Value of Concessions

Bob Owens

Veteran
Sep 9, 2002
14,274
6,112
IIRC the company claims that the M&R package is worth $300 million. I dont know how they came to to that figure but even if they are correct they are giving with one hand and taking it back with the other.

That comes out to $60 million a year over the five year period that this agreement covers. In 2003 they took more than $330 million a year from us. By draging out negotiations they added at least another $660 million to the $1.65 Billion they took from us.(When you factor in the loss of heads the number is nearly double that.)

Prefunding. If this agreement should pass the company will save around $200 per year per mechanic times around 5500 mechanics, every year this figure will grow as more mechanics without prefunding come on and older mechanics retire but I wont even attempt to factor that in.
200 x 5500=$1,100,000/year
Plus they keep the match 5500 x$6000=$33,000,000
They also want us to turn over our contribution for Sick Leave credits=$33,000,000
From 2010 to 2013 they will continue to save $1.1 million, so add another $3.3 million
Ok so thie first concession already gave the company back as much as $70,400,000

That knocks the $300 million down to $229.6 million.

MRT Window Adjustment.Lets use an estimate of 2500 people currently recieving MRT. By adjusting the window they can eliminate paying anybody the MRT and still have 24 hour coverage. So 2500 x.50 X 2080=$2.6 million, but we also have to assume that the company added the increased MRT premium to pump up the number so we have to subtract that as well, 2500 x150X2080=$7.8million(x3).

So moving the MRT equates to a $2.6 million dollar concession but it takes $10.4 million per year for three years from the companys value for the contract. Total $31.2 million

Now its down to $198.4 million Package

SMA. This is the biggie.

With the formation of the SMAs and the weak language as far as what a "Maintenance Base "is and where an SMA can be assigned I'm going to assume a figure of 1500 SMAs averaged over the three years left on the agreement.The majority of which will come from the OSM classification which would allow the company to hire around 1200 OSMs at entry level pay.
Entry level OSMs will earn around $12.37/hr or 494.8
They will be replacing top paid mechanics that attrit out earning $1320.80/week, so they will save around $826/week
826 x 52 x 1500=$64,428,000 per year x 3 years=$193,284,000



So that leaves us with a $5.1 milion dollar package over the 5 years of the contract. Approximately $1 million per year, divided by 11500 workers, so all they will have to do is raise our medical by $87 a year the first year and this contract will cost AA nothing and they have all those other concessions, including the carryover from the 2003 agreement for free!! When you consider that our medical has increased by around 500% since 2003 so the company could pass the costs of the Pilot and FA plans onto us its likely to increase a lot more than $87/year, it has for the last five years and Don and the YES voters didnt think that we should hold out for restoring the Pilot Cap.

The company is coming out of these negotiations with a better deal than they got in 2003!!! It will cost them nothing!

Lets not forget the Doubling of the ASM cap!

If you were foolish enough to vote Yes you can still get a duplicate ballott and change your vote.
 
ALMOST 10 % of the aircraft out of service at 10:30 am DFW time. WOW that is a good sized airline. Well this small airline is grounded by what I would guess as LOW MORALE!!! Give us a fair contract with no more concessions and I believe we could make it the on time machine once again. You know the good old days when we were all proud to work for AA. You remember when they treated everyone like family! You know the good old Crandal days!! You want Southwest numbers than pay us like Southwest and make it a good place to work again. This current leadership has got to go because they will never learn how valuable a happy employee really is. This is not a local management problem . It is caused by the out of touch CEO's who believe they can keep rapeing the employees and take million dollar bone us's!!


THE BEATINGS WILL CONTINUE UNTILL THE MORALE IMPROVES!!!
:eek: :( :huh: :angry: <_< :blink:
 
I 2nd rogallo

also southwest is all line maint. no big overall

untill are goverment stops allowing the out sourceing of all are work

also someone pointed out the illegals in this country untill that gets resolved
 
Paul couldn't be more correct................SWA has about 2000 mechs we have 9300 mechs and the support personal that goes with that. I bet TUL wouldn't care for the contract, I'm sure they would be working for AMR services.
 
  • Like
Reactions: 1 person
You want the pay, how 'bout the work rules to go with it???
Ok...alot of us do not have a problem with that. Pay me a wage that truly reflects my SKILL and RESPONSIBILTY, respect my opinions, listen to my suggestions and ideas, and trust me to do the job I was hired to do and I will abide by the work rules and do the job to the best of my ability. We get none of that here at AA.
 
Ok...alot of us do not have a problem with that. Pay me a wage that truly reflects my SKILL and RESPONSIBILTY, respect my opinions, listen to my suggestions and ideas, and trust me to do the job I was hired to do and I will abide by the work rules and do the job to the best of my ability. We get none of that here at AA.


ok midnights maybe maybe you are one of the few thats actually does there work and takes account ability for there actions, but due to are lack luster union not making are own people accountabile and the guy in the corner sitting all day on his ass bitching about how we should be making $100 a hour like ups fedex swa wages and cann't sign off a logbook.

thats why we will continue to be paid what we are not worth
 
Ok fine, but the Southwest mechs work more than we do, so it really is a "trade off". AA has always claimed they want "productivity" increases, and going to SW work rules would do just that.

