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Bankruptcy can be good thing in airlines' experience

by Tom Walsh/Free Press Business writer.

     Detroit's two quasi-nationalized automakers could come through bankruptcy as strong competitors if they use the process to improve the products they offer to customers, said Ed Bastian, president of the recently merged Northwest and Delta airlines, both of which emerged from Chapter 11 in 2007.    

     In an interview Thursday before a dinner speech to the Detroit Regional Chamber's Mackinac Policy Conference, Bastian said, "Bankruptcy worked for our companies. ... Now we stand as the strongest airline in the United States and the largest in the world."

     He also said the Delta-Northwest hub in metro Detroit is the best facility in North America, and Delta intends to position Detroit as its gateway to Asian markets. The airline will launch a direct flight from Detroit to Shanghai, China, next week.

     Not only did Delta and Northwest use bankruptcy to reduce costs to 15% below those of key competitors, but they also used debt reduction and cost savings to transform Delta from a national carrier into a major international airline. Delta's routes were only 20% international before bankruptcy. Now the company is 40% international, and the goal is to soon become 50% international

(Click on above title to read entire story.)

Branson: Unlikely all big U.S. airlines will survive

by Reuters

     British entrepreneur Richard Branson, founder and president of Virgin Atlantic Airways VA.UL, said on Tuesday he believes it is unlikely that all big U.S. airlines will survive the next 12 to 18 months.

     "I don't think that the American government will yet again put more billions into the airline industry. They've learned their lessons from the car industry," Branson told Reuters in an interview in Tokyo.

     "I just happen to believe it is unlikely that all the big American carriers will survive the next 12 to 18 months," he said, adding that at least two airline companies are vulnerable.

(Click on above title to read entire story.)

NMB  

Senate Confirms Former AFA-CWA President for National Mediation Board

     Airline employees in the United States have a strong advocate for workers' rights with the Senate's confirmation of former AFA-CWA President Linda Puchala as a new member of the National Mediation Board, the agency that oversees labor law for transportation industry workers.  Obama made the appointment recently and Congress approved it last week.

     APSA officers are happy with this appointment to the National Mediation Board because it means having someone with experience and a commitment to workers' rights for airline employees during organizing drives and for those with a union contract, during the collective bargaining process.  The appointment of Puchala to the NMB will help restore integrity to the NMB that has been lacking.

     As stated by Pat Friend, President of AFA/CWA, "For years, the NMB has operated under arcane and unreasonable rules that make it difficult for workers to organize and bargain contracts," said Friend. "We look forward to working with Ms. Puchala to ensure that the NMB adheres to its mission of protecting employees' right to engage in free and fair collective bargaining in the airline industry."

     We at the APSA couldn't agree more and with help from American Airlines' agents around the system, the APSA really thinks that we could WIN our next union election.  This appointment to the NMB gives us hope that we haven't had since before our last election.   If your location hasn't yet jumped on board with the organzing drive now taking place for American Airlines agents, contact us to find out how to get invovled.  Click on the Contact Us link above to send a message.

     Appointments to the National Mediation Board are extremely important to us during organizing drives.  The NMB is the entity that overlooks union elections in the transportation industry.  These are the people who decide whether or not a YES/NO ballot election takes place.  This could mean those not voting woudn't be counted as a NO vote.  During our last election we filed over 200 charges of interference, coercion, and other charges against the company.  The National Mediation Board allegedly conducted an investigation without interviewing any of the witnesses and found in favor of the company.  Having a board in place with experience and commitment to workers rights ensures us a more fair election and process.  This is important for our next union election, something we have been waiting years for.

SOUTHWEST AIRLINES AGENTS REACH TENTATIVE AGREEMENT

IN UNION NEGOTIAIONS.

     Southwest Airlines agents have reached a tentative agreement with management for a new union contract.  Some of the hightlights in their TA (tentative agreement) are as follows:

1. Substantial wage increases retroactive to November 1, 2008.

          Current maximum pay is 24.00 per hour in Res and 24.35 at airports.

