WARN letter finally arrives...
- Thread starter Hopeful
- Start date
It's my understanding that the f/a WARN letters will be sent in two batches. First batch for layoff right after Labor Day. The second for layoff on or around November 1.
Later this fall, AMR will reduce domestic capacity by 11 to 12 percent and system-wide capacity by approximately 8 percent. While we are still working through the specific impact to employee work groups, both voluntary and involuntary, employee reductions commensurate with the overall system capacity reductions are expected company-wide as we reduce the size of the airline. As previously announced, the size of the management and support staff workforce will be reduced by approximately 8 percent in September.
Each department is continuing to work through ways to minimize the number of employees who are involuntarily affected by a reduction in force. In addition to our existing voluntary programs such as leaves of absence and stand-in-stead, we will also offer a Voluntary Bridge to Retirement (VBR) for many U.S.-based and San Juan employees who are age 50 or over with at least 15 years of service. Each department will decide which job functions and locations will be offered this option.
American has reached agreements with the Association of Professional Flight Attendants (APFA) and Transport Workers Union (TWU) to offer the VBR to their members. Information on this new voluntary option will be available soon on Jetnet.
While we continue to work through the unprecedented challenges facing our company and industry, we want to provide additional information about our workforce adjustments. This week we will begin issuing WARN letters to some employees who may be impacted by workforce changes as required by state or federal law.
WARN is the federal Worker Adjustment and Retraining Notification Act and requires employers to give written notice to employees (or their bargaining representatives) who may experience an employment loss as the result of layoffs or location closures. WARN letters must be issued 60 days prior to the actual date of the reduction in force. Please know that a WARN notice is not a layoff notice – it's a regulatory requirement.
Again, we regret these reductions are necessary and we will keep you informed of decisions about the reduction in force. And, we will work closely with all affected employees in this transition. It's crucial that we take the appropriate actions to operate a strong and competitive airline for both our employees and customers.
Jeff Brundage
Source: AA Employee Newsletter/Jet Wire
Each department is continuing to work through ways to minimize the number of employees who are involuntarily affected by a reduction in force. In addition to our existing voluntary programs such as leaves of absence and stand-in-stead, we will also offer a Voluntary Bridge to Retirement (VBR) for many U.S.-based and San Juan employees who are age 50 or over with at least 15 years of service. Each department will decide which job functions and locations will be offered this option.
American has reached agreements with the Association of Professional Flight Attendants (APFA) and Transport Workers Union (TWU) to offer the VBR to their members. Information on this new voluntary option will be available soon on Jetnet.
While we continue to work through the unprecedented challenges facing our company and industry, we want to provide additional information about our workforce adjustments. This week we will begin issuing WARN letters to some employees who may be impacted by workforce changes as required by state or federal law.
WARN is the federal Worker Adjustment and Retraining Notification Act and requires employers to give written notice to employees (or their bargaining representatives) who may experience an employment loss as the result of layoffs or location closures. WARN letters must be issued 60 days prior to the actual date of the reduction in force. Please know that a WARN notice is not a layoff notice – it's a regulatory requirement.
Again, we regret these reductions are necessary and we will keep you informed of decisions about the reduction in force. And, we will work closely with all affected employees in this transition. It's crucial that we take the appropriate actions to operate a strong and competitive airline for both our employees and customers.
Jeff Brundage
Source: AA Employee Newsletter/Jet Wire
I've never had a problem with the support staff - they actually do something other than plot ways to throw a wrench into the works as does the management with too much time on their hands.
A better solution would be to keep the support staff and get rid of, permanently, 50-80% of the so-called management. At least those left would really have to do something, be more visible and hopefully more accountable for their never ending string of screw-ups and brother-in-law deals that went wrong.
Now - if someone can just find a genie or something equal to the tooth fairy ...
PRINCESS KIDAGAKASH
Veteran
- Oct 9, 2003
- 1,401
- 2
They need to layoff the entire Engineering department and start over. AA Engineering is the most bloated,incompetent department at this company. Maybe some new blood would help prevent another MD-80 fiasco.
I'm not sure what you would expect, Princess - the "engineers" are fresh out of school (that's all that will take a $30k job offer). AA will not pay what it costs to hire an experienced aeronautical engineer. The ones that do learn anything leave as soon as they can find other employment or get promoted within the company - the dregs stay as telephone liaisons with Boeing and make no decisions themselves.
