TWU Opening Statement by John Conley - ATD Director

International President Jim Little sends his greetings. As you know, he originally intended to be present to help kick – off these negotiations. Unfortunately, the demands of his office require his attention in New York.

As he stated publicly, “share the gain” is the objective of these negotiations. He anticipates and expects the parties or “Partners” to reach a ratifiable Agreement by the amendable date of April 30, 2008. Additionally, he is prepared to commit the resources necessary to achieve this goal.

In 2003 TWU Members faced imminent bankruptcy. As a result, we could see only   two options: face the Judge in court or produce 620 million in annual savings. A number of us were at the table then, are here now and have not forgotten. To be clear, we chose a path not traveled by others, but did so under the auspices of “share the pain – share the gain”.

Our Members refocused and accepted the notion of partnership. “Pull Together, Win Together” became a common theme. We began participating in strategic business conversations, decision making and actual two-way communications.

We were continually referred to as “Business Partners”. As a result, TWU Members increased productivity and efficiencies, reduced costs and significantly optimized operations.

The “Joint Partnership” produced “Breakthrough Goals” and “Commitments” to obtain value creation. TWU “Partners” pledged to reduce overall costs, create revenue streams and transform the maintenance organization from a cost center to a profit center.

The conscious decision to transform the relationship from an “Achilles heel” to labor “Business Partner” seemed complete. TWU Members across the entire System began the heavy lifting and continue to carry the Company’s water today. No other group organized, or not, has contributed more.

Your “Partner’s” accomplishments have been touted and recognized by Wall Street. International and domestic publications have acknowledged our “Partnership” as an outstanding achievement. The editors of Air Transport World magazine selected the “Partners” to receive the Labor-Management Relations Award for 2007, in recognition of our extraordinary efforts to produce cultural change.

In addition, our Members have continued to improve and refine processes with less. In the past, American would purchase fuel-efficient tail cones from manufacturers, at a cost of $240,000.00 a piece. Today those same cones are fabricated in-house by TWU Members for $39,000.00 each.

Collectively, the “Partners” identified a problem with gasoline – powered tractors, specifically their lack of fuel efficiency. TWU Members developed an EFI System, which once installed made the fleet more reliable, efficient and reduced exhaust emissions. The end result, in fuel savings alone, is in excess of $1,800.00 per tractor.

As you remember in early 2005, the U.S. Postal Service ceased tendering mail to American Airlines as a result of poor service. The TWU committed to “Working Together” to develop processes geared to enhance performance and service.

Last year through our efforts, the United States Postal Service (USPS) awarded American the domestic carrier of choice contract, which could mean $500m in cargo revenue over a five year period.

The Chairman and CEO acknowledged “The Transport Workers Union members” for “Working Together” to figure out ways to meet these goals.

I could go on an on with illustrations which you and your team already know.

The other shoe dropped however, when a number of our “Partners” began to recoup gain, while TWU Members continued to experience “pain”. The TWU offered palatable opportunities to “share gain” with your “partners” which the Company rebuffed as not do-able.

It has been remarked that our members represent a “huge” competitive advantage and that Labor is not the problem.

We are looking for a “partner” who knows how to behave like a “partner”.

Solidifying our relationship by producing a realistic and worthwhile agreement will go a long way toward cementing our “partnership”.

It’s time to settle the debts and repair the “Balance Sheet” with our members.

In Texas terminology – let’s get –r – done.