2. Improved 401(k) match

          8.3% retroactive to January 1, 1, 2009

          9.3% as of January 1, 2011

3. Double time for mandatory overtime

4. Second day off mandatory overtime paid at double time and one-half

5. New technology language for current and future work protection

6. Improved retiree insurance language

7. Voluntary bid release

8. Dues check off bi-monthly

9. 4 year duration to be amendable October 31, 2012

     According to a story in the Associated Press by David Koenig, the company will also be offering early out incentives that include cash severance that will average $30,000.00 to $50,000.  Southwest also offered company-paid medical and dental coverage for six months, and travel benefits including lifetime free flights for some workers who wouldn't ordinarily have qualified yet for such perks. 

     Southwest is offering these incentives until June 19.  Company executives have said they don't have a goal for how many jobs they'd like to eliminate with the buyouts.  Of course, layoffs haven't been ruled out if air traffic and revenues continue to decline.  The tentative agreement will soon go to a vote of the membership.

 Continental Airlines to cut 18.5% of Reservations Agents

     Continental Airlines announced this week that they will be laying off 18.5% of their reservations agents due to an increase in Web usage for booking flights and a decline in travel.  Continental announced a cut of 500 reservations jobs based in the United States. The layoffs will not affected an additional 500 reservations agents based in 8 different International offices.  Their TPA office will lose 100 jobs immediately along with 270 from their HOU office and another 80 from their SLC office.

     After the layoffs they will close their Tampa reservations office in July that will affect another 580 reservations agents.  Agents with enough seniority will be allowed t transfer to other offices or work from home.  Continental Airlines Agents "work from home" program, like American's, pays less per hour however benefits for both office and work from home employees at Continental share the same benefits.  American Airlines agents work from home employees are paid much less and have far fewer benefits than the agents working in an office.

     Although Continental Airlines employees are also currently non-union, their benefits for work from home are far superior to American's.  Click on the following links to read more:  

Continental Airlines to cut 270 Houston call center jobs

by Christine Hall/Houston Business Journal

Continental Airlines closing Tampa reservations center, affecting nearly 700 workers

by Jeff Harrington and Justin George/St. Petersburg Times

 

     Although a union contract cannot stop office closures, they can and do have protections for employees who's jobs are being affected by technology, outsourced, or moved to "at home" locations.  Such protections apply to Southwest Airlines and US Airways employees to name a couple.  Although Continental agents are currently non-union, their "home based" workers earn more and have better benefits than American for the time being.

U.S. airlines running a little low on cash: experts

by Kyle Peterson, Reuters

 

 

CHICAGO (Reuters) - U.S. airlines, struggling to spur demand amid economic recession, face a potential liquidity crisis if revenues keep falling while credit markets remain tight.

Despite their best efforts, several of the top U.S. airlines currently have less cash on hand than some experts think is comfortable.

If revenue does not increase this year, carriers may breach the minimum liquidity covenants enforced by their creditors, who then may accelerate the loan and force a default.

"If revenue doesn't stabilize and capital markets remain constrained, then I think it's certainly possible that we'll see increased risk of a covenant breach for a couple of carriers moving into 2010," said Fitch Ratings analyst Bill Warlick.

The airlines that face the greatest risk of covenant breach are US Airways Group (LCC.N), American Airlines parent AMR Corp (AMR.N) and United Airlines parent UAL Corp (UAUA.O), he said.

"This scenario would likely unfold only if revenue trends continue to worsen through the summer with no evidence of a U.S. macro recovery appearing by late in the year," Warlick said.

(Click on story title above to read entire story.)

  This story below,written by Christopher Elliott-travel columnist at MSNBC, has been a complaint of agents across the country at American Airlines.  Part-time shifts, which make up over 60% of airports, are being cut even more.  Agents are working so short staffed at airports that some passengers are unable to check-in on time even when showing up almost 2 hours before flight time.  This story shows one more example where an agent could be conceived as "RUDE" in a bad letter and have the letter put on file and the agent warned that more letters could lead to Steps up to and including termination.   

