Dear Brothers and Sisters:

As we all know, the AMR bankruptcy has exacerbated an already difficult time for our members. TWU recognizes the anxiety and fear inflicted by their actions on you and your families. Be assured, we are taking all actions possible to protect your job, your wages and benefits.

On Wednesday Feb. 1, AMR announced their restructuring plan, a plan that deals a heavy blow to nearly 9,000 of our members. Their reorganization plan will be evaluated and challenged by our negotiating teams.

AMRs proposed business plan would terminate all existing pension plans, eliminate nearly a third of its maintenance employees at the Tulsa base, and close the Alliance maintenance base in Fort Worth, Texas. Only the Texas Aero Engine Services (TAESL) joint venture with Rolls Royce LTD could remain.

AMR also proposed outsourcing 27 stations that would affect over 4,000 fleet service workers and a variety of other job classifications across the AA system.

In total, the AMR plan will slash at least 13,000 jobs - over 15 percent of its workforce. This is a devastating hit to families already suffering through economic hard times. It is even more troubling for those who gave up so much in 2003 to keep this company from filing bankruptcy.

To counter this unbelievable proposal, the TWUs plan is in full operation. We need you to join us. We all realize that this is the most critical time in our member’s lives and their careers.

Our action plan includes:

Nationally recognized legal counsel specialized in 1113 airline bankruptcy

A team of leading labor attorneys

Expert economists and financial advisors to review AMRs balance sheet

Members mobilization, communication and outreach to business communities

Political and civic leader involvement, locally and nationally

External national media communications plan

We are counting on your support to rally your coworkers, friends and family members. You can help us get the message out - AMRs plan is devastating to working families and our communities. We will continue to update you via the web site, texts and email blasts.

**(AAs Term sheets forDispatch, Fleet Service, Instructors, MCT, Mechanics, Sim Techs, and Storesare posted on the TWU website: http://aa.twu.org/

Members of the Transport Workers Union (TWU), whose jobs are facing elimination by Bain & Company, will picket outside campaign offices of GOP presidential candidate Mitt Romney during the days leading up to the Florida primary election on Jan. 31, union officials said today.

“Mitt Romney is a job cremator, not a job creator,” said TWU President James C. Little. “He made a fortune snatching up companies, closing factories and laying off workers. Now, Bain & Company – which still lines Mitt Romney’s pockets with their profits – has been hired to axe workers at AMR Corporation.”

The union filed a formal objection to AMR’s hiring of Bain in U.S. Bankruptcy Court in New York on Friday. Bain has been engaged specifically for the task of reducing jobs at AMR subsidiary American Eagle. The consulting firm was not hired to renegotiate aircraft leases, advise on financing or alter route structures; their sole function is eliminating employees. American and American Eagle workers are currently employed at 171 U. S. airports including four hubs or “cornerstone cities,” one of which is Miami.

“It’s outrageous that someone running for president as a ‘job creator’ is going to enrich himself by cutting pensions, cutting wages and destroying American jobs,” said Little. “Like so many on Wall Street, Mitt Romney earns his money by destroying the jobs of airline employees. We’re going to do our best to make sure voters in Florida and elsewhere know exactly where Mitt gets his money.”

According to a report in the New York Times on Jan. 17th, “[a] significant portion” of Romney’s wealth “remains locked up in Bain funds, from which the Romneys draw income on their own investments with the firm, as well as a share of Bain’s profits.”

More than 24,000 TWU members work at American Airlines and American Eagle. AMR Corporation, the parent company of both airlines, filed for bankruptcy reorganization on Nov. 29th.

American Eagle has informed the court that it plans to hire Bain & Company, at a fee of $525,000 a month, for “strategic consulting” services. In their objection to the hiring of Bain and the excessive fees proposed for the firm, TWU attorneys argue:

Debtors in these cases propose the concurrent retention of at least three law-firms and three investment banks and financial advisors. More troubling is that four of the proposed professionals, including Bain, are retained for the singular goal of extracting concessions from the Debtors’ rank and file employees, who have dedicated their careers to the service of the Debtors.

“This company filed for bankruptcy with $4 billion in the bank, and they just stiffed our employee pension plans by more than $95 million,” said Little. “Their excuse was they had to ‘preserve cash.’ “If AMR is trying to preserve cash, there’s no reason to pay more than half a million dollars a month to Bain & Company. Bain’s advice is simply pay rank and file workers less, and give executives more.”

