AMERICAN/US AIRWAYS MERGER UPDATE
APRIL 29,2012
Ron Roth Acting AGC
APRIL 20 / DOUG PARKER LETTER : Us airways filed an 8-k form with the SEC disclosing they have signed agreements with three unions at american that represent nearly 55,000 employees. The unions were : Allied Pilots Association , Association of Professional Flight Attendants and the Transport workers union . The three unions expressed their support for the merger .Per Mr Parker , they recognize the importance of a potential merger would save at least 6,200 positions at American . The agreements made would enhance compensation and benefits already in place . This announcement does not mean we have agreed to merge with american .
(to see entire post go to : ( wings.usairways.com )
April 20/TWU/APFA/APA LETTER : We are pleased to confirm our support of a possible merger between our airline and US airways . This significant step represents our shared recognition that a merger between American and US Airways is the best strategy and fastest option to complete the restructing of American , enabling it to exit chapter 11 and restore American to preeminent position in the airline industry . Over the long term the combined new airline would support greater job security and advancement opportunities for both American and US Airways employees that are far superior to those available to employees at either airline on a stand alone basis . ( APA represents 10,000 pilots - APFA represents 17,000 flight attendants - TWU represents 26,000 employees in fleet service , aircraft mechanics , stock clerks , dispatchers , ground school instructors , flight simulators and facility maintenance .
April 24/IAM DISTRICT PRESIDENT , RICH DELANEY COMMENTS : This weeks negotiations were disrupted by our inablity to review the company's agreement with TWU. The company claimed they were not in a position to share the TWU Term sheet until the TWU had informed their members of the deal . We agreed to schedule negotiation sessions in early july . We have begun the process of moving these talks to the next level of the railway labor act . We have had discussions with both the company and the Grand lodge to expore the possiblity of seeking the assistance of the National Mediation Board . The US/TWU deal while known to the TWU members , will not become effective or subject to ratification unless and until a merger between the two airlines is approved by the controlling parties and is finalized . The IAM will continue to withhold support or opposition to the proposed merger until much more information is known about the effect the proposal will have on our membership . TWU will not be voting on the US air agreement anytime soon . (iam141.0rg)
AMERICAN AIRLINES (miscellaneous ) - Its executives want to emerge from bankruptcy as a stand-alone airline . A spokesman for American said the company is focused on it's own plan to reorganize under bankruptcy protection which he called the best option for the airlines 73,000 employees. AMR filed for protection in November and has since outlined plans to cut more than 14,000 jobs , including 13,00 held by union members . On Thursday , the company reported a 1.6 billion loss for the first quarter . American has presented arguments to the court to terminate the existing contract with the TWU and implement changes they want in order to lower their labor costs under the protection of the bankruptcy fourt . The judge's decision to terminate is expected june 6.
APRIL 24/US airways/TWU term sheet highlights (proposed )
-Up to 1,500 employees could take early retirement and receive a "special severance allowance " of 22,000. To qualify , the employee must be at least age 45, an American employee for at least 15 years . Maximum would be 1,500 employees covering seven work groups .
- The US proposal would eliminate 2,232 mechanics and related jobs compared to 4,232 planned cuts by American . in Tulsa in particular, US air would eliminate 450 aircraft maintenance technician jobs , compared to 17,00 jobs cut by american . The remaining 450 AMT's at Tulsa would be protected from furlough for two years .
-American proposed elimintiating 450 line mechanics , US Airways would cut 250
-US airways would cancel plans to outsource employees in 30 protected stations , it is estimated that would protect 1,390 jobs . ( ABQ,ATL,BDL,BNA,BWI,DEN,DTW,ELP,EWR,FLL,HNL,IAD,IAH,IND,MCI,MEM,MSP,MSY,PHL,PHX,RDU,SAN,SAT,SEA,SJC,SJU,SNA,TPA,TUL, and TUS )
- cargo and mail work at JFK,LAX,DFW and MIA would be eliminated in exhance for other deal items .
- profit sharing and annual incentive plan would be eliminated in exchange for other deal items
- 401K's would be reduced from 5.5% to 3% in exchange for other deal items
-at the companies discretion it shall have the option of adopting the process for assigning overtime that US Air currently uses for fleet service as set by article 6.
-the parties agree to negotiate the terms of a "fence" and a "transition planning agreement " for the integration of us Airways and American
BLOGGER COMMENTS :
- The Union Presidents said they are looking out for their members interest ? Who are they kidding ? they are looking out for their interests only . No unions , no presidents .
-If there is a merger it will result in less competition and higher flight prices for all .
-Interesting that the furlough protection is for two years . Isn't that about the time that a merger would be close to complete ? wouldn't US and AA work groups be expected to come together at that time ? does this mean that US will decimate Tulsa after two years ?
-Sorry but i still am not buying what they are selling . I see nothing there but maybe another "kicking the can down the road" speech in a few years .
-American has hubs in LAX,DFW,ORD,MIA,and JFK . US airways is concentrated in PHL, CLT , PHX and DCA . Because they are concentrated in different locations , the proposed merger would be a win-win .
NOTE: with all of this going and including negotiations , i would hope people are real careful in their selection of IAM candidates come JUNE 2012 . This is truly a time when experience counts ..
The above has been reprinted with the permission of RR ... any gramma or spelling errors are my own , had to do this by hand because my scanner wasn't working .
