AAviator,
With respect to the contract language within the TWU negotiated Maintenance & Related CBA, you are entirely correct. We have no protection for 49.99% of the work under the Line, Cross-Service and Base agreements nor has the TWU ever successfully negotiated any. Unfortunately, many will realize that fact after losing their job through outsourcing or as a result of the TWU cutting our wages to keep the headcount up.
The scope clause of the M&R contract only requires that the Company intend on keeping the preponderance of work with the TWU. Since 1950, reflected clearly in unambiguous language, the Company and the TWU have prioritized the goal of providing stable employment over any Union claim to said work.
Below are reprints from the current CBA that cover this particular topic. The highlights are all mine, but, I believe them to convey the weakness of the language and the futility of retaining the TWU in any future negotiations on our behalf.
As a highly regarded contract Lawyer, with experience in Union matters, told me after examining the current CBA and several of the arbitration cases surrounding past arbitrations on scope issues: " the language in that CBA is worse than the language you get from a cheap watch maker."
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AMERICAN AIRLINES, INC.
and
TRANSPORT WORKERS UNION OF AMERICA, AFL-CIO
covering the
AVIATION MAINTENANCE,AND
PLANT MAINTENANCE EMPLOYEES
of
AMERICAN AIRLINES, INC.
Effective date – May 1, 2003
(e) Contracting Out of Work. In the interest of providing stable employment, but nevertheless to permit the Company to maintain and continue the development of air transportation under applicable laws, the Company will perform aircraft and aircraft component maintenance and overhaul, and other related work, as its present employees have the normal time and the skills to perform, and for which the Company can reasonably make available the necessary facilities.
(1) Additionally, it is agreed that the Company may continue to contract out work not exceeding the scope of its present contracting out practices. The Company will provide to the Union, in January and July of each year, a report, which indicates the extent of the aircraft maintenance work, which has been contracted out as a percentage of the total aircraft maintenance expense in the preceding six (6) months for purposes of ensuring consistency with this obligation.
(2) It is understood that nothing in this Article requires the maintenance of the present volume of work.
(3) At the request of the Director of the Air Transport Division, discussions may be initiated with the Vice President – Employee Relations, quarterly or on reasonable request, to ascertain by type of aircraft, engine, or component part the amount and type of work which has been contracted out during the previous calendar quarter.
(4) The parties agree, that in response to an expressed Union concern over the practices of the Company in the matter of subcontracting aircraft and aircraft component maintenance and overhaul work and consistent with the provisions of Article 1(e), Contracting Out of Work, of the Agreement, it is agreed that the Company will advise the Director of the Air Transport Division, Transport Workers Union, in a quarterly listing of the total volume of work sub-contracted under Repair Outside (RO) practices, Cross Servicing, Base Maintenance, and Line Maintenance Service Agreements.
(a) It is the intention of the Company to insure that the predominant volume of work under Cross Service, Base Maintenance and Line Maintenance Service Agreements be performed by the Company employees. It is further understood, in no event, that the volume of work be less than equal to the work performed by other carriers for American Airlines under Cross Service, Base Maintenance and Line Maintenance Service Agreements. The ratio of mechanic work performed in terms of man-hours will be reflected quarterly, in writing, to the Union.
(5) The time limit for grievances filed under Article 29(d) involving contracting out will be six (6) months from the date on which the contracting out commenced, or in the case of a substantial expansion of prior contracting out, six (6) months from the date of the expansion.
(f) It is the intent of the parties that the above language in Article 1(e) represents an attempt in contract language to express the meaning of the letter by Mr. C. R. Smith, dated March 9, 1950.-----------------------------------------------------------------------------------------------
ATTACHMENT 1.1 – CONTRACTING OUT WORK
From: C.R. Smith
To: Francis A. O’Neill
Re: Contracting Out Work
March 9, 1950
The contracting out of work has become an issue in our negotiations with TWU because the union believes this practice may threaten the job security of its members. To show that such fears are groundless I shall review our policy.
Our policy has been and is to maintain a stable work force. Few, if any, employees have been laid off because we have contracted work to others. In 1949 American Airlines, Inc. had the best record for continuity of employment in its mechanical department that it has ever had, even though it was necessary to give some non-recurring work to outside contractors.
