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View Full Version : APA announces Proposal


AAflyer
10-23-2007, 01:52 PM
FOR IMMEDIATE RELEASE

CONTACT:

Captain Karl Schricker

817-302-2350/817-957-5275

Gregg Overman

817-302-2250/817-312-3901

ALLIED PILOTS ASSOCIATION PROPOSES PAY RESTORATION FOR AMERICAN AIRLINES PILOTS; CITES MEMBERSHIP MANDATE, DRAMATIC INCREASE IN MANAGEMENT COMPENSATION

‘Inflation has steadily eroded our purchasing power’

Fort Worth, Texas (October 23, 2007)—The Allied Pilots Association (APA), representing the 12,000 pilots of American Airlines (NYSE: AMR), presented a pay proposal to the carrier’s management today that is designed to restore the pilots’ lost purchasing power.

Current American Airlines pilot pay rates are slightly lower than what they were in 1992, with inflation eroding the pilots’ purchasing power by more than 33 percent since that time. APA’s proposal calls for adjusting current pay rates to account for post-1992 annual inflation, as reflected by the Consumer Price Index.

American Airlines management rejected an earlier pay proposal APA’s previous leadership made in May. Shortly thereafter, the membership elected its current national officers by the widest margin and with the largest voter turnout in APA history. Upon taking office, the newly elected leadership commissioned a survey of the membership regarding the ongoing contract negotiations with American Airlines management.

“Our pilots were unequivocal in our recently concluded membership survey—it’s time to restore their purchasing power,” said APA President Captain Lloyd Hill. “Moreover, that erosion accelerated dramatically for our pilots and their families with the deep concessions we made beginning in 2003.”

Hill pointed out that the majority of American Airlines’ pilots have been with the airline since the early 1990s, which means that pilots have endured an ongoing decline in their standard of living for much of their careers with the carrier.

“In sharp contrast to what our pilots have endured, American Airlines management has given itself what amounts to an exponential increase in compensation over the same period. What we are seeking for our pilots doesn’t even begin to approach management’s gains,” Hill said.

American Airlines’ five “Named Executive Officers” (as identified in documents filed with the Securities and Exchange Commission) have experienced an increase of 469 percent in their total compensation since 1992. For the CEO, the increase has been even more dramatic. In 1992, American Airlines CEO Robert Crandall’s total compensation was $1,013,471. Current CEO Gerard Arpey’s total compensation for 2007 will be $8,344,971—an increase of 723 percent, representing a 560 percent increase in purchasing power.

“It is well past time to restore our pilots’ purchasing power,” Hill said. “After all, management compensation has done much more than simply keep pace with inflation. By any measure, the past 15 years have been extremely lucrative for our airline’s senior executives.”

For more details regarding APA’s pay restoration proposal and other proposals the union has made during the ongoing contract negotiations, go to www.apanegotiations.com.

Founded in 1963, the Allied Pilots Association—the largest independent pilot union in the U.S.—is headquartered in Fort Worth, Texas. APA represents the 12,000 pilots of American Airlines, including 2,570 pilots on furlough. The furloughs began shortly after the September 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union’s Web site address is www.alliedpilots.org.

American Airlines is the nation’s largest passenger carrier.


AAflyer
10-23-2007, 01:53 PM
Duration:

• Contract amendable January 4, 2011

• Openers exchanged 180 days before amendable date

• Mediation at 120 days before amendable date

• Release at 30 days prior to amendable date

• Self-help at amendable date

• Management pays all direct union costs during Section 6 negotiations

Furlough Issues:

• Furloughees credited LOS for all purposes

• Double furlough pay provisions

• Offer enhanced early retirement before and during furlough period

Probation:

• Eliminate probation

• Increase 1st and 2nd year pay in line with remainder of FO pay

Meal and Incidental Expenses (M&IE) (per diem):

• Commence one hour prior to deadhead (no change to deadhead sign-in)

• NYC Government Services Administration M&IE rate domestically

• State Department London M&IE rate internationally

Sick Leave:

• Change to Personal Time program

• New hires granted 250 hours upon employment

• Accrue 80 hours per year

• Unlimited accrual

• Payout over 1000 hours

• Increased rapid re-accrual

• Allow schedule modification while out on Personal Time

Vacation:

• Earlier accrual

• Greater accrual

• Allow unequal VC trades

• 5-day slide

• Allow fly-through vacation

Sequence Protection:

• By leg, day, sequence and monthly projection

• Paid greater of original or modified

Signing Bonus:

• 15% of W-2 from July 21, 2006 (management’s early openers)

Paycheck:

• 15th of month – 50% of current month’s guarantee

• 5th of month – remainder of previous month’s pay

Pay Over Monthly Guarantee:

• Pay over monthly guarantee is premium pay

International and Night Pay:

• International pay is 7.5% of hourly rate

• Night pay is 5% of hourly rate

Holiday Pay:

• Premium pay for any trip touching 10 designated holidays

Variable Compensation:

• In cash and pensionable

• Pilot-only plan

• Uses three different methods. Whichever provides highest payout is used.

