TWU Rejects offer

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COMPREHENSIVE PROPOSAL
SEPTEMBER 18, 2008
DURATION
â—￾ DOS +2.5 YEARS
â—￾ MODIFY ARTICLE 47 TO REFLECT A TWO AND A HALF (2.5) YEAR DURATION FROM DOS
â—￾ PROVIDE AN EARLY OPENER PROVISION THAT ALLOWS EITHER PARTY TO SERVE NOTICE
NO EARLIER THAN SIX (6) MONTHS FROM THE AMENDABLE DATE

ARTICLE 4 – COMPENSATION
â—￾ DOS 5.0% LUMP SUM
â—￾ DOS +12 3.5% LUMP SUM
THE LUMP SUM IS A PERCENTAGE OF THE CHART RATE PLUS PREMIUMS ANNUALIZED AS
FOLLOWS AND IS PENSIONABLE:
5.0% LUMP SUM
TITLE I LINE AMT
$3,406*
TITLE I LINE CC/TCC/INSP
$3,588*
TITLE I BASE AMT
$3,349*
TITLE I BASE CC/TCC/INSP
$3,531*
NOTE: *APPROXIMAE GROSS AMOUNTS (EXAMPLES SHOWN AT MAX RATES)

ARTICLE 4 – COMPENSATION
DOS + 12 3.5% LUMP SUM
THE LUMP SUM IS A PERCENTAGE OF THE CHART RATE PLUS PREMIUMS ANNUALIZED AS
FOLLOWS AND IS PENSIONABLE:
3.5% LUMP SUM
TITLE I LINE AMT
$2,384*
TITLE I LINE CC/TCC/INSP
$2,512*
TITLE I BASE AMT
$2,344*
TITLE I BASE CC/TCC/INSP
$2,472*
ARTICLE 4 – COMPENSATION
5.0% LUMP SUM
TITLE II LINE
$3,063*
TITLE II BASE
$3,006*
3.5%
TITLE II LINE
$2,144*
TITLE II BASE
$2,104*
NOTE: *APPROXIMAE GROSS AMOUNTS (EXAMPLES SHOWN AT MAX RATES)
VARIABLE COMPENSATION
â—￾ MUTUALLY COMMIT TO DEVELOP A VARIABLE COMPENSATION (GAIN SHARING) PLAN FOR
EACH AGREEMENT, PRIOR TO THE AMENDABLE DATE, WHICH IS BASED ON THE
FOLLOWING PRINCIPLES:
â—‹ SIMPLE AND EASILY UNDERSTOOD BY EMPLOYEES
â—‹ FISCALLY RESPONSIBLE (SELF FUNDED)
â—‹ PERFORMANCE BASED
â—‹ CONNECTED TO EMPLOYEE ACTION: “LINE OF SIGHTâ€￾
â—‹ TIED TO CORPORATE AND LOCAL BUSINESS RESULTS
â—‹ STRUCTURED TO MOTIVATE CONTINUOUS IMPROVEMENT

ARTICLE 7 – HOLIDAYS
INCREASE NUMBER OF HOLIDAYS AS FOLLOWS:
â—￾ ADD THE FRIDAY AFTER THANKSGIVING EFFECTIVE 2008
â—￾ ADD MARTIN LUTHER KING DAY AND MEMORIAL DAY EFFECTIVE 2009
â—￾ INCREASE HOLIDAY WORK RATE FROM 1.5X TO 2.0X EFFECTIVE DOS
â—￾ MODIFY HOLIDAY PROVISION FORM “AUTOMATICALLY OFFâ€￾ UNLESS REQUIRED, TO
“AUTOMATICALLY REQUIREDâ€￾ EXCEPT AT BASE MAINTENANCE LOCATIONS

ARTICLE 8 – VACATION
â—￾ EFFECTIVE JANUARY 1, 2010 PROVIDE THREE (3) DAT (DAY AT A TIME) VACATION DAYS
â—‹ DETAILS TO BE DEVELOPED LOCALLY BETWEEN DOS AND SEPTEMBER 1, 2009 TO
ADDRESS THE FOLLOWING:
â—￾ DAT DAYS SELECTION OPTIONS:
â—‹ I.E.: IN CONJUNCTION WITH ANNUAL VACATION BID, IN CONJUNCTION WITH
SHIFT BID, AD HOC, ETC.
â—‹ NUMBER OF DAT DAYS APPROVED FOR ANY GIVEN CALENDAR DATE TO BE
DETERMINED BY MANAGEMENT
â—￾ OPTION OF PAY IN LIEU OF USE TO BE PAID IN JANUARY OF EACH YEAR

