Union Offers American Airlines Alternative To Massive Layoffs In Tulsa, Elsewhere

The Transport Workers Union says it's made an offer to the parent company of American Airlines to avoid massive layoffs.

The TWU's negotiating committee submitted a proposal to AMR which it calls a blueprint for voluntary early out/separation as a way to "avoid draconian, involuntary layoffs, while saving money for the company."

AMR announced on February 1, 2012, that it planned to cut 13,000 jobs company-wide, including 9,000 from work groups represented by the TWU.  Those cuts would include 2,100 jobs at the Tulsa overhaul base.

2/1/2012: Related Story: AMR Spokesman: 2,100 American Airlines Jobs To Be Cut At Tulsa Base

On Wednesday, February 15, 2012, the TWU presented a plan to offer early outs to employees under two plans:

Plan A: Retirement eligible:

• 10 years of service and age 55 or greater
• Incentive payment of $75,000 (one time lump sum payout)
• Continued air travel as provided for current retirees
• Continue medical coverage as provided for early out participants and current retirees
• Lump sum payment for all accrued vacation and unused sick time

Plan B: Early out only, not retirement eligible (age):

• Eligibility: Minimum 10 years of service with AMR and age 45 or greater
• Incentive payments same as plan A payout
• Air travel; same as plan A, after reaching retirement age
• Medical insurance coverage: 18 months of COBRA subsidized at the current active employee rate
• Lump sum payment for all accrued vacation and unused sick time (same as above)

In a letter to Jeff Brundage, Senior VP of Human Resources for American Airlines, TWU International President James C. Little wrote, "We believe it to be a program that is both sensitive to the concerns of loyal employees, while also addressing the cost concerns of the company. It is in short a fair and humane alternative to the draconian lay off measure currently being contemplated by the company." 

The union expects the proposal to be reviewed by the company over the next few days. The union says it cannot speculate on AMR's answer, but anxiously awaits it.

TWU says its proposal is similar to one that was successfully implemented at United Airlines.

The Association of Professional Flight Attendants made a separate early out proposal Wednesday on behalf of flight attendants who work for AMR.

Late Wednesday afternoon News On 6 received a statement from Bruce Hicks, an American Airlines spokesman:

"A critical goal in our restructuring is to achieve sustainable and structural savings while preserving as many jobs as possible. We will, of course, consider any proposal from our unions that meets those goals and supports our business plan for a successful, profitable and growing company. We just received these proposals this afternoon and have not yet had an opportunity to evaluate them."