AA Bargaining Update, March 25

Sisters and brothers,

The Mechanic & Related/Stores and Fleet Service Negotiating Committees met with American Airlines the week of March 21 in Dallas. Updates from both committees are below. Download M&R/Stores update   Download Fleet Service update

Mechanic & Related/Stores

On Wednesday, March 23, the company briefed your committee,10 minutes prior to their announcement, about the decision to follow the rest of the industry in having a profit-sharing program for its employees.

Although this might be considered a step in the right direction, your committee must review the profit-sharing plan as proposed to determine its effects on our future. The fact the company has established a profit sharing plan does not change your committee’s approach to negotiations, particularly our approach toward compensation, including industry-leading wages. In regard to profit-sharing, American stated that they were not asking for anything in return, and we plan to hold them to their words!

The negotiating committee worked on the following articles during this session:

  • Grievance Procedure: The committee has had several exchanges and intense table discussions on this Article to ensure the rights of our members are protected. We continue to have discussions over the fundamental differences about how discipline may be issued to our members by the company.
  • Probationary Period: We have reached tentative agreements on this article for M&R, MLS, MTS, and MCT.
  • Hours of Work: We received an initial proposal from the company on this article and your committee is in the process of reviewing for our counter-proposal.
  • One Station Agreements: We received an initial proposal from the company on this article and your committee is in the process of reviewing before making our response.
  • Rotation of Shifts: We received an initial proposal from the company on this article and the committee is in the process of reviewing before making our response.
  • Sick Leave/OJI: The committee presented the company with our initial proposal on this article and awaiting their response.

In addition to next week in Dallas, the parties have agreed to the negotiations schedule for the next three months:

Week of April 11, DFW Week of May 9, DCA Week of June 13, DFW
Week of April 18, DFW Week of May 16, DFW Week of June 20, DCA
Week of April 25, DCA Week of May 23, DFW Week of June 27, DFW

We thank you for your patience and support as we make steady progress toward a joint contract. We are fully dedicated to negotiating the best agreement as quickly as possible.


Jason Best Mike Bush Ken Coley John Coveny
Dale Danker Mark Huffman Bennie Martino Gary Peterson
Larry Pike Sean Ryan Jay Sleeman Mark Strength


Fleet Service Update

The Fleet Service Negotiating Committee passed the company the following proposals this week:

  • Grievance Procedures: Following multiple passes, which were particularly difficult based on the complexity of language in both agreements, the current counter-proposal has narrowed the differences considerably. We await the company’s response.
  • Hours of Work: the Association passed the first proposal to the company on this article.
  • Meal Periods: the Association passed this proposal to the company and we are awaiting their response.
  • Recognition of Rights and Compliance: the Association passed this proposal to the company and are awaiting their response.
  • Training, Travel Pay and Meal Per Diem: the Association passed this proposal to the company and are awaiting their response.

To date, the Fleet Committee has tentative agreements on the following Articles:

Representation Absence from Duty Probation
Field Work No Strike No Lockout Safety and Health
System Board of Adjustment Fitness for Duty Purpose of Agreement
Uniforms Bulletin Boards Preamble

The Association received notification regarding the profit sharing announcement moments before it was released. We are still awaiting plan details and will communicate those to the membership once they are received.

The Association continues to make steady progress and will be meeting again next week in Dallas; there are an additional nine weeks scheduled with the company (see chart above).

We thank the membership for its continued support and solidarity as we progress in these joint contract negotiations.


Mike Baskett Mike Fairbanks Pete Hogan Tim Hughes
Mike Mayes Steve Miller Brian Oyer Pat Rezler
Art Risley Andre Sutton Rodney Walker Bill Wilson

American Airlines Team Members:

We have good news to share. American Airlines is establishing a profit sharing program effective with our 2016 annual earnings. That means the program has already begun, and will pay out in early 2017 based on what we earn in 2016. The plan will put 5% of every pre-tax dollar we earn into a profit sharing pool to be shared by all team members (excluding management levels 5 and above).

We are taking this step because we have heard from many of you that a profit sharing plan is important to our success as a team. Although we continue to believe the most effective way to increase compensation is through higher base pay, we recognize there is a team-building component to profit sharing. Our colleague, Elise Eberwein, says it best: “Profit sharing is a feeling, not a formula.” By eliminating profit sharing in exchange for higher base pay rates, we inadvertently have eliminated some of our shared sense of teamwork – and that was never our intent.

We will reinstate profit sharing at the same 5% funding rate that was ratified by all American contract employees prior to our merger. This means the company will set aside 5% of our annual pre-tax income (before special items) every year, and that pool of money will be shared among all participants. Although this 5% rate is lower than our peers, we plan to offer hourly pay rates higher than those same peers in the contracts we’re negotiating now and in those to be negotiated in the future. As we have demonstrated in all joint contracts already reached, our view continues to be that we should set industry-leading pay rates as we negotiate our contracts so that higher pay is reflected in each paycheck, every pay period, throughout the year, and that your paycheck recognizes the work you do every day.

We believe this will provide the best of both pay structures: higher base rates as we negotiate new contracts and a shared sense of teamwork throughout the year as we deliver industry-leading financial results. Our new profit sharing plan will provide additional compensation on top of contractual pay rates already in place and its existence will not affect our pay rate proposals for joint contracts currently being negotiated.  As you may know, management does not have the ability to unilaterally increase the compensation of team members represented by unions so we will need the approval of each union before this plan can be implemented for each group of represented employees. Because we will not be asking for anything in return, we expect your union leaders will readily agree.

This is an amazing time for American. To be in a position of strength and stability, and provide certainty to you and your families, is exactly what our merger set out to do. Instituting a profit sharing plan outside of negotiations is unprecedented in our business. It’s definitely a new day at American Airlines. And the key to our future success is an engaged, supported and motivated team.

We are dedicated to making that happen, and we know you are also. Let’s work together to make 2016 our best year ever.

AA, Fleet Service Negotiations, March 18

Sisters and brothers,

The TWU-IAM Association Fleet Service Negotiating Committee and American Airlines continued joint contract negotiations this week in New York. Your committee exchanged proposals with the company regarding the following contract articles:

System Boards
Recognition of Rights and Compliance
Field Work
Training, Travel Pay and Meal Per Diem

Download this communication

Your committee reached tentative agreement with the company on the following articles:

System Boards
Field Work

We are awaiting the company’s response to our proposal on Leaves of Absence.

Both the Fleet Service and Mechanic & Related/Stores Negotiating Committees will meet with American the next two weeks in Dallas and we are in the process of finalizing additional dates.

Thank you for your patience and continued solidarity as we work towards achieving the fair contract we all deserve.


Mike Baskett Mike Fairbanks Pete Hogan Tim Hughes
Mike Mayes Steve Miller Brian Oyer Pat Rezler
Art Risley Andre Sutton Rodney Walker Bill Wilson

Chairman’s Award

Congratulations to our JFK Title II Local 501 Brother Eric Schmidt on winning the Chairman’s Award March 15, 2016!

Cope and Political Activity

Local 501 1st Vice President Angelo Cucuzza recognized by International for his Cope and political activity.