ARTICLE 34 – SICK LEAVE
â—￾ RESTORE 100% RATE OF PAY FOR SICK OCCURRENCES 2008
â—￾ ACCRUAL RATE FOR 2008 TO REFLECT AN INCREASE TO SIX (6) DAYS (TO BE CREDITED
FOR USE IN 2009)
â—￾ ACCRUAL RATE FOR 2009 TO REFLECT AN INCREASE TO EIGHT (8) DAYS (TO BE CREDITED
FOR USE IN 2010)

NEW PROFIT SHARING PLAN
â—￾ 30% OF THE FIRST $250M
â—￾ 25% OF $250M TO $500M
â—￾ 20% OF >$500M
â—￾ THE PLAN IS UNCAPPED
â—￾ PAID AS A PERCENTAGE OF EARNINGS TO TOTAL LABOR EXPENSE
â—￾ SUPPLEMENT EXISTIN PROFIT SHARING PLAN WITH THE ABOVE EARNINGS THREASHOLD
â—￾ REPLACES AIP PLAN
â—￾ EFFECTIVE FOR THE 2008 YEAR AND THE DISBURSEMENT OF THE PLAN, IF APPLICABLE WILL
BE IN MARCH OF THE FOLLOWING YEAR.

ARTICLE 1
â—￾ EAGLE ASM LETER MODIFICATION
â—￾ MODIFY ARTICLE 1 TO MATCH FLEET SERVICE ARTICLE 1© FOR TITLE II
â—￾ BUILDING CLEANERS – UPGRADE REMAINING TULSA BUILDING CLEANERS TO PMM THEN
OUTSOURCE BUILDING CLEANER ACTIVITIES

ARTICLE 3
â—￾ IMPROVE AA & MRO ABILITY TO COMPETE WITH 24/7 WORK FORCE (PROVIDE RELIEF FROM
1/7 RULE CONSTRAINTS AT OVERHAUL BASES).

ARTICLE 5
â—￾ MODIFY & UPDATE EXISTING SHIFT START TIMES TO REFLECT CURRENT EMPLOYEE
CULTURE
â—￾ ENHANCE TEST HOP INSURANCE

ARTICLE 11
â—￾ CREATE /MODIFY/REMOVE, EXISTING JOB DESCRIPTIONS TO IMPROVE EMPLOYEE
PRODUCTIVITY/COMPETITIVENESS.

ARTICLE 12
â—￾ AUTOMATE PROMOTIONS AND TRANSFER SYSTEM
â—￾ MODIFY CREW CHIEF SELECTION PROCESS
â—￾ UPDATE QAM TO REFLECT CURRENT DESCRIPTIONS AND TEST REQUIREMENTS
â—￾ MODIFY BASE TRANSFER MEMORANDUM TO MORE EFFICIENTLY RESPOND TO CHANGES
IN WORKLOAD
â—￾ IMPROVE BASE LABOR LOAN WORK RULES

ARTICLE 40
â—￾ FOR NEW HIRES PROVIDEA DEFINED CONTRIBUTION PLAN:
ALL MECHANICS & RELATED EMPLOYEES HIRED AFTER THE EFFECTIVE DATE OF THE
AGREEMENT WILL AUTOMATICALLY BE ENROLLED IN SUPER SAVER PLUS 401(k) PLAN AND
WILL RECEIVE A COMPANY PROVIDED MATCHING CONTRIBUTION AFTER COMPLETION OF
ONE YEAR ELIGIBILITY SERVICE.
COMPANY WILL MATCH THE EMPLOYEE CONTRIBUTION DOLLAR FOR DOLLAR UP TO 5.5%
OF PENSIONALBE PAY UPON MEETING ELIGIBILITY REQUIREMENTS.
EMPLOYEES HIRED AFTER EFFECTIVE DATE OF AGREEMENT WILL NOT BE ELIGIBLE FOR
DEFINED BENEFIT PLAN.