But Seguchi, who was visiting a friend in Orlando, couldn’t have anticipated the long check-in lines at the airport. “There were only a few ticket agents at the counter, so the line went on forever,” says Fran Mingle, Seguchi’s friend.  “She waited and waited. After getting concerned about missing her flight because of the inordinate delay, she asked if she could be accommodated next but the American Airline's personnel told her ‘no’.”

Seguchi missed her flight and was asked to pay an extra $2,600 for a ticket the next day. American had thrown the book in her face.

(Click on the story title above to read the entire story.) 

CR1 write-ups and Steps being issued at alarming rates.

     Agents around the system are complaining of write ups in their personnel files.  As an agent at American Airlines you have a grievance procedure available for your use in case of disciplinary action.  Although not unbiased the grievance system can sometimes work for you.  If your station is applying rules differently and headquarters isn't aware of it, filing a grievance may help you overturn a bad decision made locally.  Of course with a union instead of having former management members acting as hearing officers, a 3rd part neutral arbitrator may be used as a final step.

     A couple of the biggest mistakes agents make when trying to fight disciplinary action or misapplication of policies, are not following up in a timely manner and not bringing a witness with you.  If you are called into an office by corporate security or a member of management you have the right to ask if the meeting in any way may lead up to the issuance of disciplinary action.  If so, you have the right to bring a peer witness in to the office with you before proceedings begin.  Make sure you bring a witness and ask your witness to take good notes.  They are not allowed to speak on your behalf, until you have union representation, but bring one with you nevertheless. 

     If you are subject to Step disciplinary action for job performance and wish to file a grievance, you must abide by the company's timelines.  They are spelled out in the grievance rules and you may ask your supervisor for a copy.  Unfortunately only the employee is held to the timeline, the company is not and may do what they want without a legally binding contract.

     CR1 writeups are basically just a discussion record between the agent and management.  Management members who are doing their job correctly should have CR1 writeups for their agents that should include things like, coaching and counseling on issues that may not be up to company standard, they should also include good letters, and praise for agents when someone is doing a great job or has gone over and above what is expected.  In some cases agents are saying that their are writeups they didn't know were there.  This is possible if your supervisor had a conversation with you even though they didn't say they were placing it in your CR1 files.  You also have the right to book an appointement to go through your personel file.  You may not be allowed to make copies of things in it, but you can take notes when going through it.

     Many times one hears from agents that unions protect people who are lazy or are slacking on the job and leaving the work to others.  This is only true if management has not done their jobs properly.  If an agent is not performing up to company standards than the supervisor should be having discussions and providing additional training to agents to bring them up to par.  If management has tried to change an agents behavior by coaching and counseling and working with them to make change, and have documented it, then even a neutral arbritator will most likely find in favor of the company and rightfully so.  If management is not doing their job by documenting problems and finding a way to better the agent, then the union will fight to get the employee another chance.  It is a requirement that unions represent their members and if mangement has done their job then the decision of the company may stand when it comes to disciplinary action.

     Members of the Association of Passenger Service Agents/CWA Local 6001 who receive disciplinary action may contact the union office for advice in filing a grievance.  Lately we have heard from members that the company seems to be writing up agents and threatening disciplinary action for many things.  Some of the things we've recently seen at airports are:  Opening aircraft doors more than 2 minutes after arrival, dispatching a flight late, bad letters from customers, incorrect closeouts, and attendance to name a few.

     In reservations we are hearing of agents being put on steps for call monitoring sessions and talk time.  Most union contracts do not allow agents to be placed on disciplinary steps for call monitoring sessions except in the case where the agent has been clearly rude to a customer.  Monitoring sessions at most airlines with unioin contracts can only be used for training purposes.

     Lately it seems as though agents are being written up when a customer says they were "rude", when in fact agents were just doing their job.  Some recent examples include agents who are doing their jobs by collecting baggage charges and ASC's.  The only advice we have here is that you call a supervisor if a customer continues to fight a charge that you are required to charge.  Do not argue with the customer, instead offer them the opportunity to talk to a supervisor to prevent that letter saying you were "rude". If there was problem, document the record with what happened in case it comes back to haunt you later.  Some customers claim you were "rude" when they didn't get what they wanted and it's your word against theirs.  So remember to document any problems and call a supervisor if necessary.  Airilnes are in the spotlight because of all the extra charges for services.  In the past customers knew if they complained enough they'd get what they wanted, but not anymore.

