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American Airlines - TWU Begins Its Case
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At the conclusion of the APFA's case today, the TWU cross examined Jeffrey Brundage, the former Senior Vice President of Human Resources for American. On cross examination Mr. Brundage admitted that the Debtors did not seek to address labor cost gaps in making their “asks” and that this method had not been used in other bankruptcy cases.
At the conclusion of the cross, the TWU opened its direct case. The TWU argued that the business plan, which the Debtors argued drives the demand for these deep concessions, is at best premature. The TWU noted that no constituency affirmatively supports the business plan and even those constituencies that support the Debtors, have reserved their rights to challenge the business plan at a later time. Indeed, even the Debtors have admitted that they are looking at the other options, including the possibility of merger.
The TWU argued that to take a business plan that no one is telling the court is going to be the business plan and to say that you first have to make sure that labor takes a disproportionate cut so that the benefits of a merger, or the real business plan can be better realized by other constituents, is unprecedented and frankly an abuse of the process. The TWU argued that labor should be permitted to fully participate in the vetting of the true business plan or any alternative transaction.
The TWU then called labor economist Thomas Roth to testify about the value of the Debtor's proposals. Mr. Roth testified that the Debtor's demands were gross overkill.
The Court indicated that it would need additional time to render a ruling. The Court requested that the parties submit proposed finds of fact and conclusions of law on June 6. The Court will then issue a ruling on June 22. |
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Action Center
TWU/IAM Association Update |
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