The updates section provides historical information about scheduled bargaining sessions.
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December 20, 2007
AA and union negotiators met yesterday to review and discuss last week's Age 65 legislation. While the Company had planned to present a series of enhancements to its scheduling and reserve proposal, it opted to use yesterday's bargaining session to work with the APA on identifying and addressing concerns regarding the immediate implementation of the new law.
The Company indicated that when the parties resume negotiations on Tuesday, January 8, it will begin providing a series of additional proposals to the APA that will focus on solutions to enhance AA's day-to-day operations, improve pilot quality-of-life and to produce and maintain a cost structure that would allow for growth.
December 6, 2007
Today, the APA negotiating committee presented the Company with a one sentence scope proposal which read: "All flying performed by or on behalf of the Company or an Affiliate shall be performed by pilots on the American Airlines Seniority List in accordance with the terms and conditions of this agreement." AA negotiators raised serious concerns about the impact of such a proposal and believe our efforts should be focused on helping American be competitive in all areas of its business.
November 29, 2007
During this week's negotiations, as had been previously agreed, the APA committee continued to present the Company with a number of their new and revised proposals, including Sections 21, 22 and 23 related to Discipline, Hearings, Grievances and Arbitration/Dispute Resolution, Section 11 Leaves of Absence, Section 12 TUL M&E Flying, Supp BB Fatigue Policy, Letter Q Jumpseat Policy, Section 18 C Temporary Duty and Rights of Representation.
The APA negotiating committee advised the Company that they have presented most of their revised openers with the exception of Scope and a few minor items. The committee indicated it would provide the Company with a Scope proposal very shortly.
The committees agreed to break for the next two weeks, allowing the Company sufficient time to review the APA proposals in their entirety. Meetings will resume on December 18 and the Company will begin presenting a series of proposals, starting with a response to the APA's Scheduling and Reserve proposal. After this round of meetings, the committees will adjourn for two weeks during the holidays. The first bargaining session in 2008 is scheduled for January 8.
November 16, 2007
The committees met on Tuesday and Thursday of this week. The regularly scheduled negotiation session on Wednesday was canceled at the request of the APA committee. APA negotiators presented scheduling, reserve system and international flying proposals and indicated that they would likely present the remainder of their opening proposals during the next scheduled meetings, which will be held the week after Thanksgiving. The committees agreed to work out a schedule for the remainder of the year at that time. During these upcoming discussions, AA negotiators will present a series of new proposals to the APA committee.
November 9, 2007
During this week's negotiations, the APA's Director of Industry Analysis Drew Keith provided AA negotiators with a presentation on variable compensation that would replace existing profit sharing and AIP plans. The APA negotiating committee also presented the Company with a series of proposals regarding Check Airmen, commuter policies and Section 20 physical examinations. Company negotiators also formally responded to the APA's compensation proposal (see Nov. 8 update).
The negotiating committees are scheduled to meet Tuesday, Wednesday and Thursday of next week and the APA has indicated that it would respond to the Company's scheduling and reserve proposal. Both parties have agreed to recess negotiations during the week of Thanksgiving. A schedule for the month of December has not yet been finalized.
November 8, 2007
The AA negotiating team has carefully reviewed and analyzed the compensation proposals that were recently shared with the Company by the APA negotiating committee. AA negotiators have informed the APA negotiating committee that such a large compensation increase as proposed could not be sustained. If the proposals were adopted as presented, it would increase American's annual pilot costs in 2008 and 2009 by more than $1.4 billion. By comparison, it would translate into a pilot cost of $586 per block hour, more than the combined costs per block hour of AA's two nearest competitors, Delta and Continental. This chart illustrates the projected cost of such a contract.
American understands that pilots are heavily invested in the future of the company. That's why the company believes that both sides must focus on charting a path for future success that enables the Company to manage the business for the long-term. We believe our discussions at the negotiating table should have the same perspective. To that end, the Company believes both sides need to review and discuss what's happening in our industry and where American stands relative to other passenger carriers. A discussion in the absence of such meaningful industry review jeopardizes our collective future.
