APA Negotiations

NEGOTIATIONS TIMELINE

November 14, 2011








Week of October 31, 2011


Week of October 12, 2011


Week of September 12, 2011




September 2, 2011



Week of August 29, 2011



August 12, 2011






August 1, 2011




July 22, 2011





July 11, 2011




June 27, 2011



June 20, 2011








May 2, 2011

Company and APA negotiators concluded a weeklong session of negotiations. The company offered comprehensive proposals that provide pay raises, maintain industry leading benefits, increase job protections, prevent outsourcing and create a framework for growth. In return, the company has asked for enhanced productivity, additional operational flexibility and movement toward a more competitive benefit structure.

Parties met at Flagship University to continue intensified discussions on remaining contract items.

Parties met in a remote offsite location north of Dallas for intensified talks on a number of remaining contract items.

Negotiators met in non-mediated negotiations in Washington, D.C. to continue discussions on Scope and work rules, focusing specifically on long-haul and small narrow-body flying.

Parties continued to meet in non-mediated negotiations, discussing a variety of topics including Scope and sequence protection.

Parties met in a remote offsite location southwest of Fort Worth to help teams focus discussion on key proposal items.

Vasu Raja, AA’s Managing Director of Corporate Planning, gave an update on the network and parties began discussions on Scope. During Scope discussions the company discussed the possibility of introducing small narrow-body jets to AA’s fleet to provide similar feed in lower-demand markets.

The company presented an overview of the Fatigue Risk Management Plan (FRMP), which is expected to be approved by the FAA in the very near future. The company also presented a revised long-term disability proposal.

Parties reached a verbal agreement on sequence protection, contingent on the remaining scheduling and work rules provisions being finalized. Both parties also received an update on the development of a new Trip Trade System (TTS).

Parties continued to discuss counter proposals related to work rules. Additionally, the company provided updated retirement proposal which addressed new hires and other topics.

APA negotiators provided a counter proposal on work rules. The company will work on its response and provide at the next scheduled session.

Company negotiators presented proposals on Tulsa Flight Test Flying and Check Airmen, along with a comprehensive proposal on work rules which included topics such as sequence protection, training, equipment groupings, hours of service, line construction, filling of open time, and Reserve flying. Additionally, parties agreed to extend the negotiating schedule through August, with sessions occurring most weeks.

Parties continued discussions on work rules and exchanged proposals on various items, including sequence protection, filling of open time, line construction process and reassignments. Other topics discussed included reserve and access to open time for Flight Standards.

March 25, 2011

Parties reached a TA on Supplement Z – Terrorism and continued discussions on various items. A status report on the progress of the scheduling subcommittee was given, and the APA provided a verbal proposal on medical benefits. Both parties agreed to continue those discussions in subcommittee meetings

March 8, 2011

Vasu Raja, AA’s Managing Director of Corporate Planning, gave a presentation on American’s domestic growth plans and parties began discussing Scope-related items.

March 2, 2011

Additional unmediated negotiations sessions with APA were scheduled through June 2011.

February 23, 2011

Parties reached TAs on Passport Expenses, Lock-ins and Deadhead from Training. In addition, both parties agreed to hold four subcommittee meetings to focus on work rules.

January 27, 2011

Both parties reached TAs on Section 8 – Moving Expenses and Supplement L – Drug and Alcohol Testing. The company again reiterated the need for a side letter of agreement on long-haul flying.

January 18, 2011

Parties began unmediated sessions and reached TAs on Jumpseats and Crew Rest Facilities.

December 13, 2010

Company negotiators were introduced to the APA’s newly appointed professional negotiator. Parties also established a negotiating protocol for unmediated sessions and finalized a tentative negotiations schedule for January through March 2011.

October 19, 2010

Parties reached a tentative agreement on Section 20 – Physical Examination. The Company also presented proposals on Check Airmen, Tulsa M&E, Supplement L – Drug and Alcohol and Supplement K – Benefits.

August 10, 2010

Both parties agreed to meet in subcommittee meetings to ensure mediated negotiations are as productive as possible.

July 13, 2010

Company negotiators held introductory meetings with APA’s newly-elected National Officers.

July 2, 2010

Parties reach TAs on Supplement G – Commuter Policy and a new telephonic recording system. Parties also reached a TA on contract language for Section 23 – System Board of Adjustment.

July 1, 2010

New APA National Officers begin three-year term.

May 21, 2010

Parties signed four TAs on Satellite Crew Base Support, Crew Meals (with the exception of long-haul flying), Section 7 – Hotels, and Section 21 – Discipline, Grievances, Hearings and Appeals.

April 30, 2010

The Company proposed a package that would close out 14 administrative items and offer enhancements to the current contract, and a revised Retirement Benefits proposal, withdrawing its proposal to convert the Pilot B Plan to individual 401(k)s for each pilot. Parties also were able to reach a tentative agreement on Section 11 – Leaves of Absence and Letter M Parking Permits.

