MECHANIC & RELATED

Timeline and Updates

A quick summary of major and noteworthy events since the start of negotiations.

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July 7, 2010

American and the Transport Workers Union have finalized the language for the Mechanic & Related tentative agreement, as well as question & answer documents related to the TA reached.

To view the full-text language, click here.

To view the M&R question & answer document, click here.

To view the Retiree Medical question & answer document, click here.

May 5, 2010

American Airlines and the Transport Workers Union have reached a tentative agreement in principle for the Mechanic & Related workgroup.

This tentative agreement provides our mechanics with market-based compensation, including structural increases, and enhancements to other contract items such as vacation, holidays and sick leave. It also provides American additional flexibility in its maintenance operation.

Both parties worked hard and put a significant amount of time and effort into this negotiating process to reach a tentative agreement that recognizes the interests of our TWU-represented employees and the company.

It is our understanding the TWU is recommending the ratification of the tentative agreement and will provide details regarding its terms and the ratification process to their members in the coming days.

American Airlines has more than 50,000 employees represented by unions, including approximately 11,500 under this tentative agreement.

April 14, 2010

American is pleased the National Mediation Board has called for the parties to reconvene, while it continues to consider the requests from the union and the company. American's negotiating teams remain focused and are ready to get back to work at the table once the NMB sets dates to reconvene the parties.

February 26, 2010

This week the American Airlines and Transport Workers Union Mechanic & Related negotiating committees were notified the next session, scheduled for March 1-5 in Tulsa, Okla., has been postponed. We expect to receive new dates from Mediator Jack Kane soon.

January 14, 2010

This week the American Airlines and Transport Workers Union Mechanic & Related negotiating committees resumed negotiations with Mediator Jack Kane. This was the first time to meet since the mediator requested the TWU to establish a smaller committee and the company bring additional M&E management to the session.

 

On Wednesday, American gave the TWU a comprehensive proposal in response to the union’s table position from November 2008. The company’s proposal aimed to address the current state of both the airline and the industry while also addressing many of the union’s interests.

 

Since American’s last comprehensive proposal, the company has worked with the union in an attempt to narrow the issues and establish priorities. The company’s proposal offers some improvements aimed at recognizing the needs of our TWU-represented employees while also allowing American to better manage its labor unit cost and be competitive.

 

We look forward to continuing negotiations with the TWU at a later date to be determined and scheduled by Mediator Kane.

 

The proposal includes:

  • Compensation: Provide lump sums each of the four years of the contract for an aggregate of 10 percent over the four years, beginning date of signing. The lump sums are convertible in whole or in part to structural increases to keep American’s relative standing in the industry for the maximum hourly rate for each of the employee classifications.
  • Holidays: Increase total number of holidays from five to eight by the second year of the contract. Increase holiday work rate of pay from one-half times to double time on date of signing. This brings American in line with the industry average.
  • Sick Leave: Restore the 100 percent SK leave payment for the first two days of absence. In addition, modify the accrual rate to increase to eight days by the year after the date of signing, bringing American in line with the industry average.
  • Retirement Benefits: Provide a defined contribution 401(k) plan for new hires, making American more competitive in the industry. Only one AA competitor currently offers a defined benefit plan while others have terminated or frozen their plans. New Hires would be automatically enrolled in the $uper $aver Plus 401(k) plan to include a 100 percent company match for employee contributions up to 5.5 percent.
  • Retiree Medical: American’s proposal guarantees access to coverage, regardless of employee health status – both before and after age 65 – but modifies the funding of those programs to better align American with the industry and corporate America.
    • Pre-65 – Post-funding retiree medical premiums to match the current management rate of 25 percent of retiree medical plan costs.
    • Post-65 – A company sponsored, guaranteed issue, employee paid Medigap plan will be available to replace the current age 65 and over plan. 100% of premiums to be paid by retiree.
    • New Hires – Pre-65 retirees will have access to retiree medical coverage. Post-65 retiree coverage will be replaced by a company sponsored, guaranteed issue, employee paid Medigap plan. Retirees will receive no company subsidy and pay 100 percent of the premium.
    • Pre-funding balances – Balances will be refunded as part of the proposal
  • Profit Sharing: Replace the current financial component of the AIP plan with an uncapped annual profit sharing plan rewarding employees at the first dollar earned and matches the richest plan in the industry.
  • Workrule Changes: Modify workrules where American has a competitive disadvantage in order to provide the operating management with more flexibility and to increase productivity. Areas of interest include the American/American Eagle ASM letter, Title II mechanic station staffing and overseas maintenance at international AA locations.

To view the company's comprehensive proposal, click here.