American continues to believe that an old-style bargaining mindset, where hard-line, extreme positions are staked out is not suited for today's realities and is not in anyone’s best interests. American will continue to strive to address the needs of all our stakeholders and explore opportunities to create mutually beneficial solutions. We look forward to continuing our dialogue with the APA, reviewing additional proposals and finding areas that we can agree upon.
October 26, 2007
On Tuesday, the APA negotiating committee presented the company with a number of proposals covering pilot wages, vacation pay, furlough procedures, sick leave and pay for other time away from work - among other items. On Wednesday, the APA negotiating committee shared several more proposals, including a benefits-related proposal that discussed medical and dental coverage. During the week's final negotiation session on Thursday, the APA negotiating committee presented additional proposals covering miscellaneous items ranging from paid union leave to water provisioning on aircraft.
The committees will not meet next week due to American's Fall Leadership Conference and APA's Board of Directors meeting. The committees agreed to resume negotiations on Wednesday, November 7. The APA negotiating committee indicated it would continue to present additional proposals and would respond to the company's scheduling and reserve proposal during the week of November 12.
October 24, 2007
In response to the proposals submitted by the APA negotiating committee, American Airlines issued the following response:
"It will take some time to fully understand the impact of these requests, but at first glance it appears that these items would dramatically increase our pilot costs – making us even more uncompetitive and worsening our labor cost disadvantage. We cannot ignore the competitive realities of the marketplace and jeopardize our fragile recovery. As we’ve previously discussed with the APA, increases of the magnitude proposed would simply return us to the destructive cycle we have been trying to climb out of. Such a course serves no one well in the long run, including our pilots.
Many of the proposals presented by the APA are unprecedented in the passenger airline industry. In addition, they fail to include any mention of productivity. Any discussion regarding pay increases must be closely linked to discussions regarding increased productivity. As we’ve communicated to the APA, the company is open to exploring variable compensation programs that would provide additional income opportunities for pilots, but we need to look at the entire picture and productivity gains must be factored in as part of that equation so that we can achieve a competitive cost structure."
October 3, 2007
AA negotiators met with APA representatives Tuesday afternoon to respond to questions regarding the Company’s recent scheduling proposal. The APA asked questions regarding what impact the proposed increase in scheduled flying would have on total pilot headcount. In response, the Company reminded the APA of its previous proposal framework for negotiations that stated the Company would not furlough pilots as a result of improved productivity directly related to Section 6 changes. The Company also reiterated that the scheduling proposal was one piece of a complex puzzle, and it would require additional discussion among the parties to fully understand the final outcome of any such proposed changes
The APA provided the Company with a letter stating the Union’s original Section 6 openers were going to be replaced due to the results of its membership survey, changing industry conditions and recent direction from its Board of Directors. In addition to setting dates later in October to resume regular negotiating sessions, the committees agreed to meet next on Oct. 9 to discuss items outside of the Section 6 process, including crew rest seats and a technical review of the Docking Guidance System.
September 25, 2007
The Company’s negotiating committee provided the APA’s negotiating committee with a multi-faceted proposal relating to scheduling, the reserve system, income protection, and other topics. The proposal seeks to address a number of pilot concerns as communicated through the APA’s negotiating committee, including the desire to improve pilot flexibility and predictability, income protection for lineholders, increased ratio of lineholders to reserves and opportunities to increase W2 earnings. It also would help the company’s future by increasing its efficiency and making AA more competitive. Here is a summary of the proposal’s major elements.
The APA’s negotiating committee asked a number of questions, including one about this proposal’s impact to pilot jobs. In response, the Company referenced the letter it presented to APA in February that would offer furlough protection against any involuntary loss of employment as a direct result of productivity gained through negotiated changes to work rules.
Both committees agreed to discuss several areas further at the next session, currently scheduled for Tuesday afternoon, October 2.
August 16, 2007
During today's discussion, the Company provided APA with information about its New York City marketing strategy and highlighted some related issues that need resolution. We are waiting on a response from the APA and are willing to meet again to discuss this issue prior to the next bargaining session, which is scheduled for Oct. 2.
