US Airways Talking Points – April 30, 2012

Why are you here today?

Today, AMR is in bankruptcy court asking the judge to scrap all of its unions' collective bargaining agreements. We are here today to stand up for what is right and to seek justice for AA flight attendants and all American workers.

Do you think your efforts can impact the outcome?

By standing together today we are shedding light on what AMR is attempting to do to its workers, a problem not just for American Airlines employees but for all American workers. We want management, the legal system, our passengers and the public in general to know that AA’s efforts will only further erode the middle class of this country and send thousands more to the unemployment line.  

Why do you think AA is in bankruptcy?

We are here as a result of one reason and one reason only: poor management. The concessions they demanded from labor back in 2003 should have more than allowed this company to return to profitability. Instead, AA’s top executives took millions in bonuses while driving the company into the ground.

In fact, while driving losses of over $3 billion between 2007 and 2009, the airline’s top five executives took an estimated $50 million for themselves, proof that pay for performance standards do not apply to AA’s senior management.

What are the flight attendants prepared to do to keep AA profitable?

American Airlines employees have sacrificed 33% cuts in wage and benefits each year since 2003, when we agreed to take cuts to keep AMR out of bankruptcy. The unions on AA’s property are the only group of unions in the airline industry that voluntarily agreed to drastic cuts outside of bankruptcy. We continue to do our part every day, taking care of our customers as best we can with the tools we have left.

• The AA flight attendants have given back over $3 billion since 2003.
• We have a vested interest in seeing our company survive. We are willing to do our part and proved that year over year since 2003. At what point is management expected to stand up and take responsibility for its poor decisions and STOP BLAMING LABOR?
• “We are struggling to get by – most of us are living paycheck to paycheck. How much more can we give and when is enough, enough?”

Where we are now:

• American says it needs $1.25 billion in annual savings from labor. However, the value of their demands outlined in their 1113 filing actually totals over $2.8 billion annually
• American wants to cut flight attendant labor costs by $230 million annually. American says flight attendant labor costs total $1.1 billion a year, about 18% of its total labor costs. Based on the Company’s own analysis, Flight Attendants costs are more than competitive with the other network carriers.
• APFA has bargained in good faith for four years with no success both before and throughout bankruptcy.
• APFA proposed an early retirement plan that would mitigate layoffs and allow the company to save money.  American flat out rejected the plan.
• AMR has yet to provide the court and the creditors with a viable business plan.  Instead, its primary focus has been on extracting as much as possible from its hard working, frontline employees.

Where AMR’s focus is today:

• On April 23rd, AMR starts presenting its case to the bankruptcy judge for rejecting its labor contracts with its unionized work force.
• American is spending millions of dollars on union busting advisors instead of showing up at the bargaining table willing to negotiate in good faith with its unions.
• Many Wall Street analysts agree that American does not have a viable business plan that adequately addresses its revenue problem.  Instead, they continue to blame labor.
• APFA is ready for our day in court. We are ready to shine the light on AA’s misrepresentations and exaggerated demands.
• We are here today to show American Airlines’ management, the legal system, creditors and the public that we are unified and willing to stand up for justice and fairness for American’s workers.

Regarding possible mergers:

• By filing chapter 11, AA has opened the door to great risk. Asking the Judge to reject our bargaining agreements is like flushing 70 years of negotiations between the parties down the drain. I want this company to flourish but how can we when the same bad management team will continue to “lead” us. I am in full support of anything that will bring this airline back to profitability while respecting its employees and their sacrifices over the past decade.
• I have been a loyal employee of AA for X years. It didn’t have to come to this, and I have no idea how it will play out.