5/13/03
Donald M. Videtich
President, Local 565
Re: Restructuring Agreement Questions
Don,
Here are the answers to the last set of questions I received on May 5th.
As we discussed three of the first four questions were deleted by recommendation of the TWU legal staff due to possible upcoming litigation.
I hope they help to answer some of the questions of the membership.
Fraternally,
Robert Gless
International Representative
Transport Workers Union, AFL-CIO
April 17, 2003 Revised April 28, 2003
Revised May 5, 2003
Robert Gless
International Representative
Air Transport Division
Transport Workers Union, AFL-CIO
1791 Hurstview Drive
Hurst, TX 76054
Re: Restructuring Agreement Questions
Dear Robert,
I have been receiving numerous questions as to the application of the Restructuring Agreement on how certain provisions will be administered. I have attached them below; I would like to suggest that maybe we should have a question and answer area on the International web site.
If you could please look into these questions and give me some guidance (answers) on each of them for dissemination to the membership. I would like to thank you in advance for your time and considerations in this matter.
Fraternally,
Donald M. Videtich
President, Local 565
Q: Is the company extinguishing their (SERP) Retirement plan and returning the monies back to the corporation? Are we as a union taking that position?
A: The Company has claimed it does not have the legal authority to return withdrawn monies contributed to the SERP. We, as a Union, have taken the position, and will continue to take the position, that the contributions made in anticipation of bankruptcy to the SERP should be returned.
Q: We need the station breakdown on the recent vote results; we know that the stations were a required field. Even if the AAA cannot break it down tell them to give us the entire results report and we will accomplish the breakdown.
A: Before the vote, we asked each Local to give us a database with its membership so we could do a Local-by-Local breakdown. Only Local 565 responded. When the other Locals respond, we can do a system breakdown.
Q: With all that has transpired in the last two weeks and the fact that the agreements were not actually signed until last Friday, what is the stock price on the options that our members will receive?
A: $5.00
Q: Shouldn’t the stock option price be the price as of last Friday on the close of the Market?
A: That is what the above price is.
Q: What day did American Airlines actually purchase (or set aside) the stock options for the unionized workers and what was the price they secured?
A: No stock is purchased in an Option till you choose to sell the note.
Q: How was it exactly that we were given the relief number of 620 million?
A: The Company came to the numbers for each work group based on its percentage of payroll in the year 2002.
Q: Can management be replaced in Bankruptcy?
A: Yes
Q: Is there any way we can go to court and have the TWA seniority arbitration reversed or amended due to the American Airlines mechanics now being adversely affected?
A: The Kasher Award is, under '' 3 and 13 of Allegheny-Mohawk, final and binding. The contract did not protect against any adverse impact or even the adverse economic impact of the merger – it protected against adverse impact of seniority integration with TWA LLC employees.
Q: With the work rule changes what is the Title 1 reduction in force headcount going to be at all the stations? (Reported by each station)
A: Already supplied to each Local
Q: With the modification of the AMT Crew Chief ratio is there any protection from supervision replacing Crew Chiefs that are eliminated by this new ratio (Essentially local management is planning to get rid of all my outside Crew Chiefs and use supervisory personnel instead)
A: Our SCOPE language and Article 11 define our job functions and we will fight any attempt to have supervisors do Crew Chief work. In addition, management stated across the table that supervision would be reduced in proportion to Crew Chiefs over the next few months.
Q: Can we have a special one time self-demotion of Crew Chiefs within each station prior to Reducing C/C this is important?
A: The TWU Recommended that the one time self-demotion period be opened up for this RIF and AA rejected the recommendation. Next Self-demotion period will be per the contract.
Q: Is there a supervisor to AMT ratio that the company adheres too?
A: There is no contractual formula.
Q: With the pending AMT reduction in force, at our Presidents Council prior to our negotiations Mr. Carty made a comment that all reductions to TWU members will also have a proportionate impact on management, what exactly is that impact (by station)?
A: I recall the same commitment (and it was reiterated in bargaining) and we will follow through with management to understand the impact across the system.
