Articles Detail

April 10, 2012

American Airlines

The TWU’s legal team is preparing for trial in New York. AMR “fast tracked” the bankruptcy process with their 1113(c) filing to abrogate our labor contracts. AMR's motion included dumping over 6,500 documents and exhibits with the court filing. The documents spell out AMR’s alleged reason for seeking abrogation of all of our CBAs. TWU’s professional team of economic analysts, attorneys and International Representatives are in New York reviewing company documents and preparing for our presentation before the bankruptcy judge.
In preparing for trial, the company filed multiple witness declarations with the court. The TWU and other unions are in the process of preparing the union witness declarations. The trial will begin April 23 before Judge Lane. At that point the parties can cross examine the witnesses.
The TWU will challenge AA’s case and seek to keep the court from rejecting and abrogating our contracts. AA will argue that it cannot successfully reorganize the airline without getting the $390 million in concessions from TWU and therefore needs to cancel our collective bargaining agreements. Unless we vote in a consensual agreement, the judge will decide whether or not to reject our CBAs.
America Eagle
The TWU Negotiating Committee’s reconvened negotiations with the company on Monday April 9th at FSU. American Eagle continues to provide requested documents for several work groups. TWU economist John Donnelly is working with the committee, but the document requests made by TWU to the company have not been fully met. The TWU continues to ask the company many detailed questions. It is the company’s obligation under the law to provide us the relevant documents that explain their statistics and methodologies.
Some members have asked for more corporate and business model details in our bankruptcy updates regarding the 1113 bankruptcy negotiations. Because of the seriousness and confidential business matters involved with bankruptcy reorganization, TWU negotiators and our advisors were required to sign confidentiality agreements by American Eagle. This allows TWU negotiators to review the company’s sensitive data that competitors could use against them. When specific items are approved for communication or full T/A’s are reached, we will post the information immediately.
The 1113 negotiations with American Eagle will continue throughout the week. The TWU continues working hard to reach a consensual agreement with the company.