American, TWU reach tentative agreements for mechanics and store clerks

The Transport Workers Union said it has reached new tentative agreements with American Airlines for its mechanics and store clerks.

The new deals include 3 percent pay raises upon signing for the mechanics, and 3.5 percent pay raises for store clerks. The union said health insurance coverage was also improved over the Fort Worth-based carrier's previous offer.

"These two new agreements represent an improvement from the company's previous offers and its motion to void our contracts pending before U.S. bankruptcy court," said TWU International president Jim Little.

American had reached agreements with these two work groups in May, but members voted the proposals down.

The TWU said it expects to conduct ratification votes that will conclude around August 8, the same day that the pilots union is expected to announce the results of its ratification vote of a tentative agreement with American.

The agreements also include equity claims in the new American Airlines, once its parent company, AMR Corp. emerges from bankruptcy, that will be "negotiated between TWU and AMR based on the offer proposed to the APA pilots, subject to court approval."

American has offered the Allied Pilots Association a 13.5 percent equity stake in the new company as part of its tentative agreement.

Company spokesman Bruce Hicks said American was pleased to reach agreements with the TWU that include cost savings for the company. American reduced its cost savings target for the TWU by about $35 million a year from its initial February proposals.

"Through this reduction, and a reallocation of profit sharing, we were able to provide additional pay raises, an adjustment to industry pay rates after three years, and changes in active medical benefits," Hicks said." The TWU tentative agreements, along with our tentative agreement with the APA, demonstrate that we can work creatively to reach a resolution that puts our company in a position to move forward quickly and successfully."

-Andrea Ahles

Comments

[Vortilon]

Too little too late! I'm voting NO!

[GofowaRd]

Good luck with Vito its a done deal.

[Chris]

Voting no bottom line. Corporate greed at it's finest.

[JoeJett]

It is not a raise, If your add in the lost vacation days, sick time, increase in health costs, and the fact it is a six year term. That fact by it self is enough for it's failure!!! American Will exist Bankruptcy long before that, leaving as always the employee's to pay for management's Incompetence....shown even through out this process...

[steve desanto]

SSDD thats a big No Here!

[steve desanto]

Why would you sign a contract with open language? NO WAY !

[AAAMT]

Highest revenue for the last three months, asking to slash retiree benefits, workforce already gave concessions which were mismanaged, entered bankruptcy with billions in the bank, no significant management changes made and you want me to say yes to a six year concessionary contract? Not happening. Just because other airlines and industries have gone the route of diminishing the middle class work force and overpaying executives doesn't make it right. I vote no.

[CeoCrookWannaBe]

Your TWU thinks that stores clerks should get a larger pay raise than mechanics. You guys better vote this down. AA thinks they will get this bought by stores clerks and then replace them with vending machines.

[Already Gave]

Let's see.. I gave up 20% eight years ago but now a 3% give back is supposed to be a good deal? Vote no. Wait for the merger or new representation.

[AA MGT]

>AAAMT said "...no significant
management changes made.."

WHAT?? Are you kidding me? Where are you getting that?

[casual observer]

This is brilliant! Keep holding out guys. The longer you stall, the easier it will become for AA to truly slash costs with more outsourcing. It seems like NW all over again.

[AAAMT]

AA MGT: Can you name the leadership changes that have been made at aircraft base maintenance? Line maintenance? Horton would desire all aircraft work outsourced but will settle for 40% outsourcing in this initial phase and has left the same folks in charge. Those are the same leadership positions which failed at securing 3rd party work. Boston Consulting Group felt we, and I quote, "should be making money hand over fist with our workforce and facilities." Instead we lost money on contracts. What makes you think AA Managemant will heed any advice given in BK when they've continued to ignore it in the past? After spending millions plus to get it?
Name the changes that have been made on the Board of Directors. The same group who have sat idle for 12 years not pushing for any positive initiatives to secure our futures.
I understand jobs have been lost at HDQ. Good folks who deserved better leadership. They won't be alone. Not when Horton was pushing for 13,000 total.
You tell me AA MGT,,, what positive management change has been made at AMR?

[jtc@aa]

To the Membership,

I would not characterize the latest offer by A/A for M&R as a “tentative agreement” but rather the companies “Last Best Offer version 2.0.” The reason I say this is, because, the so called T/A was defined as AA’s last best offer to the M&R negotiating team. The meetings that took place were categorized as negotiations however from the onset AA management determined where they were going to allocate the money from the “me too clause” and spoke to the point of only needing a few hundred more “yes” votes to get this deal done.

The Stores negotiating team was able to secure a slightly better deal with a 5.2% pay raise at DOS, when you include the skill premium. The Stores group was also able to retain their 6th week of vacation and improve their job scope language.

With that said, at no point during the week did Mr. Durst or Mr. Ream chose to take the time to listen to concerns being expressed by the line maintenance negotiators; although both were asked to do so. Both men expressed the fact that they were not interested in sitting down and talking with us; saying they were done talking with us and this was a take it or leave it offer. So in my opinion, we are asked to accept another threat in the form of LBO II. While it may be tempting to grab what we can now, this is a six-year extension, which makes this a ten-year deal. The fact that A/A will provide a move to the middle of the pack in pay at 36-months sounds good but what happens after that, two 1.5% pay raises and then another 5 years without a raise? We must negotiate an agreement, not be strong armed into accepting a contract written by AA management.

Over the next few weeks, I will be out on the floor taking with the membership about why this “LBO II” is just another slap in the face to the membership. Even though a no vote may create a difficult situation for a period of time, voting yes will create six more years of working for less, in both pay and benefits, than nearly every other carrier in the industry, including those who are non-union. It will also allow AA unlimited reductions-in-force - since there is no system protection, outsourcing at levels which are easily manipulated by erroneous data, and the freezing of the pension – also, in order to get any company match you will need to invest at least 3% of your money.

Gary Peterson
President

[Richard]

Voting no won't lead to a merger or new representation. What it will lead to is having an even worse deal imposed on you by the bankruptcy court and American's management.

What's that old adage about not cutting off your nose to spite your face...?

[wingman]

i am sick and tired of hvaing everyone tell me whsats best for me and my family...if we had voted or been abl to vote on past contracts we would be worlds better off todya...but those were the days when retsore and more was beign pounded into our heads and we weer told the companuy woudl cave if we vote no...look where that got us...stuck heer with the same jerks telling us to hold out for more...please tell me there are still sane memebrs that see throught thsi vote no bs

[John S]

Voting no is voting for an even worse contract. I get that this can be an emotional issue, but it goes against all logic to take less when you could have more.