ARTICLE 41
â—￾ CREATE A JOINT COMMITTEE TO EXPLORE IMPLEMENTATION OF A VEBA TRUST
ADMINISTERED BY THE TWU.
â—￾ PROPOSED CHANGES TO RETIREE MEDICAL FOR ACTIVE EMPLOYEES:
â—￾ PRE 65: SICK BANK CONVERSION METHODOLOGY
â—￾ POST 65: MODIFY TO ALIGN WITH INDUSTRY STANDARD
â—￾ PROPOSED CHANGES TO RETIRE MEDICAL FOR NEW EMPLOYEES:
â—￾ PREFUNDING WILL NOT APPLY AND COMPANY WILL PROVIDE ACCESS ONLY TO PRE 65
RETIREE MEDICAL COVERAGE.
â—￾

ARTICLE 42
â—￾ MODIFY SYSTEM AND STATION PROTECTION AS NECESSARY AS TO ALLOW THE
IMPLEMENTATION OF WORKRULE CHANGES.
TAESL – LETTER OF AGREEMENT
â—￾ SUPPLEMENT TO AGREEMENT COVERING TAESL'S UNIQUE MRO ENVIRONMENT
â—￾ ASM/AMT RATION – 50% THROUGH GROWTH, ATTRITION & VOLUNTARY PROGRAMS
â—￾ TAESL TO BE TREATED AS A SEPERATE “TYPE WORKâ€￾ FOR RIF, RECALL, & TRANSFERS
â—￾ GAIN SHARE – BASED ON TAESL BUSINESS PERFORMANCE
â—￾ CUSTOMER ENGINE WORKSCOPE AND OFF-LOAD TO BE DETERMINED BY CUSTOMER
AND TAESL
â—￾ CLARIFY OPTION FOR UNIFORMS UNIQUE TO TAESL
â—￾ ALTERNATIVE WORK SCHEDULES, BY MUTUAL AGREEMENT, FOR TAESL
â—￾ MODIFY OUTSOURCING PROCESS FOR BACK-LOGS
COMPANY PROPOSALS FOROPEN ARTICLES
â—￾ ARTICLE 6 – OVERTIME PROPOSE CURRENT BOOK
â—￾ ARTICLE 15 – REDUCTION IN FORCE PROPOSE COMPANY'S LAST VERSION
â—￾ ARTICLE 23 – TRAINING PROPOSE COMPANY'S LAST VERSION
â—￾ ARTICLE 25 RECALL & CALL-IN WORK PROPOSE CURRENT BOOK
â—￾ ARTICLE 36 - MEAL PERIODS PROPOSE CURRENT BOOK
â—￾ ARTICLE 39 – PHYICAL EXAM PROPOSE COMPANY'S LAST VERSION
â—￾ ARTICLE 46 – ONE STATION AGREEMENTS PROPOSE CURRENT BOOK
 
COMPREHENSIVE PROPOSAL
SEPTEMBER 18, 2008
DURATION
â—￾ DOS +2.5 YEARS


DOS is automatic cause for rejection, the company should not be rewarded for dragging their feet.

Lets not forget how the company took retro vaction concessions even though the company didnt open the contract talk till March.
 
I can't believe you people. This is the best contract ever presented to the membership and the TWU negotiators voted it down? We need to vote this in right now! Oil prices are sinking and we need to be locked in before they go even lower. Why would anybody want a pension anyway? This contract proposal is the opportunity of a lifetime. :wacko: :wacko: :wacko:
 
It will be intresting what the AMT's proposal was. Because if it was anything like FSC's, it would be a slap in the face. I am one here that did not want everything back from 2003, because I realize it does take time, in the current unstable wnviroment. But to give this proposal to these work groups is just down right assinine. I can now understand why some union members have such hate for the comapany management. Down right sad.

I am with you. I want it all back and more, but not at the cost of my pension or my job. Being reasonable seems quite out of fashion on this board as the militancy is increasing. I encourage fighting hard for a cause, but what cause are we fighting for with "snap back and more", exactly?

I'll be the first person demanding snap back when the company is raking in the dollars, but until then I am in favor of being "reasonable".
 
Frontline, you're absolutely correct. We will get it back someday, but now is not the time for bravado. This country could be in deep doo-doo amidst all the Wall St. and credit shenanigans and will leach into every area of the economy. The next thing is that AA may find itself having to reduce its size by an even greater percentage.
 
View attachment 7919
I would say that the mechanics have a lot of room to negotiate even with AA's skewed numbers. They had to include Midnight Retention pay just to get us up to 5th out of 10!!
Every other work group on the AAnegotiations.com page is either first or second highest.
AA better start negotiating fairly or the aluminum will start stacking up soon. My fellow techinicians, after 5 and a half years of pulling together it is now time to win together!! :angry: :angry: :angry:
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It's misleading <gasp> to display a chart that does not reflect the cost advantage AA has enjoyed for 13 years in regard to the over 900 OSM's presently on payroll. I wonder if the TWU has even brought up this little embarassing nugget in negotiations.
 
