TWU Reserve/Equity Fund Distribution Update

Dear Brothers and Sisters:

As a follow up to today’s conference call with TWU American Airlines Presidents, below is a summary of the latest developments, with respect to the TWU Reserve/Equity fund distribution:

– First and foremost, I am happy to announce that the TWU International was successful in our appeal to the IRS and a capital gains tax will not be assessed by the IRS against the Reserve Fund, resulting in an additional thirty five percent (35%) approximately being available for the equity distribution to our members — monies that otherwise would have gone to the IRS.

– The company has notified TWU that it remains on track to provide the necessary tax payer information to Computershare, from the Project Spring computer software program update, for a late May/early June distribution. (“Project Spring” is a merger of the legacy AA and US human resources computer systems.) The company must provide this information to Computershare, since TWU does not employ our members and TWU does not have the necessary individual tax payer information for each member needed for this type of distribution.

– The distribution of the funds from Computershare will be made by check and mailed to each eligible employee’s last known address on file with the Company.

– A meeting is scheduled for May 24th in order for TWU to discuss any final items needed by Computershare to ensure the accuracy of our membership list and the amount/percentage of distribution for each eligible employee.

– A legal determination, in accordance with IRS rules and regulations, has been requested with respect to the withholding of income taxes on the equity distributions to be made in accordance with the following formula:

1. For active employees and those on leave of absence or those who have since left the company via retirement, termination or otherwise and are still alive, American Airlines will issue a W2 and withhold applicable taxes; {00648465.DOCX / }

2. For employees, deceased after 1/1/2018, American Airlines will issue a W2 with and will withhold applicable taxes; and

3. For employees deceased prior to 1/1/2018, Computershare will issue a 1099 form and no taxes will be withheld.

In closing, we are nearing the end of this long-awaited process and I want to again thank you for your patience and perseverance and your faith in the TWU. I also want to remind each of you and all of our TWU members that this equity distribution is not a bonus, but rather hard earned dollars that truly can never adequately repay for the sacrifices our AA members were forced to accept in bankruptcy in order to permit AA to remain in business.

TWU International will continue to provide any new or additional information and details to you as soon as they become available.


Gary Peterson
TWU International Vice President

Legionnaire Responsible for POW/MIA Table at JFK Airport

When Legionnaire Brian Galarza was hired by American Airlines in March of 2016 as a fleet service clerk at John F. Kennedy International (JFK) Airport, little did he realize that he would spur awareness for American prisoners of war and those missing in action (POW/MIAs).

Brian Galarza and his POW/MIA table at JFK Airport (Terminal 8, Gate 12).

On Veterans Day that year, he set up a POW/MIA table in the employee break room, which sparked “many questions by my non-veteran co-workers,” Galarza reports.

In 2017, the retired Army sergeant (SFC) was appointed veterans’ coordinator for Local 501 of the Transportation Workers Union (TWU).

It wasn’t long before the Veterans’ Committee asked him to set a permanent POW/MIA table at JFK, located at Terminal 8, Gate 12, “which is our veterans’ gate giving tribute to our Medal of Honor recipients.” 

Brian is a member of the Daniel M. O’Connell American Legion Post 272 in Rockaway Beach, Queens.

Association Bulletin 4-5-18 Aim for Industry Leading Contract

Brother and Sisters,

The TWU-IAM Association is committed to achieving on American Airlines an industry-best contract that will benefit all Association members and, consequently, be the benchmark for future airline contract negotiations. The five main issues that remain in our negotiations with American are: scope (protecting our work and jobs), affordable healthcare, meaningful profit sharing, retirement and wages.

In their latest scope proposal, the company insisted on outsourcing at least 5,000 jobs, spanning all classifications. Simply put, without protecting your jobs and the work you do, your livelihood is in danger and every other benefit gained in negotiations is useless. Their fake scope proposal is unacceptable and disrespectful.

The company’s healthcare proposal offers only the more expensive healthcare plans with inferior benefits and zero limits on future cost increases The Association negotiating committee demands that the company offer the richer Legacy U.S. Airways plans to all Association members. All Association members should have access to the best health insurance plans and we will not allow the company to eliminate those plans.

Despite American’s CEO admitting that other airlines have better profit sharing, the company’s latest proposal is clearly insufficient. They refuse to improve your profit sharing and believe they shouldn’t fairly share the industryleading profits that Association members generated. The Association will not let up in obtaining the value that the industry’s best profit sharing plan will provide to all Association members.

In the company’s proposal on retirement, American is trying to transfer as much retirement risk away from them and towards you. Their offer even comes up short against its own internal standards. Without any self-contribution required, American Flight Attendants currently receive a maximum 401(k) company contribution of 9.9% while the pilots receive 16%. The Association negotiating committee will not allow the company to unnecessarily shift risk to you nor will we allow them to treat our members like second-class citizens.

While job security is the most important piece of any collective bargaining agreement, the Association negotiating committee is aware the Company is trying to fool us with their wage proposal. The company claims their current proposal is industry-leading, but is it really? Is it industry-leading if United wage rates surpass yours in less than a year? Is it industry-leading if you are paying more for healthcare or if your counterparts at United and Delta make thousands of dollars more in profit sharing every year? Of course not. The Association agrees that cash compensation is important, and when we have an agreement we will have industry-leading rates.

The Association will continue fighting to raise the standards by which we work and live. We will fight to own our work, we will fight to get our just compensation and we will fight to share in the record profits and growth that we generate for American Airlines. Each airline negotiation lays the foundation for the future and the TWU-IAM Association will not capitulate to American’s regressive proposal.


Your Association Negotiating Committee