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TWU Negotiators Propose Early Out Package to AMR

TWU Negotiators Propose Early Out Package to AMR
Today, the TWU representing all work groups drafted a serious cost savings proposal for the company. The committee has proposed an early out package for all eligible employees in an immediate cost savings benefit for AMR. Eligibility for the package would include:

Plan A: Retirement eligible

• 10 years of service and age 55 or greater
• Incentive payment of $75,000 (one time lump sum payout)
• Continued air travel as provided for current retirees
• Continue medical coverage as provided for early out participants and current retirees
• Lump sum payment for all accrued vacation and unused sick time

Plan B: Early out only, not retirement eligible (age)

• Eligibility: Minimum 10 years of service with AMR and age 45 or greater
• Incentive payments same as plan A payout
• Air travel; same as plan A, after reaching retirement age
• Medical insurance coverage: 18 months of COBRA subsidized at the current active employee rate
• Lump sum payment for all accrued vacation and unused sick time (same as above)

In a letter to Jeff Brundage Senior VP of Human Resources for American Airlines, TWU International President James C. Little said, “We believe it to be a program that is both sensitive to the concerns of loyal employees, while also addressing the cost concerns of the company. It is in short a fair and humane alternative to the draconian lay off measure currently being contemplated by the company.”

The early out proposal was sent to AMR today and will be reviewed by the company over the next few days. We cannot speculate on their answer, but we anxiously await their response to this significant move forward.