FA Deal

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On 4/3/2003 5:02:02 PM Us/Metro wrote:

To all AA Flight Attendants
Well there is no dought about it if this is the T/A they are offering you its the worst one yet. We at U just finished with this whole mess. I''m sure some of you have been following what went on at U but I thought I could point out some of the finer points for you. As you know we voted on our first T/A and It was pretty bad but it passed. We were told If we voted for it that they would not come back to us for more and that we would probably not have to file for bk. Almost as soon as we signed they did infact file. A couple of months later the projected increase in travel didn''t happen so they came back for more(the rest really). Now we were in bk so they held a gun to our heads and said if you don''t pass the second T/A we will liquidate the company. So what other choice did we have(none)so it passed. I think that AA management has every intention of going into bk. Its the only way to get rid of all the excess aircraft and give your company some time to not pay any bills. All this time UA has been in BK they haven''t had to pay for anything that they owed before bk. I''m sure your management would love to do the same for a while. I know its a gamble but I think you will do better after bk. The judge will not throw out your contracts right away. To keep the DIP financers happy they will have to come back and work with you on a new T/A. Remember there is no guarentee that they will not come back for more once you sign on the dotted line. This T/A they are offering you is alot worse than the one we have here at U. We gave up about the same amt of pay and our duty rigs are worse than they were but we did not take as big a hit on vacation. I have 16 years and still have 29 days(down from 33)Max out vacation is still at 40 days for 25years (down from 44). Our vacation days (for a non option f/a 85 hrs per month) are paid at 4:03 per day. We do not claim trips missed. At 16 years my hr rate is $40.24 per hr (we do not have an incentive rate over 70 hrs)Our perdiem rates are $1.90 domestic and $2.10 international. We still have a part time program. F/A''s on the part time program have to work between 50/55 hrs per month, they do have changes to vacation and dental and medical bennies. A 16 year F/A gets 20 days vacation if they are on our 50/55hr option. We get 2 personal days per year( if you have an unexpected emergency you call crew sched and they will take you off your trip. You can do this 2 times per year with no question asked( they take the day from your next years vacation accrual)We have a new commuter policy. You must give yourself 2 flights to get to work. If both flights are delayed due to weather or mechanical problems you call crew sched and they will take you off your trip. You have to make the time up later in the month. They changed the drug test policy. The first positive drug test will not automatically result in termination. We no longer pay anything for our pass privilages for self/spouse/children/parents. We can also put a friend on our pass and they pay a tax formula for there ticket. We have 5 flying options 55/75/85/95/105 hrs per month. So thats a list of some of the good and some of the bad in our new contract. As you can see its a little better than what they are offering you. If you have any questions just ask and I will try to ans them. If you want a copy of our T/A I will try to get one for you. Take care and good luck to us all

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That sounds all nice and well. But this is AA. They dont play around. They will go for the jugular in BK court. Don Carty already refered to U as an airline that entered in to BK with the industrys highest costs and came out as simply another high cost carrier. The article showed U at 12 point something cents per seat mile before BK, after it was 10 point something.

AA wont do the "take some now", and then play the "U chapter 7 bonner game." It will simply be everything we have plus our first born. Play your cards right sometime later you can have your kid back.
 
Yes mike you are right. U has a casm somewhere around 10 now. What is AA Casm? U employee''s took a total of around 1.9b in cuts. From what I have read AA is only looking for about 1.8b from employee''s. Now AA is at least 4 times the size of U. Will this bring your Casm down below 10? Lets face it none of us are ever going to have the 6or7 that SW has. If we all have to have that little we should just shut all the doors now. Can you belive this administration. They just said that the airlines were not hurt that badly by the war and are going to give little help. I think George is trying put UAL out of business.
 
This is AA's wish list for us.

SECTION 1113 PROPOSAL

PAY and CREDIT

No minimum day, no e-time, no averaging, f-time changed

Duty-NA; Trip 1:4; Avg.Day-NA (52 million)
Eliminate Underfly (20 million)
Reduce DH pay and credit from 100% to 50% (13 million)

GUARANTEE PAY

Schedule reserve before makeup hrs at company option (4 million)
Reduce reserve to 70 hrs (3 million)
Eliminate lineholder guarantee (4 million)

VACATION

Create vacation bank with 2:45 per day accrual (32 million)
Eliminate pre-vacation 48 (11 million)
Cap vacation at 5 weeks (8 million)
Eliminate all holiday premiums (3 days) (5 million)

CREW REST/SCHEDULING

Change layover rest to FAA minimums (19 million)
Eliminate duty aloft with 13/15 on duty and no time restrictions (8
million)
Eliminate Availability system (1 million)