     There have been recent cases of agents and OC's waiving fare rules, ASC's, or other charges the company require you to collect.  Before doing this, we suggest you get approval from a supervisor and document the record.  One of the latest tricks of Corportate Security is to pull your D3 travel list and if a customer, traveling on a full fare ticket, has received any favors from you they consider the person a friend and issue disciplinary action regardless of the full fare ticket.

     Remember waivors and favors are not allowed any more, and even though the airlines at one time allowed you to make a decision when it came to waiving anything, they no longer want you to do it.  If you do, disciplanary action may take place.  In some cases we have seen the company go back over a year and want an explanation why you did something.  If the record isn't documented you will have a tough time making your case.

     Once we have another election and win, you will be allowed to bring a steward with you, if you want, to meetings that may lead to disciplinary action.  A steward at this point will help you according and represent you in meetings with management.

     Is mangement writing agents up at your location due to things beyond your control?  Many problems are being caused by time and staff constraints and we'd like to know what's happening at your location.  Drop us an email above by clicking on "contact us".  Remember with a union, agents must be treated the same across the board and information is tracked to assist with building cases.  In most cases, if you are doing your job properly and documenting anything you do out of the ordinary, you will avoid having problems.  However problems do arise and management may not always treat everyone alike.

Are You Tired of Not Having a Voice Yet?

     On April 6th, American Airlines management announced that Agents, Reps, and Planners who have not reached maximum pay will receive a $0.40 per hour increase for the 2009 pay plan.  Those following under this catgegory who are at max pay will receive no increases this year.

     Although American Airlines management says that our pay and benefits are at market rates here are some exaples of union contracts that cover airport and reservations agents at other airlines.  Two of these airlines, US and UA, filed bankruptcy and these are their concessionary contracts.  WN is negotiating their new contract now, and UA will be negotiating theirs soon.  US employees last contract was negotiated through 2011.  

     Having a union contract means that we negotiate with management the best contract for the majority of people covered by the contract.  After a tentative agreement is reached it is put to a vote by the membership.  If a majority of agents do not vote for the contract, we go back to negotiations with the company.  Once a majority of agents have voted to accept a contract that works best for them, it stays in place for the duration of the contract and cannot be changed by the company, without the approval of the members.         

     After reading through the following contracts, if you want to find out what you can do to help us get to another union election, please click on contact us above and send us an email or call us at 817-868-9933.  Join the other agents who are ready to move forward with another election so that we too may decide through negotiations what works best for us as a group.

  Are we the higest paid in the industry?  

No, Southwest Airlines agents make more money.  We may have a higher hourly rate than most of the majors, but not necessarily when you look at the overall value of all benefits, including differentials, meidcal plans, and other items.  

 While comparing our hourly rate of pay to agents at other carriers we must remember that agents with contracts continure through their step progression increases that are negotiated.  This means that for those who are not at maximum pay they continue with regular raises until they reach maximum.  American Airlines agents tend to receive their biggest pay raise on their 11th anniversary when they max out.  In some cases we have seen agents receiving $5.00 to $7.00 an hour increases to reach max.   Agents at carriers with union contracts get larger raises than we do every year leading up to their max pay.  Therefore, even though these agents may be at a lower maximum pay rate, by the time they reach their maximum pay they have still made more than we have when comparing the time period leading up to max. 

     In addition we must look at things like more holidays, higher holiday pay, shift differentials, job differentials, and costs of other benefits at the carriers with union contracts.  For example; even though United agents make $0.14 less an hour at maximum pay, they receive 8 holidays a year at double time, they also receive beetween $0.48-$0.57 an hour in shift differential for any shift beginning from 1100am on.  Agents at Southwest receive $1.00 an hour for bilingual expertise in reservations.  They make $2.81 more an hour.  We received a small amount of stock a few years back and Southewst agents receive between 400-700 shares of stock every year during their last contract. 

