TWU Contract Negotiations Communication Update
The TWU Negotiating Committees reconvened in Dallas, Texas the week of May 12 through May 16.
On Monday May12, Chairman and CEO Gerard Arpey addressed the entire TWU Negotiating Committee.
On Tuesday May 13, the AA Negotiating Team presented their comprehensive package to your Negotiating Committee. The company’s proposal came with constraints and restrictions. One restriction was that all groups would be required to ratify the agreement for it to become effective, and an additional constraint was that it was a time sensitive offer.
Your negotiating teams worked hard to reach an agreement that they felt would meet your expressed needs.
Despite the Internationals recommendation to allow the membership to vote on the proposal several of the Negotiating Committees voted to reject the company’s offer without allowing a membership vote.
There is misinformation circulating around the system regarding the company’s offer. We have decided to articulate a summary of the company’s proposal to ensure the membership receives accurate information.
We will be evaluating our next steps over the next several days and will keep you informed.
SUMMARY OF COMPANY PROPOSAL TO ALL GROUPS
DURATION
· MODIFY ARTICLE 47 TO REFLECT A TWO (2) YEAR DURATION
· PROVIDE AN EARLY OPENER PROVISION THAT ALLOWS EITHER PARTY TO SERVE NOTICE NO EARLIER THAN SIX (6) MONTHS FROM THE AMENDABLE DATE
ARTICLE 1- SCOPE
· EAGLE ASM LETTER MODIFICATION (EXPAND FROM SIX (6) PERCENT TO EIGHT (8) PERCENT BY 2010 WITHOUT FURLOUGH PROTECTION)
ARTICLE 4- COMPENSATION
· DOS 5.0% PENSIONABLE LUMP SUM
· DOS + 12 3.5% PENSIONABLE LUMP SUM
ARTICLE 7- HOLIDAYS
· INCREASE NUMBER OF HOLIDAYS AS FOLLOWS:
- ADD THE FRIDAY AFTER THANKSGIVING EFFECTIVE 2008
- ADD MARTIN LUTHER KING DAY AND MEMORIAL DAY EFFECTIVE 2009
· INCREASE HOLIDAY WORK RATE FROM 1.5x TO 2.0x EFFECTIVE DOS
· MODIFY HOLIDAY PROVISION FROM ‘AUTOMATICALLY OFF’ TO ‘AUTOMATICALLY REQUIRED.’
ARTICLE 8- VACATION
· EFFECTIVE JANUARY 1, 2009 PROVIDE THREE (3) DAT (DAY AT A TIME) VACATION DAYS
DETAILS TO BE DEVELOPED LOCALLY BETWEEN DOS AND SEPTEMBER 1, 2008 TO ADDRESS THE FOLLOWING:
DAT DAYS SELECTION OPTIONS:
o I.E.: IN CONJUNCTION WITH ANNUAL VACATION BID, IN CONJUNTION WITH SHIFT BID, AD HOC, ETC.
o NUMBER OF DAT DAYS APPROVED FOR ANY GIVEN CALENDAR DATE TO BE DETERMINED BY MANAGEMENT
o OPTION OF PAY IN LIEU OF USE TO BE PAID IN JANUARY OF EACH YEAR 2008
ARTICLE 34 – SICK LEAVE
· M&R- RESTORE 100% PAY FOR SICK OCCURENCES
· MODIFY ACCRUAL RATE FOR 2008 TO REFLECT AN INCREASE TO SIX (6) DAYS (TO BE CREDITED FOR USE IN 2009)
· MODIFY ACCRUAL RATE FOR 2009 TO REFLECT AN INCREASE TO EIGHT (8) DAYS (TO BE CREDITED FOR USE IN 2010)
ARTICLE 41-BENEFITS
· CREATE A JOINT COMMITTEE TO EXPLORE IMPLEMENTATION OF A VEBA TRUST ADMINISTERED BY THE TWU SIMILAR TO THE AGREEMENT BETWEEN UAW AND GENERAL MOTORS
· PROFIT SHARING PLAN: EFFECTIVE 2008 TO BE PAID IN 2009
PLAN PAYS OUT AT FIRST DOLLAR OF PROFIT
PLAN ACCUMULATES AS FOLLOWS:
o $1-$250 MILLION = 30 PERCENT
o $250 MILLION - $$500 = 25 PERCENT
o $500 MILLION AND ABOVE = 20 PERCENT
· SUPPLEMENT EXISTING PROFIT SHARING PLAN WITH THE ABOVE EARNINGS THRESHOLD
· ELIMINATE AIP PLAN
VARIABLE COMP
· MUTUALLY COMMIT TO DEVELOP A VARIABLE COMPENSATION (GAIN SHARING) PLAN FOR EACH AGREEMENT
IN ADDITION, THE COMPANY PRESENTED PROPOSALS REGARDING WORK RULE CHANGES IN EACH CONTRACT GROUP.
http://negotiaate.twu.org
Joint Negotiation Committee Update May 12–May 16, 2008
The TWU Joint Negotiating Committee represents Title III Fleet Service, Title IV Ground Service, Title V Stock Clerks, Simulator Pilot and Ground School Instructors, and Flight Simulator Technicians.
