More Time for Judge Lane

[TWU informer]

With the assent of the American Airlines lawyers, U.S. District Judge Sean Lane will get an extra two weeks to decide whether American can reject its collective bargaining agreements.

The judge had set June 6 as his deadline to stay within the 30 days laid out in the federal bankruptcy code. But he worried aloud Friday afternoon about being able to render a decision in such a complex case.

American counsel Jack Gallagher said American was "eager to accommodate the court" and suggested June 22 as a new deadline, which the judge quickly embraced.

Now, June 6 will be the deadline for American, the Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union to file briefs that sum up their positions.
In the interest of relative brevity, the judge also asked each union to limit its brief to 30 pages and for American to limit its brief to 75 pages.

American is attempting under Section 1113 of the bankruptcy code to reject its contracts with the three unions and impose new terms of employment on them. However, five of the seven TWU bargaining units voted this week to accept American's proposed contracts, so those are no longer part of the 1113 proceedings.
American presented its case April 23-27. The APA presented its case Monday through Wednesday, the APFA put on its case Wednesday through Friday morning, and TWU began its case around noon Friday.
With the TWU to finish presenting its case Monday or Tuesday of next week, the judge said he presumes the testimony including rebuttals should conclude by the end of that week.

The judge took note that the parties will have spent three weeks presenting their sides, an unusually long trial on Section 1113 motions. Lane said other cases have wrapped up in three days.

 

[TWU informer]

In addition, the judge has requested that APA participate in mediated negotiations with AMR management in New York beginning the week of Monday, June 4. APA has agreed to do so and will have a full team prepared to engage with management. The mediator will be Judge James Peck. Like Judge Lane, Judge Peck is a Bankruptcy Judge of the United States Bankruptcy Court for the Southern District of New York.

 

[AANOTOK]

And your take on all this informer?

If I had to give an opinion, it's a tilt in labors favor. Especially this quote: " he worried aloud Friday afternoon about being able to render a decision in such a complex case."

 

[TWU informer]

Judge Peck

http://www.bankruptc...tchslapper.html

Actually... It doesn't matter if you call me 'BitchSlapper' or just 'B.S.' for short. But in the courtroom you sure as hell better call me your Honorable BitchSlapper.

 

[TWU informer]

And your take on all this informer?

If I had to give an opinion, it's a tilt in labors favor. Especially this quote: " he worried aloud Friday afternoon about being able to render a decision in such a complex case."

My take at this point is simply that this case is so different than most that there is no guide to get a real idea of what might happen.

This case is very complex on many fronts and this extension is most likely due to a back door request by AA to move towards mediation with the Pilots.

Don't read too much into this yet.

Patience Grass Hopper

 

[AANOTOK]

Oh, I have no patience. I was undermined by 58% (that voted) of the fleet service clerks. The 38% who didn't even vote are in my opinion far worse. Anyway, just following M&R's fight against both AA and the TWU. We lost to both!

 

[TWU informer]

Oh, I have no patience. I was undermined by 58% (that voted) of the fleet service clerks. The 38% who didn't even vote are in my opinion far worse. Anyway, just following M&R's fight against both AA and the TWU. We lost to both!

Patience can be a Man's greatest virtue. And even better yet for a Union Leader or Member.

 

[Bob Owens]

Patience can be a Man's greatest virtue. And even better yet for a Union Leader or Member.

I agree, like I said before the vote, why rush before the pilots settle?

There's no doubt that with changes to scope that the company has zero case as far as claiming that we need to give more to compete, the question is does the court see itself as a "candy store for corporate America' and say that the standard is now whatever they need to 'reorganize" not limited to survival but as an easy avenue to dominance?

In the overflow room they had an interesting timeline on the wall about Bankruptcy in American History, It seems that several times the ability to walk away from debts was abolished due to abuse and corruption. There have been several attempts to reform the current one, well if a Judge abrogates our contract, where we are at the bottom of the industry and stripped of the right to strike, then surely it must be time to consider abolishing it again. I have no problem with second chances but this case it's abuse. 1113 was created after Lorenzo abused the code, reportedly the judge in that case later took a job under Lorenzo, now 1113, the supposed fix, is viewed as punitive by most workers who go though the process, especially in the 2nd District.. Maybe judges need to better police their own, for the more outrageous the decisions they make, no matter how they attempt to rationalize them, does nothing to improve the publics trust or perception of the entire Judicial system and will leave them no other choice than to seek Justice through other means.

 

[Overspeed]

I agree, like I said before the vote, why rush before the pilots settle?

There's no doubt that with changes to scope that the company has zero case as far as claiming that we need to give more to compete, the question is does the court see itself as a "candy store for corporate America' and say that the standard is now whatever they need to 'reorganize" not limited to survival but as an easy avenue to dominance?

In the overflow room they had an interesting timeline on the wall about Bankruptcy in American History, It seems that several times the ability to walk away from debts was abolished due to abuse and corruption. There have been several attempts to reform the current one, well if a Judge abrogates our contract, where we are at the bottom of the industry and stripped of the right to strike, then surely it must be time to consider abolishing it again. I have no problem with second chances but this case it's abuse. 1113 was created after Lorenzo abused the code, reportedly the judge in that case later took a job under Lorenzo, now 1113, the supposed fix, is viewed as punitive by most workers who go though the process, especially in the 2nd District.. Maybe judges need to better police their own, for the more outrageous the decisions they make, no matter how they attempt to rationalize them, does nothing to improve the publics trust or perception of the entire Judicial system and will leave them no other choice than to seek Justice through other means.