“A sensible, successful bankruptcy reorganization requires real sacrifice from all stakeholders,” said Little. “We don’t need to pay disgracefully high fees to an outfit with a track record of shifting the entire burden on to rank-and-file workers and their families – including many Florida families. It’s a dumb strategy for American Airlines and American Eagle – and a dumb strategy for America.”

By James C. Little

AMR, parent of American Airlines and American Eagle, filed for bankruptcy last week even though the company is sitting on $4.1 billion in cash and is able to pay its bills. AMR’s ads in USA Today and the poor excuse for news coverage on network television last Tuesday would lead an average person to conclude that this bankruptcy is no big deal because the planes will still fly, passengers won’t lose frequent flyer miles and for all intents and purposes, business will run as usual.

Unfortunately, bankruptcies are a big deal. The federal bankruptcy courts are being used to bail out a failed management strategy for a company with lots of money in the bank. The public and members of Congress should be up in arms.

Furthermore, if we are to learn anything from earlier airline bankruptcies, the Pension Benefits Guarantee Corporation (PGC) will likely be loaded down with billions of dollars in employee pensions to cover, thousands of workers will lose their jobs and thousands of others will be affected as a result of broken contracts. Passengers will fly on planes that are less safe. Shareholders, including many seniors and charitable institutions, will lose their investments. Municipalities will lose their tax base. Meanwhile, the executives who concocted this scheme will self-deal themselves a king’s ransom in newly issued shares.

This failure by both business and government makes you want to go out and “occupy” something.

Tens of thousands of TWU members who maintain, repair and service planes that carry millions of passengers on American Airlines and American Eagle deserve better from this company and the government. Our members are part of the 99 percent, working every day to take care of their families, and pay their bills and taxes.

We have been trying to do our jobs and more. In 2003, TWU members at American and American Eagle agreed to concessions of more than a billion dollars. We boosted productivity and brought in hundreds of millions of dollars in outside work to help AMR’s bottom line.

Why did we do this? Air travel -- and airline profits -- fell dramatically after 9-11, and many carriers were forced into bankruptcy. TWU members decided it was better to control their own destiny. With labor costs cut dramatically outside of bankruptcy court, we reasoned, management would take the necessary steps to put the business on a sustainable path.

TWU members lived up to their part of the bargain. But management blew it. They didn’t modernize their fleet, missed merger opportunities, got stuck with higher fuel costs, lost money year after year – and rewarded themselves with hundreds of millions in executive bonuses.

Steven Gandel, writing the “Curious Capitalist” column at Time.com, asks: “Where was the cash crisis that pushed the company over the edge?” The answer: “It doesn’t appear there was any... Other airlines have used bankruptcy as a way to force its workers to take lower paychecks and benefits. American Airlines wants the ability to do that too.”

Members of our union will fight hard to make sure that front line workers don’t pay an unfair price for management’s failings.

Until now, American Airlines has done more maintenance in-house and in the United States than any other major US-based airline. Other airline bankruptcies have led companies to send aircraft overhaul and other repair work to poorly regulated, largely unsecured maintenance facilities offshore.

The dirty little secret of the U.S. airline industry is that most passengers – subject to rigorous security screenings before they get on a plane – have no idea where the aircrafts on which they fly are maintained or under what conditions. The Federal Aviation Administration is supposed to inspect overseas repair facilities, but they don’t have enough staff to do the job properly. This problem existed before the FAA became Congress’ ping-pong table, with back and forth partisan matches, 22 temporary funding extensions, one embarrassing shutdown and no agreement in sight for a permanent budget for this critical safety agency.

What kind of risks will passengers face if American sends its maintenance overseas?

• In 2003, according to the Inspector General of the U.S. Department of Transportation, a member of Al Qaeda was discovered working at a maintenance facility in Singapore.

• In 2009, according to an investigation by National Public Radio, workers at U.S. Airways discovered crossed wires in the cockpit of an aircraft about to take off. The crossed wires could have given pilots the wrong signal about whether or not their engines were actually working.

• In Beijing, where a company called AMECO repairs planes for United, five licensed mechanics supervise 2,500 unlicensed workers – a ratio of 500 to one.

The outsourcing of aircraft maintenance is a disaster waiting to happen – and we’re determined that it won’t happen at American or American Eagle.

Bankruptcy should not be an excuse to lower standards for airline workers or passengers. The AMR bankruptcy is what The New York Times has rightfully termed “a moral failing.” This bankruptcy is a very big deal. This bankruptcy is a very bad deal for an airline that likes to be called “American.”