     Having a union contract doesn't necessarily mean you'll have the highest hourly pay in the industry, it means that you as agents will have the right to negotiate what works best for you.  If you have the highest pay in the industry it doesn't mean a thing if you have the highest out of pocket benefit costs than any other carrier. 

SOUTHWEST AIRLINES

Max went from 14 years to 11 years in 2002 as follows:

        2002         2003         2004         2005         2006         2007

Res: 19.00        21.17        21.80        24.00        24.00        24.00

ATO: 20.28        21.50        22.14        24.35        24.35        24.35

Bilingual Res agents:        

 $1.00 differential more per hour.

CS’s:                   

Unlimited Shift Trades plus you can also give away up to 30 full shifts per quarter.

Day Off Training: 

Paid at time and one half.

Vacation:         

Up to 5 weeks of paid depending on seniority. In addition some vacation time can be broken up and used as DAT (day at a time time vacation.)

Holidays:         

Thanksgiving and Xmas paid at time and one half.  Every agent also receives on Free Day off with pay per month from Jan-Oct.  This equates to 10 more days off with pay in addition to regular vacation. 

Retirement:      

 No pension plan but agents do have a matching 401K plan that the company matches $1.00 per $1.00 up to 7.3%.  (American employees hired Jan 1, 2001 or later are not even eligible for pension plan.)

Stock Options: 

 Agents depending on seniority received 400-700 shares of stock each year since 2002 for a total of between 1525 and 3400 shares up to 11 years of seniority.  An additional 10 shares per year of service was given to agents with over 11 years.

Profit Sharing: 

Depending on profit margin 0-3% of salary.

UNITED AIRLINES

Hourly Pay:

                             Agents reach max pay in 10 years

                         2004         2005         2007         2008         2009                            

RES:                    20.71        19.57        19.86        20.16        20.66

ATO:                    21.45        20.27        20.57        20.88        21.40

Longevity pay:  

After reaching max pay you receive 1 cent per hour per year of seniority up to a max of 30 cents more per hour.  

(United negotiated their concessionary contract in 2005.  They took a pay cut in 2005, and negotiated pay-raises to begin again in 2007.  Their contract comes up for re-negotiation this year.)

Shift Differential:      

Shift differentials begin with shifts starting at 11:00am through 5:59am and range between $0.48 and $0.57 per hour depending on type of shift.

CS’s:                   

Agents can do unlimited shift swaps, and can completely CS off up to 30 shifts per quarter.

Day Off Training:            

Paid at time and one half.

Vacations:       

Agents earn between 1 week and 6 weeks of vacation depending on seniority.  In addition one of your vacations weeks may be used as DAT (Day at a time) vacation.  Up to one week of DAT vacation can be carried over to the following year if not used.

Holidays:           

3 Fixed days and 5 Floating days, including birthday, that are paid at double time.  Floating days can be chosen when you want them on a seniority basis.  This is a total of 8 days at double time of holiday pay.

Retirement:      

Receive 1.63% of final average earnings x number of years of participation in the plan.   A 401 K plan.  A new defined pension plan was negotiated after exiting bankruptcy.

Performance Incentive Program:           

Depending on performance goals met, between .5% and 2% of wages earned.  (Similar to AIP at American Airlines)

Profit Sharing:  Once profits goals are met, 10% of salary.

US AIRWAYS

Hourly Pay:

                             Agents reach max pay in 10 years

                        2005-07     2008     2009      2010     2011       2012

RES and ATO:   18.00        18.60     19.16    19.92    20.72      21.14    

Shift Differential:      

Shift differentials begin with shifts starting at 12:00noon through 4:59am and range between $0.51 and $0.58 per hour depending on type of shift.

CS’s:                   

Agents can do unlimited shift swaps, and can completely CS off up to 20 shifts per quarter. In addition CS’s that include up to 30 minutes of overlap time can be approved my management if operation permits.  

Day Off Training:            

Training outside of shift, requires a minimum amount be paid regardless of actual class time up to actual amount of class time if over the minimum.

