This from TWA FAN ONE on SJ's BB
from Aviationnow.com
(not big news but interesting in light of what ended up happening...the deck was stacked right from the start)
Commercial Aviation Mar 29, 2001
American's Three Unions Reject TWA Buyout
By Ted Gogoll
March 29, 2001
Two other American Airlines unions have joined the Allied Pilots Association in rejecting the carrier's buyout of TWA, saying integrating workforces could cause turmoil.
"The employee turmoil that typically accompanies airline mergers and acquisitions - in particular, the difficulty of integrating workforces - could have a seriously negative effect on the future well being of American Airlines," said a joint letter from the heads of the three unions to American CEO Don Carty. Signing the letter were John Darrah, president of APA; John Ward, president of the Association of Professional Flight Attendants and James Little, VP-air transport of the Transportation Workers Union.
"Given that inevitable impact of an acquisition, it is imperative that management deals fairly with and recognizes the contributions of its employee groups," they added.
Carty responded that he was surprised and disappointed by the stance the unions have taken.
"As we have shared with each of you on several occasions, the TWA transaction was undertaken to protect the long-term future of our company and the interests of all of our union and nonunion employees," Carty wrote in a letter to the unions.
The union letter stated the employee groups are committed to building a leading airline, but that can only be achieved if all "facets of the organization participate in the creation of that airline. Thus far, that has not been the case. For this reason, and with a keen sense of disappointment, we cannot support this transaction."
The unions are demanding pension enhancements and protections against work furloughs, pay reduction or job-assignment change, as conditions for keeping the peace after American acquires TWA.
Carty said he was confused about the position of the flight attendants' union and the TWU on the TWA purchase because the airlines haven't started negotiations on the transition. Union representatives have said they're not ready to begin talks, but the airlines again asked the APFA on Tuesday to begin talks immediately, he said.
"Quite frankly, I'm not sure I can provide any of the assurances you seek if neither organization has told the company what those concerns are," Carty wrote.
In regard to its pilots, American agreed to protect them from possible furloughs, but said it wouldn't consider other costly demands they are seeking in exchange for their support of the carrier's purchase of TWA until the summer.
Talks between American and its pilots' union over acquisition-related issues broke off last week and are expected to resume next week.
In two letters to pilots, American executives endorsed some of the union's demands, such as protection against furloughs, and said they'd add 216 captains' jobs through internal growth by 2004. But they said American wouldn't consider other basic issues until bargaining on a new contract begins this summer.
In one of the letters, American's VP-flight, Bob Kudwa, accused the union of using the TWA acquisition talks to negotiate unrelated items.
"Our progress is hindered because APA has broadened the acquisition discussions to include items that are unrelated to the TWA transaction -- items that we're fully prepared to address as part of our (regular contract) discussions that begin this summer,'' Kudwa wrote. He added that the airline doesn't have time to discuss those issues in the days before it completes the TWA deal.
Darrah, president of APA, said the airline had misstated some of the union's positions.
APA said United made similar agreements with its pilots as part of its deal to acquire US Airways, and questions why American has yet to do likewise. The union further noted American's swiftness in which it concluded its agreement to acquireTWA, but after nearly a month of talks hasn't reached an agreement with them.
"We are disappointed at this lack of results," said APA, also noting American's management team "has been willing to address the concerns of TWA's employees, but not its own."
There's precedent for American's pilots voicing concern over the carrier's integration with another airline. In February 1999 about 2,500 pilots called in sick over eight days to protest American's plans to fold Reno Air, a U.S. West Coast carrier American bought in 1998, into its fleet. American said the sickout caused 6,700 cancelled flights, reportedly costing the carrier some $250 million. A federal judge ordered the union and two former officials to pay American $45.5 million - which the union said would bankrupt it - for defying a back-to-work order.
APA is also asking for medical and travel benefits for all pilots, reimbursement for expenses incurred because of the acquisition and 717/DC-9 pay rates.
The U.S. Justice Dept. said after investigating the proposed merger and taking into account TWA's bankrupt condition, it wouldn't challenge American's buyout plans of TWA. A week earlier, a bankruptcy court judge approved American's bid of $742 million, along with the assumption of $3.5 billion in aircraft leases, for assets including 190 planes and TWA's St. Louis hub.
