Jose Carballo has opened and is maintaining a Twitter account on behalf of Local 567.
The web address to sign up is:
New Membership Meeting Times
this Month Only
Wednesday April 16, Union Hall: 0730, 1300, 1515
Thursday April 17, The Reserve: 0730, 1300, 1515
Work Rule Discussion and Vote
An Equity Stake Calculator is now available
Microsoft Excel is required to open the calculator
>>> Click Here <<<
“UPDATE: The original calculator has been revised to include approximately 189,000 additional shares which were distributed to members from the reserve in order to maintain (and not exceed) the targeted 14% reserve.”
March 23, 2014
TO: TWU AA Locals 501 - 591
RE: Update to American Airlines Employees Eligible for Equity Distributions
Over the last four months, three class actions have been filed on behalf of former AA employees who were excluded from equity distributions under the TWU Equity Distribution Plan adopted last year. TWU, acting at the urging of a unanimous vote of Local AA Presidents, intends to vigorously defend all these lawsuits, and has already begun to do so. However in view of the pendency of these legal claims, the TWU International Administrative Committee (the “IAC”) has decided that it would be imprudent not to increase the Reserve to a point that it could satisfy a judgment which could result if the lawsuits were fully successful, plus the associated legal and administrative costs. Based on the calculations of our experts, this amount has been set at 14% of the total equity allotted to TWU to distribute. Therefore in order to place 14% of the equity into reserve pending the results of the lawsuits, the Day 120 distribution to members will be noticeably less than it would have been had no lawsuits been filed. At the same time, you should be aware that if the exclusions from distribution are upheld as lawful in the course of the litigation, the equity in reserve (minus administrative and legal expenses) will be distributed to those who are eligible to receive it under the TWU Equity Distribution Plan. So as to protect further distributes from the Reserve, be they plaintiffs or the group of eligibles under the TWU Equity Plan, from volatility in the value of AA stock, TWU, pursuant to an order entered by the Federal Judge in the Demetrius case in San Francisco, will secure a professional investment manager to prudently manage the 14% equity that has been placed in Reserve.
Director Air Transport Division
January 10, 2014
TO: AA Presidents Locals 501 - 591
RE: AA Equity Distribution
Some communications have been circulating among TWU members that have led some members to question whether they have received a correct allocation of shares as part of the post-bankruptcy equity distribution to date. However, the model that the communications questioning the distribution is based on incorrect information. The error in that model is that it assumes that the 4.8% of the shares to which TWU is entitled is 4.8% of all AAL shares. Actually, TWU is entitled to 4.8% of the AAL shares allocated for unsecured creditors only.
As was explained in the presentations made in June and July of 2013, there other creditors who have a right to participate in the distribution of AAL shares. The so-called “old equity” creditors also participate in the distribution and, as was also explained in the presentations, as the share price reaches certain price points, the “old equity” creditors have the right to access more of the shares included in the pool for unsecured creditors. As the share price reached those price points the number of shares allocated to unsecured creditors decreases, so the number of shares allocated to TWU (and all other unsecured creditors) decreased. But, of course, in that situation the value of the shares has increased.
Because the incorrect model that has circulated assumes that TWU is entitled to 4.8% of more shares that TWU is actually entitled to, that model predicts that members would receive more shares than they are actually entitled to. The incorrect model assumes a share price of $22.55 per share that will hold until Day 120 (it will not); the incorrect model then calculates TWU’s total shares as 26.1 million and the total for M&R as 13.8 million. In reality the total TWU shares at a constant price of $22.55 would be 16.0 million which would result in 8.9 million shares for the M&R group.
We recognize that it is frustrating to be unable to know the exact number of shares that TWU will receive which makes it difficult at this time for members to confirm that the number of shares they have received to date is correct. But that is a result of the plan approved by the bankruptcy court. We will not know for sure exactly how many shares TWU will receive until day 120, and as was explained in June and July, it is difficult to even project how many shares that will be since fluctuations in the share price will affect the total number of shares allocated to unsecured creditors.
Director Air Transport Division