SICK PAY

Change sick pay rate from trips missed to 4:00 regular/ 3:00
reserve (21 million)
Reduce sick accrual to 3hrs/ month and eliminate rapid reaccrual (10
million)
Eliminate salary continuance (7 million)

OTHER

Expand FA cabin cleaning (2 million)
Eliminate Incentive pay (18 million)
Eliminate International Pay scale (10 million)
Reduce premium pay (MOD Purser, pay language @ $1.75 (22 million)
Pay language premium to LOD (bid speaker only) (1 million)
Eliminate benefits (except travel) for Overage Leaves (6 million)
Institute minimum quarterly flying requirements (3 million)
Eliminate part-time program (3 million)
Reduce hourly per diem to $1.50 Dom/$1.75 INT (13 million)
Eliminate all crew meals (7 million)
Eliminate EPT training pay up to 12 hrs (1 million)
Eliminate article 6E vacation accrual (4 million)
Modify uniform allowance -18 to 12 pts- reduce Part Time points
and No carry over (2 million)
Reduce furlough pay by 50% (15 million)
Allow non-flying APFA Latin American FA's to fly out of DFW and JFK
(10 million)
Increase schedule max to 85 DOM/ 90 INT (24 million)
Work rules at 100% (363 million)
Salary and variable benefits (14% reductions) (141 million)

BENEFITS

Company standard medical, dental retiree medical and cash balance
pension plan proposal in consensual restructuring. (current defined
benefit pension plan is frozen)
(41 million)
The company’s proposal for insurance would quadruple the monthly payments, eliminate out of network coverage, eliminate retiree medical with the exception of prescriptions at 70%, refund prefunding because we would be post funding at $180 per person per month for age 60-65.


work rules @ 100% (363 million)
Roll-up Adjustment --76 million--

TOTAL TARGET REDUCTION 470 MILLION


Now this is just a wish list but take a look at what they are going to ask a judge to give them so that they can pay their creditors (which is what BK is all about)
 
And here is an alternative proposal:

ATTENTION ALL AMERICAN AIRLINES FLIGHT ATTENDANTS!
JUST VOTE NO!
Your future career is in jeopardy. Whether you are very senior, very junior or somewhere in-between, voting in this concessionary package is career suicide. You will NEVER re-coup the concessions agreed to in this proposal. Do not allow AA Management or APFA to intimidate you into voting yes. Pilots, mechanics and even non-contract employees gained improvements with their concessionary agreements. Ask why APFA agree to greater concessions ($80 million +) than American Airlines was asking for! A 6 year 100% concessionary contract! Not one improvement for the Flight Attendants. This is the worst offer, not the last!
Question: If we vote yes, are there any guarantees that AA will not file bankruptcy? Answer: No. AA could STILL file for bankruptcy and ask for more concessions. Don Carty and all upper management receive large bonuses in AMR stock. Bankruptcy eliminates stock - their bonuses! Bankruptcy allows for restructuring of debt. Bankruptcy is a threat being used against you!
Question: If we vote no, what happens to us and the concession package? Answer: APFA and AMR will be forced to return to the negotiating table. They will have to negotiate a better package than the one offered.

ALTERNATIVE PROPOSAL

18% Pay Cut (Receive credit for ?giveback? of 3% raise scheduled for 1/04) $207 Million
Work Rules Items
Eliminate Crew Meals $7 Million
Eliminate Holiday Pay $5 Million
OVL/Part Time Contributions
Medical coverage $150/single/$300 family $4 Million
Schedule Reserve before Makeup at Co. Option $4 Million
To the new projection
- Unlimited ?splits? $32 Million
- Maintain pre-48?s unpaid (Credit/No Pay) $5 Million
No Training Pay for EPT $2 Million
Eliminate 6(E) ? 2 months vacation accrual $6 Million
Change Sick pay rate from trips missed to 4:00
regular/3:00 reserve $21Million
Change Sick Leave Accrual to 3:00/mo. No rapid reaccrual $10 Million
Reduce reserve and line guarantee to 70 hours $6 Million
Reduce Uniform Points from 18 ? 12 (No carryover) $2 Million
Modify Insurance to provide
$65 EE max. contribution; $130 max./ family POS/PPO $12Million
Give up Triple Staffing Grievance Award $12 Million
Give up December Pay grievance (STL TWA, LLC) $5 Million