Vacations:         

Agents earn between 1 week and 4 weeks of vacations depending on seniority.  In 2011 a 5^th week of vacation will be added.  Up to 2 weeks of vacation can be used as DAT

 (Day at a time).

Holidays:           

Agents choose between 2 holiday options.  5 paid holidays at double time, or straight time paid for holiday with 5 additional days off with pay.  Beginning 12/2001 5 more holidays will be added for a total of 10 holidays.

Retirement:      

Details can be found at www.cwa.net on retirement changes.  Changes made to pensions during bankruptcy to include matching 401K.

Performance Incentive Program:           

Between $50.00 and $100.00 monthly similar to American Airline’s AIP.

Profit Sharing:  Once profits goals are met, 10% to 15% of salary.

US AIRWAYS agents have a snap back date of Jan 1, 2012.  Whether or not a new contract is negotiated by that time, all benefits and pay will snap back to the old contract before this concessionary contract was negotiated.

NOTE:  The information contained above is not the entire contract.   Airline contracts provide for other protections such as follows:

Seniority protections in mergers or buyouts.

Part Time vs Full Time ratios.  (Example:  At NW part time jobs are limited to 25% of work force at hubs and 50% at smaller stations.)  American Airlines airports overall are now 35% Full Time and 65% Part Time.

Grievance Procedures for Disciplinary action including the use of Stewards who will assist you through investigations, and grievance procedures.  If you are issued a Step or terminated for reasons without cause, an outside arbitrator may be brought in to hear both sides and determine if the punishment was warranged.  Curently American Airlines agents appeal to other mangement members when filing a grievance.  

Insurance, outsourcing, new job training and protections for jobs taken over by new automation, are just a few other things that are negotiated in contracts.  Anything that pertains to pay, benefits, or working conditions are negotiable items.

Other Airline Contracts

     Carriers with union contracts for reservations and airport agents include NW, UA, AS, HA, WN, and BA to name a few.  The difference between the organized carriers and American Airlines is that members of the union negotiated their contracts as opposed to managment just deciding what to mandate to agents.  This included concessionary contracts after 9/11. 

     Although American Airlines formed FOCUS, AAB, and AEC groups, the final decision what to give the agents was left up to management.  Union covered employees got to negotiate with their management agreements that worked for the majority of their members and the company alike. 

     Unions cannot negotiate contracts that the company cannot afford therefore with union contracts companies provide finanicial information so that the parties can make informed decisions in negotiations.

     See links below if you wish to see entire contracts from other carriers:

Northwest Airlines:     http://www.iam143.org/PDF files/Northwest Airlines page/IAM_NWA_COFPS_CBA.pdf

Alaska Airlines:            http://www.iam143.org/PDF files/Alaska Airlines page/IAM_ASA_ COPS_2006-2010.pdf

United Airlines:             http://www.iam141.org/docs/contract05UApce.pdf

Soutwest Airlines:       http://iamdl142.org/Southwest/SWA_agreement.pdf

March 2009

     Reservations and Airport agents recently participated in FOCUS groups which were put together to share ideas for revenue generation, cost savings, and efforts to improve the business process.  In addition another goal was to gather employee thoughts and input on how to design a compensation structure for agents in reservations and at the airports.  Many reservations agents mentioned that they want some sort of complexity pay back that was taken away in 2003 during the concessions, for working complex areas within reservations.

     Management mentioned assigning departments into one of three or four tiers with premium pay for more complex work.   This sounds as if they want to return to a similar pay structure like they did in 1995 with the Long Term Strategy Plan.  This pay plan bought with it 3 different top out rates of pay depending on what job you did in reservations.  When the company saw how active our union drive was, they abolished this pay plan and bought everyone back to the same pay structure and used complexity pay to offset the more complex jobs.

     Management addressed the complexity pay in the FOCUS groups, but said there must be a way to fund it. One would think that funding our complexity pay would be easy as reservations and airport agents both are revenue generating for the company.  As reservations agents we charge 20.00 per passenger for each ticket we sell.  As airport agents we charge 30.00 per passenger for each ticket we issue and charge 15.00 for the first bag and 25.00 for the second bag that we check.  An airport agent booking 2 tickets and checking 4 bags for a party of two add 200.00 in revenue in addition to the cost of the ticket sold, yet we receive nothing.

