Did the Pilot's Open Up Their Contract?

[AMFAMAN]

Heard a rumor last night from several sources, including pilots, that they officially started early negotiations yesterday. Can anyone confirm?

 

[TWU informer]

This is APA President Captain Ralph Hunter with the APA Information Hotline for Friday, July 21.

EARLY OPENERS FOR SECTION 6 NEGOTIATIONS: Today management served notice to APA that they intend to commence negotiations consistent with the early-opener provision contained in Section 26 of our collective bargaining agreement. Under this provision, since May 1, 2006, either party has been at liberty to serve 60 days’ notice to the other to begin negotiations in accordance with Section 6 of the Railway Labor Act.
Section 6 negotiations provide an opportunity to address a range of contract-related issues, and we are looking forward to representing your interests in areas such as improvements in compensation, job security, quality of life and gain-sharing. As the Performance Unit Plan bonuses demonstrated earlier this year, our airline can support increases in compensation for valued employees, with some executives realizing a threefold earnings increase compared with the previous year. This week’s announcement of a $291 million second-quarter profit, despite continued escalation in fuel prices, suggests that the employees’ sacrifices have helped position American Airlines for ongoing, sustainable recovery. Given the large investment we made three years ago, our pilots rightfully expect compensation enhancements consistent with an ongoing recovery.

Your APA leadership has taken a series of deliberate steps anticipating the onset of negotiations—including the distinct possibility of early openers—and is well-prepared to represent your interests at the bargaining table. Beginning in late 2004, the National Officers, Board and Negotiating Committee have engaged in a series of strategic planning sessions in preparation for various scenarios, including the next round of full-scale bargaining. Earlier this year, the Negotiating Committee surveyed the membership to determine our priorities for negotiations. During its regularly scheduled spring meeting in late May and early June, the Board and Negotiating Committee underwent training administered by Steven Goldberg and William Hobgood, two highly experienced professionals in negotiations, mediation and arbitration. Mr. Hobgood also traveled to Tulsa for last week’s strategic planning session by the National Officers, Board and Negotiating Committee. Both gentlemen will likely continue to serve in a facilitation capacity as formal negotiations get underway.

We anticipate that management will open on the topic of productivity. Our industry provides examples of successful carriers where greater levels of productivity and compensation go hand in hand. We also intend to seek ways to enhance our pilots’ quality of life, and have heard from many of you that increased flexibility is a priority.

Sixty days from now, APA and management will exchange opening proposals. In the interim, we’ll refine our openers and design a negotiating protocol to help ensure the talks proceed smoothly. Our Board will ultimately vote to approve the contents of our openers, and at that point we’ll be ready to proceed.

These Section 6 negotiations will be the fifth in my 20-year career at American Airlines. I have been involved in the past three in various capacities, and each one was distinctly different from the other. This next round of bargaining will no doubt present its own unique risks and opportunities compared with previous negotiations. What won’t vary is your leadership’s firm commitment to doing what is in the long-term best interests of the pilots of American Airlines.

That’s all for today. Thanks for calling.

 

[twaokc]

Heard a rumor last night from several sources, including pilots, that they officially started early negotiations yesterday. Can anyone confirm?

Now if we can just get the TWU to give up about half their members pay, maybe the pilots will get a nice raise......

 

[PRINCESS KIDAGAKASH]

I don't see what the big deal is. Our TWU contract was opened in 2003 even though we had another year to go. In fact,our contract is still open. Just look at all the PLI,CI,etc. that's being approved by the TWU. I don't blame the pilot's for wanting to get some of that money we have been saving for AA. The pilot's want their share while we sacrifice more and more.

 

[AMFAMAN]

:down:

I don't see what the big deal is. Our TWU contract was opened in 2003 even though we had another year to go. In fact,our contract is still open. Just look at all the PLI,CI,etc. that's being approved by the TWU. I don't blame the pilot's for wanting to get some of that money we have been saving for AA. The pilot's want their share while we sacrifice more and more.