April 16, 2010

Parties reviewed APA’s Pension proposal and discussed a number of administrative items. The Company presented draft contract language for Section 23 – System Board of Adjustment and both sides agreed to TA the section “in principle”.

March 5, 2010

Both parties reached verbal TAs on System Board of Adjustment and Leaves of Absences (non-military items). APA also submitted a new proposal on Supplement Z Terrorism Benefits. Discussions on administrative items were held, followed by proposal reviews from each side on Scheduling and Reserve.

February 19, 2010

Negotiations produced TAs on contract areas pertaining to Pre-Arbitration Conference procedures, Electronic Personnel Files, Parking Permits and Co-Terminal and Satellite Base Flying.

February 5, 2010

Negotiations resumed after a four-month break following the APA’s reconstitution of its negotiating committee. A TA to keep current green book language was reached on Supplement H(2) Civil Reserve Air Fleet (CRAF) Operations. Both parties also reached a verbal agreement that would close out Parking Permits.

October 7, 2009

A letter of agreement was reached with APA regarding 409A/CPA bank tax issues. APA announced it would be reconstituting its negotiating committee for a second time. As a result, bargaining sessions were put on hold.

September 3, 2009

The APA shared a proposal on scheduling-related issues including the Filling of Open Time. The company gave a brief industry update of healthcare costs and presented several updated proposals including Medical Benefits, Retirement Benefits and TUL Scope of Work. APA responded with its own proposal to address Medical Benefits as a part of the overall Compensation package.

July 24, 2009

The APA presented a scheduling proposal that was virtually unchanged from its last position. At the mediator’s request, AA negotiators explained the importance of code shares and commuter feed and the logic behind our most recent Scope proposal. Union negotiators refused to recognize that competitive Scope provisions had any benefits to the airline or pilot jobs and maintained that the increasingly global state of the aviation industry has no bearing on APA’s desire to prohibit all future Scope exceptions.

June 30, 2009

AA presented 17 counterproposals and a Furlough Protection clause to the contract, which APA rejected. The APA presented 15 proposals. Parties signed a Tentative Agreement (TA) on Failure to Qualify and, subject to contract language, reached agreement on Co-Terminal and Satellite Base Flying. Negotiators agreed to meet outside of negotiations to summarize areas of agreement still outstanding on Sections 21, 22 and 23. A verbal TA was reached on Section 22 depending on the outcome of the subcommittee discussions.

