Implementation Agreement Reached
March 27, 2020
The Association and American Airlines have
reached an agreement covering implementation of certain elements of the JCBAs
pending successful ratification of those contracts today. The following items
cover pay, retirement and certain benefits that are most important to our
membership:
- All
JCBA wage rates will be effective the first Monday following the date of
ratification (“DOR”), inclusive of - Chart
Rate - All
Premiums - Skill
Pay - Fuel
Tank Entry (which will be paid as a temporary upgrade) - MLS
Driver Premium (which will be paid as a temporary upgrade unless a separate MLS
Driver bid area is established) - Taxi
& Run-up Pay (which will be paid as a temporary upgrade unless a separate
Taxi & Run-up bid area is established) - Shift
Differential (Shift differential for Legacy American TWU employees will be
programmed at JCBA rates following ratification but will continue to be based
on shift definitions under the 2012 AA/TWU CBAs until those employees are moved
to the Work Brain system. JCBA shift definitions will apply to all covered
employees thereafter.)
- The
Signing Bonus Payment agreed to by the parties shall be paid no later than
60-days after the DOR to all active employees as of DOR. Employees on approved
leave of absence or not working due to OJI shall receive the Signing Bonus
within 45-days of returning to active status. - The
Vacation Lump Sum Payment (to eligible employees) agreed to by the parties
shall be paid no later thansixty (60) days after DOR. - All
other pay elements not provided for in paragraphs 1, 2 or 3 above will be paid,
retroactively to the first Monday following the DOR (in a lump sum equivalent), within one-hundred twenty (120)
days after DOR, but in no event more
than one-hundred (150) days, and thereafter will be paid on a continuing
basis as described in the JCBAs. - The
IAM National Pension Plancontribution rates provided for in Article 30 – Retirement shall be effective no later
than May 1, 2020. The employer matching
contributions and employer non-elective contributions provided for in Article
30 – Retirement shall be implemented no later than January 1, 2021. For the time period from May 1, 2020 until
such time as the employer matching contributions and employer non-elective
contributions provided for in Article 30 – Retirement can be made effective for
employees covered by the JCBAs, but no later than January 1, 2021, the
following will apply:
- TWU
Designated Employees will receive
contributions to the 401(k) Plan in the amount of 9%; no employee contribution
will be required; and will not receive any employer matching
contributions to the 401(k) Plan.- IAM
Designated Employees will receive employer contributions to the 401(k) Plan in
the amount of 4%; no employee contribution will be required; and will not
receive any employer matching contributions to the 401(k) Plan. - The
employer contributions provided for in paragraphs 5) a. and b. above will be
made to employees on a monthly basis and will be made after the last pay period
of each month. For example,
contributions for eligible compensation earned in May will be contributed in
June. These contributions will be
reflected in employees’ Fidelity 401(k) statements but will not appear in the
employees’ Company payroll statements.
- IAM
- For
2020, profit sharing for each participant covered by the JCBAs will be
calculated on a pro-rated basis, using the profit sharing calculation currently
in effect for employees represented by the Association up to the DOR and using
the profit sharing calculation provided for under the JCBAs for the remainder
of the year.
- All
grievance settlement monies owed to the TWU/IAM Association as a result of
joint negotiations shall be paid to the Association within 30 days of receiving
payment instructions from the Association, following the DOR. - The parties recognize the importance of the
seniority provisions and applications of the JCBAs, such as rebids,
realignments, shift bids and transfers, reductions in force and agree to
preserve and utilize employees’ seniority during the implementation process.
The parties also acknowledge the need to combine overtime and field trip call
out procedures into a single system and to allow shift swaps/trades between
employees under their respective JCBAs; therefore: - Local
management and Association representatives will work together to implement the
overtime process outlined in the respective JCBA as soon as practicable in each
location. - Field
trips will continue to be called out in the same manner as they have been prior
to the ratification of the JCBAs until such time that the Company and
Association agree to a single system Field Trip call list. - Local
management and Association representatives will work together to implement the
shift swaps/trades as soon as practicable in each location.
The Association agrees to work collaboratively in order
to assist the Company with implementation of these JCBA provisions.
- The
M&R International outsourcing provisions shall become effective April 1,
2020 upon which the annual 12-month lookback will be based. The data used to
determine the initial International Outsourcing hours measurement to be sent to
the Association no later than June 1, 2020.
- Legacy
American TWU employees’ sick bank shall be credited with up to ten (10) days no
later than December 31, 2020, based on any ten (10) months in 2020 where at
least 80 hours were worked by the respective employee. - The
payback period for employees who elect to take a ‘loan’ due to the change to
pay-in-arrears or bi-weekly pay shall begin no earlier than February 1, 2021.
The Company may change employees to pay-in arrears and bi-weekly pay, where
applicable, as soon as is practicable.
The impact of the serious COVID-19
pandemic on the operation of the Company has created uncertainty in the ability
to predict exact implementation dates for some contractual items the Company is
obligated to institute. Therefore, the parties have agreed to meet within 60
days after ratification and on an ongoing basis to reach agreement on any
implementation issues that are outstanding after the date of ratification and
are not addressed in the Implementation Agreement reached today.
While we expect to reach mutually agreeable terms that would cover
any outstanding implementation issues after date of ratification, the
Association has not waived any of its rights to resolve disputes that
may arise, including the grievance procedure.