The Associated Press contributed to this report.
from Aviationnow.com
(not big news but interesting in light of what ended up happening...the deck was stacked right from the start)
Commercial Aviation Mar 29, 2001
American's Three Unions Reject TWA Buyout
By Ted Gogoll
March 29, 2001
Two other American Airlines unions have joined the Allied Pilots Association in rejecting the carrier's buyout of TWA, saying integrating workforces could cause turmoil.
"The employee turmoil that typically accompanies airline mergers and acquisitions - in particular, the difficulty of integrating workforces - could have a seriously negative effect on the future well being of American Airlines," said a joint letter from the heads of the three unions to American CEO Don Carty. Signing the letter were John Darrah, president of APA; John Ward, president of the Association of Professional Flight Attendants and James Little, VP-air transport of the Transportation Workers Union.
"Given that inevitable impact of an acquisition, it is imperative that management deals fairly with and recognizes the contributions of its employee groups," they added.
Carty responded that he was surprised and disappointed by the stance the unions have taken.
"As we have shared with each of you on several occasions, the TWA transaction was undertaken to protect the long-term future of our company and the interests of all of our union and nonunion employees," Carty wrote in a letter to the unions.
The union letter stated the employee groups are committed to building a leading airline, but that can only be achieved if all "facets of the organization participate in the creation of that airline. Thus far, that has not been the case. For this reason, and with a keen sense of disappointment, we cannot support this transaction."
The unions are demanding pension enhancements and protections against work furloughs, pay reduction or job-assignment change, as conditions for keeping the peace after American acquires TWA.
Carty said he was confused about the position of the flight attendants' union and the TWU on the TWA purchase because the airlines haven't started negotiations on the transition. Union representatives have said they're not ready to begin talks, but the airlines again asked the APFA on Tuesday to begin talks immediately, he said.
"Quite frankly, I'm not sure I can provide any of the assurances you seek if neither organization has told the company what those concerns are," Carty wrote.
In regard to its pilots, American agreed to protect them from possible furloughs, but said it wouldn't consider other costly demands they are seeking in exchange for their support of the carrier's purchase of TWA until the summer.
Talks between American and its pilots' union over acquisition-related issues broke off last week and are expected to resume next week.
In two letters to pilots, American executives endorsed some of the union's demands, such as protection against furloughs, and said they'd add 216 captains' jobs through internal growth by 2004. But they said American wouldn't consider other basic issues until bargaining on a new contract begins this summer.
In one of the letters, American's VP-flight, Bob Kudwa, accused the union of using the TWA acquisition talks to negotiate unrelated items.
"Our progress is hindered because APA has broadened the acquisition discussions to include items that are unrelated to the TWA transaction -- items that we're fully prepared to address as part of our (regular contract) discussions that begin this summer,'' Kudwa wrote. He added that the airline doesn't have time to discuss those issues in the days before it completes the TWA deal.
Darrah, president of APA, said the airline had misstated some of the union's positions.
APA said United made similar agreements with its pilots as part of its deal to acquire US Airways, and questions why American has yet to do likewise. The union further noted American's swiftness in which it concluded its agreement to acquireTWA, but after nearly a month of talks hasn't reached an agreement with them.
"We are disappointed at this lack of results," said APA, also noting American's management team "has been willing to address the concerns of TWA's employees, but not its own."
There's precedent for American's pilots voicing concern over the carrier's integration with another airline. In February 1999 about 2,500 pilots called in sick over eight days to protest American's plans to fold Reno Air, a U.S. West Coast carrier American bought in 1998, into its fleet. American said the sickout caused 6,700 cancelled flights, reportedly costing the carrier some $250 million. A federal judge ordered the union and two former officials to pay American $45.5 million - which the union said would bankrupt it - for defying a back-to-work order.
APA is also asking for medical and travel benefits for all pilots, reimbursement for expenses incurred because of the acquisition and 717/DC-9 pay rates.
The U.S. Justice Dept. said after investigating the proposed merger and taking into account TWA's bankrupt condition, it wouldn't challenge American's buyout plans of TWA. A week earlier, a bankruptcy court judge approved American's bid of $742 million, along with the assumption of $3.5 billion in aircraft leases, for assets including 190 planes and TWA's St. Louis hub.
The Associated Press contributed to this report.
