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.
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.