Q1: Why did the TWU and IAM form a representation alliance?

Transcription

1 The TWU/IAM Association Q&A as posted on the usaamerger website: Q1: Why did the TWU and IAM form a representation alliance? A: The alliance was formed because both the TWU and the IAM concluded that joining forces as partners would offer members of both unions the most bargaining leverage and representation resources possible at the new American Airlines. Q2: Who will administer the Associations? There are three Associations Mechanic and Related, Fleet, and Stores -- that will be jointly administered by the TWU and IAM International Presidents, or their designees. Q3: How much authority will the Associations have over each respective union? The Associations will have no authority over TWU and IAM. Rather, the Associations will govern system-wide negotiations and other system-wide representation issues as outlined in the Association Agreements. Q4: Who will be the first Director of the Association, TWU or IAM? A: The IAM International President will be first Chairperson for a two-year term followed by the TWU International President. Q5: Will I have the opportunity to vote on whether or not I am represented by the Association?

2 A: Yes. Following the completion of the American US Airways merger, the Associations will file representation applications with the National Mediation Board (NMB), a federal agency, which will culminate in three separate elections, one for each of the Mechanic & Related, Fleet Service and Stores classifications. You will vote in the election of the classification in which you work with others from both carriers. Q6: Will I still be a member of my Union, or will I become a member of the Association? A: The Association will have no members, but it will hold certification for the combined work group. Union membership will be based on a person s location, as outlined in Appendix B to each Association agreement. Q7: Will the structure of either Union change at any level? A: No. TWU and IAM will remain separate and independent, but they will jointly administer the single contract negotiated and ratified by the classification following completion of the merger for their respective members. Q8: Is the AA TWU Presidents Council being dissolved? A: No, the AA TWU Presidents Council will still meet per the bylaws. Q9: What methodology was used to allocate station representation to each Union? A: The guiding principle was the fair standard of each Union retaining responsibility of representation based on the percentage of membership with which they entered the Alliance. A snapshot of

3 station staffing lists was used to determine system membership numbers, and then the lists were used to show which union had the majority of members working at each station or location Q10: When were the station assignments determined and where did the employee information come from? A: The best efforts of both unions were used to determine employee numbers at each carrier and at each location when discussions began in February These numbers were used by both TWU and IAM representatives to determine representation allocation. The Association agreements recognize final and accurate numbers will be supplied by the respective carriers as of the payroll closing date(s) immediately prior to the signing of the agreements. If necessary, adjustments may be made to Appendix B after the final snapshot is received from the carriers. Q11: Were employees on leave of absence or recall at a particular station considered when determining the assignment of a station to a particular union. A: Members with recall rights were not on the station staffing lists today but could be if they become active after possible re-staffing of cities following ratification of single joint CBAs. Any future changes in the carrier s staffing that significantly affects the ratio will be addressed by the Association Director and the Association Vice Director under the terms of the Association agreements. Q12: If a current TWU station within a one station set is being reassigned to the IAM, how does that impact the one-station agreement? A: This will need to be worked out while negotiating a single contract that covers the employees of the merged company

4 Q13: What impact will the formation of a Joint Council have on collective bargaining with the new merged carrier? A:The most important reason for the formation of the Alliance between the IAM and TWU is the advantages it gives us in seeking to roll back the bankruptcy driven concessions both groups have endured and secure an industry leading contract at the world's largest carrier. When the carriers merge, the Company will seek the synergies associated with having single collective bargaining agreements covering the AA and US Airways work groups. Working together we can choose the most favorable provisions from both agreements covering our common work groups and build on them in negotiations to make sure the membership is properly rewarded for the financial and productivity gains produced by a single operation. Of equal importance, both organizations can focus all of their efforts and resources on securing the best possible agreement for our members rather than wasting time and effort in lengthy and bitter representation fights that will create long term divisions and inevitably limit and delay improvements for both our memberships. The Alliance assures that the resources and work of both organizations will be focused where it should be on improving the work lives of our members. Q14: Will the formation of the Association change my current contract? A: No. Your contract will remain in full force and effect and will not be changed until 1) either union reaches a new agreement for their members only at the pre-merger carrier in which they currently represent employees, or 2) the Association negotiates a single agreement to cover employees of both pre-merger airline in a particular classification and it is ratified by the combined TWU- IAM memberships.

