay rates and maintain employees’
take home pay to the greatest extent possible. This is a unique approach; when American’s
competitors filed for bankruptcy, they implemented substantial pay cuts to achieve their desired
cost reductions. Second, American must redesign its health and retirement benefits to be
comparable to those of its major competitors who have advantageously restructured these
obligations under Chapter 11.

A rather large oxymoron.
Based on AA's proposed changes in the employee health care premiums, my take home pay will not come close to being maintained. In fact a signiifcant reduction in my take home pay would be the result of this plan.

 

[FWAAA]

So I can contact my union local for any of those documents?

You're free to contact them, but I doubt they'll provide them to you.

On a similar note, I've been unsuccessful at getting my Congressional representatives to provide me with copies of briefings they receive from the CIA or the Dept of Defense on matters those agencies think are so sensitive that the general public must be kept in the dark so that I can independently verify if my tax dollars are being spent wisely. As worthless and impotent as your union is, unfortunately, they're the ones you hired (many moons ago) to "represent" you, and you're stuck with them arguing against the 1113 motion. Just like we're all stuck with the Representatives and Senators we elect.

As posted above by olderguyAMT, the odds are that the judge will approve the motion. Odds are the judge will approve the motion even if all the details were not redacted and everyone could argue and nitpick over each number.

 

[olderguyAMT]

That falls under:
Rationale Imagine a topped out AMT at $32.20 an hour losing $10.15 and hour working in the same hangar, same dock, maybe same crew. Just another plan to guarantee failure.

Birdman, give the worker a $20k yearly cut with bird-dogging and sweat-shop stress, and what do you get? Increased attrition. Many won't put up with the new environment, and will leave for greener pastures. A large percentage of experienced workers will just leave. There will be lots more expected from the CC in the near future. I see visions of a Hostile Work Place. How many will bail? How will mgmt cope? Hire more superv. to handle the CR-! workload? What will be the very best job benefit for supervisors? Free Bowflex machines for all office personel!!!!!

 

[TWU informer]

1113c Motion Main Document Page 52

As a whole, Management’s
base pay is 12% below the market median and their total cash compensation is 17% below the
market median, placing Management below the 25th percentile (market is 50th percentile) in both
compensation measures. Support Staff’s base pay is similarly 23% below the market median,
placing their compensation below the 25th percentile.

1113c Motion Main Document Page 53

Because American competes for the same management and
support staff talent sought by other Fortune 500 Companies, its below-market compensation has
put the Company in a vulnerable employee recruiting and retention position, which has only

1113c Motion Main Document Page 54

American simply cannot reduce significantly Management and Support
Staff’s compensation below their already uncompetitive levels and hope to attract and retain the
talent necessary to allow it to successfully emerge from restructuring

SO, management is underpaid, and AA must keep their talent and attempt to recruit new talent.
Yet, AA has to hire millions of dollars worth of consulting firms and advisors to do the jobs that these underpaid hard to keep workers should be doing as part of their daily work scope?

Hell, when my job gets outsourced as a result of the 40% outsource limit, do I get to keep my underpaid job too?

The truth is, that consulting firms have to be hired to do what these underpaid, incompetent individuals cannot even do if they wanted to. Thus no matter what they are being paid, when you have to pay someone else to do their jobs, it is a burden and a cost that should be eliminated to succcessfully reorganize.

I don't mind paying market rate for management employees, I have a problem with paying boat loads of them that appear to be unable to effectively do thier jobs. Hence, even if they were the lowest paid in the industry, that would be too much to pay for nothing.

 

[strikeforce]

it has been said countless times, the company is at an $800M cost disadvantage to it's competitors, yet AA seeks $1.25B from employees in concessions. That means AA is calculating a $425M profit without raising one dime in new revenue. And, who do you think is going to benefit the most when this company turns a profit......one guess!

again, nothing will change except our pay.....nothing!

 

[olderguyAMT]

Birdman, What will be the very best job benefit for supervisors? Free Bowflex machines for all office personel!!!!![/b]

Have you seen the latest Co. mandates for Hangar One workers????

All AMT's must, effective on the date of this ruling, have and maintain the ability to read, compy with, and understand the Official Bowflex Owners Manual in all language versions. This ruling supercedes all other experience and job duties in the GPM.

 

[Barfbag]

Buck, can't help you now. But if there a former TWAer there working with you, maybe he can prepare you for the inevitable. So seek one out, and pray.

The AA dream is in hospice care now.

 

[enough already]

A rather large oxymoron.
Based on AA's proposed changes in the employee health care premiums, my take home pay will not come close to being maintained. In fact a signiifcant reduction in my take home pay would be the result of this plan.

Not to mention the amount we'll have to start contributing to the 401K that the company's supposedly going to match in order to maintain some sort of a pension....

 

[robbedagain]

to all of the AA employees goood luck to you all! I hope you all negogiate an agreement rather than suffer the abbroggation of the contracts AT US the ch11 contracts suck. As for any merger, its out of the employees hand and as far as I know a lot of US employees that I know dont really want to merge with you AA but its not up to us mgmt and others in the top will do it regardless to the employees wishes

 

[FWAAA]

it has been said countless times, the company is at an $800M cost disadvantage to it's competitors, yet AA seeks $1.25B from employees in concessions. That means AA is calculating a $425M profit without raising one dime in new revenue. And, who do you think is going to benefit the most when this company turns a profit......one guess!

again, nothing will change except our pay.....nothing!

AA's competitors don't have identical labor costs. The widely-repeated $800 million is AA's labor cost disadvantage measured against the average of the competitors' labor costs.

Compared to UA/CO's labor costs, AA's labor costs are $440 million higher. Compared to DL's labor costs, AA's costs are $900 million higher. Compared to US' labor costs, AA's costs are $2.2 billion higher (overall, US employees are very low-wage, except for AMTs).

The $800 million is the average cost disadvantage. You don't spend hundreds of millions on a Ch 11 case and piss off your employees and just go for average savings, you go for better than average, which is what AA did. Employee relations wouldn't be unicorns and rainbows if AA were just cutting employee expenses by $800 million. If you're gonna piss everyone off, might as well make it worth your while.

 

[chris perry]

AA's competitors don't have identical labor costs. The widely-repeated $800 million is AA's labor cost disadvantage measured against the average of the competitors' labor costs.

Compared to UA/CO's labor costs, AA's labor costs are $440 million higher. Compared to DL's labor costs, AA's costs are $900 million higher. Compared to US' labor costs, AA's costs are $2.2 billion higher (overall, US employees are very low-wage, except for AMTs).

The $800 million is the average cost disadvantage. You don't spend hundreds of millions on a Ch 11 case and piss off your employees and just go for average savings, you go for better than average, which is what AA did. Employee relations wouldn't be unicorns and rainbows if AA were just cutting employee expenses by $800 million. If you're gonna piss everyone off, might as well make it worth your while.

There is no Employee relations left,its zero loyalty.It's very unlikely that this company will survive if the term sheets are imposed. I know not many will support AA after this. It boils own to this the Arrogance of the sheets are fitting to the management style going forward.It's exactly as in the past. One example PV days they have no cost,but eliminated Need a day off give 7 days notice? What kind of management can't even be that flexible? AA short answer that is a example of the stick in the eye negotiations...and mentality that landed us here.