We'll keep pulling, and they'll keep winning. :down:

 

[TWU informer]

What a delima we find ourselves in now.

We need to get our pay and benefits back, but the only way to get there is to allow the TWU to open the contract, and with the 20+ year history of ILC negotiations, I cannot help but think the outcome will not be what we desire. 🙁

It is interesting that the Pilot Hotline claims the company initiated the section 6 openers.

 

[FWAAA]

It is interesting that the Pilot Hotline claims the company initiated the section 6 openers.

Just a wild ass guess here, but this has to be about the 70-100 seat issue. The company wants to beat some more scope concessions from the pilots and will offer something of value (not much, but some) to get it. And while it's at it, the company will try to squeeze some more productivity from the APA. All in exchange for a several percent increase in pay rates. And a several year extension of the contract.

Some 100 seaters would help AA compete against UA and DL (both of which now have large Embraers featuring First Class) and would allow AA to park more of the old fuel hog MD-80s.

Just a wild ass guess, but we'll see.

 

[Hunter]

Just a wild ass guess here, but this has to be about the 70-100 seat issue. The company wants to beat some more scope concessions from the pilots and will offer something of value (not much, but some) to get it. And while it's at it, the company will try to squeeze some more productivity from the APA. All in exchange for a several percent increase in pay rates. And a several year extension of the contract.

Some 100 seaters would help AA compete against UA and DL (both of which now have large Embraers featuring First Class) and would allow AA to park more of the old fuel hog MD-80s.

Just a wild ass guess, but we'll see.

You are right on the money with your observation as to why AA would want early openers. Regrettably, I also agree with your suggestion of the possible outcome of these negotiations. Undoubtably, APA will cave on scope.

 

[SkydrolJunkie]

Now if we can just get the TWU to give up about half their members pay, maybe the pilots will get a nice raise......

:angry: FU :angry:

But it wouldn't surprise me. All they have to do is threaten the mechanics and they will cave.

 

[Bob Owens]

:angry: FU :angry:

But it wouldn't surprise me. All they have to do is threaten the mechanics and they will cave.

You need to clarify that, All they have to do is threaten the mechanics and Tulsa and MCI will cave.

When does the next AMFA drive start?

 

[Vortilon]

You need to clarify that, All they have to do is threaten the mechanics and Tulsa and MCI will cave.

When does the next AMFA drive start?

Aint that the truth..................... 🙂

 

[TWU informer]

Tulsa has already caved...

Dennis Burchette - Carmine Romano

"Pajama Party Mates"

The big draw of collaboration is the opportunity it provides to tap into workers' knowledge so the enterprise as a whole can find and exploit unseen efficiencies. At American, that means more than simple wage and cost cuts. It means changing how the entire company functions. One of the most telling examples is American's giant maintenance base in Tulsa, Okla.

The base employs about 7,000 workers and two years ago seemed a candidate to have most of those jobs outsourced. Every five years, Tulsa overhauls American's MD-80s, the workhorses of the company's fleet, for about $1 million a plane. If outsourced, the cost would be about $500,000. Cutting costs at the base seemed unlikely, Arpey said, because "it was a very hostile work environment, labor and management virtually at war on a day-to-day basis."

Mechanics, represented by the Transport Workers Union, literally sat, often playing cards or reading the newspaper, for more hours than they worked on MD-80s, a joint analysis by the company and the union showed.

Fearful of giving more work to an unproductive crew, American had outsourced many small tasks at top dollar. Realizing all the jobs were at risk, the union and management set aside hostilities and brainstormed at an offsite retreat. Since then, they operate in two-man teams with one manager and one union representative, led by Carmine J. Romano, an American vice president in charge of the base, and Dennis Burchette, the Tulsa union chief.

Overhauling each MD-80 now costs about $750,000 in Tulsa, and that figure is still declining, American says. Now, 400 workers do what 700 once handled. Rather than laying off the surplus workers, American is bringing in maintenance work from other airlines to keep them employed.

"I built this model," Romano said of the old approach in Tulsa. "It's not working. I confessed."