May 8, 2009
The company presented the APA with a mini-package of six items as well as proposals on Pre-Arbitration Conference and System Board of Adjustment. AA negotiators also shared a presentation on the importance of commuter feed to the airline’s operations. APA presented a proposal on pilot training and various counterproposals.
April 3, 2009 
AA negotiators gave a brief economic and industry update to the mediator. Union negotiators were invited to attend the briefing but chose not to participate in the 15-minute presentation. The company also shared the full year 2008 losses to the Pilot B Plan retirement fund and tried to generate discussions around Scope by showing the competitive importance of commuter feed.
January 30, 2009
Negotiators agreed in principle to Letter K, Uniforms and to extending another Letter of Agreement on Section 17.O (Qualify in Turn). The Company and APA agreed to create an economic analysis subcommittee to review and discuss information regarding assumptions and pricing models used to analyze proposals. The parties also agreed to reconvene a scheduling subcommittee.
January 13, 2009
Company negotiators met privately with the National Mediation Board.
December 16, 2008
Negotiators met in Washington, D.C. to discuss a variety of issues, though no proposals were exchanged. The APA negotiating committee met privately with the National Mediation Board.
December 5, 2008
Negotiators tentatively agreed to an item on pilot training displacement known as Q&A 53. The Company also proposed two packages of seven items each that would allow negotiators to clear 14 topics off the table and focus on more substantial issues.
December 2, 2008
The Company presented a negotiations update presentation to the National Mediation Board and the APA. The presentation intended to update Senior Mediator Zachary Jones on progress made since mediated discussions began in April, and to remind both committees of the current status of various proposals.
October 23, 2008
The Company presented its revised Scheduling and Reserve proposal covering a number of topics including the establishment of a Preferential Bidding System (PBS).
September 17, 2008
The APA announced to media that it would be filing a Presidential grievance against the Company’s proposed Joint Business Agreement with British Airways and Iberia.
September 2, 2008
The Company presented an overview of its Joint Business Agreement and application for antitrust immunity with British Airways and Iberia.
August 14, 2008
The Company presented a chart demonstrating that AA’s pilot costs would increase by more than 175 percent and be approximately 275 percent higher than the 2007 industry average of $255 were it to accept APA's current proposals.
July 24, 2008
The Company presented its Sick proposal, which offers financial wellness incentives to pilots who have unused annual sick accrual at the end of each year.
July 7, 2008
The Company presented an analysis of APA’s pension proposal as well as its proposal on Distance Learning.
June 13 , 2008
The Company presented proposals on Scope, Benefits and Long Distance Flying.
May 30, 2008
Negotiators tentatively agreed to an item within Section 24 stating that copies of an agreement will be distributed electronically.
May 27, 2008
Company negotiators presented a cost-out of all of the Union’s proposals, which would result in approximately $3 billion in recurring expenses.
May 9, 2008
Company negotiators proposed closing eight sections and two letters of agreement as current book. The Union rejected this proposal.
May 6, 2008
Negotiating parties met jointly with NMB mediator.
May 1, 2008
Pilot contract became amendable.
April 30, 2008
Negotiating committees met without NMB guidance and the APA rejected the Company’s modernization of the Pilot B Plan. The APA also submitted its own A Plan proposal.
April 14, 2008
The NMB assigned Mediator Mike Tosi to oversee negotiations between the Company and the APA.
April 10, 2008
The five weeks of NMB-facilitated discussions came to a close, with the Company resubmitting its proposal to modernize the Pilot B Plan. Parties also agreed upon language to pay protect pilots directly affected by MD80 cancellations in early April. The APA announced it would not continue in facilitated discussions and would resubmit its NMB application for formal Section 5 mediation.
April 4, 2008
A joint subcommittee composed of subject matter experts from both sides was formed to discuss filling of open time and scheduling enhancement issues.
March 28, 2008
A joint subcommittee composed of subject matter experts from both sides was formed to explore sequence and trip building model construction.
March 14, 2008
Negotiating parties tentatively agreed to a proposal on Reinstatement Rights (Section 17).
February 28, 2008
First Facilitation Meeting with NMB Facilitator is held.
February 19, 2008
The APA withdrew its NMB request for formal Section 5 mediation.
February 14, 2008
American and the APA agreed in principle to a negotiations protocol and timeframe, including five weeks of NMB-facilitated meetings outside of Section 5.
February 13, 2008
The APA responded to American's previous requests for a protocol agreement by proposing a negotiating protocol and timeline.
February 12, 2008
The Company presented proposals on Probation, Jumpseats, Uniforms and Moving Expenses.
February 7, 2008
Negotiating parties approved tentative agreements on three contract areas pertaining to Seniority; Certificates and Ratings; and Agency Shop and Dues Checkoff (Sections 13, 16 and 25).
January 31, 2008
The Company presented a proposal for modernizing the Pilot B Plan.
January 30, 2008
The NMB responded to the APA’s request for formal Section 5 mediation, recommending the parties narrow discussion topics before entering mediated negotiations and explore alternative facilitation methods.
January 29, 2008
The Company presented proposals regarding three sections on Seniority; Certificates and Ratings; and Agency Shop and Dues Checkoff (Sections 13, 16 and 25).
January 25, 2008
The Company presented proposals on sections of the contract that deal with Grievance, Arbitration and General Administrative issues (Sections 21-24).
January 14, 2008
The APA filed for formal mediation with the National Mediation Board.
January 10, 2008
The Company proposed a number of enhancements to its original scheduling, sequence protection and reserve proposal.
December 11, 2007
Age-65 legislation is passed.
December 6, 2007
The APA negotiating committee presented the Company with a one- sentence scope proposal.
October – November 2007
The APA resubmitted its Section 6 openers.
October 3, 2007
First meeting following reconstitution of the APA negotiating committee; the APA provided the Company with a letter stating the Union’s original Section 6 openers were going to be replaced.
September 26, 2007
The APA replaced its negotiating committee chairman and a negotiating committee member.
September 25, 2007
The Company provided the APA’s negotiating committee with a multi-faceted proposal relating to scheduling, the reserve system, income protection and other topics.
September 16, 2007
The APA completed its second survey of member priorities for negotiations.
August 7, 2007
The APA suspended bargaining sessions for 60 days due to reconstitution of its negotiating committee and need to conduct a second membership survey.
June 20, 2007
New APA President Lloyd Hill is elected.
May 1, 2007
The APA presented the Company with a Scope proposal.
February – April 2007
Negotiating committees met infrequently during this period as the APA was involved in and focused on the election of its National Officers and pre-election preparation and activities.
December 2006
Negotiating committees reviewed side letters on various topics.
October 3 & 4, 2006
American and APA negotiating committees exchanged proposals on the protocol agreement.
October 2006
The APA notified American that they discontinued use of third-party negotiating facilitators.
September 20, 2006
Formal negotiations began with each side exchanging Section 6 openers.
September 15, 2006*
American and APA negotiating committees met with third-party facilitators to establish a problem-solving approach to negotiations.
August 2006*
At the APA’s request, American agreed to participate in joint negotiating training with third-party facilitators.
July 21, 2006
American notified the APA that it would exercise its option to begin negotiations under the Early Opener provision of Section 6.

 

 

* Date is approximate