The Company also told the APA that the increase included in its compensation proposal significantly increases our existing industry high unit labor costs to a level well above Southwest and the industry average and worsens our competitive disadvantage.
August 7, 2007
Following a brief negotiations meeting today, the APA reported it would not return to negotiations for at least 60 days. A negotiations session is tentatively scheduled for Oct. 2. The APA said Capt. Howard O’Shell had resigned from the negotiating committee. In addition, the APA advised that the negotiating committee has not yet been finalized and that there may be additional changes over the next few months. The association also said it is surveying its members and is not ready to resume formal negotiations until those surveys are complete.
APA Negotiating Committee Chairman Mark Stephens volunteered to make the committee available to accept any proposals the Company would like to put forward in the interim. As always, the company is open to meeting with the APA at any time to discuss contract proposals and remains committed to an ambitious schedule of negotiations. The APA has chosen to make changes to its negotiating committee and indicates that formal negotiations can resume only when the final committee is appointed and authorized by the APA Board of Directors.
The company is prepared to discuss new and current proposals, as well as outstanding data requests at any time. Several items are currently on the table. Contract items currently on the table include long haul flying, distance learning, grievance and arbitration process, Supplement Z (benefits provided in the event of terrorism, sabotage or hostage situations), and non-variable compensation, among others. The union has requested additional data from the company about S80 domestic block hours and prescription drug information.
The committees have agreed to meet briefly on Thursday, Aug. 16, to review the Company’s New York City marketing strategy and potential impact on flying.
July 10, 11 & 12
The APA negotiating committee informed the company it would be unable to meet on the following dates: July 10, 11 & 12; July 17, 18 & 19; July 24, 25 & 26 and July 31, August 1 & 2, 2007 due to its Board of Directors meeting on July 25-28. The next negotiation session has been scheduled for Tuesday, August 7th.
July 3, 4 & 5, 2007
American and the APA negotiating committees mutually agreed not to meet due to the July 4th Holiday.
June 26, 2007
The company and the APA met on Tuesday afternoon to discuss the AMR DOT Drug/Alcohol Follow-Up Monitoring Program. AA’s Tamara Wright, Manager – Drug & Alcohol, served as a subject matter expert and participated in the discussions through Wednesday. Both parties agreed to use the balance of this week and next to prepare for the next set of meetings scheduled the week of July 9.
June 19, 20 & 21, 2007
American and the APA negotiating committees mutually agreed to cancel this week’s meetings to prepare for our next set of meetings.
June 14, 2007
American and the APA negotiating committees participated in a company presentation on the EU-US Open Skies Agreement.
June 12, 2007
American and the APA negotiating committees participated in a company presentation on Distance Learning. Also, the company shared an updated version on AMR DOT Drug/ Alcohol Follow-Up Monitoring Program. The APA raised some questions regarding the passport renewal process and the effect it is having on their members.
June 7, 2007
The APA was unable to meet due to its Board of Directors strategy meeting.
June 5 & 6, 2007
The APA was unable to meet due to the Air Line Pilots’ Association and Southwest Airlines Pilots’ Association negotiations roundtable discussions.
May 31, 2007
American and the APA negotiating committees participated in a company presentation on the HR Business Process Outsourcing project.
May 30, 2007
American and the APA negotiating committees met to continue discussion on APA’s hotel and transportation issues.
May 22, 2007
American and the APA negotiating committees mutually agreed not to meet due to Supplement W arbitration and 30-day sick arbitration.
May 15, 2007
American and the APA negotiating committees met and discussed the recently announced EU Open Skies agreement and AA’s distance learning proposal. The APA announced that its Board of Directors took no action with regard to AA’s proposed extension of the Nassau side letter. The APA also announced that its Board of Directors had withdrawn the Miami baggage letter.
May 8, 9 & 10, 2007
The APA was unable to meet due to its Board of Directors meeting.
May 1 & 3, 2007
American and the APA negotiating committees met briefly on Tuesday, and the APA presented the company with a Scope proposal. The committees were scheduled to meet on Wednesday, but that session was moved to Thursday at the request of the APA.
