AMR Bankruptcy Update – American Eagle
On Wednesday Feb. 1, AMR announced their restructuring plan, a plan that deals a heavy blow to nearly 9,000 TWU members working at American Airlines.

As for American Eagle’s restructuring, the company was short on specifics saying, “due to fleet uncertainty we have not finalized our plan as of now.” The fleet uncertainty is attributed to contractual articles being addressed in AAs bankruptcy.

They are:
• Allied Pilots Association Scope clause - aircrafts number of seats
• TWUs cap on available seat miles (ASMs)

Eagle’s Chief Executive Officer Dan Garton said their reorganization plan would have to lag AAs bankruptcy because of this. Eagle expects to have proposals ready to pass in 2-3 weeks.

Cathy McCann VP of Eagle’s People Department stated that Eagle must become best in class and more competitive to survive regardless of the fleet they wind up with. Many questions remain on Eagles future as a standalone carrier or staying the primary feeder for AA operations.
Regardless, TWUs action 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. Be assured that we are taking all actions possible to protect your job, your wages and benefits.

Our action plan includes:
• Members mobilization, communication and outreach to business communities
• Political and civic leader involvement, locally and nationally
• External national media communications plan
• 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

The TWU recognizes the anxiety and fear caused by the bankruptcy filing. 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.

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For More Information Visit: http://aa.twu.org/

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American Energy and Infrastructure Jobs Act
Transport Workers Union is strong supporter of surface transportation legislation that is properly funded, grants protections for workers and supports transportation growth in our communities. During the last eight extensions of previous surface transportation bills we have advocated for investments and policy that would match the growing demand for public transportation options.

Last night, the House Transportation and Infrastructure Committee marked up long awaited surface transportation language that had been released to members of the committee in an unprecedented manner which did not provide ample time to allow anyone to read the entire piece of legislation, not even the Chairman! During the marathon markup it was obvious that provisions of the bill were not open to debate and the past bipartisan methods practiced by the committee, was not at all the path that Chairman Mica would proceed with. Dozens of amendments that would have improved the flawed bill were forced through procedure only to be voted down, indicative of the dysfunctional committee. Though dozens of amendments were offered that would have perfected the defunct piece of legislation the bill instead was “railroaded” through. As a result, TWU does not support the American Energy and Infrastructure Jobs Act (H.R. 7).

Perfecting the unsound piece of legislation on the House floor remains hopeful. Until then, there are a myriad of things wrong with the bill. We’ve listed a few:

· The Highway Trust Fund’s dedicated “Mass Transit Account” is renamed the “Alternative Transportation Account” eliminating all dedicated funding for transit in turn creating a $40 Billion hole.

· It ignores years of sound safety precautions leaving individuals and communities vulnerable.

· It eliminates 2000 jobs for Amtrak’s food service workers while forcing Amtrak to foot the bill for any losses of the chosen privatized competitor.

· 13C protections are eliminated in training provisions.

· It forces federal government agencies to prioritize the privatization of transit agencies through new rules and regulations.

· It only allows for operating assistance for smaller transit systems with fewer than 100 buses.


Watching the committee mark-up, it was obvious who had the Chairman’s ear, as his bill grants significant privileges and opportunities to foreign companies that don’t share our American values, don’t produce American products, and don’t hire American workers.

TWU thanks Rep. Russ Carnahan (D-MO-3) for offering amendment HR 3200, The Local Flexibility for Transit Act on behalf of co-sponsor Rep. Steve LaTourette (R-OH-14) and the voting support of Rep. Patrick Meehan (R-PA-7) and Rep. Frank LoBiondo (R-NJ-2) and the attending Democratic members of the committee. Though the amendment failed 26-28, we commend these members partnering in the midst of deep partisanship. Public transportation is not a bargaining chip— it is the lifeblood of many cities around this country.

The House T and I Committee and the House Ways & Means Committee jointly are seeking to terminate the dedicated gasoline tax revenue of the Mass Transit Account which will amount to crippling transit systems around the country.

