American Airlines is releasing more information about proposed company restructuring, including the loss of jobs in Tulsa.
An American Airlines representative tells FOX23 the plan proposed today could cut 2,100 jobs at Tulsa's maintenance facility. Tulsa's facility employs 6,800 workers.
An AA spokesman says these cuts are part of a restructuring process to create a more efficient operation.
AA leaders met with union leaders to outline American's business plan and the necessary steps to secure future success. The business plan and proposals outline a reduction of approximately 13,000 employees across the company.
Here's the breakdown:
- Agents, Reps, Planners – TBD, the ARP restructuring plan is still under development as the company collects and analyzes employee feedback
- Fleet Service & Other TWU – Approximately 4,200
- Flight Attendants – Approximately 2,300
- Management/Support Staff – Approximately 1,400
- Mechanics and Related – Approximately 4,600
- Pilots – Approximately 400
- Total – Approximately 13,000
Governor Mary Fallin released this statement about the proposed cuts:
"American’s announcement today represents a commitment to continuing a large presence in Oklahoma and, specifically, Tulsa. Their communications with employees and with my office indicate they are working to preserve as many jobs as possible.
Unfortunately, however, the state will necessarily lose some jobs during the restructuring process. Any time men and women in Oklahoma lose their jobs it is difficult for those individuals, their families and their communities.
I am confident that the plans announced by American today outline the best, least painful and most realistic path forward for both the company and the people of Oklahoma."
Vice President of American Airlines Human Relations, Jeff Brundage, released a statement Wednesday afternoon saying these proposals are necessary for long term success and offered more details about the company's plans:
- Outsourcing a portion of our aircraft maintenance work and seek the closure of AFW
Outsourcing some airport fleet service clerk work
Removing major structural barriers to operational flexibility, including restrictions on code sharing and regional flying
Introducing work rule changes to increase productivity
American Airlines CEO Tom Horton has released a statement about the restructuring process of AMR.
The restructuring process allows us to spread the effects of cost savings as broadly and evenly as possible, but there is no avoiding the fact that the cost reductions will be deep. And there is no sugarcoating the effect on our people. Three principles will guide our approach:
- Commitment to success – We have thoroughly analyzed the competition and the industry and what we must achieve is crystal clear. Competing and winning requires a financial improvement of more than $3 billion, and that, in turn, requires significant savings in employee-related costs – of more than $1.25 billion per year.
- Fair and equitable – All workgroups will have total costs reduced by 20 percent, including management. While the savings from each work group will be achieved somewhat differently, each will experience the same percentage reduction.
- Performance is rewarded – At American, everyone should be recognized for their contributions, aligned with overall company performance, and sharing in American’s success. That is why we envision a Profit Sharing plan that, beginning with the first dollar of pre-tax income, would pay awards totaling 15 percent of all pre-tax income.
Horton says the company plans to renew and optimize the fleet by investing $2 billion per year in aircraft; increase departures from key markets; and modernize the brand, products and services.
This is the first step of the negotiating process. The unions could offer other alternatives to these cuts. FOX23 will continue to follow this story and let you know what happens, today at 9pm & 10pm.
