A quick summary of major and noteworthy events since the start of negotiations.
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American Airlines and the Transport Workers Union Dispatch negotiating committees reconvened today in Washington, D.C. with Mediator Terri Brown.
Each committee met separately with the mediator to review their current table positions. The TWU then presented a proposal for Article 41: Benefits regarding the union’s active medical contribution rates. At first glance, it appears the union’s proposal does not recognize the current economic realities the company is facing.
The company will evaluate this proposal before the next session, which the mediator has set for the first or second week of March 2010.
American Airlines and the Transport Workers Union Dispatch negotiating committees met May 4 and 5 in Washington, D.C., under the guidance of NMB Mediator Terri Brown.
On Monday afternoon, the TWU presented revised proposals on Article 4: Compensation and Article 42: Job Security.
In its revised compensation proposal, the TWU negotiating committee proposed additional increases to the TWU’s last compensation proposal made in October 2008. The increases would provide incremental pay enhancements ranging from 42 percent to 4.5 percent or an average of 13.2 percent.
To compare this recent proposal to the current book rates would provide increases that range from 75 percent to 29 percent, depending on what step of the scale a Dispatcher is on. On average, the increases to the scale equated to approximately 40 percent and were proposed as retroactive to May 1, 2008. The rationale for the proposal, as explained by the TWU, was primarily based on benchmarking information outside the passenger airline industry. In addition, the TWU proposed a four percent increase to the scale effective May 1, 2009.
With respect to Article 42: Job Security, the TWU proposed a new protection date of May 1, 2009.
Given the current economic environment and the state of the airline industry, the total cost of the TWU proposal, which includes enhanced benefits and additional restrictions, are unsustainable and will keep American at a competitive disadvantage.
On Tuesday, the TWU and AA negotiating committees met independently with Mediator Brown to discuss next steps. It was determined at that time to adjourn the session for the day and that Mediator Brown would inform the parties of the next scheduled session.
Given the regressive nature of this proposal by the TWU, we are now further apart on the open issues and the company will reevaluate its position prior to the next scheduled session.
The National Mediation Board announced it is realigning the mediators assigned to the TWU cases. Now, Mediator Jack Kane will oversee all of the M&E related agreements (Mechanic & Related, Technical Specialists and Stock Clerks). Mediator Terri Brown will continue overseeing the Fleet and Flight agreements (Dispatch, Fleet Service, Ground School Instructors and Simulator Technicians).
The next mediation sessions are scheduled as follows:
February 20, 2009
American Airlines and the Transport Workers Union Dispatch negotiating committees reconvened in mediation this week at Flagship University (FSU).
On February 18, each negotiating committee met separately with NMB mediator Terri Brown. This was Ms. Brown’s first session overseeing the Dispatch negotiations.
The Negotiating committees met jointly under the auspices of the mediator on February 19 and at that time, American provided a comprehensive counter proposal in response to a previous TWU proposal. The union said it will respond to this proposal at the next meeting, which is scheduled for May 4 and 5 at a location still to be determined.
January 28, 2009
The National Mediation Board has announced John Livingood is needed for another case and has been reassigned. In order to manage resources effectively, Terri Brown will now serve as mediator for the Dispatch and Joint negotiations between American Airlines and the Transport Workers Union.
The next mediated session remains scheduled for February 18-20, 2009.