Meanwhile, the Senate Banking, Housing and Urban Affairs Committee in a bipartisan method presented their multi-modal transportation policies which aim to support local transit agencies by providing flexibility to use federal funds for operating expenses, investing in the America’s workers with current funding levels for the two-year proposal. We commend Senate Banking Chair, Sen. Tim Johnson (D-SC), Ranking Member Sen. Richard Shelby (R-AL), and Sen. Robert Menendez (D-NJ), the chairman of the key transportation subcommittee for their efforts and support in the Senate Banking legislation.

It is undeniable that the use of transit and rail transportation reduces pollution, enhances livability, and creates healthier, more accessible communities. The bill strips away decades of investments in community improvements, while trying to micromanage the use of other funds for the GOP’s pet projects.

In spite of a lack of proper investment, our transit and rail workers work every single day to ensure that every rider is safe, gets to their destination, and is treated with respect. It is a disgrace that the House legislation does not grant similar respect. We cannot support any bill that falsely claims to create jobs. We need a surface transportation bill that creates good jobs now! We do not support the American Energy and Infrastructure Jobs Act, and urge a NO vote when the bill comes to the House floor.

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AA Bankruptcy Update
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/

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    TWU Members to Picket “Job Cremator” Mitt Romney in Florida
    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.”

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    Hyundai-Rotem Workers Win First Contract
    On December 10, Hyundai Rotem workers at the South Philadelphia railcar plant ratified a first contract by an 88 percent margin. The contract, negotiated by a team led by President John Johnson, Jr., established job security, a grievance procedure, and included gains in wages and benefits.

    As International Rep. Jerome LaFragola, who has bargained numerous first contracts, said at the ratification meeting, “This is better than good…it establishes a framework for going forward.”

    The contract came after a long struggle to establish the union and win respect for Hyundai workers. After winning their NLRB election in August 2010, the union had to overcome poor working conditions, worker frustration with bargaining delays and disrespectful treatment by management. The lack of drinking water in the summer heat prompted a walk out in June. In December 2010, just before Christmas, nice workers were fired without just cause. The union filed a case with the NLRB winning back their jobs with $95,000 in full back pay.

    The biggest obstacle to overcome in ratifying the contract was the peculiar employment structure at the plant. TTAP, a contractor in the mass transit and railcar business, supplied workers to Hyundai. Under the terms of the contracting agreement, Hyundai-Rotem workers would be laid off when the SEPTA contract to build Silverliner rail cars is completed in late 2010. Once completed, the workers could not be rehired by Hyundai for at least a year.

    This was resolved by Hyundai-Rotem, paying over a million dollars to TTAP to gain the right to continue employing the existing workers. TTAP no longer will be in the collective bargaining picture at the plant.

    Attorney Clay Newlin, who helped negotiate the contract called this “a huge victory.”

    Without it all the workers would have lost their jobs before the end of 2012.

    Contract highlights are:

    Job Security: Besides the resolution of the problem with TTAP, the contract requires the return of eight categories of work transferred to other employees and a clause that insures the union and the contract stay in place if the plant is moved within a 50 mile radius.

    Wages: Wages will be increased over the 3 year life of the contract by 13.3% to 16% with lowest paid workers getting the biggest increases. To compensate for the absence of past increases a ratification bonus of 3% of gross earnings in 2011 is included in the deal. Overtime for over 40 hours worked or paid for and shift deferential pay round out the picture.

    Health Coverage: Premiums for company supplied health insurance were cut substantially, more than halved for single coverage and cut by a third for full family coverage. Four paid sick days have been added and a safety committee created.

    Vacations and Pensions: An additional personal day and holiday, pay for up to 5 days of Jury duty, up to 5 days of additional vacation and a 401K pension plan with an employer match.

    Due Process and Dignity: A grievance procedure including arbitration, defined job classifications, a no discrimination clause, layoffs by seniority with an 18 month right of recall. Discipline can only be for just cause and with the record wiped clean after 18 months for routine offenses.

