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With Friends Like This, Who Needs Enemies?
Date: 7/19/03 1:29:00 AM Subject: Supplement W Implementation
Fellow Pilots,
During the negotiations leading to our current agreement, APA waived certain rights under Supplement W, American Eagle (AE) Flowback, for credit toward our $660 million in concessions. Specifically, APA and management agreed that furloughees would only displace AE CRJ700 Captains that had elected to flow through to American Airlines (not EMB Captains) and furloughees would receive the captain positions on any new CRJ700 aircraft and any net new AE EMB145 Captain positions. The net new AE Captain positions would be those positions created by the delivery of new EMB145s that result in a net increase in AE's fleet count. For example, if AE were to take delivery of two new EMB145s and ground two SAABS, the net increase would be essentially zero, and furloughees would not be able to flow back to AE. Likewise, if AE took delivery of three EMB145s and grounded two SAABS, then AA furloughees would fill the captain positions on the one net new aircraft.
Based on the fleet plan information provided during the negotiations, AE's fleet was to remain relatively flat for the duration of the contract. As AE took delivery of three RJs per month, they were scheduled to ground an equivalent number of turboprop aircraft, which left them with a fleet count in 2006 almost identical to their fleet count of 2003. Under this scenario, APA estimated that furloughees would only have access to approximately 90 AE CJ Captain jobs in the CRJ700.
Under our agreement, APA received approximately $10 million in annual credit toward the $660 million target. APA received this credit as a result of the cost savings associated with not displacing current AE CJ Captains.
After the conclusion of our agreement, AE ALPA MEC officers raised objections. AE ALPA took the position that anything less than full implementation of Supplement W and Letter 3 (AE ALPA's equivalent contract addendum) was a modification of the four-party Supplement W/Letter 3 agreement (the four parties being APA, ALPA, American and American Eagle). AE ALPA further contended that, since AE ALPA was not a party to the negotiations, no modification of Supplement W/Letter 3 was possible and they insisted on full implementation of Supplement W provisions.
As indicated earlier, management had given APA approximately $10 million in credit for Supplement W toward our $660 million in concessions. Therefore, APA would have to find some other provision of our contract that constituted $10 million in savings to the airline. At the APA Spring Board of Directors Meeting, the Board authorized negotiations on several contractual provisions that would achieve these cost savings in lieu of the savings realized by foregoing provisions of Supplement W.
In an attempt to reach an implementation that was amenable to all parties, APA entered into negotiations with AE ALPA (at times including American and American Eagle management). The goal was an agreement that was of minimal cost to APA, while still retaining flow-through jobs for furloughees.
Talks encompassed several sessions of negotiations. Both American and American Eagle management were willing to actively pursue a solution that was acceptable to all parties. AE ALPA presented APA and management a list of bottom line items that they required as part of any agreement, including: 1) AE pilots getting all new EMB 145 Captain positions up to 67 jets (currently, AE has approximately 55 EMB145s); 2) shared growth of new EMB aircraft over 67 at a 1:3 ratio with one going to furloughees and three going to AE pilots; 3) pay protection for AE pilots who would have upgraded to CRJ700 Captain if furloughees had not taken those positions; 4) an absolute limit to the number of displacements of AE pilots by furloughees; 5) an improved flow-through for AE pilots; and, 6) American Airlines seniority numbers for all American Eagle pilots.
After AE ALPA presented these and several other requirements, it became obvious that we would not be able to achieve a mutual settlement. Therefore, we moved forward with the implementation of Supplement W as written.
We have met with American management over the past couple of weeks in an effort to reach an understanding on the implementation of Supplement W. As of the writing of this e-mail, we are finalizing this understanding.
Since our original agreement was negotiated, American Eagle management has changed the fleet count as a result of grounding only part of the SAAB fleet. Due to this change and others that we have agreed to over the past several weeks, APA will have access to more CJ Captain positions than in our original agreement.
Despite being in the final stages of discussions concerning an understanding on the implementation of Supplement W, we cannot be entirely sure of the total number of CJ Captain positions that will be available to our furloughees until we receive the decision on our outstanding arbitration from Arbitrator Kasher on four grievances. The result of this ruling will ultimately determine the total number of positions available to furloughees for flowback to AE.
It is our estimation, barring a totally unfavorable ruling on all four grievances, that furloughees may have access to approximately
500 CJ Captain positions at no additional cost to the membership. If APA were willing to exchange another $10 million in concessions to make up for our previously credited amount, we could possibly achieve up to 1,000 CJ Captain positions. It is the position of the Board of Directors that APA should try to achieve the most positions possible for our furloughees while minimizing the cost to our membership.
If Arbitrator Kasher rules in a negative manner against APA on all grievances, furloughees will have limited opportunities for CJ Captain positions unless the Board of Directors authorizes further negotiations to achieve the amount required to pay for displacing current AE pilots from their CJ Captain positions.
We have determined that beginning in August, we will have approximately 29 CJ Captain positions available for bid for pilots identified in the "master shuffle" as candidates for furlough or for pilots that are already furloughed. It is important to note that former TWA pilots will now be able to be awarded an AE Captain position in accordance with Supplement W. We expect to have additional information about the bidding of AE Captain positions next week.
