Association Bulletin – Implementation Agreement Reached

Association Bulletin – Implementation Agreement Reached

March 27, 2020

Implementation Agreement Reached

The Association and American Airlines have reached an agreement covering the implementation of certain elements of the JCBAs. The following items cover pay, retirement, and certain benefits that are most important to our membership:

1. All JCBA wage rates will be effective the first Monday following the date of ratification (“DOR”), inclusive of

  • Chart Rate
  • All Premiums
  • Skill Pay
  • Fuel Tank Entry (which will be paid as a temporary upgrade)
  • MLS Driver Premium (which will be paid as a temporary upgrade unless a separate MLS Driver bid area is established)
  • Taxi & Run-up Pay (which will be paid as a temporary upgrade unless a separate Taxi & Run-up bid area is established)
  • Shift Differential (Shift differential for Legacy American TWU employees will be programmed at JCBA rates following ratification but will continue to be based on shift definitions under the 2012 AA/TWU CBAs until those employees are moved to the Work Brain system. JCBA shift definitions will apply to all covered employees thereafter.)

2. The Signing Bonus Payment agreed to by the parties shall be paid no later than 60-days after the DOR to all active employees as of DOR. Employees on an approved leave of absence or not working due to OJI shall receive the Signing Bonus within 45-days of returning to active status.

3. The Vacation Lump Sum Payment (to eligible employees) agreed to by the parties shall be paid no later than sixty (60) days after DOR.

4.  All other pay elements not provided for in paragraphs 1, 2 or 3 above will be paid, retroactively to the first Monday following the DOR (in a lump sum equivalent), within one-hundred twenty (120) days after DOR, but in no event more than one-hundred (150) days, and thereafter will be paid on a continuing basis as described in the JCBAs.

5. The IAM National Pension Plan contribution rates provided for in Article 30 – Retirement shall be effective no later than May 1, 2020. The employer matching contributions and employer nonelective contributions provided for in Article 30 – Retirement shall be implemented no later than January 1, 2021. For the time period from May 1, 2020, until such time as the employer matching contributions and employer non-elective contributions provided for in Article 30 – Retirement can be made effective for employees covered by the JCBAs, but no later than January 1, 2021, the following will apply:a. TWU Designated Employees will receive contributions to the 401(k) Plan in the amount of 9%; no employee contribution will be required; and will not receive any employer matching contributions to the 401(k) Plan.

b. IAM Designated Employees will receive employer contributions to the 401(k) Plan in the amount of 4%; no employee contribution will be required; and will not receive any employer matching contributions to the 401(k) Plan.

c. The employer contributions provided for in paragraphs 5) a. and b. above will be made to employees on a monthly basis and will be made after the last pay period of each month.

For example, contributions for eligible compensation earned in May will be contributed in June. These contributions will be reflected in employees’ Fidelity 401(k) statements but will not appear in the employees’ Company payroll statements.

6. For 2020, profit-sharing for each participant covered by the JCBAs will be calculated on a prorated basis, using the profit-sharing calculation currently in effect for employees represented by the Association up to the DOR and using the profit-sharing calculation provided for under the JCBAs for the remainder of the year.

7. All grievance settlement monies owed to the TWU/IAM Association as a result of joint negotiations shall be paid to the Association within 30 days of receiving payment instructions from the Association, following the DOR.

8. The parties recognize the importance of the seniority provisions and applications of the JCBAs, such as rebids, realignments, shift bids and transfers, reductions in force and agree to preserve and utilize employees’ seniority during the implementation process. The parties also acknowledge the need to combine overtime and field trip call-out procedures into a single system and to allow shift swaps/trades between employees under their respective JCBAs; therefore:a) Local management and Association representatives will work together to implement the overtime process outlined in the respective JCBA as soon as practicable in each location.

b) Field trips will continue to be called out in the same manner as they have been prior to the ratification of the JCBAs until such time that the Company and Association agree to a single system Field Trip call list.

c) Local management and Association representatives will work together to implement the shift swaps/trades as soon as practicable in each location. The Association agrees to work collaboratively in order to assist the Company with the implementation of these JCBA provisions.

9. The M&R International outsourcing provisions shall become effective April 1, 2020, upon which the annual 12-month lookback will be based. The data used to determine the initial International Outsourcing hours measurement to be sent to the Association no later than June 1, 2020.