We are very disappointed by today’s action by AMR. The Transport Workers Union will do everything possible to protect our members at both American Airlines and American Eagle. Work at both airlines will continue through the Chapter 11 reorganization.

Our union had tried to work with AMR managers to make the company more cost competitive and more efficient. In the past month we had reached tentative agreements for both flight dispatchers and fleet service workers. Fleet service is American’s largest bargaining unit. Other TWU units at both American and Eagle had previously inked agreements. Our aircraft mechanics and maintenance workers, represented by TWU, have saved the company several hundred million dollars over the past decade through boosted productivity and by bringing in work from other airlines.

While we think this bankruptcy could have and should have been avoided, it does not come as a surprise. TWU engaged special bankruptcy counsel two years ago as a contingency and our attorney Sharon Levine of the firm Lowenstein Sander PC has been investigating TWU claims against American in connection with her presentation of TWU’s position to the U.S. Bankruptcy Court for the Southern District of New York.

This is likely to be a long and ugly process and our union will fight like hell to make sure that front line workers don’t pay an unfair price for management’s failings.

We also will do everything possible to protect our passengers. American Airlines does more maintenance in-house and in the USA than any other major US-based airline. Other bankruptcies in the airline industry have seen aircraft overhaul and other repair work sent to less secure, poorly regulated maintenance facilities in third world countries. We will do everything in our power to maintain quality and safety for this airline and its passengers, while protecting the interests of our members.

An overwhelming majority of flight attendants at Virgin America, a low-cost carrier known for high quality service and innovative onboard amenities, has filed a petition at the National Mediation Board (NMB) seeking union representation with the Transport Workers Union of America (TWU).

Flying Virgin can be enjoyable for passengers but flight attendants have a very different experience,” TWU Organizing Director Frank MacCann said. “Work rules are inconsistently enforced, promises regarding rest, vacation and benefits are often broken, and discipline for minor violations can be unnecessarily harsh and inconsistently applied,” McCann said. “It’s become difficult for flight attendants, who helped build this company, to believe what management tells them. Flight attendants realize that the only way they can improve their working conditions is to form a union.”

More than 650 flight attendants work for Virgin America and are domiciled in San Francisco, Los Angeles and New York. Founded by British media and transportation mogul Richard Branson, the airline began U.S. operations in 2007 and flies to 12 U.S. cities and three locations in Mexico.

“We’re very proud that Virgin America wins high marks from travelers, based on the service we provide,” said Ramon Wood, a Virgin flight attendant based at New York’s JFK. “We believe we can make service better for passengers and elevate working conditions for in-flight team members by having a voice in our dealings with the company. Right now we’re seldom heard and our concerns are not addressed,” he said. “This is why we turned to TWU. TWU members have a real track record of success at low-cost carriers like Southwest and Allegiant, so we think this is a really good fit.”

Nearly 10,000 TWU members enjoy long-standing contractual protections at Southwest, which carries more domestic passengers than any other airline and has turned a profit for 38 consecutive years. More than two-thirds of Allegiant Airlines’ flight attendants voted in favor of TWU representation in December of 2010. In 2012, as a result of the merger between AirTran and Southwest, all of AirTran’s flight attendants will gain TWU representation. The union also has an organizing campaign underway at JetBlue Airlines.

Flight attendants at Branson’s Virgin Atlantic Airlines and subsidiary Virgin Australia have voted to form unions with British and Australian labor unions.

“We want a union because we believe success for our company and success for employees go hand in hand,” said Sherry Shoemake, a Virgin America flight attendant from San Francisco. “Sitting down to negotiate a contract will give us a chance to put consistent rules in place. We operate differently than many other airlines. We want a contract that reflects and respects the Virgin America difference. We’re not looking for some cookie-cutter contract, we want to ‘Virginize’ labor relations.”

The National Mediation Board, which supervises union representation elections in the transportation industry, is required to schedule an election within 45 days. Virgin America flight attendants will vote under new democratic procedures approved by the NMB in 2010, which specify that elections will be decided by a simple majority of those voting. In the past, any worker who did not vote was counted as a “no” ballot. The new NMB rules align voting procedures for railway and labor workers with those that apply to all other private sector workers.

“We’re here to support Virgin America flight attendants in every way we can,” said TWU’s McCann. “We fully expect management at Virgin American to respect the decision made by the majority of flight attendants to seek union representation, and we look forward to a fast and fair election campaign.”

Click here to download PDF of the press release.

TWU utilized its political activists on Sept. 15 to reach out to Sen. Coburn (R-Ok) and demanded his release on the bill to avert another Federal Aviation Administration (FAA) shutdown.