    (For a more detailed summary and a before and after comparison visit the Local 234 website.)

    Most workers at the ratification meeting saw the contract as a big step forward, citing the job security gains and the foundation for bringing improved wages and conditions as their grounds for support. Damar Jones, a mechanical engineer on the interior team, said, “We were on the bottom and it can only get better from this point on.” Darren Burke, who works on under floor wiring, added, “I’m good with it. I’ll have my job when the SEPTA contract runs out.”

    A few workers voiced dissatisfaction with the wage gains. Negotiating Committee members all acknowledged that workers deserved more but pointed to the costs of the TTA buy out and the hostile climate for collective bargaining in today’s economy as limiting factors. Clay Newlin pointed out that the contract represented a 26 percent increase in overall compensation. “You show me any contract over the last few years that accomplished that,” he added. Angelique Long, a shop rep on the committee, was optimistic that with the contract in place, wages could be addressed in the next contract. “We’ll come together and continue to build on this,” she said.

    After an open discussion and a question and answer session where all the members present had the opportunity to review the agreement and share their thoughts on it, both pro and con, they voted overwhelmingly in favor of the agreement.

    At the end of the meeting workers eagerly lined up to get TWU 234 t-shirts. Rob Golden, who got a job at Hyundai Rotem in February after being unemployed for two and half years, expressed his satisfaction. “I’ve talked to a lot of people in other unions. They all say stick with the TWU.”

    For a short video with highlights of the meeting go to the Local 234 website.

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    Remembering King
    In 1963, thousands joined Dr. Martin Luther King Jr. on the streets of Detroit for “Detroit’s March to Freedom” to address the inequalities in hiring practices, wages as well as the segregation and brutality that met civil rights activists in the South.

    Today, as union members and activists continue to fight for equality and a voice on the job, they will meet in Detroit for the annual AFL-CIO Dr. King Holiday Observance.

    “The TWU has tirelessly dedicated itself to equality and the dreams that Dr. King had,” said TWU International President James C. Little. “ Today and everyday, it is crucial we stand together to defend our rights that are under attack, something we have fought for, for so long and to keep his legacy alive.”

    King believed in making this country a better place. A place where everyone is equal and there is justice for all, while encouraging people to help make it that way and by giving back to their communities.

    On this day, as the nation faces so many obstacles, economically and politically, we encourage all of you to reflect on Dr. King’s legacy and stand together to fight back against the inequalities and attacks against workers’ rights as Dr. King did himself.

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    Local 252 Members Ratify New Contract
    TWU Local 252 members overwhelming voted to ratify a new contract with Veolia Transportation Inc., the company responsible for the new Nassau Inter County Express (NICE) bus system in Nassau County as of January 1.

    The contract was ratified by a tally of 400 “Yes” votes 29 “No” votes by fixed route drivers and mechanics, and 50 “Yes” votes to 39 “No” votes by paratransit drivers and mechanics, and takes effect immediately.

    “We all worked very hard under a very tight timeline to reach a new agreement,” said Patricia Bowden, president of TWU Local 252, representing nearly 800 workers at the new company. “This contract is a major step forward in protecting jobs, health care and retirement. It’s a winning scenario for everybody to have TWU members, with years of experience, on the job doing all we can to provide quality service to our passengers.

    The new contract includes pay raises in every year of the agreement: Three percent in 2012, 2013 and 2014, 3.5 percent in 2015 and four percent in 2016.

    Former LI Bus employees will retain their seniority at the new company, and the contract includes a grievance procedure, which requires “just cause” in the case of employee discipline.

    Veolia Transportation will pay 80 percent of the cost of employee health care under terms of the new agreement, with employees contributing 20 percent. The company will also contribute to a 401(K) retirement savings plan for all eligible employees.

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    TRANSPORT WORKERS UNION
    OF AMERICA AFL-CIO
    501 3rd. St. NW 9th Floor
    Washington, D.C. 20001
    202-719-3900 OFFICE
    202-347-0454 FAX