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February 04, 2014

American retiree sues TWU for not distributing company stock to those who took a buyout

An American Airlines retiree has sued his union for not giving him shares in the new airline.

Thomas Powell, a member of the Transport Workers Union who worked at American’s Tulsa operations, alleges the union wrongly excluded American workers who took an early-retirement buyout in 2013 from receiving their portion of equity in American after it merged with US Airways.

“It was not until August 2013 that the Defendants informed the persons who took Early Separation that Defendants had decided to deny Plaintiff and the proposed class their previously-vested rights to the TWU Equity,” claims the lawsuit, which was filed last week in federal court in North Texas.

Powell is seeking class action status for the lawsuit, saying that about 2,000 TWU members applied for the early retirement program, and has asked for a jury trial. He also included several of the TWU local chapters as defendants in the lawsuit.

As part of American’s reorganization in bankruptcy, the TWU and its members negotiated a new concessionary contract that included an early retirement program in lieu of layoffs and guaranteed members an equity stake in American after it emerged from American.

“When TWU members asked about whether Early Separation might adversely affect receipt of their vested share of the TWU Equity, the Defendants refused to provide any information or guidance at all, even though the plan for TWU Equity distribution had to have been already considered,” the lawsuit says.

The TWU could not be reached for comment on the lawsuit.

-Andrea Ahles

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Comments

Vortilon

Mr Powell knew exactly how much he was going to receive in the early out package. Furthermore, the folks that accepted the early out package also knew that once they made their choice, there was no turning back, and they would lose their eligibility for any other payouts like the equity distribution. The equity distribution was for the employees stuck working under yet another concessionary contract - courtesy of the yes voting early out retirees. Mr Powell and his group would not be hurting the TWU, because the TWU would use equity slated to pay active members - to pay any (god forbid) settlement for the greedy retirees.

CeoCrookWannaBe

The TWU could not be reached for comment...Imagine that

RL

If the TWU had ANY ethics, they would have no reason to defend themselves in a class action lawsuit.

seenitall

Thats fine Thomas then you and all the early outs should have no problem giving back my portion of your early out money that was taken out of my reduced compensation that was used to pay for your early out . Its only fair right .

CeoCrookWannaBe

I SAID: The TWU could not be reached for comment..............Imagine That..Now post it ST

yellowbrama

vortilon i wish to thank you for your contributing to my early out i am loving it and also i am sorry that your equity shares are going to be reduced by 18% but i am going to enjoy that also what you should do is to continue follow your pudgeball leader gary peterson around and i am sure he will fill you up with something else

whitey

hey vortilon. thanks for the 18% of the equity shares. now where is my prefunding match?

RL

whitey, I am in full agreement with you. Does corrupt, unethical liars ring a bell?

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