• Triggers for payout easily verified from public documents

• Provide meaningful incentive to pilots

Pay:

• May 1, 2008 pay indexed to inflation dating back to 1992 (16 years at 2.68% compounded annually)

• Annual increase of 6% plus cost-of-living during new contract continuing until new contract is negotiated

• All pay increases retroactive to amendable date of current agreement (May 1, 2008)

The actual proposals presented today along with future proposals will be made available on www.apanegotiations.com.

HercDriver130
10-23-2007, 02:16 PM
You have to applaud the boldness of this proposal.....

Good Luck.


Illini
10-23-2007, 02:49 PM
That is awesome. APA better get it and turn the industry around.

7576FO
10-23-2007, 03:07 PM
For those non AA pilots that read this. We currently are paid an "advance" of $1,000. on the 15th and the remainder of the previous month on the following 25th of current month. ? Yeah, I still don't understand it, ancestor worship like everything else here in the Air Force.
Also, in 97' we made the furloughees of the early 90's whole. meaning Length of service for time on furlough. Thank you. We must do this again for those who were furloughed because of 9/11.
In Aug 2001 we turned down a matching pay rates of UAL or Delta I do not remember which. Then Sep 11 happened. So we were flying on 1997 contract wages until 2003 when we took a 23.5 % pay cut and lost a lot of other contractual sick/vacation benefits.
Just a little info for those not at AA who read this proposal.

HercDriver130
10-23-2007, 05:57 PM
Personally I think its a great proposal. But if BOTH sides are unwilling to negotiate ....it is doomed to failure.

aa73
10-24-2007, 07:14 PM
Yo FliFast,

Check it out:

Furlough Issues:

• Furloughees credited LOS for all purposes

I told you they would include it in their proposal! And we got it last time, too. Notice it does not differentiate between TWA and AA pilots... because we *ARE* all AA pilots!

Cheers,
73

Mink
10-25-2007, 07:42 PM
Pretty sweet proposal, hope even 1/2 of it (especially the furlough parts!) survive the process...

FliFast
10-26-2007, 06:36 PM
Yo Yo..whassup AA73.

The furlough pay is a step in the right direction.

Truly, I am just the messenger. Best of luck to the nego commitee.

I think it is a fair statement that all eyes are pointed your way.

FF

threegreen
10-26-2007, 06:56 PM
interesting clip from the web site

http://www.alliedpilots.org/Public/PublicRelations/Hotline/video/hotline_hi.mov

JiffyLube
10-26-2007, 07:07 PM
But do not plan on getting hired at AA for a long time. May 1 2008 AE will get 1500+ seniority numbers. Even if AA does hire off the street, you will be below 1500 AE pilots and at the bottom of a 11000+ seniority list. They just announced the deal on Monday....

EXTW
10-27-2007, 04:53 AM
But do not plan on getting hired at AA for a long time. May 1 2008 AE will get 1500+ seniority numbers. Even if AA does hire off the street, you will be below 1500 AE pilots and at the bottom of a 11000+ seniority list. They just announced the deal on Monday....


That's a pretty sporting number there Jiffy. I hope you really don't expect to get that many numbers.

BTW, did this number come from the same supposed "leaks" that said the flowthroughs that already have numbers were going to get "recalled" in recall classes in "seniority order", even though they have never been furloughed?


EXTW

tone
10-27-2007, 04:58 AM
That's a pretty sporting number there Jiffy. I hope you really don't expect to get that many numbers.

BTW, did this number come from the same supposed "leaks" that said the flowthroughs that already have numbers were going to get "recalled" in recall classes in "seniority order", even though they have never been furloughed?


EXTW

Hey EXTW:

That's one thing I wasn't sure about this ruling--Does the ruling mean that even the Eagle guys that are ALREADY reflected on our seniority list will be recalled AFTER all furloughs are offered recall? Or does it mean that only NEW Eagle FUTURE flowthroughs will be after us. I guess my question is: Did we just move way up the recall list? Thanks--

AAdog
10-27-2007, 05:07 AM
As Flifast said all eyes are on us for this next contract. Two things have recently happened to indicate the new leadership of the APA is trying. The recent sup W TA gives all the furloughed AA pilots Seniority over Eagle guys not previously on the property. Also this proposal is making an attempt to help the furloughees regardless of which company they came from. I fully understand the wrongs which can NEVER be righted. This contract is the start point for some recovery in this industry. It is going to be a knock down drag out fight. It will be a strike and hopefully a short one which will result in a great contract and this collapsing career can be given some CPR. WE NEED all AA pilots on board. I would like to see some more olive branches thrown to ex/TWA guys but I don't know what more will happen. Moving forward with this contract would be a great thing for anybody on our AA list. I hope some guys previously divided would get on board with APA..... but get ready...... storm's a coming.... it will be ugly!

