It''s not over if the unions don''t sign off on the contracts.
from the Directors update
[url="http://www.twuatd.org"]http://www.twuatd.org[/URL]
April 17, 2003
TO: All TWU/AA Members
Dear Sisters & Brothers:
Yesterday, as contract ratification for all three union groups was being completed, the Company made a filing with the Securities and Exchange Commission, indicating it had established a special pension fund for its executives. The existence of this fund was never revealed to our consultants while they examined AA''s books, nor were we informed of it in the bargaining which led to the concessions we agreed to in order to avoid a bankruptcy. We regard the failure to timely disclose the existence of this fund in bargaining by American as a material breach of its obligations to provide relevant information.
The concessions our members barely ratified the other day were based on the premise of shared sacrifice. This fund is the opposite of shared sacrifice and calls into question the basis of each of our contracts.
We have signed no new agreement, and in light of the disclosure in AA''s SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy. Unless the Company reforms itself on the issue of executive compensation,
there is no basis to cooperate in its effort to survive.
Sincerely & fraternally,
James C. Little
Director Air Transport Division
Intl. Administrative Vice President