Sincerely,
Captain John Darrah APA President
www.Letter3.org
Date: 7/19/03 1:29:00 AM Subject: Supplement W Implementation
Fellow Pilots,
During the negotiations leading to our current agreement, APA waived certain rights under Supplement W, American Eagle (AE) Flowback, for credit toward our $660 million in concessions. Specifically, APA and management agreed that furloughees would only displace AE CRJ700 Captains that had elected to flow through to American Airlines (not EMB Captains) and furloughees would receive the captain positions on any new CRJ700 aircraft and any net new AE EMB145 Captain positions. The net new AE Captain positions would be those positions created by the delivery of new EMB145s that result in a net increase in AE's fleet count. For example, if AE were to take delivery of two new EMB145s and ground two SAABS, the net increase would be essentially zero, and furloughees would not be able to flow back to AE. Likewise, if AE took delivery of three EMB145s and grounded two SAABS, then AA furloughees would fill the captain positions on the one net new aircraft.
Based on the fleet plan information provided during the negotiations, AE's fleet was to remain relatively flat for the duration of the contract. As AE took delivery of three RJs per month, they were scheduled to ground an equivalent number of turboprop aircraft, which left them with a fleet count in 2006 almost identical to their fleet count of 2003. Under this scenario, APA estimated that furloughees would only have access to approximately 90 AE CJ Captain jobs in the CRJ700.
Under our agreement, APA received approximately $10 million in annual credit toward the $660 million target. APA received this credit as a result of the cost savings associated with not displacing current AE CJ Captains.
After the conclusion of our agreement, AE ALPA MEC officers raised objections. AE ALPA took the position that anything less than full implementation of Supplement W and Letter 3 (AE ALPA's equivalent contract addendum) was a modification of the four-party Supplement W/Letter 3 agreement (the four parties being APA, ALPA, American and American Eagle). AE ALPA further contended that, since AE ALPA was not a party to the negotiations, no modification of Supplement W/Letter 3 was possible and they insisted on full implementation of Supplement W provisions.
As indicated earlier, management had given APA approximately $10 million in credit for Supplement W toward our $660 million in concessions. Therefore, APA would have to find some other provision of our contract that constituted $10 million in savings to the airline. At the APA Spring Board of Directors Meeting, the Board authorized negotiations on several contractual provisions that would achieve these cost savings in lieu of the savings realized by foregoing provisions of Supplement W.
In an attempt to reach an implementation that was amenable to all parties, APA entered into negotiations with AE ALPA (at times including American and American Eagle management). The goal was an agreement that was of minimal cost to APA, while still retaining flow-through jobs for furloughees.
Talks encompassed several sessions of negotiations. Both American and American Eagle management were willing to actively pursue a solution that was acceptable to all parties. AE ALPA presented APA and management a list of bottom line items that they required as part of any agreement, including: 1) AE pilots getting all new EMB 145 Captain positions up to 67 jets (currently, AE has approximately 55 EMB145s); 2) shared growth of new EMB aircraft over 67 at a 1:3 ratio with one going to furloughees and three going to AE pilots; 3) pay protection for AE pilots who would have upgraded to CRJ700 Captain if furloughees had not taken those positions; 4) an absolute limit to the number of displacements of AE pilots by furloughees; 5) an improved flow-through for AE pilots; and, 6) American Airlines seniority numbers for all American Eagle pilots.
After AE ALPA presented these and several other requirements, it became obvious that we would not be able to achieve a mutual settlement. Therefore, we moved forward with the implementation of Supplement W as written.
We have met with American management over the past couple of weeks in an effort to reach an understanding on the implementation of Supplement W. As of the writing of this e-mail, we are finalizing this understanding.
Since our original agreement was negotiated, American Eagle management has changed the fleet count as a result of grounding only part of the SAAB fleet. Due to this change and others that we have agreed to over the past several weeks, APA will have access to more CJ Captain positions than in our original agreement.
Despite being in the final stages of discussions concerning an understanding on the implementation of Supplement W, we cannot be entirely sure of the total number of CJ Captain positions that will be available to our furloughees until we receive the decision on our outstanding arbitration from Arbitrator Kasher on four grievances. The result of this ruling will ultimately determine the total number of positions available to furloughees for flowback to AE.
It is our estimation, barring a totally unfavorable ruling on all four grievances, that furloughees may have access to approximately
500 CJ Captain positions at no additional cost to the membership. If APA were willing to exchange another $10 million in concessions to make up for our previously credited amount, we could possibly achieve up to 1,000 CJ Captain positions. It is the position of the Board of Directors that APA should try to achieve the most positions possible for our furloughees while minimizing the cost to our membership.
If Arbitrator Kasher rules in a negative manner against APA on all grievances, furloughees will have limited opportunities for CJ Captain positions unless the Board of Directors authorizes further negotiations to achieve the amount required to pay for displacing current AE pilots from their CJ Captain positions.
We have determined that beginning in August, we will have approximately 29 CJ Captain positions available for bid for pilots identified in the "master shuffle" as candidates for furlough or for pilots that are already furloughed. It is important to note that former TWA pilots will now be able to be awarded an AE Captain position in accordance with Supplement W. We expect to have additional information about the bidding of AE Captain positions next week.
Sincerely,
Captain John Darrah APA President
www.Letter3.org
