APA negotiating update

Super FLUF

Senior
Jun 10, 2011
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206
After receiving management’s 1113(c) term sheet on Feb. 1, the APA Negotiating Committee and our subject-matter experts began analyzing and costing the various proposed changes. Negotiations resumed on Feb. 7 with management passing their only additional proposal to date—a 13-page work rule document that expands upon certain items in their term sheet.

All negotiating sessions are taking place in Dallas-Fort Worth, with at least one National Mediation Board mediator in attendance at each session. The Negotiating Committee has maintained regular, face-to-face contact with the APA Board of Directors, which has been providing ongoing guidance.

Scope: How Valuable?

One of the most bizarre developments in our negotiations thus far has been management’s refusal to assign value to the sweeping scope changes they have proposed. This refusal contrasts sharply with the Feb. 21 letter from American Airlines Chief Commercial Officer Virasb Vahidi, which indicates that management plans to “generate almost two-thirds of our $1B in incremental revenue” by “right-gauging.” He further elaborates by noting that “with the expected relaxation of limitations in our pilot agreement, and capitalizing on the new small narrow-body fleet and additional regional flying, we will be able to replace our current aircraft with those whose size better match the demand in our network.”

So which is it—does scope have value to the corporation or not? The answer is obvious and APA intends to seek meaningful value in exchange for any modifications to our current scope language. Despite management’s refusal to assign value to scope, they clearly believe their proposal would drive significant additional revenue for the airline, as evidenced by Mr. Vahidi’s claims in his letter.

In the coming weeks APA will highlight other incongruities in management’s 1113(c) proposals, and we will also illustrate where their proposals deviate from current industry standards.

APA’s Counter Proposals

Following management’s 1113(c) proposal, APA passed two comprehensive proposals. The first was a list of the 40 agreements-in-principle (AIPs) reached in Section 6 and APA’s desire to maintain all of those agreements. The second listed the 22 previous areas of agreement (not yet in AIP format) and APA’s desire to AIP those agreements.

APA’s counter proposals have been focused on what is industry competitive and operationally necessary for a successful reorganization, not an arbitrary “target” number determined by management. If a management proposal is assigned no value in their term sheet, it is our position that the proposal is not required for the airline to successfully reorganize.

Our negotiating team is aggressively defending against the onerous provisions in management’s term sheet, including the proposed elimination of duty rigs, flight time/duty time limitations, sick leave provisions, disability and the potential for significant outsourcing of AA flying. We have passed proposals on all remaining outstanding contractual issues, including scope, work rules, benefits, compensation and pension.

Upon presentation of the first APA counter proposals, management took a brief caucus and upon returning made the following declarations:
AIPs and other areas of agreements that occurred prior to Nov. 11, 2011 were no longer in effect.

There was a “target” in annual pilot cost savings tied to management’s business plan and APA had to negotiate to the “target.” If not, management says they will be unable to execute their business plan and emerge from bankruptcy.

These negotiations are not Section 6 negotiations, but 1113 negotiations—starting from a “clean slate.”

We responded by emphasizing that we designed our counter proposals to be industry competitive. In addition, we reiterated our commitment to the successful reorganization of American Airlines.

While we are working hard toward and hoping to obtain a consensual agreement, we continue to prepare for all contingencies, including the potential abrogation of our contract through the 1113(c) process if negotiations fail to produce a consensual agreement.
 

737823

Veteran
Jun 5, 2010
6,631
3,316
Your work group is in no position to make gains. While it maybe a good negotiating tactic to ask the company to place a value on scope, at the end of the day they'll be able to achieve pay cuts, scope, work rule, and other benefit concessions from the pilots. The company is in control here-not APA. Your "brothers and sisters" at DL and UA maybe in a position to make gains, unless AA can have the concessions imposed before the DL contract becomes amendable in December which would further set back industry standard pay and work rules.


Josh
 
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TWU informer

Veteran
Nov 4, 2003
7,550
3,767
Your work group is in no position to make gains. While it maybe a good negotiating tactic to ask the company to place a value on scope, at the end of the day they'll be able to achieve pay cuts, scope, work rule, and other benefit concessions from the pilots. The company is in control here-not APA. Your "brothers and sisters" at DL and UA maybe in a position to make gains, unless AA can have the concessions imposed before the DL contract becomes amendable in December which would further set back industry standard pay and work rules.


