Bob in your opinion is this a concerted effort (TWU / AA) to reduce representation of the Line Mechanics with the intent of contracting out line maintenance when the contract becomes amendable?
No, its a concerted effort on the part of the ATD to effectively silence line maintenance so they can continue to give AA discounted labor in exchange for perks they personally recieve such as a pension from AA based upon what the Union pays them along with higher priority pass travel for them and their families.
Lets look at the Pension.
In the companys Summary Plan Description for the TWU it states that Union officials final average salary will include the rates of pay as reported by the Union. So lets look at Bobby Gless for example.
Lets say Bobby has 20 years in the plan as of the freeze date. and he is 45 as of the freeze date.
His earnings as reported by the LM-2 filed by the Union with the government are $180,000/year.
So lets say his final average salary under the AA plan comes out to $175,000/year.
$175,000 x 20 years of service x .01667 =$59,345 (if the pension had been terminated his pension would have been reduced by over $10,000, ours would not have been because we were way under the cap)
So now we have a DC pension, Bobby is likely also entitled to have a 5.5% match on his $180,000, so that means the company would contribute around $9900 a year to his pension, As a mechanic he would only see around $3900, so he gets more than double.
Keep in mind that he also gets his TWU pension which is even more generous. That pension has a 2.5% multiplier times his best ever year, no four year average to drag it down.
So if he retires at 55 with 15 years in the TWU plan his TWU pension would be an additional 15years x $200,000 x .025= $75000
($200k projected based upon past rates of pay raises)
(I beleieve they also get 5% annual cost of living increase on the pension)
So walking away from AA at 55 Bobby Gless, and most of the other ATD employees do pretty well
Gless at 55
At least $100k from AA in 401K
$75K annually from TWU
$50K annually from AA pension (includes 15% reduction)
So he is looking at $125k/year plus whatever he has in the 401k.
And on top of that the company will provide him with A-5 pass travel for life for him and his family.
AS a TWU represented mechanic working at AA at 55 he would have been looking at just a $19K/year pension plus around $30k in 401 contributions from the company. (Probably not enough to pay the property taxes on his waterfront home)
So the motivation? $100k extra a year or more for life.
Look at it this way, if Bobby retires at 55, by the time he is 65, the age at which you probably still wont be able to retire, what he has done will give him an extra $1million dollars.
The money for their TWU pension comes from our dues. So all they care about is making sure there are enough people paying dues to support what the TWU is paying them, so its not about protecting YOU or your job, its about making sure that AA continues to hire more and more dues payers in the future to support their salaries and pensions.
Don Videtich, Tim Gillespie and all the other employees of the International system who came out of the AA system are looking at similar arrangements.
All they have to do is make sure that AA continues to get the best deal in the industry, even better than Non-union Delta, Jet Blue or Fed Ex. Tulsa has already proven to be more than willing to go along with this, now, if they can just silence and marginalize the line they are set.