Burchette has his own confessions. "It's not all fun," he said. "I've walked out of meetings. He's walked out of meetings."

After one argument, Burchette said, he and Romano were headed to the same flight but drove separately to the airport. Cooling down as they passed through security, Burchette turned to Romano and said, "Sorry, dude."

"Now, we kind of feel bad" after a blowup, Romano said.

Cooperation has allowed the plant to overcome deep dysfunction. A fuel-efficient tail cone American had been buying for $240,000 each from a manufacturer is now fabricated on site for $39,000. Broken pumps on airplane toilets are fixed for $50 instead of replaced for $3,000. And a waste hauler now pays $330,000 a year for the plant's scrap metal, up from a giveaway price of $7,000 before.

NOTE: I have been employed at AA for 23 years, and I have never witnessed the TWU and Management "virtually at war on a day-to-day basis". That is the biggest crock ever published.

Just look everybody, we gave up $620 Million in Pay and Benefit Concessions, and now saved Hundreds of Thousands more without compensation from the IdeAAs program.

These money saving ideas are not new to Tulsa, the only thing new, is the person coming up with the idea no longer gets his/her IdeAAs bonus award/compensation.

If I remember correctly, there was a 757, and 777 purchased with money saving IdeAAs long before Burchette and Romano got into pajamas together. And they want us to believe that caring, saving money, and making our job easier is a "new approach". I guess if you print it in a press release, then it must be true.

The truth is the churn of the workforce on the "pulse line" because nobody wants to work there has a cost not calculated. AA/TWU forces workers onto the line, within 6 months there is a shortage because they all have bid off, and this cycle continues. The Cycle, freeze transfer force workers to pulse line, open transfers and watch them bid out, then freeze the transfers and force them back, on and on and on and on...

 

[Wretched Wrench]

I have been employed at AA for 23 years, and I have never witnessed the TWU and Management "virtually at war on a day-to-day basis". That is the biggest crock ever published.

Not a total crock.

I can only speak for one station, but during the regime of Idi Amin and Mini Me, the company was indeed waging war on the mechanics.

 

[Hackman]

Tulsa has already caved...

Dennis Burchette - Carmine Romano

"Pajama Party Mates"
NOTE: I have been employed at AA for 23 years, and I have never witnessed the TWU and Management "virtually at war on a day-to-day basis". That is the biggest crock ever published.

Just look everybody, we gave up $620 Million in Pay and Benefit Concessions, and now saved Hundreds of Thousands more without compensation from the IdeAAs program.

These money saving ideas are not new to Tulsa, the only thing new, is the person coming up with the idea no longer gets his/her IdeAAs bonus award/compensation.

If I remember correctly, there was a 757, and 777 purchased with money saving IdeAAs long before Burchette and Romano got into pajamas together. And they want us to believe that caring, saving money, and making our job easier is a "new approach". I guess if you print it in a press release, then it must be true.

The truth is the churn of the workforce on the "pulse line" because nobody wants to work there has a cost not calculated. AA/TWU forces workers onto the line, within 6 months there is a shortage because they all have bid off, and this cycle continues. The Cycle, freeze transfer force workers to pulse line, open transfers and watch them bid out, then freeze the transfers and force them back, on and on and on and on...

That sure is a purdy picture of the Tulsa company union man and his management buddy. I wonder if he taught 'ol Conman any "wife control" techniques at the pajama parties?

 

[NewHampshire Black Bears]

Just a wild ass guess here, but this has to be about the 70-100 seat issue. The company wants to beat some more scope concessions from the pilots and will offer something of value (not much, but some) to get it. And while it's at it, the company will try to squeeze some more productivity from the APA. All in exchange for a several percent increase in pay rates. And a several year extension of the contract.

Some 100 seaters would help AA compete against UA and DL (both of which now have large Embraers featuring First Class) and would allow AA to park more of the old fuel hog MD-80s.

Just a wild ass guess, but we'll see.

==========================================================

FWAAA,
By what "venue", does UA + DL have large Embraers with F/C ?


NH/BB's