5 Q15: Will the forming of the Association impact the current IAM-US Airways negotiations? A: No. The IAM will continue bargaining with US Airways for its current members at the stand-alone carrier until the National Mediation Board determines US Airways and American Airlines are operating as a single carrier. The IAM s position is the US Airways must complete its bargaining responsibilities with the IAM before joint negotiations can begin. Q16: When will the Association begin bargaining a combined/joint contract? A: After the airlines merger is completed and the membership approves a TWU/IAM joint representation alliance. Q17: How will the Association negotiate a joint contract for each of the different classes and crafts at American Airlines and US Airways? A: Per the Association constitutions, the Negotiating Committees shall be comprised of an equal number of representatives from the TWU and the IAM for each class & craft. Q18: Will the Association have separate negotiating committees for each class and craft? A: Yes. Each class and craft (Mechanic & Related, Fleet Service and Stores) will have their own negotiating committee. Q19: Will the formation of the Alliance affect the seniority integration agreement reached between the TWU, IAM, American Airlines and US Airways? A: No. Seniority will be integrated as set forth in the previously

6 announced Seniority Integration Agreement Q20: Will my dues remain the same even if responsibility for my location shifts to a different Alliance member? A: No. Dues will be determined under the Constitution and bylaws of the Union with representation responsibility for the location. Q21: Will our dues structure be different at each station depending on which Union is servicing the members there? A: Yes. The TWU and IAM have different dues structures. The TWU has a 2x the hourly rate dues structure. IAM dues vary and are set by the membership of each Local Lodge. Q22: Will TWU Local assets be assigned over to the IAM if a Local is disbanded? A: TWU assets will not be assigned to the IAM. Under the TWU Constitution, such funds would be placed in a special fund to be run by the TWU IAC for the benefit of the TWU ATD. Questions and Answers Part 2: Q1: Why is this the right time for the TWU/IAM representation Alliance? TWU and IAM both believe that fighting to achieve industryleading contracts for TWU and IAM members at the new American Airlines is a better use of resources than fighting each other in a bitter representation campaign. With the issue of representation settled, preparations for joint negotiations can begin much sooner and positive results can be achieved much quicker. We are currently operating in an environment in which unions and collective bargaining are under continuous assault from anti-worker forces. Our preference is to work with other

7 labor organizations to fight management and those who wish to take our rights away, rather than to fight each other. Indeed, AFL- CIO President Rich Trumka, in a letter to both unions, urged the TWU and IAM to join together rather than fight for precisely this reason. Q2: Will the TWU/IAM Association be our new union? No. The Association will only hold the certification. The Association is an affiliation between the two unions that will seek to have the NMB certify it to represent the membership. These sorts of affiliations exist throughout the rail industry and, to a lesser extent in the airline industry, and have been formed in response to mergers and consolidations. Q3: How will station ratios affect members who are on layoff and awaiting recall back to a station that will be administered by a different labor partner? There are no station ratios. The ratio is on a system-wide basis. There would have to be a shift in the system-wide ratio before any possible realignment of station responsibility would be contemplated. Recalls will be handled in accordance with the individual CBAs until a single CBA is negotiated with the carrier. Q4: How long will the TWU/IAM Airline Employee Associations last? The Associations are intended to be the permanent certified bargaining representative of the combined groups. They can be changed only if both unions agree to do so, or if another union applies for representation to the NMB and, after winning an election, is certified to displace the Association. Q5: Will either labor partner lose membership because of the Association? No. The Association in and of itself will not create membership loss for the TWU or IAM. The system ratio snapshot determines the percentage of the combined membership each union retains. Gains

8 or losses in future total membership will be shared according to the system ratio snapshot. Q6: How will the Association affect any future union mergers? A number of organizations over the years have expressed interest in having an alliance or merging with either the IAM or TWU. Those proposals will be evaluated based on their merits. Participation in the Association will have no bearing on the matter. Q7: Will the members have only two choices when the Alliance election is held? Most likely, yes. When the Association applies for representation the choices will be for the Association or no union, unless an outside union intervenes and appears on the ballot. Q8: How will station ratios affect members who are on layoff and awaiting recall back to a station that will be administered by a different labor partner? There are no station ratios. The ratio is on a system-wide basis. There would have to be a shift in the system-wide ratio before any possible realignment of station responsibility would be contemplated. Recalls will be handled in accordance with the individual CBAs until a single CBA is negotiated with the carrier. Q9: If at a later date the balance in a certain station turns in favor of one labor partner due to recalls, will that station revert to the other labor partner? No. Stations will not be reassigned based solely on staffing changes at those particular stations, but rather on the overall system staffing. Unless the system ratio of the labor partners is significantly altered, there will be no station reassignments. However, if future staffing changes have a major impact on the initial system ratio, the Association Chairman and Vice Chairman (leadership of both unions) would meet and discuss if particular station reassignments are necessary.