A building cleaner has better sense than most of these people.
Correction: according to my source, barring unforeseen circumstances, the 900 WARN letters sent today is it.
MCI transplant
Veteran
- Jun 4, 2003
- 5,311
- 587
.....and the hypocrite chimes in . . .
Dear Fellow Employees:
Earlier this year, in response to extraordinarily high fuel prices and the slowing U.S. economy, we announced a significant reduction in our fall schedule, and the retirement of a number of airplanes. We also announced that we will be reducing our workforce by an amount consistent with our capacity reduction and unfortunately, some of that reduction will have to be accomplished through layoffs.
While it is too soon to know who exactly will be impacted, we are required to issue WARN letters to employees who may be affected, or their representatives, and those letters began to go out today.
I deeply regret the effects that the difficult reality we face will have on our people, and we are working hard to mitigate the impact on our coworkers through voluntary programs such as leaves of absence and stand-in-stead options. We will also be offering a Voluntary Bridge to Retirement (VBR) for employees who are age 50 or over with at least 15 years of service, and we have reached agreements with the Association of Professional Flight Attendants and Transport Workers Union to offer the VBR to their members. Information on these voluntary options is available on Jetnet.
The second piece of news I want to share with you involves a filing, called an 8K, we made today with the U.S. Securities and Exchange Commission. We informed the SEC that in keeping with the rules of accounting, we will record a special non-cash charge of approximately $1.1 billion in the second quarter to write down the value of some of our aircraft and routes. Accounting rules require us to review the value of our fleet and routes whenever events or changes in circumstances indicate that their value on our books may exceed the returns we can expect to earn from them in the future. In recent months, the dramatic increase in the price of fuel, and the necessity to reduce our schedule, led us to determine that the value of our MD80 fleet, our ERJ 135 fleet, and our Caribbean route network, has been impaired. Accordingly, we will record this one-time charge to write these assets down to their current market value. Several of our competitors have notified the SEC that they anticipate similar charges this year.
It's important to note that this non-cash charge has no impact on our liquidity (cash balance) or our ability to pay our bills. On the other hand, the fact that some of our company's key assets have declined significantly in value underscores, in stark terms, the seriousness of the challenge we along with the rest of the airline industry face as we navigate our way through an environment of skyrocketing fuel costs and a slowing economy.
In the same 8K filing, we also informed the SEC that our second quarter results will include a charge for severance costs related to the reduction in our workforce.
It should be obvious to everyone by now that while the rising price of fuel has been a challenge for several years, the rapid increases over the past few months have truly changed the business, for us and for every airline. Like it or not, we must adapt to the reality of high fuel costs coupled with a softening U.S. economy. With that in mind, we have been looking carefully at the retirement schedule of our A300 fleet, which currently runs through 2012. We are considering retiring our A300s on an accelerated schedule and expect to have a decision soon.
While the current fuel and economic crisis obviously transcends the airline business, we and our industry brethren are making sure our voices are heard in Washington. Among other things, we are supporting legislation that would increase government oversight of oil speculators, and close loopholes that allow oil traders to avoid regulation and reporting requirements. Many experts believe that bringing transparency and even-handed oversight to these markets will have a dampening effect on the price of jet fuel, and in the weeks to come we will be calling on our employees to get involved in support of this legislation.
I will have more to say about our challenges, and the steps we are taking to protect our company, when we report our second quarter results two weeks from today. In the meantime, I urge you to stay focused on serving our customers with your usual dedication and positive attitude. These are not the first tough times we have had to fight our way through, and they won't be the last.
Thank you for your continued great efforts on behalf of our customers and company.
Sincerely yours,
Gerard Arpey
CEO
....and the statement to the SEC, in pertinent part:
Also in conjunction with the capacity reductions, the Company estimates that it will reduce its workforce commensurate with previously announced system-wide capacity reductions by December 2008. As a result of this reduction in workforce, the Company will record a charge of approximately $70 to $100 million for severance related costs, a portion of which may be recorded in the third quarter. All severance related costs represent cash outlays and will be incurred over a period of up to twelve months.
Dear Fellow Employees:
Earlier this year, in response to extraordinarily high fuel prices and the slowing U.S. economy, we announced a significant reduction in our fall schedule, and the retirement of a number of airplanes. We also announced that we will be reducing our workforce by an amount consistent with our capacity reduction and unfortunately, some of that reduction will have to be accomplished through layoffs.
