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June 28, 2012

TWU: "me-too" clause resulted in $37 million added back to union contracts

American Airlines and the Transport Workers Union have finished reworking ratified contracts for five workgroups at the carrier, giving back $37 million in concessions to the union.

The changes occured as part of the contracts "me-too" clauses, which were triggered when American lowered its cost savings target from 20 percent to 17 percent for the pilots union.

According to the TWU, the fleet service clerks, dispatchers, ground school instructors, maintenance control technicians and simulator technicians have agreed to the changes in the contracts that they ratified in May.

"Those units that reached consensual agreements with the company in May received better terms and protections than they would have if matters had been left to the mercy of the bankruptcy court," said TWU International president Jim Little. "Our members appreciate that we were prudent in negotiating me-too clauses and that AMR kept its word."

The changes include pay raises for fleet employees instead of a two percent pay cut and modified 401(k) contributions from a 5.5 percent company match to include most gross earnings. Medical premiums and deductibles were reduced and the profit sharing formula was altered.

"We’re pleased we were able to work with the TWU to identify and agree upon items to adjust in each of these five contracts," said American spokesman Bruce Hicks. "These adjustments will give our people additional pay, a revised profit sharing plan, and modified active medical coverage while still allowing us to implement a business plan that will let us exit restructuring and vigorously compete and win."

Also, similar to the pilots' union agreement, the TWU groups will be able to renegotiate the six-year contract starting in the 4th year of the contract.

The TWU is currently scheduled to restart negotiations with American for its mechanics and store clerks workers on Monday.

-Andrea Ahles


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So AA sweetend the pot with the "me too" clause. I was wondering if the TWU sacrificed anything that was previously offered?

I noticed that the profit sharing with the TWU work group(s) was reduced - anything else we need to know? Is American still terminating our Prefunding Medical?


Nicely done! I wonder why the negotiators for the mechanic group were so opposed if the proposal had this type of clause in it?

At least the outline for a deal is now set. No reason they can't get one finished up now. I don't want to see us as the only group going through the 1113 process.

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