9 Disputes arising over this subject that cannot be resolved by the parties will be presented to a neutral umpire for resolution. Q10: Who will pay for the salaries of the newly created positions in the association? There are no newly created salaried positions in the Association. It will be serviced by the existing officers of both organizations. Q11: What will happen to TWU locals in those stations that will turn IAM? The TWU local charter will be withdrawn and the assets will go into the general fund earmarked for future ATD negotiations and expenses. Q12: Will there be any realignment of our TWU locals because of this joint agreement? No. Q13: How will transfers of membership be handled when a TWU member transfers to an IAM station and vice-versa? A procedure will be worked out between the unions modeled on the procedures both organizations have when a member transfers to a city or station covered by a different Local. No initiation or transfer fees will be assessed by either union. New hires, however, will pay any initiation fees required by the labor partner responsible for the location at which they are hired. Q14: How will local grievances be handled? The same as today. Q15: How will the alliance help us to negotiate a joint contract? The primary goals of a joint contract will be to preserve the best in both agreements and to make sure our membership is rewarded for the efficiencies created by the merger. We will also be able to pool our resources and expertise, focusing them on securing an

10 industry-leading joint contract as quickly as possible. Q16: Who will help if the two unions disagree on certain contract issues? All negotiating committees have some degree of initial disagreement on issues, and that is by design. Committee members come from varied backgrounds and locations so as to be a proper representation of the vast membership. But the varied backgrounds and experience is precisely what is needed to craft innovative solutions to the issues facing our membership. Even if there is initial disagreement, negotiating committees ultimately find consensus. This Joint Negotiations Committee will be no different. Q17: Will the TWU and IAM work under two different work rules? TWU members at American Airlines and IAM members at US Airways will work under their current agreements until (1) either union reaches a new agreement for their members only at the premerger carrier in which they currently represent employees or (2) the Association negotiates a joint agreement that is ratified by the memberships of the TWU and IAM. Once there is a ratified joint agreement, all work rules should be the same, except to the extent that some Locals may bargain variations in matters left to their discretion. Q18: Will there be any restrictions on system transfers due to the Association? When a joint contract is negotiated by the Association and ratified by the TWU and IAM memberships there will be no restrictions on system transfers as a result of the alliance. Q19: Will TWU members have a choice on picking to stay with a 401k and match instead of the IAMNPF? The TWU has agreed with the IAM that in joint negotiations it will support the preservation of the IAMNPF for IAM members and

11 make it available as an option in negotiations to TWU members. However, having a 401k match either as a supplement (for everyone) or as an alternative to the IAMNPF (for TWU members) is also a goal in negotiations. Ultimately, the members will decide to approve or reject whatever is negotiated with the carrier. Q20: Are TWU members starting a new pension plan or handing over our frozen pension to the IAM National Pension Fund (IAMNPF)? No. There is no plan to start a TWU pension or transfer the assets of the frozen pension to any other entity. Q21: Will TWU members be forced to participate in the IAMNPF? No. The objective is to preserve as much choice and flexibility as possible. However, if we have the opportunity to restore or offer a defined benefit plan to TWU members we have an obvious interest in doing so. Ultimately, the members will decide to approve or reject whatever is negotiated with the carrier. Q22: Would all union (TWU/IAM) members have a choice on joining or staying in the IAMNPF or 401K with match? IAM members have already voted to participate in the IAMNPF instead of the company-offered 401K match. If the company agrees in negotiations, TWU members will also have the same option. The best alternative is having a defined benefit plan with benefits comparable to what was taken from us in the bankruptcy process. If that cannot be accomplished we will try to provide as many alternatives as possible. Q23: Will TWU members receive credited service if TWU members choose to join the IAMNPF? Yes. The IAMNPF credits previous service in qualified plans toward vesting and early retirement options. Q24: Will there be any type of additional dues that our

12 members must pay for this new joint association? No. Q25: Could dues rates change as a result of members switching to a different labor partner after implementation of the Association? Yes. The TWU has a 2x the hourly rate dues structure. IAM dues vary and are set by the membership of each Local Lodge. Q26: Will either union s members have to pay an additional cost for being a labor partner in the Association? No.