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The Facts About Our 4.8 Percent Equity Stake
There continues to be some confusion about what happens to our unsecured 4.8 percent equity stake when we become Teamsters and what that stake is worth. Some are under the impression that we will lose the equity when we change representation. This is untrue – the equity belongs to us, not the TWU. Further, we have no idea how much the stake is worth.
Click here to read the letter on the Teamsters’ legal position on the equity stake.
As the letter explains, the designated union is merely a placeholder for the negotiated equity until it is distributed to employees. “The TWU must hold any distribution of stock only while it is being distributed to the employees who sacrificed in bankruptcy,” the letter states. “If the IBT replaces the TWU, the IBT will hold and distribute that equity stake in a fair manner determined by the law and by employees. The stock is not the TWU’s – it is yours.”
Additionally, as this AA company document makes clear, no one really knows what the equity is worth. The stake is not 4.8 percent of full equity, rather it is unsecured and cannot be determined until the reorganization plan and disclosure statement is filed – only then will we know what the equity stake is worth. What we do know is that it will be less than 4.8 percent of total equity and it will be divided among the seven employee units. Finally, the equity stake is diluted with provisions on exceptions that will further devalue the equity.
The bottom line is that the equity was negotiated in exchange for the concessions – including our lost 5% in profit sharing – that we as AA mechanics and related made to the company. So, the equity legally belongs to us no matter who our bargaining representative is.
Read the letter on the Teamsters’ legal explanation on the 4.8 percent equity stake. Share it with your coworkers and sign a Teamster card.
With the TEAMSTERS We Can WIN!
For more information, visit the AA Mechanics for Teamsters campaign website or call the hotline at 877-589-4951.