TWU Contract Negotiations Communication Update

May 16, 2008

 


The TWU Negotiating Committees reconvened in Dallas, Texas the week of May 12 through May 16.

On Monday May 12, Chairman and CEO Gerard Arpey addressed the entire TWU Negotiating Committee.


On Tuesday May 13, the AA Negotiating Team presented their comprehensive package to your Negotiating Committee. The company’s proposal came with constraints and restrictions. One restriction was that all groups would be required to ratify the agreement for it to become effective, and an additional constraint was that it was a time sensitive offer.


Your negotiating teams worked hard to reach an agreement that they felt would meet your expressed needs.


Despite the Internationals recommendation to allow the membership to vote on the proposal several of the Negotiating Committees voted to reject the company’s offer without allowing a membership vote.


There is misinformation circulating around the system regarding the company’s offer.  We have decided to articulate a summary of the company’s proposal to ensure the membership receives accurate information.


We will be evaluating our next steps over the next several days and will keep you informed.


SUMMARY OF COMPANY PROPOSAL TO ALL GROUPS


DURATION

  1. BulletMODIFY ARTICLE 47 TO REFLECT A TWO (2) YEAR DURATION

  2. BulletPROVIDE AN EARLY OPENER PROVISION THAT ALLOWS EITHER PARTY TO SERVE NOTICE NO EARLIER THAN SIX (6) MONTHS FROM THE AMENDABLE DATE


ARTICLE 1- SCOPE

  1. BulletEAGLE ASM LETTER MODIFICATION (EXPAND FROM SIX (6) PERCENT TO EIGHT (8) PERCENT BY 2010 WITHOUT FURLOUGH PROTECTION)


ARTICLE 4- COMPENSATION

  1. BulletDOS.. 5.0% PENSIONABLE LUMP SUM

  2. BulletDOS + 12 months,  3.5% PENSIONABLE LUMP SUM


ARTICLE 7- HOLIDAYS

  1. BulletINCREASE NUMBER OF HOLIDAYS AS FOLLOWS:

  2. BulletADD THE FRIDAY AFTER THANKSGIVING EFFECTIVE 2008

  3. BulletADD MARTIN LUTHER KING DAY AND MEMORIAL DAY EFFECTIVE 2009

  4. BulletINCREASE HOLIDAY WORK RATE FROM 1.5x TO 2.0x EFFECTIVE DOS

  5. BulletMODIFY HOLIDAY PROVISION FROM ‘AUTOMATICALLY OFF’ TO ‘AUTOMATICALLY REQUIRED.’


ARTICLE 8- VACATION

  1. BulletEFFECTIVE JANUARY 1, 2009 PROVIDE THREE (3) DAT (DAY AT A TIME)


VACATION DAYS


DETAILS TO BE DEVELOPED LOCALLY BETWEEN DOS AND SEPTEMBER 1, 2008 TO ADDRESS THE FOLLOWING:


DAT DAYS SELECTION OPTIONS:

  1. BulletI.E.: IN CONJUNCTION WITH ANNUAL VACATION BID, IN CONJUNCTION WITH SHIFT BID, AD HOC, ETC.

  2. BulletNUMBER OF DAT DAYS APPROVED FOR ANY GIVEN CALENDAR DATE TO BE DETERMINED BY MANAGEMENT

  3. BulletOPTION OF PAY IN LIEU OF USE TO BE PAID IN JANUARY OF EACH YEAR 2008


ARTICLE 34 – SICK LEAVE

  1. BulletM&R- RESTORE 100% PAY FOR SICK OCCURRENCES

  2. BulletMODIFY ACCRUAL RATE FOR 2008 TO REFLECT AN INCREASE TO SIX (6) DAYS (TO BE CREDITED FOR USE IN 2009)

  3. BulletMODIFY ACCRUAL RATE FOR 2009 TO REFLECT AN INCREASE TO EIGHT (8) DAYS (TO BE CREDITED FOR USE IN 2010)


ARTICLE 41-BENEFITS

  1. BulletCREATE A JOINT COMMITTEE TO EXPLORE IMPLEMENTATION OF A VEBA TRUST

  2. BulletADMINISTERED BY THE TWU SIMILAR TO THE AGREEMENT BETWEEN UAW AND GENERAL MOTORS

  3. BulletPROFIT SHARING PLAN:  EFFECTIVE 2008 TO BE PAID IN 2009

  4. BulletPLAN PAYS OUT AT FIRST DOLLAR OF PROFIT

  5. BulletPLAN ACCUMULATES AS FOLLOWS:

  6. Bullet$1-$250 MILLION = 30 PERCENT

  7. Bullet$250 MILLION - $$500 = 25 PERCENT

  8. Bullet$500 MILLION AND ABOVE = 20 PERCENT

  9. BulletSUPPLEMENT EXISTING PROFIT SHARING PLAN WITH THE ABOVE EARNINGS THRESHOLD

  10. BulletELIMINATE AIP PLAN


VARIABLE COMP

  1. BulletMUTUALLY COMMIT TO DEVELOP A VARIABLE COMPENSATION (GAIN SHARING) PLAN FOR EACH AGREEMENT


IN ADDITION, THE COMPANY PRESENTED PROPOSALS REGARDING WORK RULE CHANGES IN EACH CONTRACT GROUP.


Full May 16th 2008 update....