Q: In addition to the above question, we were also told we would see the entire management wage and benefit cuts that they will be receiving, (Prior to us signing ours) Can you get us the specific breakdown of there cuts?
A: Their pay cuts and reductions were posted on Jetnet prior to Don Carty’s announcement of his resignation.
Q: Since the company fiasco did we receive anything in writing from the Company that would assure us that management would not have compensation packages i.e. back door bonuses, incentive payouts, long term incentive plans etc. over and above their normal compensation? Moreover, did the company ever commit to not receiving bonuses on the implementation of our consensual agreements?
A: Yes.
Q: In reference to the holiday provision what is our position with the Good Friday holiday, specifically; our guys have already been awarded HO and have made plans and since there is no possible way for 7 (seven) days notice of schedule change. Are we agreeing then to waive the 7 day notice? Or would the Company consider allowing this Good Friday to be the last one? This would be for the reasons stated above.
A: The recent events will leave this issue to an arbitrator; we will file an International 29D on the issue.
Q: Since the new overtime provision is effective May 1, 2003 specifically; the no more double time. Can an AMT on a field trip stop working after a certain amount of hours and go to the hotel and return after his rest period?
A: That is the decision of the field trip crew and Company (they can send the members home if they choose to stop working)
Q: Do the state laws in regards to overtime take precedence over our “Tentative” Collective bargaining agreement, i.e. 40 hours worked for overtime?
A: No. State laws do not pre-empt RLA contracts.
Q: Can the Company force a mechanic to go on a field trip?
A: No
Q: If a mechanic has skydrol (fuel, oil etc.) all over his uniform will the Company still clean the uniform due to the circumstances? Or would the mechanic just turn in the uniform for a replacement?
A: Cleaning of the uniform will be the responsibility of the Member
Q: After executing the current proposals headcount reductions exactly how is the system protection date going to be established? Does it not have to be established once the layoffs are completed? Also is there a deadline for the company to complete this provision?
A: The RIF number is what we received credit for the upcoming Rif’s.
The date is established in the contract as 9/24/98
Q: An AMT that is being laid off still gets the moving expenses where would he find what he is entitled to for moving expenses? And does the Company provide movers? (Preferred already on contract).
A: Article 15 F provides for moving expenses.
Q: An AMT that is being laid off is he or she entitled to severance pay?
A: Yes, If the contract allows severance for their years of service
Q: An AMT that is being laid off and his only options are that of an OSM position, be he/she refuses (pay reasons) does he or she get an opportunity for the first AMT opening in the system or does he/she go to the specific recall list for the station they are being laid off from?
A: Recall to his location
Q: An employee is off work on an I.O.D. as of 03/01/03, does he continue using the 80-day pay continuance or revert to 10 day's per the new agreement.
A: He goes to the 10 days if he has not exhausted the 80 days
Q: If the employee falls back to the 10 day's is he responsible for any day's incurred past the 10 day's he has used?
A: (need definition of “falls back”)
Q: When an employee passes his 10 days of I.O.D. and elects to use his sick
time at what rate of pay will he get for the first 2 days since it's paid at
50%?
A: Same as present contract allows
Q: Post M.M.I. agreement (I.O.D. Panel) agreed a person that's put at M.M.I.
or other statutory means of ceasing T.T.D. benefits and incurs an absence related to the original injury, will be eligible for I.O.D. (salary continence) pay if the person meets specified agreed upon criteria and will have access to the remaining bank of his original 80 days per the T.W.U. contract.
A: ?
Q: Sick time is paid at 50% for the first 2 days of an occurrence so are you charged 4 hours from your sick bank since your only getting paid for 4 hours per day or are you getting charged 8 hours from your bank for only 4 hours pay.
A: Only time paid will be charged
Q: Is the Optional Short Term (OSTD) going to stay in force even though the free STD is eliminated?
A: Yes
Q: If all contracts are ratified will the company have a new benefit Enrollment period? And if so will the P.O.S plan have increases.
A: There will be no enrolment or increases till the New Year
Q: If a person is on a SK/LOA effective 03/01/03 and the contract proposal is ratified would that person still be entitled to 24 months of medical benefits or would it b reduced to 12 months.
