American Airlines and the TWU-represented Maintenance Control Technician workgroup reached a consensual agreement on May 15. This ratification is an important step forward and provides American with the cost savings necessary to be successful, while providing to employees a variable compensation plan for industry-leading performance, an Early-Out incentive to mitigate involuntary layoffs, future pay increases and a profit sharing plan.
This compromise demonstrates American’s commitment to its people and the negotiations process, and also shows the TWU’s efforts to collaborate in order to move forward and refocus our energy on building the new American.
Now we can begin implementing the changes that will allow us to operate a more efficient, competitive airline.
All Employee Restructuring Objectives
- Reduce employee costs
- Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity.
- Implement universal changes to active and retiree medical for current employees (effective 2013 open enrollment)
- Remove and relax restrictions on our business
- Remove structural barriers that limit flexibility and ultimately growth
- Replace pension benefit with a Defined Contribution Benefit (effective Nov. 1)
- Implement new first-dollar profit sharing plan (effective Sept. 12)
Overview of Maintenance Control Technicians Implementation Schedule
- Annual, Permanent Cost Savings: 17 percent of Maintenance Control Technicians' total costs
- Approximately 10 positions will be affected
- Moves forward with plan to relocate the Tulsa-based Maintenance Operations Center to be housed with the Fort Worth-based Systems Operations Control (SOC)
- This will relocate about 200 jobs to the Dallas/Fort Worth Metroplex, including approximately 90 Maintenance Control Technicians
- Allows for flexibility in relocating MCT teams and in the use of these teams across the system (effective Sept. 12)
- Modifies work rules to improve productivity and efficiency
- Eliminates the ASM Cap (effective Sept. 12)
- Reduces max vacation by one week (effective Sept. 12)
- Establishes 10-year recall limit for furloughees (effective Sept. 12)
- Eliminates system and station protections (effective Sept. 12)
- Offers an Early-Out incentive
- Changes to our scope and work rules will allow American to handle its maintenance work more efficiently and to compete with Maintenance, Repair and Overhaul (MRO) companies. This better positions us to meet operational needs and allows us to maintain our Maintenance Control Technicians’ competitive pay rates.
- Eliminating the ASM Cap from all TWU contracts will let American optimize its network and schedule. We will be able to improve the use of our regional network by allowing mainline jets to be redeployed for new opportunities and to place smaller jets on lower demand flights.
- It is crucial we have the flexibility to put the right people with the right jobs and to allow us to utilize other employees, such as engineers, who have similar skill sets across the system.
- Although it is not a part of our agreement, we are still moving forward with relocating approximately 200 jobs from our Maintenance Operations Center (MOC) in Tulsa to be housed with our Systems Operations Control (SOC) in Fort Worth. Our competitors all use this integrated approach and we believe locating the MOC and SOC together will improve communications between the two as well as increase productivity, reliability and enhance customer service by focusing on our on-time performance.