In 1949 we scheduled our work in such fashion that there would be an orderly flow of work through the plants. The program was successful enough to provide the highest record of stable employment in the history of the company. One of the contributing factors to an orderly flow of work was our program to farm out such work as was beyond the capacity of our plants. We farmed out no projects that could have been accomplished in our plants. All of our people were busy during the year. How then can it be construed that the company will now find it desirable to contract out work that our employees have the time and facilities to get done?
The union has sought a severance pay formula. Even though it has not been demonstrated that work contracted out is, has or will jeopardize the security of the employees, the severance pay plan gives an additional measure of security. This is a new provision, unique in the air transport industry.
Nobody on the payroll will benefit by a program, which would require us to hire temporary employees to take care of peak or non-recurring work, and to discharge them as soon as the peak had gone. This, from our point of view, is a wastefully expensive way of doing business, because it is inefficient. We must, therefore, retain the right to give to others the work that our regular employees have not time to handle.
There are several things in airline operation, which principally affect the continuity of employment; the volume of the business, the schedules to be operated and the workload available. We will do the best we can to assure that each of these factors contributes to stability and continuity of employment; we cannot and do not contract about their volume, for we do not control that.
Our policy has enabled us to maintain a stable work force. We recognize its benefits and see no reason to change the policy.
(Signed original on file)
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ATTACHMENT 1.2 – CONTRACTING OUT WORK – JOINT COMMITTEE
From: C.A. Pasciuto
To: John J. Kerrigan
Re: Contracting Out Work – Joint Committee
May 5, 1989
During the discussions leading to the Agreement signed May 5, 1989 the issue of contracting out was discussed.
The Company has agreed to create a joint committee for each Branch Manager’s area at Tulsa. The committee will meet periodically to review contracting out practices. Such items as cost considerations, turn times, training, facilities and return on investment will be reviewed. Each committee will be made up of three (3) management and two (2) TWU members with the Branch Manager as the Chairperson.
(Signed original on file)
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ATTACHMENT 1.3 – NEW TWU CITIES
From: Charles A. Pasciuto
To: John J. Kerrigan
Re: New TWU Cities
May 5, 1989
During the course of the negotiations leading to the signing of the current agreement, the staffing of certain cities by TWU represented employees was raised by the Union.
As a result of these discussions, it is agreed that periodic meetings between the Company and the Union, represented by the International Vice President, Transport Workers Union, and the Senior Vice President-Field Services, American Airlines, will be held for the purpose of reviewing the long term implications of staffing of new cities by TWU represented employees.
(Signed original on file)
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ATTACHMENT 1.4 – CROSS SERVICE AGREEMENT DATED MAY 27, 1974
From: Charles A. Pascinto
To: John J. Kerrigan
Re: Cross Service Agreement Dated May 27, 1974
May 5, 1989
This will confirm our discussion regarding the Letter of Agreement dated May 27, 1974, pertaining to the Cross Service Agreement. Since this letter was written, deregulation and American’s growth have brought about a change in the way we accomplish our work and we have demonstrated an enviable record of stable and secure employment.
Because of recent acquisition of some small aircraft fleets and expansion to additional cities, it is in the best interest of American Airlines and the Transport Workers Union to respond to changes in our industry. It is the intention of American Airlines to change its fleet configuration as market conditions and aircraft availability dictate. It is not economically feasible for American Airlines to purchase tooling and or construct facilities for those small fleets, which are planned to be phased out in the near term.
We have agreed, therefore, that during the term of this agreement (amendable March 1, 1993) those existing fleets of 25 aircraft or less and any new cities where we contract out our line maintenance will be exempt for reporting purposes from the Cross Service Agreement*. Our future quarterly report will reflect this change.
* (For example, the B-747 aircraft, which is planned to be replaced by the MD-11 and the B-737/BAe-146, which are planned for near term replacement. The B-727 fleet will not be segregated by fleet type.)
(Signed original on file)
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ATTACHMENT 1.6 – CONTRACTING OUT WORK
From: Jane G. Allen
To: Edward R. Koziatek
Re: Contracting Out Work
August 15, 1995
This will confirm our understandings reached during the negotiations leading up to the agreement signed on August 15, 1995. During these discussions, we discussed the issue of contracting out on numerous occasions and the Company’s need to contract out that work as provided for in the labor agreement.
As we discussed, it is the Company’s intent to ensure that the TWU leadership is fully advised of those situations wherein the Company is planning to contract out work that is normally done in-house so that the matter can be fully discussed.
The parties agree that this letter recognized their respective rights under the collective bargaining agreement concerning the issue of contracting out work.
(Signed original on file)
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