Also we have kept overhaul and kept American jobs while the other big boys headed abroad. Who else has done that?! Not SW!
 
Ok fine, but the Southwest mechs work more than we do, so it really is a "trade off". AA has always claimed they want "productivity" increases, and going to SW work rules would do just that.

Also we have kept overhaul and kept American jobs while the other big boys headed abroad. Who else has done that?! Not SW!

Flatline, just what exactly are the work rules you would be claiming would be more "productive"?
 
ok midnights maybe maybe you are one of the few thats actually does there work and takes account ability for there actions, but due to are lack luster union not making are own people accountabile and the guy in the corner sitting all day on his ass bitching about how we should be making $100 a hour like ups fedex swa wages and cann't sign off a logbook.

thats why we will continue to be paid what we are not worth

I always thought it was managements job to make people accountable.

I doubt that the IBT(CAL, UPS. UAL) and AMFA (SWA) are out there writing guys up and holding them accountable.
 
you are right bob it's management job for accountabilty


that doesn't mean we should let the slackers get a free ride we should have some acountabilty in our own ranks (like back when unions ruled)

i'm sure the other unions are the same and from what I read around here its doesn't sound like the other unions are much better
 
  • Like
Reactions: 1 person
Flatline, just what exactly are the work rules you would be claiming would be more "productive"?
That question usually kills the debate, because they dont have an answer.

If you look at the SWA operation, and compare it to our Domestic operation they aren't any leaner than we are. All our Class 1 Stations are International, which SWA doesnt do, take them out, and compare our Class II operations and we are just as productive as they are.

In our Class 1 station what drives the headcount? The contract? NO, ETOPS and B-checks.
 
I always thought it was managements job to make people accountable.

I doubt that the IBT(CAL, UPS. UAL) and AMFA (SWA) are out there writing guys up and holding them accountable.

Leaving it up to management to make us accountable for our work ethic, is exactly what is killing our profession. When you make excuses for guys sleeping at work is another.

I wish we had that SWA contract, then we can do away with the deadwood, that you seem to feel necessary to make excuses for.

I'm not exactly impressed by the work ethic of our local 563 executive board and stewards, that type of behavior makes the TWU and all mechanics look bad. We have stewards who show up to ground interrupts with a cup a coffee and a smile, then laugh when they have to go get their tools. Ya, it's managements fault for thinking he would actually do his job when given the assignment.
 
  • Like
Reactions: 1 person
The TWU status quo supporters have turned this into an arguement not about the value of the TWU Concessions; rather, it has now become an arguement about the degree to which the TWU has supported those they claim are deadwood.

My arguement is that the TWU has supported continued concessions and deadwood: all contributing to the continued concessions by the TWU to AA, while the top of theTWU International continues to increase the wages, hours and working conditions of the TWU International while supporting the concessions of the TWU represented workers at AA and using the deadwood they represented as the reason for those concessions.

Get out of the TWU, send in a card for AMP.
 
Leaving it up to management to make us accountable for our work ethic, is exactly what is killing our profession. When you make excuses for guys sleeping at work is another.

I wish we had that SWA contract, then we can do away with the deadwood, that you seem to feel necessary to make excuses for.

I'm not exactly impressed by the work ethic of our local 563 executive board and stewards, that type of behavior makes the TWU and all mechanics look bad. We have stewards who show up to ground interrupts with a cup a coffee and a smile, then laugh when they have to go get their tools. Ya, it's managements fault for thinking he would actually do his job when given the assignment.



Making excuses? What is stopping management from doing away with the "deadwood"? Sure they have to "work" at it and "build a case" but it isnt that hard, but it is work, and its part of their job.

The guys who showed up at the gate with a cup of coffee, did management say anything to them?

You dont get steak for the price of baloney. Why would you give the same effort when there is no chance that the effort will be monetarily recognized? Thats whats killing the profession, if you are willing to give it away then you should not be shocked when the company places no value on it either.

When corporate executives work night shift and never nodd off then I'll agree that there's no excuse for nodding off at night. I dont care what profession you are in, if there is down time and its 3 or 4am people will nodd off. Makiing beds and hiding when there is work to be done is another story.

Do you actually believe that if our guys jumped even higher that the company would be willing to pay us more? Look at the facts, AA brings in over a $100,000 a year more per worker than they did in 2003, and they pay us less than they did in 2003 and in exchange for more concessions they want to continue to pay us less than they did in 2003. Productivity is up but they still arent offering anything. They will never offer more than you demand.