This is wrong, read the RLA about how you negotiate a first contract.

Correct. The scale is always tilted in favor of management. That being said though, it would be a VERY bad environment with which to rebuild an airline that desperately needs rebuilding.

The Delta pilots threatened to go on strike in 2005 while they were in Bankruptsy. Whether or not it would have been legal was never decided. It was a bold move by DALPA and probably helped avoid deeper cuts.

There is always the Richard Nixon "Insanity" tactic--"Judge/Mgt, our membership is so angry and frustrated, they might do anything!" Admittedly, desperate but the mere threat would certainly keep AA management off balance and, if they half believe it, would see themselves threatened in a Chapter 7 proceeding.

I like it, EAL ALPA and IAM used it and it worked for us, sorta worked. Frank called our bluff and it didn't work at all, actually.

GF

PS: I was happy to see the damned job go away!

The 2006 opinion of Cohen Weiss and Simon was that the RLA did not spell out the BK displacement of a contract as suddenly being a new or "first" contract. But more in RLA terms as a "gross status quo violation"...If you look that up you will see that it is effectively a release..I remember this quite well since based on that I was called in by the MEC and spent about 4 months organizing part of an SPC (Strike Preparedness Committee for those who have never struck)..And those 4 months were all on Flight Pay Loss...I don't think ALPA would have called me in and authorized that much in the way of funding it the legal language and legal opinion of application was as cut and dried as that in your post.

More than likely the judge would tell both sides to negotiate and set a deadline because his decision may upset everyone..you want to negotiate a settlement. You may not be happy with it but at least you had some sort of control in the process.we lost about 50 pct in pay and benefits as well as our pensions frozen

See Page 12: http://www.abiworld.org/committees/n...ireeClaims.pdf

http://www.nytimes.com/aponline/2012...r.html?_r=1&hp

February 24, 2012

American Airlines: Time for Labor Deals Dwindling
By THE ASSOCIATED PRESS

DALLAS (AP) — American Airlines is turning up the heat on its workers, saying it doesn't have much time to win cost-saving concessions from labor unions.

American said Friday night it needs those deals in place in "a matter of weeks."

AMR Corp.'s American, which filed for bankruptcy protection in November, wants to cut spending by $2 billion a year, including $1.25 billion in labor costs. It wants to cut 13,000 jobs, reduce pay and benefits, and get more productivity from workers who remain.

Unions for pilots, flight attendants and ground workers have been making their own proposals to save money while criticizing the company's plan as too harsh.

If there is no deal between labor and the company, American can ask a bankruptcy judge to impose the company's demands.

Taking a chance leaving it up to a judge. I got married by a judge, with hindsight I should have taken my chance with a jury....

I agree with this.

AA guys...this play-book has been used over and over. Here is how it can pan out unless you decide otherwise...and when I say "decide" - you may have little or no choice.

1: As above, the Judge tells you to work it out yourselves, since what they plan will be ugly. In the DAL case, the Judge was an eccentric cat-rancher - like the kind you see on hoarders.

2: Both parties will be scared - Management is afraid of the wild-card workforce...will they strike or cause chaos (legal or otherwise)...and the pilots are scared of what a Judge may hand down - a judge who has no clue how the airline industry operates.

3: Because of the above fear, management will say "we must have XXXX cuts, and we must have them now...and management will say "if you give us those cuts, we can save your pensions!". Pilots will likely agree to the cuts, and sign a concessionary contract (If you pilots and APA choose this path).

4: Management will come back again and say "Guys, we must shed your pensions to the PBGC and take another cut - but when we come out of bankruptcy, we will pay you off". Management will say "This is what USAirways, United, and DAL did...we must have the same!. DO NOT ALLOW THIS IF YOU CAN STOP IT! Instead take the NWA method...keep your pension, but slash hourly rates and work rules instead. If you fail in this step, you will lose your pensions to the PBGC and can negotiate for a pay-out upon bankruptcy exit like Delta got.

If all the above plays out, AA *may* get exit financing and emerge a viable entity.

If you can avoid losing the pension, I recommend it. You can re-capture the work rules and hourly rates outside of bankruptcy at the time of the inevitable merger, which will likely be sooner rather than later. The hourly rates and work-rule restoration can re-regained, the pension is gone forever.

Remember, if you make a bad decision and cut off your nose to spite your face (IE make a move that is UN-sustainable, such as a strike, then you become the next Eastern / Pan Am, and your parts get sold off. Delta will be on the Miami / South America Routes like a vulture on fresh road-kill. ON the flip-side, a good poker-face and bluffing with some Dennis Hopper in Blue-Velvet crazy / Mel Gibson unpredictability can be good to keep management reasonable in their demands - definitely take a strike vote and threaten to do so, just realize it will be the death of AA if you actually go on strike. Act like you have a Royal Flush, when in reality you actually have a pair of deuces.

Hope that helps. Been there, done that, got the DC plan to replace the pension. Got the merger. Still working on new rates and work rules. Most importantly: Still have a job.