April 19, 2007
American and the APA negotiating committees mutually agreed not to meet due to the 30-day sick arbitration in Washington, D.C.
April 17 & 18, 2007
American and the APA negotiating committees met on Tuesday and Wednesday afternoons to discuss issues regarding Supplement Z, regarding Benefits in the Event of Terrorism, Sabotage or Hostage, along with issues around hotels and transportation. American also provided the APA with a Memorandum of Understanding on reinstatement rights, along with a proposal to extend an existing side letter on utilizing S80 domestic flight crews for flying to Nassau, Bahamas.
April 12, 2007
The APA was unable to meet.
April 11, 2007
The APA presented an LOA requesting that any discussion about changes to the pilot pension plan be removed from the negotiations process.
April 10, 2007
American and the APA negotiating committees met briefly on Tuesday afternoon and provided an update on competitor airline 4Q06 and year-end financials; a copy of that presentation is available on AAPilots.com. The committees also discussed issues surrounding Supplement B and the pension plan.
April 3, 4 & 5, 2007
The APA was unable to meet due to its Board of Directors strategy session.
March 27, 28 & 29, 2007
The APA was unable to meet due to preparation for its upcoming Board of Directors meeting.
March 21, 2007
American and the APA negotiating committees mutually agreed not to meet.
March 20 & 22, 2007
American and the APA negotiating committees met on Tuesday afternoon and briefly on Thursday. The APA notified the company that they would be unable to meet due to an upcoming Board of Directors meeting and a variety of other conflicts over the next couple of weeks.
March 13, 14 & 15, 2007
American and the APA negotiating committees mutually agreed not to meet due to Spring Break.
March 8, 2007
Due to a variety of APA meetings being held that week, American and the APA negotiating committees were only able to meet on Thursday. The discussion of the meeting focused on the company’s interest in enhancing its global network, including examining scope and long-haul flying issues.
March 7, 2007
American and the APA negotiating committees mutually agreed not to meet due to the Quarterly Scope meeting.
March 6, 2007
The APA was unable to meet due to its Board of Directors meeting.
March 2, 2007
American and the APA negotiating committees met with American Eagle and ALPA to discuss Supplement W issues. The APA presented a settlement proposal, which was ultimately rejected by ALPA.
March 1, 2007
The APA was unable to meet due to preparation for its upcoming Board of Directors meeting.
February 27 & 28, 2007
American and the APA negotiating committees mutually agreed not to meet due to Benefits Summit and the Quarterly Benefits Review meeting.
February 21 & 22, 2007
American and the APA negotiating committees met to discuss a range of topics, including quality of work-life and compensation-related issues. The committees also reviewed a variable compensation presentation developed by a third-party expert.
February 20, 2007
The APA was unable to meet due to the President's Day holiday.
February 13, 14 & 15, 2007
On Tuesday, American and the APA negotiating committees met to discuss benchmarking and competitive industry data and 3Q06 industry results. On Wednesday and Thursday, both parties met to discuss high-level IT issues, as well as the 4Q06 meeting schedule.
February 6, 7 & 8, 2007
The APA was unable to meet due to its Board of Directors meeting.
February 1 & 2, 2007
American and the APA negotiating committees met to discuss the priorities of pilots and establish a set of common interests to move negotiations forward. American presented the APA with a furlough protection Letter of Agreement (LOA). The Agreement would protect pilots against any involuntary loss of employment as a direct result of productivity gained through negotiated changes to work rules.
January 30 & 31, 2007
The APA was unable to meet due to preparation for its upcoming Board of Directors meeting.
January 24 & 25, 2007
American and the APA negotiating committees mutually agreed not to meet.
January 23, 2007
American and the APA negotiating committees met to review LOAs, variable benefit plan letters and supplements as part of contract simplification efforts.
January 16, 17 & 18, 2007
American and the APA negotiating committees mutually agreed not to meet due to Supplement W issues and other arbitration commitments.
January 9, 10 & 11, 2007
The APA was unable to meet due to its Board of Directors strategy meeting.