Josh

There could be a legal standard in the direction they are going.
While being in no position to make gains might be a true statement, the company is required legally to provide a cost out of desired changes to comply with good faith bargaining.
 

strikeforce

Veteran
Jan 18, 2011
1,224
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Your work group is in no position to make gains. While it maybe a good negotiating tactic to ask the company to place a value on scope, at the end of the day they'll be able to achieve pay cuts, scope, work rule, and other benefit concessions from the pilots. The company is in control here-not APA. Your "brothers and sisters" at DL and UA maybe in a position to make gains, unless AA can have the concessions imposed before the DL contract becomes amendable in December which would further set back industry standard pay and work rules.


Josh
I wouldn't be so sure about that Josh! Without pilots there is NO AA! remember that!
 
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700UW

Corn Field
Nov 11, 2003
37,637
19,488
NC
During Section 1113 negotiations at US, there is definitely a monetary value on scope language, AA is playing games.
 
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The Phantom

Member
Nov 29, 2011
16
2
I wouldn't be so sure about that Josh! Without pilots there is NO AA! remember that!
Are you kidding me. The company is in complete control of it all now. All the work groups can do now is try to do the best they can to play along and move on. The time for acting tough is gone and has been gone for sometime now.
There are a number of people on the street that would be happy to work here and many other places and put up with the BS.
You sure talk a good game but you don't seem to understand that there are not enough people to stand up and fight. SO GIVE IT UP and quit your crying.
 

Mr Red

Veteran
May 11, 2010
612
183
Are you kidding me. The company is in complete control of it all now. All the work groups can do now is try to do the best they can to play along and move on. The time for acting tough is gone and has been gone for sometime now.
There are a number of people on the street that would be happy to work here and many other places and put up with the BS.
You sure talk a good game but you don't seem to understand that there are not enough people to stand up and fight. SO GIVE IT UP and quit your crying.
Let them start lining up !they need to make sure they've got the training,backgroung checks and ability to put up with the B/S that you go through daily in this businness !!
I will not let the door hit me in the ass when I head out the door !!!
 

strikeforce

Veteran
Jan 18, 2011
1,224
269
Are you kidding me. The company is in complete control of it all now. All the work groups can do now is try to do the best they can to play along and move on. The time for acting tough is gone and has been gone for sometime now.
There are a number of people on the street that would be happy to work here and many other places and put up with the BS.
You sure talk a good game but you don't seem to understand that there are not enough people to stand up and fight. SO GIVE IT UP and quit your crying.
I guess the company was in COMPLETE control when 400 pilots retired and AA was scrambling to adjust it's schedule, eh???

You're either a scab?

Management??

spineless union leader????
 

Vortilon

Veteran
Jun 22, 2004
2,055
2,127
USA
Are you kidding me. The company is in complete control of it all now. All the work groups can do now is try to do the best they can to play along and move on. The time for acting tough is gone and has been gone for sometime now.
There are a number of people on the street that would be happy to work here and many other places and put up with the BS.
You sure talk a good game but you don't seem to understand that there are not enough people to stand up and fight. SO GIVE IT UP and quit your crying.


Who are you kidding? Random people on the street that would be happy to work at AA, and put up with the BS? How long would that last? I've seen it first hand, new hires spirit crushed.

BTW, the employees are the company.
 

odie01

Veteran
May 11, 2010
1,321
473
Are you kidding me. The company is in complete control of it all now. All the work groups can do now is try to do the best they can to play along and move on. The time for acting tough is gone and has been gone for sometime now.
There are a number of people on the street that would be happy to work here and many other places and put up with the BS.
You sure talk a good game but you don't seem to understand that there are not enough people to stand up and fight. SO GIVE IT UP and quit your crying.
F you JACKWAGON ! The experience AA has now is priceless, this catch all company union holds us back! I'm ready to move on, my resume is complete, and I have several leads, and I'm not the only one with 20 plus years that is ready to leave.
 

BoeingBoy

Veteran
Nov 9, 2003
16,512
5,865
It's the purpose but might not be the result if AA doesn't get it's costs down and/or revenue up enough - remember that bankruptcy law has a Chapter 7.

Jim
 

cf6mech

Advanced
Feb 3, 2012
159
128
It's the purpose but might not be the result if AA doesn't get it's costs down and/or revenue up enough - remember that bankruptcy law has a Chapter 7.

Jim

And chapter 7 liquidation will happen if this company believes and sticks to the term sheets without throwing us a bone of any kind...... those that are left will not stand to be paid lowest in the Industry after 2003....... I do believe they are that ignorant to the facts of the human element when they only surround themselves with outside consultants , lawyers and accountants. In a way the producers......us....the workers who are actually American Airlines......we in every sense of the word have already gone through bankruptcy in 2003 and management did not......now they want more officially......what they will end up with is an even more hostile work force.....which is never good for business......and in this case the end of AA.