10. Legacy American TWU employees’ sick bank shall be credited with up to ten (10) days no later than December 31, 2020, based on any ten (10) months in 2020 where at least 80 hours were worked by the respective employee.

11. The payback period for employees who elect to take a ‘loan’ due to the change to pay-in-arrears or bi-weekly pay shall begin no earlier than February 1, 2021. The Company may change employees to pay-in arrears and bi-weekly pay, where applicable, as soon as is practicable.

The impact of the serious COVID-19 pandemic on the operation of the Company has created uncertainty in the ability to predict exact implementation dates for some contractual items the Company is obligated to institute. Therefore, the parties have agreed to meet within 60 days after ratification and on an ongoing basis to reach agreement on any implementation issues that are outstanding after the date of ratification and are not addressed in the Implementation Agreement reached today.

While we expect to reach mutually agreeable terms that would cover any outstanding implementation issues after the date of ratification, the Association has not waived any of its rights to resolve disputes that may arise, including the grievance procedure.

 

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Association Bulletin – Implementation Agreement Reached

Vote Results: TWU-IAM Ratifies New Contracts at American Airlines!

The TWU-IAM Association today announced its American Airlines membership overwhelmingly ratified contracts covering more than 30,000 Mechanic & Related (including Maintenance Control Technicians & Maintenance Training Specialists), Fleet Service and Material Logistics Specialists/Stores members.

Percent Voting Yes:

  • Mechanic & Related: 90.94%
  • Fleet Service:        95.45%
  • MLS/Stores:   92.12%

“The resounding approval of these contracts yet again proves that by standing together and demonstrating our solidarity and determination, we are able to achieve contracts our members deserve,” said Association Chair Sito Pantoja and Vice Chair Alex Garcia. “It is that same resolve that will get us through this unprecedented crisis facing our airline, our industry and our country.”

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IAMAW District 141 President Mike Klemm on the Stimulus Package: “Help is on the Way.”

IAMAW District 141 President Mike Klemm on the Stimulus Package: “Help is on the Way.”

Sisters and Brothers,

Working almost around the clock since Monday, the leadership of the House of Representatives and the US Senate engaged in negotiations to produce a historic $2 trillion stimulus bill that provides significant relief to our nation’s health care and transportation workers.

The Senate voted 96-0 last night to adopt the bi-partisan agreement, and it now moves to the House, where it will be introduced by Speaker Pelosi tomorrow and it is expected to pass.

Your actions since the beginning of this crisis, and your quick mobilization this week to contact elected officials in Washington made the difference for every working person in our country. Thanks to you, we are more certain of our future.

 

Once it becomes law, the CARE Act will secure the airline industry and our jobs for the next 6 months as we recover from the COVID-19 pandemic, and will provide loan guarantees to rebuild our nation’s aviation infrastructure for the long term.

 

Key highlights for airline relief include:

 

  • $25 Billion in grants to airlines for payroll assistance. Before Labor’s input, the bill only had a loan program. These grants are EXCLUSIVELY for the continuation of payment of employee wages, salaries and benefits. Before Labor’s input, this provision did not exist. 
  • No condition to open Collective Bargaining Agreements and enter concessionary  negotiations to receive grants or loans. Before Labor’s input, the Treasury Secretary had the power to impose unlimited conditions for receiving federal funds. Your calls helped us close this major loophole.                                                                                                                  
  • As a condition to receive federal grant funds, a carrier must refrain from conducting involuntary furloughs until September 30, 2020. Before Labor’s input, this important provision did not exist.
  • Prohibition on stock buybacks and dividend payments until September 30, 2021, and limits on executive compensation and “golden parachutes.” Neither of these requirements existed before our Labor negotiators insisted on them.

I also want to remind our Brothers and Sisters at American Airlines that the ratification vote for the Joint Collective Bargaining Agreement will close tonight at 8:00 Eastern Standard Time. You can find information at the Association Website if you have questions or are having difficulty voting. Please take a few minutes to make your voice heard.

Thank you again for your dedication and professionalism. In these most difficult circumstances, you are showing up every day to get our customers where they need to go. We are not out of the woods yet, by a long shot, but if we continue to speak up, show up, and take care of ourselves and each other, we will overcome this crisis.