Sen. Coburn did drop his threat allowing the Senate to approve the bill to reauthorize FAA saving nearly 80,000 people’s job.

Coburn faced intense scrutiny from both the public and his counterparts for his selfish act vowing to use “all procedural tools at his disposal to force a vote” yesterday for wanting changes for the highways portion of the bill.

President Obama will sign the bill today, which will keep the FAA operating until January 2012.

Politicians have been unable to agree on a long-term FAA bill, so the reauthorization has been extended with temporary fixes 22 times. Republicans in the House continue to refuse to appoint conferees to the FAA Reauthorization Conference Committee. Instead, they are adamant on rejecting the rights of airline and rail workers to form a union like all other workers, through a majority vote. In 2010 the National Mediation Board (NMB) reversed an old practice in which workers who did not vote were counted as no votes. The Republicans insist on placing this issue in the legislation although it clearly has nothing to do with funding or safety issue

The last FAA shutdown, earlier this summer, resulted in thousands of workers being furloughed and the federal government losing $200 million per week.

Military veterans from the Air Transport Division met Aug. 9 and10, in Hurst, Texas. The Veterans Committee members began their quarterly meeting by honoring their outgoing officers; Chairman Thom Lee, Local 565; Recording Secretary Jenni Proctor-Timms, Local 514; and Vice Chair Paul Mazarra, Local 530. Lee and Mazarra (retired) were unable to attend, but each officer received a plaque thanking them for their dedication and leadership.

During the two-day meeting, the Veterans Committee discussed a list of urgent needs that thousands of injured and unemployed veterans face. Today’s veterans face mounting medical bills, prescription drug costs and tens of thousands have lost their jobs and homes.

“Iraq and Afghanistan war veterans are suffering tremendous financial hardships, high divorce and suicide rates,” said International Representative Jose Galarza, an Iraq war veteran himself.

Company policies that cover “eligible” medical treatments and prescription drug coverage’s remain difficult to decipher and are constantly changing. The Veterans Committee keeps in touch with benefits coordinators and the Veterans Administration to counsel fellow veterans, trying to restore lost benefits and assist them in getting back to work.

Drug and alcohol abuse affects many returning veterans and countless find transitioning back into their family or work environments difficult. On Tuesday, Sam Sadler, the TWU Employee Assistance Program (EAP) Coordinator, spoke on the powerful pull of addictions and why they frequently lead men and women into depression and thoughts of suicide. Sadler, a recovering alcoholic himself, has been working with alcoholics, drug addicts and others for over 25 years, counseling many and arranging treatment facilities for those that cannot afford it. Many have successfully sought EAP treatment and turned their lives around.

The new ATD Veterans Committee officers are: Hank Trujillo Chairman, Local 568; Bobby Velasquez Vice Chair, Local 513; and Peter Meyer, Local 562

While the nation and the news media have largely been focused on the debt talks, and everyone hopes for a soft landing, the GOP has demonstrated how far they’re willing to go if their demands are not met: They’ve crashed the Federal Aviation Administration (FAA).

When its authority to collect revenue from airport taxes expired at midnight on July 22, the FAA laid off more than 3,500 federal workers. Air traffic controllers are still on the job, but the agency has stopped work on vital airport construction projects, including installation of new runway lights and construction of new control towers. More than 86,000 construction workers are going without paychecks, but taxpayers won’t save any money. The costs of delay – cancelled contracts, equipment rental -- will add to the final bill (and to the federal deficit).

How did this happen? Republicans object to a rule issued earlier this year by the National Mediation Board (NMB), which supervises labor relations in the transportation sector. Workers at railways and airlines can now vote to unionize by a simple majority; previously, any worker who didn’t return a ballot was counted as a “no” vote. House Transportation Chair John Mica (R-FL) and GOP members of his committee – prodded by Delta Airlines -- are insisting the rule be overturned, or they won’t re-authorize funding for the FAA.

Sen. Jay Rockefeller, who heads the Transportation Committee in the Senate, doesn’t agree. Neither does President Obama, who has stated he will veto any bill that overrules the NMB’s even-handed reforms.

If Mica and House Republicans can’t have their way, they won’t appropriate a penny for the FAA. Even if it means taking revenue away from hundreds of construction companies, throwing thousands of people out of work, and stalling vital efforts to modernize our airports.

