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What happen's to the "Me too Clause" Pilot rejection

According to the company's statements to the press yesterday, there evidently isn't a "me,too" clause for those who have ratified their LBFO. The statement was made that "the pilot's rejection has no effect upon the other union groups."
 
Kinda what I was wondering.

Can they now negotiate a better deal with the pilot group and make concessions that won't be as costly if they don't have to offer them to every other group?
 
Whats the status of the appeal of Judge Lanes ruling of the legality of abrogating the pilots contract?
 
According to the company's statements to the press yesterday, there evidently isn't a "me,too" clause for those who have ratified their LBFO. The statement was made that "the pilot's rejection has no effect upon the other union groups."
According to the LOM 13 "me too" still lives
 
Kinda what I was wondering.

Can they now negotiate a better deal with the pilot group and make concessions that won't be as costly if they don't have to offer them to every other group?
Any additional improvement in subsequent offers to pilots would trigger a me-too improvement to all work groups with ratified contracts as well as similar improvements to offers to FAs, if the FAs reject the current offer. AA's earlier move off the 20% demand (down to 17%) caused the five ratified TWU groups to get post-ratification improvements. Same thing will happen if AA moves further.
 
Any additional improvement in subsequent offers to pilots would trigger a me-too improvement to all work groups with ratified contracts as well as similar improvements to offers to FAs, if the FAs reject the current offer. AA's earlier move off the 20% demand (down to 17%) caused the five ratified TWU groups to get post-ratification improvements. Same thing will happen if AA moves further.

Is that language contractual? Where can I see that? I know the cost targets were intentional, but do they live on with/in ratified agreements?
 
The equal 20% give was a BS plan to begin with. If they were serious about making a statement, it should have been a top to bottom review of every expense compared to our competitors and dealt with properly instead of running this place like a North Korea motivational poster.
 
Yep.. I don't see a B scale for for anyone else, not to mention a C scale...

AA's insistence to homogenize all labor will be its total undoing. This simply does not exist elsewhere in the industry.
 
The equal 20% give was a BS plan to begin with. If they were serious about making a statement, it should have been a top to bottom review of every expense compared to our competitors and dealt with properly instead of running this place like a North Korea motivational poster.

While that might have been a good idea, it is inconsistent with bankruptcy law, which requires fairness in concessions (which most interpret as equal percentages).
 
Is that language contractual? Where can I see that? I know the cost targets were intentional, but do they live on with/in ratified agreements?

here's the me too clause from the m&r full text language pdf. It doesn't look ironclad to me, hope I'm wrong.

LETTER OF MEMORANDUM – 13- "Me Too"

DOS

Mr. Robert F. Gless

Deputy Director - ATD

AA System Coordinator

Transport Workers Union of America, AFL-CIO

1791 Hurstview Drive

Hurst, TX 76054

"Me, too provision"

Dear Robert,

During the negotiations that led to the signing of the Agreement between American Airlines, Inc. ("AA" or "the Company") and the Transport Workers Union of America, AFL-CIO ("TWU") covering Maintenance and Related Agreement, the Company and the TWU agreed to the following, effective upon ratification:

1) Notwithstanding any provision to the contrary in this Restructuring Agreement ("Agreement"), the Company will continue to seek approval to implement, through binding agreement, and/or implemented by legal unilateral authority, revisions to (i) the labor contracts of the Company’s other non-TWU unionized employees and (ii) the wages, benefits and working conditions of the Company’s non-union hourly employees and (iii) the wages, benefits and working conditions of the non-union salaried and management employees so that the aggregate revisions in (i),(ii) and (iii) for each individual non-TWU union and non-union employee group are reasonably projected by the Company to produce the targets for labor cost savings specified in the Company’s Section 1113(c) motion.

2) The Company agrees that if the Company fails to implement the changes described in paragraph 1 for any other non-TWU union or non-union employee group, without implementing other changes that are reasonably projected by the Company to achieve equivalent labor cost savings, the Company will meet with TWU to discuss and agree upon a proportionate reduction in projected labor cost savings under the Agreement. This paragraph shall expire upon the earlier of 1) six (6) months after the date the Company emerges from the bankruptcy process; or 2) when the changes described in paragraph 1, or other changes that are reasonably projected by the Company to achieve equivalent labor cost savings, are implemented for all non-TWU union or non-union employee groups.

334

3) The Company further agrees that if it obtains modifications to agreements with other non-TWU union groups that result in labor cost savings to the Company from reduction in TWU represented employees working under TWU agreements, it will meet with TWU to discuss and agree upon an appropriate credit to the TWU based on the level of labor cost savings realized by the Company from that reduction.

4) The Company will provide TWU with sufficient relevant information reasonably necessary for TWU to determine compliance with the terms of this agreement.

5) Any alleged violation of these provisions will be resolved pursuant to the grievance and arbitration procedures of the applicable TWU Agreement.

If this letter accurately reflects the agreement of the parties, please indicate by signing below.
Sincerely,

Agreed to:


{Original Signed on File}


{Original Signed on File}


________________________


________________________


James B. Weel


Robert F. Gless


Managing Director


Deputy Director


Employee Relations


Air Transport Division


American Airlines, Inc.


Transport Workers Union of American, AFL-CIO
 
Whats the status of the appeal of Judge Lanes ruling of the legality of abrogating the pilots contract?

I wasn't aware there was any question as to the legality of abrogating the pilots contract. The question is a binary one, will he/won't he; as for the latter won't he, that might mean he could suggest some other option to the debtor to pursue--such as binding arbitration, but I seriously doubt he could "legally" do moth more.
 
Kinda what I was wondering.

Can they now negotiate a better deal with the pilot group and make concessions that won't be as costly if they don't have to offer them to every other group?

They can and they will. You have to remember that the company sets the values, so they can pretty much move the numbers around as they see fit.

The only shot you have at getting any sort of a Me Too is to make not giving something too costly.
 

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