7576FO

American Airlines says it will toss existing contracts if unions turn down new deals | Dallas-Fort Worth Airlines News - Business News for Dallas, Texas - The Dallas Morning News

American Airlines says it will toss existing contracts if unions turn down new deals

American Airlines Inc. will ask a bankruptcy judge to let it toss out the collective-bargaining agreement of any union that turns down the companys latest contract proposals, the carrier said Friday.
John Hale, vice president of operations, told pilots that American would ask U.S. Bankruptcy Judge Sean Lane to let it abrogate its labor contract with the Allied Pilots Association if members turn down a tentative contract agreement.
We want to reach a consensual agreement without the judges ruling, Hale said on his weekly hotline. But let me be perfectly clear, contrary to what you may be reading or hearing: Saying no to this TA [tentative agreement] means one thing the company will ask for Judge Lanes permission to abrogate the current pilot contract. That isnt what wed prefer, but it will be the only choice we have left.
Later, an American spokesman added that the airline would move to reject the contract of any union that turns down a deal now being voted on by members.
Hale was reacting to a widely distributed letter from a Los Angeles-based pilot who attended a July 26 meeting with Hale and Hales boss, senior vice president of operations Jim Ream. According to the letter, the executives left the impression that American really needs a labor deal and that a no vote by APA members would bring a better deal.
Letters assertion
If the American Airlines/APA Tentative Agreement were to be voted down by a close margin, American Airlines would immediately renegotiate to gain a speedy resolution with this key labor group, said the letter, which showed up on a nonpublic portion of the APA website, among other places.
Hale, in his hotline, said the airline would implement its April term sheet with less favorable terms than those contained in the tentative agreement.
We will of course continue to negotiate in good faith with APA in an attempt to achieve a new agreement consistent with our legal obligations, Hale told pilots. But that will take time, and implementation of the April term sheet changes would begin and would remain in effect until a new contract is agreed upon and put in place.
The controversy arose as pilots and ground workers were wrapping up votes on tentative agreements.
Two Transport Workers Union groups are voting on separate deals covering mechanics and related employees and maintenance stock clerks. Voting ends at 11:59 p.m. Tuesday, with results to be released Wednesday.
Voting by APA members ends at noon Wednesday, with results to be released soon afterward.
Members of the Association of Professional Flight Attendants also are voting on Americans last, best and final offer. Flight attendants wrap up their voting at 10 a.m. Aug. 19.
Sandwiched between the votes, Lane is scheduled to rule Aug. 15 on Americans motion to reject its unresolved union contracts. Any further delay in Lanes deadline would require American to ask for the postponement.
Merger talk
The pilots letter also said the executives hosting the July 26 dinner told the group of pilots that American was targeting JetBlue Airways Corp. for a possible merger.
Ream explained that we are far along the road to negotiating this deal and the critical part is HAVING Contracts in place with LABOR, the pilot wrote.
Hale and American spokesman Bruce Hicks indicated that American has no favorites for a possible merger.
Contrary to another misperception from the meeting, the company has made no decisions regarding consolidation at this time, Hale said on his hotline.
Added Hicks: American was asked what would have to happen if we wanted to merge with JetBlue, and there was a discussion of the considerations involved in merging with any potential partner.
As we have repeatedly said, we are undertaking a thorough and objective evaluation of all consolidation alternatives and can say with absolute certainty that the process is proceeding with no preconceptions.

mvndc10

So merging with Jet Blue is the carrot???

Is AA's management really that stupid??

Talk about a seniority list merger nightmare, and what is in it for the AA Pilot's?

The larger question is why would Jet Blue want to merge with AA what's in it for them..

Tell your Management guy's to go F themselves with a Bigg "NO" Vote...

Cactusone

JetBlue Prefers to Play the Field - WSJ.com

Discount carrier JetBlue Airways Corp. JBLU -0.59% is flattered by the recent merger attention from American Airlines parent AMR Corp., AAMRQ -0.59% but the company thinks it is having too much success playing the field.

JetBlue has carved out a dominant position at New York's John F. Kennedy International Airport and in recent years has leveraged that gateway by entering a series of lucrative tie-ups with mostly international carriers.

"We're focused on our own plan of organic growth, which we believe will produce better value for our shareholders, crew members and customers," Chief Executive Officer Dave Barger told employees in recent meetings.

Last week, Mr. Barger declined to say if JetBlue has received a nondisclosure agreement from American, which, if signed, would allow the two carriers to share confidential financial data to see if a combination was worth pursuing. But a person familiar with JetBlue said the airline hasn't received such a document and wouldn't sign it if one arrived.

LOL Horton gets owned.

ForeverFO

Wow. I am amazed. AMR intimidates, threatens, brow-beats, and vows to get their way.

I never would have expected that.

Vote NO!

GW258

Jet Blue's 2011 numbers, $86m net on 4.5b revenue, .28 cents/share, is not going to do anything for American.

JB just doesn't bring much to the game asset wise.

It will probably be the two biggest/weakest that mate, AMR & U.

They have alot of potential if they start with new management.

buddies8

GW258, agreed. JB is just AMR's way of disinformation and misdirection.

When AMR looses there exclusivity in BK then we will know what happens.
I dont think a judge is going to allow Horton to buy anyone while in BK, so the cards are still in US Airways favor to merge while AMR is in BK. The only way JB can have a hand in any merger right now is to make a run on AMR while in BK.

Besides since wall street controls the money and they want the US Air and AA merge, Horton is just playing for time to get the management bonuses and parachutes taken care of first.

Flyby1206

Asset wise? Slots JFK, T5/T6, BOS, SJU term A, 100seaters, LiveTV

LittleBoyBlew

The moment AA merges with JetBlue, JB becomes a money loser!! Operation costs go through the roof and the yield goes to crap! Ad on the eventual JFK carve outs to please the DOT and this merger becomes moot in a hurry ala TWA.
*** is Horton thinking?? The more this man speaks, the more he spooks the money people. This will be a full blown Hostile Take-over. Horton and his minions will be escorted outside the Center Port gates and told to hit the road.

eaglefly

I know several pilots that have been "on the fence" about how to vote despite my efforts to convince them to vote no. They've been waiting until the last minute for the most info with which to base their vote. Of 4, 2 are now voting no after these threats were made. The other two are now leaning heavily toward no, in part because of these threats, so it appears this latest tactic by the management that respects its employees so much may be backfiring.

Talking to others, I've heard some yes voters are actually changing over to no as they are now p*****-off. Just FYI............

CaptainBigWood

Voting yes just allows bad management to continue poor management. A no vote will give them a stronger future position with who ever is in charge.