Special Jetwire - Update on Workforce Reductions
Message To All U.S. Based Employees From Jeff Brundage, Senior Vice President – Human Resources
Dear Colleagues:
Later this fall, AMR will reduce domestic capacity by 11 to 12 percent and system-wide capacity by approximately 8 percent. While we are still working through the specific impact to employee work groups, both voluntary and involuntary, employee reductions commensurate with the overall system capacity reductions are expected company-wide as we reduce the size of the airline. As previously announced, the size of the management and support staff workforce will be reduced by approximately 8 percent in September.
Each department is continuing to work through ways to minimize the number of employees who are involuntarily affected by a reduction in force. In addition to our existing voluntary programs such as leaves of absence and stand-in-stead, we will also offer a Voluntary Bridge to Retirement (VBR) for many U.S.-based and San Juan employees who are age 50 or over with at least 15 years of service. Each department will decide which job functions and locations will be offered this option.
American has reached agreements with the Association of Professional Flight Attendants (APFA) and Transport Workers Union (TWU) to offer the VBR to their members. Information on this new voluntary option will be available soon on Jetnet.
While we continue to work through the unprecedented challenges facing our company and industry, we want to provide additional information about our workforce adjustments. This week we will begin issuing WARN letters to some employees who may be impacted by workforce changes as required by state or federal law.
WARN is the federal Worker Adjustment and Retraining Notification Act and requires employers to give written notice to employees (or their bargaining representatives) who may experience an employment loss as the result of layoffs or location closures. WARN letters must be issued 60 days prior to the actual date of the reduction in force. Please know that a WARN notice is not a layoff notice – it's a regulatory requirement.
Again, we regret these reductions are necessary and we will keep you informed of decisions about the reduction in force. And, we will work closely with all affected employees in this transition. It's crucial that we take the appropriate actions to operate a strong and competitive airline for both our employees and customers.
Jeff Brundage