     Flight attendants at American Airlines are paid commissions for sales they make on board for “Food for Sale ”, and Duty Free items they sell.  Crew members make 10% commissions on food and snacks sold on board and anywhere from .833% to 5% of all Duty Free items they sell depending on the number of flight attendants selling.  This was negotiated with the company.  Why don’t we receive commissions on our sales?  What’s the difference between the flight attendants and agents?  The one main difference is that they are represented by a union and have a legally binding contract.

     Agents who attended the FOCUS groups this year said that suggestions were solicited and put on notes, taped to a wall and then management advised them that they would take these suggestions back to Human Resources.  It seems as though the most unpopular suggestion on the company’s part was asking the agents if they would like this our raise this year to be a lump sum.   We are smart enough to realize that by accepting a lump sum payment for a raise the amount isn’t built into our hourly salary and therefore it doesn’t count towards additional hours, overtime, 401K, or retirement.

     The only way we can ensure a voice for all agents and ensure back and forth communications instead of one way communications is to work toward getting to another union vote and a contract.  If you have any questions on haw to get involved, click on the “contact us” tab above and we will contact you with more information.

Will American Airlines' new "Remember Me" technology leave Reservations Agents saying........"Remember Me?" 

     American Airlines recently added new technology to their reservations system that recognizes a customers phone number.  This is a new service for frequent travelers that the company has said will "save the airline money by reducing the need for employees to handle customer calls."  However, Charley Wilson, a company spokesperson has been quoted as saying that the "intent was to improve cistomer service, not cut jobs."

     The new technology takes voice recognition one step further.  It recognizes the phone number you're calling from and automatically pulls up your reservations without having to speak to the machine.

     If a company is releasing a program that reduces the need for employees to handle customer calls, doesn't that mean that fewer employees will be needed to handle calls?  We're not sure what we're missing here but we do know one thing for sure.  We do NOT have a union contract that spells out how new technology should be handled while protecting jobs. 

     During our last union drive American Airlines said that the union exaggerated on how many calls were being handled on the internet and that the internet wouldn't have much of an impact on reservations jobs.   Since 2001, the company has closed seven reservations offices and our work group has been reduced by almost 50%. 

     The upcoming FOCUS groups, if you were lucky enough to be selected, will be speaking about complexity pay in reservations.  One of the concerns regarding returning complexity pay was "how the airline would fund it."  Think about this.  It cost someone $20.00 per ticket to have a ticket issued over the phone.  It cost $30.00 per ticket to have a ticket issued at an airport and $15.00 to check a bag.  If every agent just sold 1 ticket per hour, or checked a couple of bags,  you have come pretty close to funding your own salary, yet the company still thinks that labor costs are too high.  The union negotiated hourly top salary for Soutwest Airlines agents is much higher than ours and they don't charge to check bags or issue tickets over the phone.

     It's time for us all to have a say in our wages, working conditions, and benefits in the form of a union contract.  If you are not receiving regular updates via email click on "contact us" above and send us your email address.  It's a good idea to send us your latest addresses information as well to be sure you receive anything we send out.  Many agents have moved and trasferred to other locations with the station cutbacks and res office closures.  Be sure to stay in the loop and send us your information to stay be able to stay informed.

 Statistics Affecting Our Jobs

The US Department of Labor, Bureau of Labor Statistics reported the following in their 2008-2009 Occupation Outlook Handbook:

      "Employment of reservation and transportation ticket agents is expected to grow only 1 percent from 2006 to 2016, reflecting little or no change to employement.  Despite a growing and more mobile population who will likely travel more frequently, newer automated reservations and ticketing operations will speed transaction time and reduce the need for more workers to handle the expected higher volume of business. Most train stations and airports now have self-service ticket printing machines, or kiosks, which enable passengers to make reservations, purchase tickets, and check-in for train rides and flights themselves. Many passengers also are able to check travel times and fares, make reservations, purchase tickets, and check-in for most domestic flights on the Internet. Nevertheless, not all travel-related passenger services can be fully automated, primarily for safety and security reasons, and not all passengers use these automated services. As a result, job openings will continue to become available as increasing numbers of people travel more frequently. Additional growth will result to meet the travel needs of the growing retirement population, particularly in less traditional transportation centers, such as with boat or cruise operators or with companies who rent recreational vehicles.