DOG MY FIGHT'S WITH AMR!

EXTW
10-27-2007, 06:30 AM
tone,

As AAdog has stated, all furloughees will be given the chance to return prior to any flowthroughs attending an AA class.


AAdog,

I applaud your trying to see the issues from more than one perspective. I agree, we all need to stand united for Sec 6 negotiations to be successful.


EXTW

JiffyLube
10-27-2007, 06:49 AM
That's a pretty sporting number there Jiffy. I hope you really don't expect to get that many numbers.

BTW, did this number come from the same supposed "leaks" that said the flowthroughs that already have numbers were going to get "recalled" in recall classes in "seniority order", even though they have never been furloughed?


EXTW

AA/AE Management
Four-Party Settlement Proposal
October 19, 2007
The following proposed settlement will resolve all open Letter 3 / Supplement W
grievances and remedy issues. Should settlement talks be unsuccessful, all
parties may revert back to prior positions for arbitration and hearing purposes
and no referral will be made as to the details of this proposal or any future
counter proposals, or to the positions taken by the parties in any such hearing.

1. No change to AA recall procedures.

2. Eagle pilots with AA seniority numbers will have the ability to begin filling
classes at AA beginning with the class in which the most junior pilot on
AA’s seniority list has been offered re-employment (or the class
immediately following if such pilot is the most junior pilot in his class). AA
seniority permitting, AE pilots will fill at least the first 25 slots per month.
Additionally, subject to operational requirements at Eagle, in the event AA
hires in excess of 50 pilots in any month, at least 50% of the training slots
above 50 will be filled by AE pilots, AA seniority permitting.

3. By April 1st, 2008 AE will survey all AE pilots senior to and including the
most junior CJ Captain on property who are scheduled to complete
training by April 30th, 2008, for a one-time, irrevocable decision over the
choice to flow through to AA. (Except that on the date that any such pilot
has reached 5 years or less to mandatory FAA retirement, he will not be
required to flow to AA.) On April 30, 2008 all Eagle pilots electing flow
through, in the above survey, regardless of status, who do not have AA
seniority numbers, will be issued AA numbers in Eagle seniority order out
of a newly created block of uninterrupted numbers immediately following
the most junior AA pilot on the AA pilot seniority list as of the date of
signing (currently JK Viele).

4. All AE pilots holding an AA seniority number as of May 1, 2008 will retain
their AA seniority numbers and their right to flow continues indefinitely.
Such seniority numbers will establish occupational seniority as presently
provided for in Letter 3 and Supplement W. This settlement agreement will
be amended as of May 1, 2008 by the incorporation of a final, binding list
to this Settlement Agreement, listing all AE pilots accepting future
positions at AA and their AA seniority numbers.

5. Any furloughed AA pilot holding a CJ Captain position at AE as of May 1,
2008 will continue to operate under the provisions of Supplement W/Letter
3 IV until offered recall by AA.

6. The Supplement W / Letter 3 dispute resolution process will be amended
to include non-voting board members from each Company and each
Union. The final disposition or award of any future dispute not resolved by
this Settlement Letter will be determined by a single neutral.

7. In the event of a reduction of force at AA after May 1, 2008, the following
furlough protection terms will be afforded to furloughed AA pilots:
• Up to 397 pilots, senior to JK Viele (representing the current number of
Eagle pilots holding AA seniority numbers) reduced by the number of
Eagle pilots currently holding AA seniority numbers who decline
flowthrough will be eligible to flow back to AE CJ Captain positions.
• Furlough protection to such pilots will be metered in at Eagle at 15 per
month, CJ Captain vacancies will be filled first, followed by
displacements, for a combined total of 15 positions per month.
• Furloughed AA pilots accepting CJ Captain positions at Eagle will
receive first year Captain pay. Such pay will commence effective the
first day of Basic Indoctrination training. Pilots will be paid furlough pay
to the earlier of the first day of training or the completion of furlough
pay.
• Pilots who resign from AE within the first year of employment will be
required to reimburse AE a prorated portion of the training cost
incurred.
• Furlough protection will be reduced by the number of Eagle pilots,
currently holding AA seniority numbers, who have already accepted
positions at AA.

