AA TA Question?

[B1900DFO]

Regarding the Tentative aggreement I was surprised to read that you guys will take an initial cut of 23% followed by an additional 17% percent cut YEARLY for 6 years????? Am I misunderstanding this or is that a typo? So if you make 100K this year six years of 17% cuts will bring you to somewhere around 30K. If this is the case it sounds like the only way to make a living will be through those stock options. Scarry.

 

[Take_off_Thrust]

17%

I think that means 17% total spread over 6 years.

.......I'm not totally positive though........

Anyone have the particulars?

 

[General Lee]

I think the first year is 23%, and then the next five are 17% from the original pay---not from the amount after the 23%. I think they really really need the cash this year, and that is why they got 23% now. I could be wrong.

Bye Bye--General Lee

 

[DougCorp-9]

I think the general is right. If you are making 100k right now then it would go to 77k right now and then next year and the following years it would be 83k.

 

[Take_off_Thrust]

I think its 40%!

23 now, plus 17 spread over 5.

DC, you think they get a 6% raise next year?

hmmmm.........don't think so.

 

[flx757]

I interpret it the same way as the General and DougCorp-9. Here's what is written in the summary of the TA:

--Pay cuts of 23% from current rates beginning May 1, 2003 for
the first year.

--Pay cuts of 17% from current rates for each year thereafter.

Note, like the 23%, the 17% says from current rates . Read it again. It doesn't say 23% now, then an additional 17% spread over 5. To me, that says 23% now for the first year, then 17% for each year thereafter. So, it would be a 6% raise next year. Like the others said, I could be wrong, but that's how it reads to me.

Someone posted a link to a summary of the TA here

 

[pilot141]

flx757 and General Lee have it right. Initial 23% paycut from current book rates effective 1 May. After that it's a 17% paycut from current book rates - ie, yes, an effective 6% raise in 2004. Yearly 1.5% increases for the life of the agreement.

 

[Take_off_Thrust]

Thanks for the explaination.

 

[Counselair]

The initial 23% covers the 660 million required by AMR.

Counselair