It's misleading <gasp> to display a chart that does not reflect the cost advantage AA has enjoyed for 13 years in regard to the over 900 OSM's presently on payroll. I wonder if the TWU has even brought up this little embarassing nugget in negotiations.

Hush up!

You don't want to embarrass Little Jimmy, do you?
 
It's misleading <gasp> to display a chart that does not reflect the cost advantage AA has enjoyed for 13 years in regard to the over 900 OSM's presently on payroll. I wonder if the TWU has even brought up this little embarassing nugget in negotiations.

Wouldn't the company argue that those 900 OSMs make more money than the non-licensed overhaul slugs at some third world hack shop? Sounds like a cost disadvantage. Or do those OSMs work line maintenance for AA?

Which of AA's legacy competitors performs any heavy airframe overhaul in this country, let alone using solely mechanics holding A&P licenses?

The chart attempts (admitedly in a poor way) to make an apples to apples comparison. As in the pay for licensed line mechanics at the different airlines. Comparing how much (or little) AA's overhaul mechanics (especially unlicensed ones) earn has become somewhat irrelevant since the other airlines outsource all of their heavy airframe maintenance.
 
Comparing how much (or little) AA's overhaul mechanics (especially unlicensed ones) earn has become somewhat irrelevant since the other airlines outsource all of their heavy airframe maintenance.

It is irrelevant because it is cheaper for AA to do heavy overhaul in house or they would have closed it up long ago.
Thank god for the osm it helps AA compete with Mexico and china.
 
It's misleading <gasp> to display a chart that does not reflect the cost advantage AA has enjoyed for 13 years in regard to the over 900 OSM's presently on payroll. I wonder if the TWU has even brought up this little embarassing nugget in negotiations.
Dont forget that prior to that AA had SRPs and prior to that B scale mechanics on a 12 year progresssion etc etc. The fact is the TWU has provided discount labor to AA since the early 80s. According to Koziatek we wouldnt have jobs if it werent for those concessions, my reply was that maybe we wouldnt have jobs at AA but if the TWU didnt give all those concessions, and lower the industry standard, we would be making more somewhere else.
 
Wouldn't the company argue that those 900 OSMs make more money than the non-licensed overhaul slugs at some third world hack shop? Sounds like a cost disadvantage. Or do those OSMs work line maintenance for AA?

They make around the same, or less than overhaul mechs working at Timco etc. I'm not interersted in comparing myself to workers in the third world. I'd rather see them ship the jobs overseas than try to work at those wages.

Or do those OSMs work line maintenance for AA?

Not yet, but the TWU is working on that.

Which of AA's legacy competitors performs any heavy airframe overhaul in this country, let alone using solely mechanics holding A&P licenses?

Most of them did, or at least paid A&P rates to all their OH mechs till 2003. TWA didnt have OSMs and MCI still doesnt. It took nearly two decades for AA and the TWU to destroy the profession. Its up to us to turn things around.
 
They make around the same, or less than overhaul mechs working at Timco etc. I'm not interersted in comparing myself to workers in the third world. I'd rather see them ship the jobs overseas than try to work at those wages.



Not yet, but the TWU is working on that.



Most of them did, or at least paid A&P rates to all their OH mechs till 2003. TWA didnt have OSMs and MCI still doesnt. It took nearly two decades for AA and the TWU to destroy the profession. Its up to us to turn things around.
<_< ------ Just another reason AA/TWU are getting reed of MCI!!!! :angry:
 
Wouldn't the company argue that those 900 OSMs make more money than the non-licensed overhaul slugs at some third world hack shop? Sounds like a cost disadvantage. Or do those OSMs work line maintenance for AA?

Which of AA's legacy competitors performs any heavy airframe overhaul in this country, let alone using solely mechanics holding A&P licenses?

The chart attempts (admitedly in a poor way) to make an apples to apples comparison. As in the pay for licensed line mechanics at the different airlines. Comparing how much (or little) AA's overhaul mechanics (especially unlicensed ones) earn has become somewhat irrelevant since the other airlines outsource all of their heavy airframe maintenance.


Money to be maid its time to pay up

http://www.bloomberg.com/apps/news?pid=con...id=a7RJ5TSgpv7E
 
Does anyone remember if there was an attachment to the compaany's offer stating, "BTW, 10% of your 5% lump sum will be deducted for the increase in medical premiums"? I didn't think so.
 
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