Sound familiar? It’s the same flight path Republicans in Congress are taking to raise the nation’s debt ceiling – a routine measure that passed 18 times during the Reagan Administration and seven times during the Clinton Administration. It’s hard to remember now, but there was a time—dating back to Alexander Hamilton-- when honoring our nation’s debts was viewed as a solemn responsibility, regardless of party or partisan advantage. There was also a time – in 2001 – when the U.S. government had a $128 billion budget surplus.

Since then, the Republican program of irresponsible tax cuts for the wealthiest Americans has drained the U.S. Treasury. Now, Boehner, Cantor and McConnell are insisting on more of the same. They demand drastic cuts to childhood nutrition programs, education, Social Security and Medicare. They refuse to raise a penny more in revenue from taxes on corporate jets, closing loopholes for oil companies, or by letting the Bush tax cuts for millionaires expire – they refuse to even tax hedge fund managers at the same rate as other millionaires. If they’re demands are not met, they are willing to risk chaos in global financial markets, throw millions more people out of work, and damage the long-term credit rating of the United States.

As of this writing, it’s not clear how the debt crisis – or the standoff over FAA funding– will be resolved.

The hard work of compromise appears to be a lost art in Washington – but it’s the work that needs to be done to keep people employed, our planes flying, our airports safe, and our fiscal house in order. On final approach you don’t want to behave erratically– you need steady hands at the controls.

Click here to tell Congress to end the FAA shutdown.

TWU members and retiree’s attended the TWU Texas State Conference meeting this week hosted by Local 555 in Dallas, Texas to prepare for the ongoing political struggles and hear from featured guest speakers Texas State Senator Wendy Davis (District 10) and Texas AFL-CIO Vice President John Patrick.

Senator Davis spoke of the political battles targeting those who can least afford the financial cuts and elimination of health and human services, particularly the elderly, unemployed and children who are unable to fight back against these attacks. Senator Davis reminded everyone of last year’s drubbing in the mid-term elections when democratic candidates lost badly. Voters were stirred up for change - change that was fostered by voter anger, distrust and ample Tea Party rhetoric. Senator Davis said that elections have consequences, which are being played out today in Washington and statehouses across the country.

The Republican House “super majority” is seeking to redistrict the very few democratic strongholds in Texas and Senator Davis’s district is on their hit list. She won the 52 percent Republican majority district in 2008 and since taking office has stood firm on her commitments to her constituents. Republicans in Austin want to see Davis gone, but her constituents support her and she has done a remarkable job standing up against Republican led cuts.

Through the state conferences, TWU is able to get boots on the ground at a moment’s notice, when and where they are needed, and many TWU members and union labor activists came to Austin during the last legislative session to make oral statements before the legislature voicing their displeasure against District 10 redistricting attempts and in favor of Senator Davis. The final verdict on the redistricting may have to be settled through the court system.



John Patrick, a retired United Steel Worker and currently serving as Vice President of the Texas State AFL-CIO, recognized the conference attendee’s recent accomplishment in blocking Texas House Bill 2986 that squarely targeted a labor unions’ right to collect dues through payroll deductions. The bill also limited members from lobbying and other forms of political activism. Patrick echoed strong support for the State Conferences and their ability to network, communicating effectively and focusing political activists from around the state.

TWU members also provided updates on events at their locals, Thom McDaniel Local 556 President spoke to the seniority integration challenges between Southwest Airlines and Airtran employees, as did Robert Bettinger TWU Local 555 district 5 representative from Houston. Several American Airlines members reported on their stalled contract talks with the company and International Representative Jose Galarza updated the conference on the upcoming divestiture of American Eagle Airlines by AMR Corporation.

TWU Cope Field Assistant Gwen Dunivent, who chairs the Texas State Conference meetings, reminded the audience to call their legislators over the debt ceiling gridlock and the FAA Reauthorization Bill shutdown.

The next Texas State Conference is tentatively scheduled for late September in Austin, Texas.

American Airlines announced on July 20 an unprecedented financial investment in the ordering of 460 new aircraft. Gerard Arpey, Chairman and CEO of AMR and American Airlines said that today’s order represents another important step in the company’s strategy to build a strong foundation for the future.

Aircraft are not an airline's only asset. Planes can't fix themselves, they can't load or unload themselves -- and they can't provide the quality customer service that is key to success in the airline industry.

Today's announcement was made possible by the significant sacrifices made by TWU members in 2003 to keep American's planes in the sky. Now it's time for AMR executives to concentrate on finalizing contracts that will give our members a strong foundation for our future.

- Garry Drummond, TWU Director of the Air Transport Division

Download the press release