Eagle pilots union says AMR will file Section 1113 motions for Eagle by end of July

AMR Corp. is expected to file a motion with the bankruptcy court to reject its union contracts at regional carrier American Eagle by the end of July, according to the Eagle pilots union.

In a hotline message sent out to pilots on Friday, the Air Line Pilots Association said the Fort Worth-based company indicated it will file a Section 1113 motion shortly. The union's negotiating committee was presented with a contract proposal that they say is "virtually indistinguishable" from the initial term sheet given to Eagle pilots on March 21.

"We on the Negotiating Committee are frustrated by this regressive approach. We understand that in negotiations there are ?carrots? and ?sticks,? but to wield both at the same time is confusing. Normally, parties don?t offer something and then pull it off the table unless circumstances change. Nothing has changed in the last few weeks to warrant a regressive move," the hotline message said.

The union, which represents 3,000 pilots at American Eagle, added that AMR has not reduced its cost savings targets for American Eagle as management has done with unions at American Airlines.

In March, Eagle management asked its pilots for $43 million in costs cuts, the most of any labor group at the regional carrier. The airline proposed cutting captains? flight-hour pay rate by 5 percent, eliminating one week of vacation and cutting the company?s 401(k) contribution. It also wanted to negotiate pay rates for pilots to fly larger 60- to 76-seat regional jets.

Keep reading for the full hotline message.

-Andrea Ahles

Fellow American Eagle Pilots,

Today, American Eagle management presented your Negotiating Committee a proposal that is virtually indistinguishable from its initial bankruptcy term sheet of 21 March. A copy of that proposal is attached. Management claims that it intends to continue bargaining based on the progress that has already been made. It now says that if a consensual deal is not reached it will file this latest proposal with the bankruptcy court in its 1113 motion and ask that the Court allow them to impose these terms. Management indicated that it would shortly file its motion, probably by the end of July.

We on the Negotiating Committee are frustrated by this regressive approach. We understand that in negotiations there are ?carrots? and ?sticks,? but to wield both at the same time is confusing. Normally, parties don?t offer something and then pull it off the table unless circumstances change. Nothing has changed in the last few weeks to warrant a regressive move.

Your Negotiating Committee cannot and will not explain this move on behalf of management. In this circumstance, management will need to explain itself to the Eagle pilots, and make the case to all of us that its effort reflects something other than bad faith.

Management must also explain to the pilot group why it has not reduced the amount of savings it is demanding from Eagle pilots, even as it has done so for all the AA employees. Not only are we one corporation after all, but we are also the arm of the corporation that has been consistently profitable. Therefore, management must also make the case that the improved corporate revenues we at Eagle have helped generate shouldn?t be shared with us in the form of a lower demand.

A significant reason for the slow-moving pace of negotiations, which also affects our ability to present comprehensive counter-proposals, is the amount of data that needs to be costed-out for various proposals. Many of the issues discussed at the table are quite complex and management has had difficulty in providing us the required data to determine the costing on a timely basis. Not all data is readily available and the provision of backup information and subsequent analyses are time-consuming processes. However, unless and until management does a better job of supplying its data and requested information to your Negotiating Committee, bargaining will remain difficult.

Your Negotiating Committee and MEC remain committed to reaching a consensual deal, but we need a willing partner in management. Its actions today represent a step backward from its stated goal of reaching agreement with us. We hope and expect that management will clarify its intentions and return to the bargaining table in good faith.

Fraternally,

Doug Gibbs
Tim Jackson
Matt Rettig
Alex Fotopoulos

Source: http://blogs.star-telegram.com/sky_talk/2012/07/eagle-pilots-union-says-amr-will-file-section-1113-motions-for-eagle-by-end-of-july.html

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