While it is too soon to know who exactly will be impacted, we are required to issue WARN letters to employees who may be affected, or their representatives, and those letters began to go out today.
I deeply regret the effects that the difficult reality we face will have on our people, and we are working hard to mitigate the impact on our coworkers through voluntary programs such as leaves of absence and stand-in-stead options. We will also be offering a Voluntary Bridge to Retirement (VBR) for employees who are age 50 or over with at least 15 years of service, and we have reached agreements with the Association of Professional Flight Attendants and Transport Workers Union to offer the VBR to their members. Information on these voluntary options is available on Jetnet.
The second piece of news I want to share with you involves a filing, called an 8K, we made today with the U.S. Securities and Exchange Commission. We informed the SEC that in keeping with the rules of accounting, we will record a special non-cash charge of approximately $1.1 billion in the second quarter to write down the value of some of our aircraft and routes. Accounting rules require us to review the value of our fleet and routes whenever events or changes in circumstances indicate that their value on our books may exceed the returns we can expect to earn from them in the future. In recent months, the dramatic increase in the price of fuel, and the necessity to reduce our schedule, led us to determine that the value of our MD80 fleet, our ERJ 135 fleet, and our Caribbean route network, has been impaired. Accordingly, we will record this one-time charge to write these assets down to their current market value. Several of our competitors have notified the SEC that they anticipate similar charges this year.
It's important to note that this non-cash charge has no impact on our liquidity (cash balance) or our ability to pay our bills. On the other hand, the fact that some of our company's key assets have declined significantly in value underscores, in stark terms, the seriousness of the challenge we along with the rest of the airline industry face as we navigate our way through an environment of skyrocketing fuel costs and a slowing economy.
In the same 8K filing, we also informed the SEC that our second quarter results will include a charge for severance costs related to the reduction in our workforce.
It should be obvious to everyone by now that while the rising price of fuel has been a challenge for several years, the rapid increases over the past few months have truly changed the business, for us and for every airline. Like it or not, we must adapt to the reality of high fuel costs coupled with a softening U.S. economy. With that in mind, we have been looking carefully at the retirement schedule of our A300 fleet, which currently runs through 2012. We are considering retiring our A300s on an accelerated schedule and expect to have a decision soon.
While the current fuel and economic crisis obviously transcends the airline business, we and our industry brethren are making sure our voices are heard in Washington. Among other things, we are supporting legislation that would increase government oversight of oil speculators, and close loopholes that allow oil traders to avoid regulation and reporting requirements. Many experts believe that bringing transparency and even-handed oversight to these markets will have a dampening effect on the price of jet fuel, and in the weeks to come we will be calling on our employees to get involved in support of this legislation.
I will have more to say about our challenges, and the steps we are taking to protect our company, when we report our second quarter results two weeks from today. In the meantime, I urge you to stay focused on serving our customers with your usual dedication and positive attitude. These are not the first tough times we have had to fight our way through, and they won't be the last.
Thank you for your continued great efforts on behalf of our customers and company.
Sincerely yours,
Gerard Arpey
CEO
....and the statement to the SEC, in pertinent part:
Also in conjunction with the capacity reductions, the Company estimates that it will reduce its workforce commensurate with previously announced system-wide capacity reductions by December 2008. As a result of this reduction in workforce, the Company will record a charge of approximately $70 to $100 million for severance related costs, a portion of which may be recorded in the third quarter. All severance related costs represent cash outlays and will be incurred over a period of up to twelve months.
TWU informer
Veteran
- Nov 4, 2003
- 7,550
- 3,767
I'm not sure I understand. What I meant is that barring unforeseen circumstances--such as, a continuing rapid increase in fuel costs--a maximum of 900 furloughs is it.
The number of people who accept one of the packages will not change that number. If 900 accept a package, no one will be furloughed. If no one accepts a package, 900 will be furloughed. Other than the "2-for-1" that partnership flying engenders, all the other packages are one for one. If 1 f/a accepts the package, 1 f/a subject to furlough will not be furloughed.
MCI transplant
Veteran
- Jun 4, 2003
- 5,311
- 587
<_< ------ I believe Olesen is quoting what AA did in the past, and has no currant known ledge of what may be coming down!------ Although, that could be one hell of an assumption!!!!Funny how a guy no longer employed at AA knows more about the deal than employees do?
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