TWU -
The history of INDUSTRY LEADING CONCESSIONS
Tulsa Mechanics, AA Dispute Hires
By Melanie Busch
Section: BUSINESS
Edition: FINAL HOME EDITION
Page: E1
Estimated Printed Pages: 2
Index Terms:
AVIATION
Article Text:
The hiring of lesser skilled maintenance personnel at American Airlines' maintenance and engineering base in Tulsa has prompted the Transport Workers Union to file a contract grievance with the Fort Worth-based carrier.
The union disagrees with the company's hiring of shop repair personnel instead of licensed mechanics in some of the base's 35 shops where workers repair American's fleet at Tulsa International Airport.
Though the union agreed to "reclassification" in some shops during contract negotiations last year, it did not agree to the hiring of the lesser skilled workers in some of the shops where they are now being hired, said Marion Finley, president of the TWU Local 514, which represents about 5,400 American mechanics in Tulsa.
"It's just an interpretation problem," he said.
An outside arbitrator, William Eaton, will hold a hearing Sept. 10-11. His decision is final and binding.
American has been hiring repair personnel, some holding mechanic's licenses, in jobs that are easier to learn, that are not as closely supervised and that are repetitive, American spokesman John Hotard said.
"They've reached a point where American thinks these new hires could be used in shops where the TWU believes you should still use (licensed) mechanics in those positions," he said. "The issue is not ... who do we hire to fill that job, but how many jobs fall under the category of a shop repair person or a (licensed) mechanic."
Line mechanics now start at $13.40 an hour, while repair personnel start at $9 an hour.
Finley downplayed the dispute, saying the union has filed several grievances with American since the contract was approved in November. However, the current grievance is the first to directly impact Tulsa maintenance workers, he said.
Under the current contract, amendable in the year 2000, American reclassified some TWU positions, separating lesser skilled positions from highly skilled positions. The airline is allowed to pay less for the positions requiring less skill.
The old contract grouped a wide range of jobs into a job classification with one pay scale, whereas the new one created lower pay classifications for lower skill tasks.
Hotard said the reclassification was "the thrust of the new contract. We could hire certain jobs out where you wouldn't have to have your (airplane mechanic's) license."
The company has hired fewer than 100 shop repair personnel with whom the union disagrees with, Finley said. The union accepts another 600 repair personnel hired since November, he said.
The union decided to file the grievance because it believes American will hire many more repair personnel.
"It takes away jobs from mechanics," Finley said. "But there haven't been any mechanics laid off because of this."
Though the contract gives American the right to hire some shop repair personnel, it also guarantees current TWU members the same job and pay scale they now have.
American has contracts with three labor groups, including pilots and flight attendants.
Last fall, American announced it would hire 1,050 workers, mostly mechanics, at the Tulsa base through 1997, and recall another 529 furloughed mechanics.
Record Number: TUL582498
October 17, 1996
Earnings Fly High At AMR
By Bloomberg Service
Section: BUSINESS
Edition: FINAL HOME EDITION
Page: E1
Estimated Printed Pages: 2
Article Text:
FORT WORTH, Texas -- AMR Corp. said earnings increased a better-than-expected 21 percent in the third quarter, as rising costs for jet fuel were partially offset by higher fares and stronger demand for air travel.
The parent of American Airlines had net income of $282 million, or $3.06 a share, up from year-earlier profit from operations of $233 million, or $3.01. Shares outstanding increased 19 percent.
Wall Street expected Fort Worth-based AMR to earn $3.01, based on the average estimate of 13 analysts surveyed by IBES International Inc.
Revenue rose 2.6 percent to $4.56 billion from $4.45 billion.
In the year-ago period, a charge of $4 million, or 5 cents, made net $229 million, or $2.96.
AMR shares fell 11/8 Wednesday, closing at 817/8.
Costs at the airline are still higher than the company would like, said Robert Crandall, AMR chairman and chief executive. Strong demand, higher fares and expansion of non-airline businesses helped offset a surge in fuel prices, he said.
A jump in oil prices sent the cost of jet fuel up 19 percent from the year-ago period. Crude oil is trading at about $25 a barrel, up from about $17 a year ago.
"Fuel prices obviously hurt somewhat and we're not looking at any decreases soon," said Vivian Lee, an analyst at BT Securities in New York.
American's load factor, the percentage of seats filled, rose to 71.1 percent from 68.9. Passenger revenue yield, the amount each passenger pays to fly one mile, rose to 12.71 cents from 12.45 cents.
After the summer travel season, however, revenue passenger miles slipped 4.2 percent in September from the year-ago month and the load factor was steady at 65 percent.
Profit at AMR's airline group rose 44 percent to $371 million as revenue rose 2.1 percent to $4.17 billion.
The SABRE Group, AMR's technology unit that was partially spun off to investors earlier this month, had profit of $74 million, down 32 percent. Revenue rose 3.8 percent to $408 million.
At the management services group, profit rose 19 percent to $19 million and revenue gained 9 percent to $158 million.
In the nine months ended Sept. 30, AMR earned $732 million,
Record Number: TUL588621
October 30, 1996
American Eyes Big Airplane Order
By From staff, wire reports
Section: BUSINESS
Edition: FINAL HOME EDITION
Page: E1
Estimated Printed Pages: 2
Index Terms:
AVIATION
Article Text:
FORT WORTH, Texas -- American Airlines wants to buy at least 100 new jets worth more than $10 billion and is in talks with the Boeing Co. about an order, people familiar with the airline said.
The order would represent the largest purchase for American in more than a decade and could mark a resumption of the expansion it pursued in the 1980s, when it rose from a second-tier carrier to become the nation's largest airline.
American could complete negotiations for at least part of the order as early as Thanksgiving, or Nov. 28, sources familiar with the talks said.
A spokesman for AMR Corp., American's Fort Worth-based parent company, declined to comment. A Boeing spokeswoman also declined to comment, saying the company's policy is to let customers announce purchases.
American took delivery of its last new plane, a Boeing 757, this summer. Last week, AMR Chairman Robert Crandall said the company wanted to buy more mid-range 757s as well as long-range aircraft "fairly soon." American has about 86 757s in its fleet.
The purchase could include orders and options for 60 wide-body 777s, a twin-engine jet with the range to fly from American's Dallas hub to Tokyo.
Those airplanes alone would cost about $8 billion before any discounts. Adding about 40 smaller jets American also wants to buy could bring the total purchase to more than $10 billion, the people familiar with the talks said.
Such an order would be "a coup for Boeing," said Nick Heymann, an analyst at NatWest Securities Corp. in New York. The carrier has more than 640 planes, most of which were made by McDonnell Douglas Corp.
The impact of plane purchases at American's Tulsa Maintenance and Engineering Center depends on the type of planes purchased and the role the local facility would take in their upkeep.
Currently the center handles Fokker 100s, Airbus 300s, McDonnell Douglas DC-10s, MD-80s and MD-11s, and Boeing's 727.
The future of American's 80-plane 727 fleet remains unclear. The planes need hush kits placed on engines, at $3 million per engine, or $12 million replacement engines to meet government noise standards that take effect in 2000. They also require a flight crew of three, compared with a two-person crew in more modern craft.
Crandall said last week the company might replace all 16 MD-11s and replace its older 727s with newer narrow-body jets.
Record Number: TUL590418