A: 12 months
Q: With the changes to Article 41 “Benefits” and the lifting of the Pilots Me Too clause is there any way the company can shift cost increases to the managed care plan (POS) to make up increases, in other words would our members be in better shape going to the traditional 80-20 plan instead of the point of service (managed care)? Can the International benefits people due a cost analysis on what plan would be better for our members?
A: Should be request at a presidents council
Q: Will there be any more benefit changes i.e. Dental etc.?
A: Anything not in the contract can be changed without approval
Q: Is the International Officers/Representatives going to take a pay cut?
A: Our salaries are linked to all represented members (%), there is a good chance it will be reduced
Q: On the new “Re-opener” clause does that mean we can open for section “6” openers on the entire agreement?
A: Yes
Q: On the “Special Procedure for Change” clause how does the International foresee any suggested changes being brought forward?
A: Have not discussed any changes at this time. This is a matter which will be discussed with Presidents.
Q: On the “Annual Incentive Program” can you develop an example of how a mechanic would get a pay out and what the prerequisites are for a mechanic to receive the pay out?
A: The payouts are on the web site in the letter for the program, the prerequisites are yet to be determined and will not be established until the next AA Board meeting.
Q: On the “Employee Incentive Payments” can you develop an example of how a mechanic would get a pay out and what the prerequisites are for a mechanic to receive the pay out?
A: See above.
Q: What is the status of our Pre-funding trust? In other words how solvent is
it? And is our pre-funding trust separate from the other groups on the property?
A: Our prefunding trust is solvent and separate from all.
Q: What is the status with the Company providing us a mini 5500 report showing the status with our pension funds? They had committed to do so last November (Jeff Campbell).
A: We will discuss with the Company getting a quarterly or half year report.
Q: We were under the impression that the company needed to have a ratified agreement no later than April 15, 2003, this was due to pension payments were due. What was the payment due and what was contributed to all pension plans? Moreover; what was contributed to our TWU pension plan?
A: The payment was due and paid on April 16. Approximately $85 million was paid into AA employee pension plans. Until we review 5500, we will not be sure what percentage was paid into TWU plans.
Q: When an employee is overpaid what exactly is the process to set up payments to return the over payment back to the company? We are again having problems and with this new pay cut it is causing a huge burden on our guys. Example a mechanic transfers to DFW 3 years ago and they did not stop his flex rate from his previous station, he did not know it was supposed to he owes $10,000. He can only afford 100.00 or so each paycheck.
A: Ben Pace agreed that AA would work out any overpayments with the individual employees to prevent any hardships to our members.
Lay off Questions:
1. If an AMT who is laid off to the street and hires at eagle can this affect the severance he receives?
A: Yes, it could affect their severance if they hire at Eagle in a period of time that has been paid out by the company. We would take back the forward pay of the severance (From Mary T)
2. An AMT who bumps into an OSM or Parts Washer classification retains his recall rights as an AMT to DFW. But if a vacancy opens in ORD in the future how does that AMT that is no an OSM put in to transfer is he/she considered a 12m or 12L since he/she already was a qualified AMT?
A: He becomes a 12m transfer if he goes to "PW". As a parts washer, he is in title group but out of classification. He transfers ahead of out of title group, out of classification transfers (ie..FSC). If he displaces an OSM he is still a mechanic without lic pay so he is still in classification in title group and is a 12l. (From Mary T)
3. An AMT accepts lay off and receives his severance and then chooses to retire does that affect the severance he was paid? (TWA)
A: Retirement does not affect severance as long as he retires at least one day after being laid off (From Mary T)
4. An AMT who accepts lay off and he chooses to retire, how can his pre-funding (retiree medical) be affected. Can he choose not to be refunded the pre-funding monies? (TWA)
A: On question 4--if the laid off individual qualifies to retire, then he can enter the retiree medical program, prefunding stops and the 10 year draw down of his/her prefunding begins. If that individual wants prefunding refund in lieu of retiree medical coverage, then we will terminate him from the retiree medical program even though he may still be a retiree for travel, pension purposes. (From Mary T)