Your Joint Negotiation Committee met in Dallas this week in anticipation of receiving a comprehensive economic proposal from the company. AA Chairman and CEO Gerard Arpey attended the Monday session with the entire Negotiation Committee and opened his remarks by recognizing the TWU and thanking the entire membership for the efforts and sacrifices made by all who had helped create revenue, increased efficiencies, and worked as business partners since 2003. Although revenue and increased efficiencies were eroded by rising fuel cost, it was in recognition of those TWU efforts that the company was compelled to take into consideration all areas of major interests of our members and put its best efforts forward to address those concerns in a response to our economic package. During this meeting, Arpey reported on American’s strategies to best deal with fuel prices, the current effects of economic downturn, and changes within the airline industry. Afterward, questions were offered from the floor.
On Tuesday morning, few brief comments were made by Mark Burdette, AA’s VP of Employee Relations, again recognizing the TWU’s efforts over the last few years. Then, Jim Weel, Director of Employee Relations, provided copies of the company’s economic proposal to each member of the Negotiation Committee with a stipulation that all proposals need be accepted in all work groups before a ratification vote could be put forward. Proposals relative to all groups were offered in a printed PowerPoint presentation before the Negotiation Committee retired into its Subcommittees in order to address the remaining company proposals that were specific to their respective title groups. The Financial Consultant retained by the TWU, John Donnelly, was present to assist all Subcommittees the entire week.
Individual Subcommittees within the Joint Committee worked throughout the week presenting counterproposals and continued to hold talks with the company. After lengthy discussions and after many difficult decisions were made, on Friday evening the entire Joint Negotiation Committee reconvened and stated their individual positions on the final proposals. A vote was taken, and the result was to present the respective tentative agreements to the membership for a vote and possible ratification pending approval of all groups.
Title III Fleet Service and Title IV Ground Services
On Tuesday, May 13, the company presented the Title III Subcommittee with a full economic proposal. Each article in the economic proposal was carefully reviewed by the Subcommittee. A counterproposal was passed to the company on some articles. The articles received from the company and those countered are listed below. It was the direction of the Joint Negotiation Committee to allow the membership to vote for possible ratification of the current tentative agreements.
Counter proposals received in Title III Fleet Service and Title IV Ground Service from the Company this week are:
- Article 1 Recognition and Scope
- Article 4 Compensation
- Article 5 Shift Differential
- Article 6 Overtime
- Article 7 Holidays
- Article 8 Vacations
- Article 34 Sick Leave
- Article 39 Physical Examination
- Article 40 Pensions
- Article 41 Benefits
- Article 42 Job Security
- Article 43 Part Time Employees
- Article 47 Duration of the Agreement
Counterproposals given for consideration in Title III Fleet Service and Title IV Ground Service to the Company for the week are:
- Article 6 Overtime
- Article 42 Job Security
- Article 43 Part Time Employees
Tentative Agreements reached this week in Title III Fleet Service and Title IV Ground Services are:
- Article 1 Recognition and Scope
- Article 4 Compensation
- Article 5 Shift Differential
- Article 6 Overtime
- Article 7 Holidays
- Article 8 Vacations
- Article 34 Sick Leave
- Article 39 Physical Examination
- Article 40 Pensions
- Article 41 Benefits
- Article 42 Job Security
- Article 43 Part Time Employees
- Article 47 Duration of the Agreement
At the close of this week, those articles owed Title III Fleet Service and Title IV Ground Services by the Company are:
At the close of this week, those articles owed the Company by Title III Fleet Service and Title IV Ground Services are:
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1-888-4TWUUpdate (1-888-489-8873)
TWU ATD CONTRACT UPDATE HOTLINE
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Due to the company’s stipulation that all TWU work groups agree on their proposals, and the fact that this did not happen, these tentative agreements WILL NOT be presented to the membership for possible ratification at this time. We will update you on further developments as they occur.
We thank the membership for their continued support.
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Article (Fleet & Ground Service)
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TA'd
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TWU passed
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Company passed
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Still in work
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1 Recognition & Scope
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May 15th
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Feb 14th
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TA
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2 Definitions
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Apr 10th
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Nov 14th
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TA
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3 Hours of Work
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Apr 10th
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Jan 30th
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TA
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4 Compensation
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May 15th
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Mar 6th
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TA
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5 Shift Differential
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May 15th
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Mar 6th
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TA
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6 Overtime
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May 15th
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Mar 6th
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TA
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7 Holidays
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May 15th
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Jan 16th
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TA
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8 Vacations
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