Your confidence is surprising given that testimony with the APA and APFA was dismantled pretty effectively in court. APA and APFA reps and experts testified that they have seen nothing from US Air on its business plan for a merged AA/US but they were both wiling to make concessions that AA has been asking for the last five years in negotiations. So by hastily signing term sheets with US Air agreeing to concessions they have demonstrated that the APA, APFA, and TWU all will agree to cuts and massive work rule and benefit changes. Still hoping for a better deal? Not likely.


Key Points
Glading testified that within 24 hours of receiving details of American’s business plan, and prior to doing analysis of the supporting information for the labor cost reductions, she communicated to her membership that she was not going to accept the plan or the necessary savings.

Glading also testified that the union agreed to $153M in annual cost reductions in its term sheet with US Airways, without any evaluation of a business plan for the merged entity or an understanding that further cost reductions would not be needed. APFA has not reviewed or been provided key information from US Airways including:

• No revenue plan
• No fleet plan
• No financial analysis or performance metrics

Also revealed during Glading’s testimony was APFA’s agreement to a number of contractual items with US Airways that it rejected in its negotiations with American:

• APFA agreed to a six year duration with US Airways, but rejected a six year term with American.
• APFA agreed to a Preferential Bidding System without condition with US Airways, but their proposal to AA requires union approval of the PBS system before implementation.
• APFA agreed to a single pay scale for domestic and international flight attendants, with an international override with US Airways, but rejected American’s proposal to combine the currently separate domestic and international pay scales into a single consolidated pay scale.

On Thursday, during cross examination, Akins testified that, other than the terms sheets reached with the labor unions, there have been no agreements with AA company representatives, the Unsecured Creditors Committee or any other stakeholder with respect to a merger with US Airways.

Akins also testified that previous major airline mergers all occurred outside of the Chapter 11 process.

 

[Bob Owens]

Akins also testified that previous major airline mergers all occurred outside of the Chapter 11 process.[/color]

Well thats not what I heard him say, and so far I've sat through three days.

The Delta NWA merger took place in BK. Heard Akins say that yesterday.

As far as a USAIR business plan they would need access to AAs info, and they dont have it so they cant make a business plan.

Oh and as far as the TWU agreeing to a USAIR deal, like I've said before "I could care less who writes the check, I just care how much its made out for." I wouldnt agree to a concessionary deal for USAIR either.

 

[iluvaa]

Well thats not what I heard him say, and so far I've sat through three days.

The Delta NWA merger took place in BK. Heard Akins say that yesterday.

As far as a USAIR business plan they would need access to AAs info, and they dont have it so they cant make a business plan
.

Well Bob how did our first day go got a play by play for us

 

[chris perry]

I can tell you this from the transcripts,Brundage admitted AA would have a wide cost advantage in aircraft maint if the T/A passed.He also was stumbling through the companies cost out sheets like he didn't understand.(FAT CHANCE) Bob can you confirm? I read the transcripts off twitter from APFA(very good by the way,excellent job).

 

[TWU informer]

Your confidence is surprising given that testimony with the APA and APFA was dismantled pretty effectively in court.

You are a bigger management shill than the paid shills on the forums.
Unreal

 

[Pen]

Your confidence is surprising given that testimony with the APA and APFA was dismantled pretty effectively in court. APA and APFA reps and experts testified that they have seen nothing from US Air on its business plan for a merged AA/US but they were both wiling to make concessions that AA has been asking for the last five years in negotiations. So by hastily signing term sheets with US Air agreeing to concessions they have demonstrated that the APA, APFA, and TWU all will agree to cuts and massive work rule and benefit changes. Still hoping for a better deal? Not likely.


Key Points
Glading testified that within 24 hours of receiving details of American’s business plan, and prior to doing analysis of the supporting information for the labor cost reductions, she communicated to her membership that she was not going to accept the plan or the necessary savings.

Glading also testified that the union agreed to $153M in annual cost reductions in its term sheet with US Airways, without any evaluation of a business plan for the merged entity or an understanding that further cost reductions would not be needed. APFA has not reviewed or been provided key information from US Airways including:

• No revenue plan
• No fleet plan
• No financial analysis or performance metrics

Also revealed during Glading’s testimony was APFA’s agreement to a number of contractual items with US Airways that it rejected in its negotiations with American:

• APFA agreed to a six year duration with US Airways, but rejected a six year term with American.
• APFA agreed to a Preferential Bidding System without condition with US Airways, but their proposal to AA requires union approval of the PBS system before implementation.
• APFA agreed to a single pay scale for domestic and international flight attendants, with an international override with US Airways, but rejected American’s proposal to combine the currently separate domestic and international pay scales into a single consolidated pay scale.

On Thursday, during cross examination, Akins testified that, other than the terms sheets reached with the labor unions, there have been no agreements with AA company representatives, the Unsecured Creditors Committee or any other stakeholder with respect to a merger with US Airways.

Akins also testified that previous major airline mergers all occurred outside of the Chapter 11 process.

First time to comment here. These key points were copied from company communication and do not contain facts, which is hardly surprising.

 

[Bob Owens]

Well Bob how did our first day go got a play by play for us

Went well. The TWUBK facts web site summed it up pretty good, I'll add a few details over the weekend such as the fact that using their breakdown of the so called cost disadvantage the company knew they were asking us for $41 million more than they claimed they needed, their rationale was they simply wanted to take 20%, even though they admit they didnt need it.

The so called cost gap was from taking what they liked in other agreements and putting it in ours and figuring what they would save, didnt hear whether or not they calculated in the things they didnt like. One example was in negotiations they took langauge on OT out of the UAL contract as far as Job Continuation, but none of the other things like the easy hour, four hour minimum, doubletime, 1.75 hours for all hours away from base when on Field trip ect ect.