7.28.12 – (LAA) – LBFO, Roadshows Underway

APFA Hotline for Saturday, July 28, 2012
The Last Best and Final Offer –  Roadshows underway

APFA’s Negotiating Team, along with professionals to the bankruptcy process, traveled to the Raleigh/Durham, Dallas/Ft. Worth and Miami road shows this week to explain the Last Best Final Offer (LBFO), the details surrounding American Airlines Bankruptcy, and answer all members’ questions. As bad as the situation is for everyone, the Negotiators would like to extend their appreciation to the members who attended the meetings and came prepared with thoughtful questions that allowed everyone to gain a better understanding of just where we are.

This is uncharted territory for all of us and our advisors remain critical to the process. Their assistance was vital in gaining improvements to the Term Sheet that exceed any other Flight Attendants’ union’s percentages in prior bankruptcies.

The Company moved from its original ask of $230 million annually to one of $168 million, approximately 27 percent less in concessions in the LBFO than in Americanís Term Sheet. [note: an earlier communication inadvertently misstated this percentage].

Though our message must focus on the immediate task at hand: to educate all members on the LBFO – please know that labor is full steam ahead in its pursuit of a merger with US Airways as we navigate our way towards a better future.

Reuters, Bloomberg and other news agencies began reporting Friday evening that AMR Corp advised staff in an internal memo that it has sent a non-disclosure agreement to US Airways Group for its review of a possible merger.

Reuters link: http://www.reuters.com/article/2012/07/27/amr-agreements-idUSL2E8IREFG20120727

Several documents on the LBFO are in the process of being printed and will go in the mail to members next week. If you have not received your packet by the time of your base road show, please visit APFA.org, click on LBFO and print a copy to bring with you.

Everyone should visit the website to view the Last Best Final Offer, a Comparison of the LBFO and the Section 1113 March 22 Term Sheet, the pre-bankruptcy Tentative Agreements that will become part of the LBFO if it is approved by the membership, and several pages of Questions and Answers. New Q&A documents are being added and existing documents updated regularly so check back often.

Following is the remaining schedule for the membership LBFO Road Shows. Where necessary, parking will be paid for by APFA. Please note that we have added two new road shows. We’ll be coming back to DFW on August 16 and to Miami on August 17. Times are 11am to 2pm and the locations will be announced when they are finalized.

July 31- San Francisco
11am to 2pm
Embassy Suites South, San Francisco Airport

August 1 – Los Angeles
11am to 2pm
Hilton LAX Airport
5711 West Century Boulevard

August 2 – St. Louis
11am to 2pm
Hilton St. Louis Airport
10330 Natural Bridge Road

August 7 – Boston
11am to 2pm
Embassy Suites Boston
207 Porter Street

August 8 – Chicago
11am to 2pm
Hilton Garden Inn at O’Hare Airport
2930 South River Road 

August 10 – New York
11am to 2pm
JFK Airport Hilton
144-02 135th Ave.

August 15 – Washington, D.C.
11am to 2pm
300 Army Navy Drive
Arlington, VA

** new ** August 16 – Dallas/Ft. Worth
11am to 2pm
location to be determined

** new ** August 17 – Miami
11am to 2pm
location to be determined

LBFO Voting is now OPEN 
Balloting for the LBFO is open now and your vote is due by August 19, 2012 at 10:00 a.m. Central Time. If you do not have your VIN and PIN, please contact the National Ballot Committee for assistance. Call 817-540-0108 ext. 8311 or email: [email protected]. Remember that with online and telephone voting, you can change your vote up until the closing of the voting period.

Rumor Control
Below are some of the most frequent questions we’ve heard lately:

Q: Why is there a clause in the LBFO stating the Companywill give the Union $5 million?
A: There is no grant of $5 million, rather paragraphs 3 and 4 of Attachment I of the LBFO provide that the Company’s Plan of Reorganization will provide, with court approval, at least partial coverage of, or reimbursement for, expenses incurred by APFA in fighting for our membership’s interest in the Bankruptcy and 1113 proceedings. AMR went into Chapter 11 with a large cash reserve, funded on the backs of its workers. Our members’ union treasury should not have to suffer further for AA’s mismanagement, though only a portion of our advisors’ bills will be covered. All unions are receiving the same consideration. The Unsecured Creditors’ Committee’s expenses are similarly covered. This is a standard and accepted feature of bankruptcies.

Q: What happens if the LBFO is voted down?
A: If the LBFO is voted down, Judge Lane will act to either approve or deny American’s 1113 petition to abrogate our contract. Approving the petition results in the abrogation of the contract which means there is no longer an agreement. AA can then impose terms and conditions on our members. Though the law is uncertain as to what terms AA could impose, they have indicated an intention to impose those in the final, pretrial term sheet which was provided to APFA on March 22. It is also unclear whether AA could choose to implement terms either immediately or eventually that are worse than the March 22 Term Sheet. If AA’s petition is denied, then the current contract would remain in place. It’s expected in that case that AA would create a new proposal, one to satisfy what the judge found deficient in the 1113 petition. They could then refile their 1113 motion should APFA not accept the terms.

Q: Could we strike if the contract is abrogated?
A: In the Northwest Airlines bankruptcy case, the court held that the flight attendants could not strike in response to the rejection of their agreement. Instead, flight attendants were obligated to continue to negotiate under the Railway Labor Act, and could not strike unless released from negotiations by the NMB. The Northwest precedent applies to the AA bankruptcy case. Our situation is even more complicated in this election year, when the general political climate rarely strays from the status quo where it concerns labor and job actions.

Overage Leave Cancellations
In another sign of poor planning, management announced the cancellation of all current Overage Leaves earlier this week.† This is just one more reason we need a new management team.† Letters were sent via certified mail on Monday, July 23 notifying Flight Attendants of the cancellation.  Per Art.16.A.4.b. of our Collective Bargaining Agreement, a Flight Attendant must signify, in writing, his/her intention to accept or reject employment within ten (10) days after receipt of notice or s/he will not be entitled to employment and shall forfeit his/her seniority with the Company.† Management is cancelling the leaves effective August 14.

Flight Attendants will be given a partial availability schedule for the balance of August.† You can attend training required in order to be current in your qualifications while on leave but you are not required to do so.† Those who are not currently qualified will be plotted for training on either August 19th or 20th.† Those Flight Attendants that have not trained in over 36 months will be scheduled for Leave of Absence Training beginning on September 10, 2012.

If your training and fingerprints are up-to-date and you return on the effective date you will be eligible to accrue Sick and Vacation for August provided you meet your applicable Sick and Vacation threshold by December 31, 2012.† Your personal threshold will be based on 35 hours per active month (Y indicated under Vacation Accrual column of your HISK).† Planning expects to load schedules around August 7 for those whose training is up-to-date in order to begin accessing open time for trips.

Keep in mind, in order to be able to hold a bid for September your qualifications and fingerprints must be up-to-date by August 15.† As long as you are enrolled in training for sometime in August by the 15th, planning will award a schedule for September.† If you add training to your schedule after the 15th you must notify your planner no later than the 19th in order to be eligible to bid.