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July 16, 2012

American Eagle says it is not "retreating" during contract negotiations with pilots

American Eagle is not "retreating" during its current negotiation talks with its pilots union, the regional carrier said in a letter to employees over the weekend.

The letter, written by Eagle vice president of flight Capt. Jim Winkley, said it the company is committed to reaching consensual agreements with its pilots union and a response to the Air Line Pilots Association describing management's latest negotiations as a "regressive approach."

"Notwithstanding our belief that the latest 1113 proposals reflect what the Company needs to successfully reorganize, the step we have taken today was not intended to suggest that the Company is retreating from any position we have taken in our bargaining sessions in an effort to reach a consensual agreement. In fact, we remain committed to working to reach consensual agreements with each of our labor groups and will be available 24/7 to meet with each of the union’s negotiating committees to try to reach that goal," the letter said.

In a hotline message sent to pilots Friday, ALPA said the Fort Worth-based company indicated that it will file a Section 1113 motion shortly. The union's negotiating committee was presented with a contract proposal Friday that it called "virtually indistinguishable" from the initial term sheet given to Eagle pilots March 21.

Keep reading for the full letter from Eagle sent to the pilots.

-Andrea Ahles

July 14 Letter from Capt. Jim Winkley, vice president of flight from American Eagle

As you are aware, the company has been negotiating with ALPA for several months in an attempt to reach a consensual agreement that will meet the cost targets that we have determined are necessary for a successful restructuring. We continue to be committed to reaching a negotiated tentative agreement, in order to complete the restructuring of our labor costs in a timely manner and not delay the restructuring timeline. We are now at the point that we need to move to the next phase in the 1113 process during which we may need to file a motion in bankruptcy court to reject the labor agreements for those work groups for which we have not, at the time of the filing, reached tentative agreements that achieve our cost reduction targets. In preparation for that step, we passed new Section 1113 term sheets today to ALPA, AFA, and the TWU, which contain provisions that we will propose to implement for those work groups with which we do not reach consensual agreements.  These term sheets will be posted on Jetnet on Monday.

The proposals we passed today contain terms that the Company believes represent the best way to achieve what is necessary for its successful reorganization. These proposals differ from the original 1113 proposals passed in March in that certain terms reflect the fact that the Company has agreed with some positions taken by the union negotiators during the period we have been discussing, including on issues of valuation. Notwithstanding our belief that the latest 1113 proposals reflect what the Company needs to successfully reorganize, the step we have taken today was not intended to suggest that the Company is retreating from any position we have taken in our bargaining sessions in an effort to reach a consensual agreement.  In fact, we remain committed to working to reach consensual agreements with each of our labor groups and will be available 24/7 to meet with each of the union’s negotiating committees to try to reach that goal.  We remain open to any reasonable proposal that will achieve the targeted savings required for a successful restructuring of the company so long as the proposed contract changes do not negatively impact our business plan.

I have seen first-hand the hard work and dedication that both the company management team and the ALPA negotiators are bringing to this process and I remain hopeful that we will be able to reach a consensual agreement that will lead to a successful restructuring and a stronger, more viable company.

 

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Comments

Eagle Employee

Really, Is anyone truly surprised that the proposal is virtually indistinguishable from its initial bankruptcy term sheet of 21 March???
Don't take so badly ALPA... Horton and Company has given everything that they believe they could financially bargain with to all of the AA UNION LOCAL'S leaving nothing left for EAGLE, not even table scraps.
AMR has done this on the assumption that EAGLE is HISTORY anyways, therefore AMR management can shove it up their wholly owned "Redheaded Stepchild's" backside and not have to negotiate with us in "GOOD FAITH" at all. Not to mention that that great TWU leader Jimmy "Do" Little will not even bat an eye as he throws his EAGLE rank and file under the bus in favor of AA!!!
I would really like to know why Horton is so "foaming at the mouth" to get rid of EAGLE. What is the problem Tom? You know Delta has a wholly owned regional called Comair and US Airways has 2 wholly owned regionals, Piedmont and PSA and they all seem to be making money, so what is the reason Tom???

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