JetBlue announced that it has reached a preliminary agreement with the Transportation Workers Union (TWU) regarding the contract process for JetBlues flight crew members. The TWU bargaining agreement increases costs faster than anticipated in the financial plan, but provides for savings that, if implemented, can offset most of the increased costs. However, there is a real risk that these savings will not be realized, which would increase the deficit of $638 million projected for the MTA over four years. This risk is reinforced by the extension of the model to other unionized workers. The agreement is subject to a ratification process that includes final documentation, verification and review by JetBlue`s TWU management team before being distributed to flight crew members for the final vote. WASHINGTON, January 30, 2020 – The TWU-IAM Association announced today that it has entered into tentative agreements with American Airlines for five new collective agreements (JCBAs) worth $4.2 billion for more than 30,000 members of Mechanic – Related, Fleet Service, Maintenance Control, MLS/Stores and Maintenance Training Specialist. Interim agreements provide the industry with peak wages, benefits and working conditions. One of the main stumbling blocks was the U.S. initiative to outsource future maintenance work, which the union says will be protected by the new agreements. “Preliminary agreements respect all of that – and more,” Parker said. If the MTA can achieve savings comparable to the TWU agreement, it could save $31.2 million per year, for a total of $124.9 million in savings between 2020 and 2023.
This would result in an additional cost of $11.7 million over the financial programming period. However, if the savings are similar to those negotiated with the TWU, they may suffer the same risk of being neglected if employee behaviour is not sufficiently altered. TULSA, Okla. – “Our Maintenance and Fleet Service team members are the best in the business and work incredibly hard to look after our customers,” said Doug Parker, President and CEO of American. They deserve contracts that include a marked improvement in wages, quality of life and job protection. Preliminary agreements respect all of this – and more. We appreciate the negotiators of the association and the companies that have worked so hard to join us until today, as well as the National Mediation Board for their advice. December 3, 2020 After the merger of American Airlines and US Airways in 2012, IAM and TWU fought in solidarity with the sole objective of negotiating the best common collective agreement for our members of the new American Airlines. Together we proved what the concentrated concessions AMFA said organizers, could not be done , […] If the MTA negotiates similar agreements (and savings) with its other bargaining units, it will cost $11.7 million more than the financial plan provides.
In order to maintain the neutrality of the financial plan`s effects, the agreements should include greater savings, including changes to labour rules, to offset the effects of these increased costs. In addition, the Employment Services Productivity Committees established by the TWU Treaty should set productivity targets and report public quarterly on savings to ensure accountability. Ed Baklor, JetBlue`s vice president of inflight, said, “We are looking forward to reaching this interim agreement and look forward to passing the contract with our crew members on board. Thank you to the two negotiating committees for their efforts over the past two years to reach this agreement. In January 2020, members of the Metropolitan Transportation Authority`s (MTA) largest fare unit, Transport Workers Union (TWU) Local 100, ratified a new employment contract. The treaty, which covers May 16, 2019 until May 15, 2023 and more than 37,000 employees, increases compensation and includes savings initiatives.1 The 9.8% cumulative wage increases will cost more than $1 billion by 2023, or $129 million.