In a Monday evening update to members, Allied Pilots Association president Dave Bates said it didn’t seem that American Airlines was willing to try to get a deal with the pilots’ union.

Or, in Bates’ words, “it is becoming increasingly clear that management does not intend to reach a consensual agreement with APA in the ongoing restructuring negotiations.”

A key difference in negotiations is American’s desire to greatly expand flying of bigger regional jets by regional partners, versus the APA’s desire to fly the larger regional jets itself.

Said Bates:

“The APA leadership is confident that a business case can be made for operating these aircraft competitively in American Airlines livery with our pilots at the controls, in accordance with terms we are willing to negotiate. We challenge management to reverse their outsourcing agenda and put new small narrowbody jets at the mainline where they will have the operational flexibility they desire to fly any number of these new jets to any market. That is a business plan we can support enthusiastically.”

Last Friday, American in its negotiating update said it needs an agreement with its unions in weeks, not months, so it can get on its with its bankruptcy-court reorganization.

Those comments “are not consistent with what we are seeing at the bargaining table,” Bates wrote members. “To say that I am disappointed would be an understatement. Management can choose how they handle bankruptcy restructuring. Is attempting to forcibly erase decades’ worth of collective bargaining truly in our airline’s long-term best interests? I don’t believe it is.”

On another matter, the Transport Workers Union said Monday it’ll still keep working to get early-out incentives for members, despite American’s comment Friday that the incentives as proposed were too expensive. Said the TWU:

“Late Friday AA presented its rationale for rejecting TWU’s proposal for an early out proposal. The Company asserts that the program as designed is too costly. However, AA indicated that it would still review such concepts during the entire 1113 process.

“An early out program is essential for this reorganization and as such your TWU bargaining team will be pushing the matter throughout the negotiations. We consider such a mechanism to be very important in these difficult negotiations.”

The APFA, in a Sunday update, said it was going to keep pushing for the early-out, too:

“By rejecting APFA’s early out proposal American has turned its back on similar plans it has embraced in the past as well as the early out plans recently endorsed by other airlines, which obviously believe in their economic efficacy. With this rejection, AA appears intent on forcing 2300 Flight Attendants out of their jobs and onto the street. Instead, it should find a way where the same number of Flight Attendants could leave or retire voluntarily if given an appropriate financial incentive.

“Of course there’s an up front cost, but the savings it provides over the contract’s term should be very attractive to a forward-thinking management team. And the up front cost is minuscule compared to how much AMR is paying lawyers and financial advisers to find creative ways to exploit our membership.

“We will continue to press the company on the early out. We have also presented the proposal in detail to the Unsecured Creditors’ Committee and the PBGC. APFA firmly stands by the proposal as a creative and efficient alternative to any head-count reductions while providing long-term savings for the company, and allowing Flight Attendants who have devoted much of their lives and sacrificed so much already to leave with dignity.”

Keep reading for Bates’ entire message to members.

Fellow pilots,

As the APA Negotiating Committee reported in their Friday, Feb. 24 update, it is becoming increasingly clear that management does not intend to reach a consensual agreement with APA in the ongoing restructuring negotiations.

Management’s refusal to assign value to the scope changes they’re seeking–while claiming those changes will generate two-thirds of a billion dollars in additional annual revenue–is just one example of the disconnect we’re seeing at the bargaining table. Another related example is management’s unwillingness to discuss our desire to fly the small narrowbody jets they have indicated they plan to acquire. The APA leadership is confident that a business case can be made for operating these aircraft competitively in American Airlines livery with our pilots at the controls, in accordance with terms we are willing to negotiate. We challenge management to reverse their outsourcing agenda and put new small narrowbody jets at the mainline where they will have the operational flexibility they desire to fly any number of these new jets to any market. That is a business plan we can support enthusiastically.

Comments from AMR management reported in The Wall Street Journal indicating a need for new labor agreements “in weeks” are not consistent with what we are seeing at the bargaining table. To say that I am disappointed would be an understatement. Management can choose how they handle bankruptcy restructuring. Is attempting to forcibly erase decades’ worth of collective bargaining truly in our airline’s long-term best interests? I don’t believe it is.

The successful restructuring of American Airlines will hinge on a great many factors. One key factor will be the front-line leadership role that our pilots play in the airline’s operation. Given the deep sacrifices that our pilots have made for nearly a decade and the efforts we have made to find consensual solutions to the airline’s problems, it’s abundantly clear that we have been willing to support this company during the worst of times, but we need to see evidence that management is likewise willing to address our needs. As I’ve noted time and again, the most successful companies understand the value of a motivated, engaged workforce. The abrogation of our collective bargaining agreement in bankruptcy court will not generate the “can-do” attitude essential to a successful enterprise. To the contrary, it will further degrade the already poor corporate culture at American Airlines, increasing the likelihood of an Eastern Airlines-type meltdown.

I’d like to cite a fresh example of what happens when companies fail to engage employees. Some of you may have seen the television and newspaper coverage about pilot job fairs this week in Miami and Las Vegas. A number of American Airlines pilots who attended these job fairs have acknowledged they are planning to resign and go to work for various Chinese carriers. Could anyone have imagined such a turn of events 20 years ago, or even 10 years ago? The fact that some of our pilots are willing to walk away from their careers at American Airlines and move halfway around the world to work in China speaks volumes about the dismal state of affairs at our airline. The pilots seeking these jobs are not just mid-career pilots, but include widebody captains who should be at the pinnacle of their careers. Let’s put it this way–I seriously doubt that there were any Southwest Airlines pilots at these job fairs trying to decide whether it’s time to give up on their airline.

Despite the lack of negotiating progress to date, APA nevertheless remains committed to seeking a consensual agreement with management, and we have repeatedly said so at the bargaining table. Our negotiating team spent most of the past two weeks’ worth of bargaining sessions presenting counter proposals to management’s 1113(c) proposal. Absent a negotiated settlement, we intend to present the strongest possible case in court that management’s anticipated 1113(c) motion should be rejected. This is the next step in a process that will unfold in the weeks and months to come. Meanwhile, consistent with the direction we have received from our legal advisers, APA has been and will remain disciplined, restrained and professional in all spheres, including our public messaging.

Due to the critical nature of events now unfolding, the APA National Officers will remain actively engaged with senior management in an effort to influence their decision-making and to convey our pilots’ views and needs. While our efforts to date in this arena have unfortunately not borne fruit, we will continue to try.

Fellow pilots, more than ever we need to rely on one another as the fight for our professional lives escalates. Whatever our differences, we have many more interests in common. Let’s stay focused on those common interests.

Thank you.

In unity,

Captain Dave Bates
APA President

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