How does anyone know what went on during the negotiations??? who knows what furlough pay was exchanged for?? Seems like some of you were right there next to the negotiation team....
How does anyone know what went on during the negotiations??? who knows what furlough pay was exchanged for?? Seems like some of you were right there next to the negotiation team....
According to Jane Allen's conference call...it was an unexpected "gift". The fact that the company would not give "credit" for the loss of 6000 jobs is telling. What is more important is the fact that the union didn't have the figure at hand and blast it to the press. That "shared sacrifice savings" was substantial (over $600,000,000 to date) and boosted the overall help to the company bottom line.
According to Jane Allen's conference call...it was an unexpected "gift". The fact that the company would not give "credit" for the loss of 6000 jobs is telling. What is more important is the fact that the union didn't have the figure at hand and blast it to the press. That "shared sacrifice savings" was substantial (over $600,000,000 to date) and boosted the overall help to the company bottom line.
According to Jane Allen's conference call...it was an unexpected "gift". The fact that the company would not give "credit" for the loss of 6000 jobs is telling. What is more important is the fact that the union didn't have the figure at hand and blast it to the press. That "shared sacrifice savings" was substantial (over $600,000,000 to date) and boosted the overall help to the company bottom line.
That doesn't quite square with kirkpatrick's summary of the FA's concessions from 4/01/03:
kirkpatrick said:
1. Vacation - Reduce vacation by 33%. For the top, this means a reduction from 42 days to 28. Savings to AA: $42 M - Head count loss: 682 F/A’s
2. Eliminate pre-vacation “48’s†- $11 M Head count loss: 181
3. Reduce per diem to $1.50 Domestic/$1.75 Intl. Savings: $13 M
4. Reduce “premium†rates by 50% - eliminate longevity, NB lead, night pay, reserve override – the 7/1/03 purser pay raise is eliminated. $21 M savings
5. Change layover rest to FAA minimums - $19 M savings. Head count reduction: 166
6. Eliminate benefits for OVL leaves – the only thing a F/A accrues is seniority, the only thing kept is passes (COBRA payments for insurance) No vacation accrual
7. Minimum annual hourly threshold to accrue and receive benefits $2 M savings 294 headcount reduction
8. Eliminate Article 6E Vacation Benefits (2 months accrual of vacation) $4 M – headcount reduction 71
9. Eliminate crew meals on all flights: $7 M
10. Reduce sick leave accrual to 3 hrs./mo., eliminate rapid reaccrual $10 M in savings – headcount reduction 60
11. Increase trip selection maximum to 77 (Domestic) 82 (Intl) – Monthly maximum 80 (Domestic)/85 (Intl); pure bid lines may be built to 82 (Dom)/87 (Intl); make-up to 85 (Dom)/90 (Intl) - $7M - Headcount reduction: 387
12. Incentive cut in to begin after 69 hours (instead of 67) - $5 M savings
13. Eliminate all paid holidays - $5 M
14. Eliminate EPT training pay up to 12 hours (instead of the current 8 hrs.) $1M Savings
15. Modify uniform point system (18 to 12, reduced PT, no carryover) - $2M savings
16. Eliminate underfly (F/A’s receive actual – not scheduled flt. time) - $20 M savings
17. 100% Deadhead Pay/50% credit - $2 M savings – 39 head count reduction
18. Eliminate IOD salary continuance - $1 M
19. Eliminate “last trip of month protection†– it goes back to 5 days from 7 days - $6M 20. Eliminate furlough pay - $6M (More on this below)
21. Eliminate part-time program - $3 M – 350 headcount reduction
22. Reduce lineholder guarantee to 70 hours - $2 M
The total work rule savings are “valued†at 198 MM. The total headcount reduction is 2,391.
15.6% paycut – “valued†at $153 MM
Change in Medical/Dental Benefits: $8 M (The current payment doubles)
This happened to be a management (Flight Service) call. I happened to be in the right place at the right time. Of course furlough pay had "value", it just wasn't credited.