Please make sure you take time to unwind, and try to get enough rest. Our EAP Representatives are always available at https://iam141.org/employee-assistance-program/

In Solidarity, 

Mike Klemm,
President and Directing General Chair, 
District 141, International Association of Machinists and Aerospace Workers

 

Federal Aid Package to Airlines Has a Gaping Hole and Needs to Be Fixed NOW

Federal Aid Package to Airlines Has a Gaping Hole and Needs to Be Fixed NOW

The federal aid package presented by the Senate, which is expected to be voted on shortly contains a huge problem that could affect every airline worker in the United States. The proposed legislation currently has NO protection against opening up existing collective bargaining agreements if an airline seeks a loan or loan guarantee.

A self-proclaimed labor leader is spiking the ball, claiming victory and credit, but obviously DOES NOT understand what’s missing in the legislation that she is taking credit for.

The text of the bill states, “A loan, loan guarantee, or other investment by the Secretary shall be made under this section in such form and on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.”

“This means the Secretary of the Treasury could demand that contracts be renegotiated and concessions made before loans, loan guarantees or investments are made. This is exactly what we were working to avoid. This needs to be fixed now or it could result in airline workers taking steep concessions.

Please contact your elected officials and ask them to ensure that the loan component of the federal aid package has the same language as the grant component of the package. You may contact your representative HERE, courtesy of Democracy.io.

We must act now to clean up the mess made by other so-called labor leaders.

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Association Bulletin – Implementation Agreement Reached

Association Update: JCBA Voter Guide

ASSOCIATION UPDATE ///

March 23, 2020

As we move closer to the ratification vote for the Joint Collective Bargaining Agreements with American Airlines, we wanted to provide the members with a sample of the information that will be provided over the next few days via US Mail or by AA Company email.

In the unlikely event a member does not receive the voter information by US Mail or AA Company email, the following phone numbers will be available for a replacement PIN. A replacement PIN can only be provided to a member if the original PIN has not already been used to cast their vote.  Once a replacement has been issued, the original PIN will be inactive.

TWU Fleet                  520-991-9670

IAM Fleet                   800-396-8481

TWU MLS and M&R 817-938-8787

IAM MLS and M&R  727-415-6628

Only the above phone numbers should be used for a replacement pin, if necessary, and will be available from 9:30am to 7:30pm Eastern Daylight Time on Thursday, March 26.

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IAMAW District 141 PDGC Mike Klemm Calls for Immediate Action to Save Airline Jobs

IAMAW District 141 PDGC Mike Klemm Calls for Immediate Action to Save Airline Jobs

IAMAW District 141 /////

Sisters and Brothers,

In recent weeks, many of you have contacted your local union representatives, Assistant General Chairpersons or me directly to express your fears of possible pay cuts, furloughs or the likelihood of your carrier going bankrupt or completely out of business. You have good reasons to be concerned.

The airline industry is facing an existential threat from a global pandemic. The spread of the Coronavirus across continents has resulted in a decrease in demand for air travel by two-thirds worldwide, with at least one airline going out of business. For over two months, airline workers have worked on the front lines of the crisis, and you have adapted to reductions in flight schedules, last-minute policy changes, and have worried about how to best protect your personal health and safety. The worst part is the unease that comes from not seeing a clear end to this crisis.

As airlines announce more cuts in service, IAM General Vice President Sito Pantoja said today that “US carriers are contemplating further capacity cuts or shutting down operations altogether, which only a month ago was unimaginable.”

The President of the United States and members of Congress are discussing how they can best help the airline industry, which is the backbone of our nation’s economy. There are several ideas being considered, and we support any action that helps workers quickly and directly. As workers, we need to unite and say with a clear and strong voice that the need is great and immediate.

I urge you to call your representatives today at 202-224-3121 and ask them to take any action necessary to save our airline jobs.

Click here to send a message to your Federal Representatives:

Please act today to protect your job and those of thousands of airline workers and millions more who depend on our industry for their livelihoods. Many of you are applying for voluntary leaves and reductions in schedules, which shows how committed we are to get through this crisis together. I ask that we work with our elected officials to make sure no one gets left behind.

Thank you for your activism and solidarity.

Fraternally,

 

Mike Klemm
President and Directing General Chair,
District 141
International Association of Machinists and Aerospace Workers

 

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