TOTAL: $340 Million

Maintain Current Vacation Levels Modify as follows: Create vacation bank from which trips missed During vacation are paid Vacation bank ? 2:45 x number of accrue vacation days ? Pay trips missed up to the number of hours in Vacation bank ? Excess vacation at end of year will be deferred into 401(k) ? If trips missed during vacation are greater than number of Hours in vacation bank, monthly guarantee will be reduced
Maintain: Underfly ? All Premium Pay Categories ? 100% pay/100% credit DHD ? per diem ? Part Time ? furlough pay ? Incentive Pay at current book
Receive: Extended Recall Rights, Extended Travel for Furloughees. Keep proposed Equity Piece as previously provided
"Me-too" with any other work group in the event of pay raise, improved work rules, improved benefits that are provided prior to 2009. Company to provide APFA with a list of any changes to the contracts of other Unions and changes for mgmt. and non-contract employees
Buy-back provision: In the event APFA elects as part of 2009 negotiations to seek return of these items, AA agrees to the value of the concessions as signed off between the parties. ("Buy back" provision)
"Claw-back" provision: In the event the value of the concessions exceed $340 M, AA will be required to return the excess value to the Flight Attendants in the form of a pay raise during the term of the Agreement. AA to provide all
 
I agree there is no as a poster on another board said, "second bite out of the apple." However, the above might have been much more equitable across the whole F/A group.b
 
What we have before us is a take it or leave it deal. There will be no renegotiations. If they start that they will end up with no deals and the current financing will fall through.

A no Vote is a fast track to the BK court and for a gutting of our CBA.
 
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On 4/3/2003 7:35:48 PM FA Mikey wrote:

A no Vote is a fast track to the BK court and for a gutting of our CBA.
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In this I agree with you. As bad as this is, the only thing worse than voting yes is voting no.

MK
 
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On 4/3/2003 8:55:05 PM kirkpatrick wrote:


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On 4/3/2003 7:35:48 PM FA Mikey wrote:

A no Vote is a fast track to the BK court and for a gutting of our CBA.
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In this I agree with you. As bad as this is, the only thing worse than voting yes is voting no.

MK

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Again, where is the proof of these claims that BK will be worse than what you are looking at voting on?

How many CBA's at the other carriers already in BK have been gutted? Seems the WAR has gutted more agreements than the BK Judge has.
 
Gutting employee compensation isn't going to stop a BK. It's going to come anyway.

The real problems in order of importance:

1. Gross overcapacity by too many carriers. This is not going to be even helped until at least one large carrier shuts down.

2. Incompetent, unimaginative leaderships with no workable plans to reform. Rampant in all traditional major carriers. This isn't going to change. Market movement you're seeing now is not based on fundamental strength, but rather short term traders trying to make a quick buck.

3. War and an even more gutted economy afterwards. Expect no recovery for 2 more years until the Republicans are voted out as the dominant political power. With all the majors hemorraging even after bleeding employees white, this looks like a mutual corporate suicide pact by the CEOs. The politicans are clueless.

Carty, Mullins, Anderson, Tildon, and Siegel are only rearranging the deck chairs on the Titanic. Cary, at least, is giving the appearance of not looting the company before it fails. The rest are so arrogant that they don't even care if anyone sees them do it. No mistake about it, they'll all get theirs before the industry implodes.
 
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On 4/3/2003 10:11:43 PM Winglet wrote:

Gutting employee compensation isn''t going to stop a BK. It''s going to come anyway.

The real problems in order of importance:

1. Gross overcapacity by too many carriers. This is not going to be even helped until at least one large carrier shuts down.

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A no vote may just make the AA the shut down carrier.
 
If you want to see what might happen in BK court to both pilot and F/A contracts, AA sent their 1113 motions to each union. The F/A motion was posted somewhere on this site. You can compare your current concessions with what AA is going to ask the BK court to approve. Having said that, there are a number of people who have solid good reasons to vote NO.
 
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On 4/4/2003 5:39:37 PM L1011Ret wrote:

If you want to see what might happen in BK court to both pilot and F/A contracts, AA sent their 1113 motions to each union. The F/A motion was posted somewhere on this site. You can compare your current concessions with what AA is going to ask the BK court to approve. Having said that, there are a number of people who have solid good reasons to vote NO.

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Like who?
 
miAAmi,

This is the second time that you have said this, but I was there and I never did see a raise. I did see a cut and higher deductables on my medical coverage.

I agree with everything that you and FAmikey are saying on this deal, except where you say TWA got as raise. Totally not true...Have a nice evening and I hope for everyone whether working, furloughed, or retiree, that this thing will turn around.
Carl
 
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On 4/3/2003 10:11:43 PM Winglet wrote:

Gutting employee compensation isn''t going to stop a BK. It''s going to come anyway.

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Thank God we have someone here with the inside scoop. Where have you been? Did you tell this to your union while they were negotiating? Well I guess everyone its a done deal according to Winglet here. Too bad we didn''t have this privy info before we went into negotiations.
 

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