    Click below to be directed to Department of Labor for more job statistics that effect us.   http://www.bls.gov/oco/ocos135.htm#addinfo

SINCE 2001

     Our combined eligible group size, which includes agents in reservations, airports, Admirnals Clubs, Cargo, and skcaps, included in our union vote has shrunk by almost 50%.  Our group which was close to 21,000 agents after the merger of TWA has shrunk to less than 10,500 today.  The airline hasn't shrunk by 50% and many of these jobs have been lost to automation, technology, and outsourcing.  Our fellow employees who once worked for TWA have gone from close to 3800 employees to less than 700. 

     The company has doubled the number of employees in reservations, in the past 2 1/2 years, who are now working with very limited benefits including unpaid vacations and sick time, no retiree health care, no pensions, and health insurance that pays less than $2000.00 in benefits a year.  Just over 22% of reservations jobs now come under this category after the closing of 7 reservations offices.  We found out that our Location and Job protections are voided if the company decides to close or outsource a location.  This means that location and job protection doesn't mean anything unless it's written in a legally binding contract. 

     The new category of "limited benefits" has started moving to airports in the form of a new job title in the Admirals Clubs, where employees are being hired as reduced work week employees with same limited benefits as listed in the above paragraph.  Cargo has continued to outsource agent jobs where agents were once considered "passenger service" but they don't have the right to bump into other passenger service jobs without interviews and openings. 

     Although a union contract cannot always protect our workforce from station closures and cut backs, the one one thing a union contract can do is force the company to negotiate.  A union contract ensures that all changes made to working conditions, benefits, and wages must be negotiated and voted on by the union membership before they can be made.  Union contracts, unlike FOCUS groups ensure that all agents are heard and allowed to participate and vote on changes before they become legally binding. 

     See below for some more interesting facts that have affected our jobs since 2006, not even counting the major changes that took place in 2003. 

Reservations Information

Lost over 800 jobs to the category of Home Based and Reduced work week that will max out at 15.00 and 16.00 per hour and not include benefits like holiday pay, retiree health care, pensions, and paid vacations and paid sick time.

7 Reservations Offices have closed and agents who had location protection lost it.  Although agents at CRO were offered "home based" jobs, they would have had to go to pay and benefit levels of the new home based workers. 

The best shifts and days off are no longer just bid by seniority as management has already said that some of the best shifts had to be given to Home Based workers to make the job attractive and to retain them because of high turnover rates. 

Focus groups have started inreservations and agents are wanting to discuss the return of things given up in 2003 like shift differentials, complexity pay, and other perks that made working in a call center attractive.  Now a "select limited" few from each location will be allowed to participate in the Focus groups.  We can only assume that once the limited few have worked with management another SAI will be put out for you to vote on.

If you read between the lines of Bela Gorens letter announcing the Focus Groups, it looks like the company wants to go back to a plan similiar to the Long Term Strategy plan of 1995 where different job functions took on different pay scales.  We alreeady have 3 pay scales in reservations if you count the Home Based and Reduced Work Week categories.  This was abolished after the company saw how great our union support was during the last election. 

One issue bought up this year includes complexity pay and one of the things the company wants Focus groups to think about is how to fund it.  Wouldn't that be a salary expense or will be holding bake sales?

Airport Agents Statistics  

Airport Agents have gone from a 65%-35% Full time to part time ratio, to a 36%-64% ratio.

Cargo has outsourced over 100 more jobs.

Lost close to 600 more jobs since 2006 and have lost over 100 full time positions that will most likely never be returned, at least not with a contract and this doesn't count the full time jobs lost since 2001.

The agent workforce as a whole, reservations and airports, has gone from 29% with "Job Protection" to 40% in less than 3 years.