8. Compensation
• Any active AE pilot who has been awarded an AA seniority number as
of the date of signing will be paid at step 2 of the AA-APA First Officer
pay rate when he moves onto AA payroll, and will remain at step 2 for
the first 2 years of his employment at AA. In addition, American Eagle
will pay such pilots $15,000 per year, for the first two years of
employment at AA, for a total of $30,000. Except that any pilot having
four years or less to the FAA mandatory retirement age will not be
eligible for the additional $30,000.
• Any active AE pilot who is awarded an AA seniority number following
the date of signing will be paid an exit bonus of $20,000. Except that
any AE pilot at step 17 of the Eagle CJ Captain pay rates will be paid
an additional $5,000 for a total of $25,000 and any AE pilot at step 18
of the Eagle CJ Captain pay rates will be paid an additional $10,000 for
a total of $30,000. Except that any pilot having four years or less to
the FAA mandatory retirement age will not be eligible for an exit bonus.
• American Eagle will, subject to AMR Board Approval, and Eagle’s
ability to finance under reasonable terms, exercise the existing 25
CRJ-700 options.
• All AE turbojet Captains, holding AA seniority numbers as of the date
of the first long-term training class to fill vacancies created by the
delivery of the first CRJ above, will be subject to a 4-year training lock
on their current equipment.
• All AE First Officers, holding AA seniority numbers as of the date of the
first long-term training class to fill vacancies created by the delivery of
the first CRJ above, will be entitled to one long-term training event
(excluding training events due to involuntary displacement) for a period
of 4 years from the first date of such training class.
• Effective immediately, all new hire pilots will be given a training bank of
2 long-term training events (excluding initial, new hire training) for the
duration of their employment at Eagle.
• The provisions of the hiring and retention bonus LOA will be in place
by November 1, 2007.

9. Except as modified herein Letter 3/Supplement W and both CBAs
remain in full force and effect

10. Successorship
In the event that AMR Eagle, Inc. is sold or otherwise separated from
its corporate affiliation with AMR., Inc., (1) all AA furloughees
employed as pilots at American Eagle pursuant to Section IV of Letter
3/Supplement W as of the execution date of the sale or separation, will
be permitted to remain employed as pilots at American Eagle after the
sale or separation is executed; and (2) all American Eagle pilots with
AA seniority numbers pursuant to Section III of Supplement W/Letter 3
and who are on Eagle’s payroll as of the execution date of the sale or
separation, will be permitted to retain those seniority numbers and their
preferential hiring rights at AA after the sale or separation is executed,
provided they remain employed at Eagle. (Additional language to be
proffered by the unions to cover furlough protection.)

EXTW
10-27-2007, 07:09 AM
Jiffy,

I've read the agreement also. I don't see the 1500 number anywhere. I assume this is your best guess. I don't think it will be that many. "Senior" guys will be giving up too much to leave AE.

EXTW

tone
10-27-2007, 07:29 AM
Jiffy,

I've read the agreement also. I don't see the 1500 number anywhere. I assume this is your best guess. I don't think it will be that many. "Senior" guys will be giving up too much to leave AE.

EXTW


Not to complicate things again, but does anyone know WHERE on the current AA list the 380-ish Eagle Flowthroghs are that are already on the list, but won't flowthrough until all AA furloughs are offered recall? I know they are scattered, but is there some estimate? Our list used to be color-coded, but noticed on the Sept 2007 list it's all in black and white--

EXTW
10-27-2007, 08:19 AM
Not to complicate things again, but does anyone know WHERE on the current AA list the 380-ish Eagle Flowthroghs are that are already on the list, but won't flowthrough until all AA furloughs are offered recall?

The senior-most flow-through is listed as 8416 on the combined seniority list. This corresponds with the AA new-hire class of 3NOV99.


EXTW

JiffyLube
10-27-2007, 09:46 AM
Jiffy,

I've read the agreement also. I don't see the 1500 number anywhere. I assume this is your best guess. I don't think it will be that many. "Senior" guys will be giving up too much to leave AE.

EXTW

Your right 1500+ would be if every pilot senior to the most junior jet ca at AE took the number. That most junior ca is at about 1500 on the AE list. I think the number will be closer to 1000. So any new hire will have 1000 AE guys coming in on top of him at a rate 25 per month.

texaspilot76
10-27-2007, 02:33 PM
Hmmm. These guys still make a lot of money compared to a lot of us. If they aren't happy with what they are getting paid, I would be glad to take their place.

Justin Case
10-27-2007, 02:37 PM
Hmmm. These guys still make a lot of money compared to a lot of us. If they aren't happy with what they are getting paid I would be glad to take their place.

...But how low would you go?

Good ol' supply and demand.

EXTW
10-28-2007, 03:14 AM
Hmmm. These guys still make a lot of money compared to a lot of us. If they aren't happy with what they are getting paid, I would be glad to take their place.


Hence, the turn that has taken in this so-called "profession".:rolleyes:


EXTW