What was APFA leadership thinking when they hired the Jefferies Group? (Part III)

AMR, APFA, Jefferies Group & Carl Icahn

It's interesting to note that when we turn back the clock we see that the Jefferies Group, the firm APFA hired to represent flight attendants in bankruptcy, has close ties with notorious corporate raider Carl Icahn. Carl Icahn, as you'll recall, was behind the destruction of Trans World Airlines (TWA) and is considered a predator in the corporate sector.

Where this coincidence gets interesting is when we consider that the Jefferies Group is #4 on AMR's list of top institutional shareholders. One can only ask if Jefferies' interest in one of AMR's labor unions is really about helping labor or more about helping themselves.

It's clear that the Jefferies Group and Carl Icahn have a long standing relationship, one that is well noted as recently as the 2011 attempt on Clorox Co., and one which was highlighted in the Los Angeles Times as stating that "Boyd Jefferies' firm was a favorite of corporate raiders, and its client list included such names as Carl Icahn, T. Boone Pickens, Robert Campeau and Victor Posner."

So why is APFA being represented by the Jefferies Group? We know that AMR wants to gut what little is left of APFA's contract and dump the pension plans. The idea that our union is being represented by a company which has been closely linked to Carl Icahn who destroyed flight attendant careers at TWA is outrageous!

One can only ask what APFA was thinking. And what did Carl Icahn do to TWA flight attendants?

Corporate raider Carl Icahn took over TWA in 1985 and forced Independent Federation of Flight Attendants (IFFA) to strike on Mar. 7, 1986, after demanding a 44% concessionary package including a 22% wage cut. TWA brought in 2,200 "permanent replacements" — mostly young, inexperienced recruits with only 18 days of training. That year, IFFA president Vicki Frankovich had been selected as one of Ms. Magazine'sWomen of the Year "for her idealistic fight to show the country, in this year of corporate takeovers, that workers are more than passive assets and that flight attendants are proud professionals." On May 17, IFFA made an unconditional offer to return to work and thereby end the strike. The union continued a boycott campaign and stayed involved in legislative and legal battles. It took three years, but IFFA eventually won reinstatement for all the flight attendants who wanted to return.

AMR, Perella Weinberg & Jefferies Group

In closing, on January 11, 2012, it was reported that AMR sought a bankruptcy judge's approval to hire Perella Weinberg Partners LP as a financial advisor on labor agreements and pension plans. AMR's filing in U.S. Bankruptcy Court said that AMR will pay Perella Weinberg $225,000 a month. Jeremiah Bates, up until February 2010 had been an associate with Jefferies & Company before leaving to become an associate with Perella Weinberg Partners.

As if the "working together" relationship hasn't caused enough damage, the line separating our union from our employer has become even more obscure at a time when our workgroup is the most vulnerable.

In solidarity,
Rock Salomon
Candidate for APFA President

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Carl Icahn Offers Sneaky Acquisition For Clorox
By Jon C. Ogg, 24/7 Wall St., July 15, 2011

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Icahn says that the deal will be satisfied through $4.8 billion of equity contributions from Icahn Enterprises LP (NYSE: IEP) and its affiliates consisting of 12.5 million shares of Clorox common stock, as well as by $3.8 billion in cash on hand, and $7.8 billion in financing arranged by Jefferies & Company, Inc. (NYSE: JEF). Icahn even offered a $100 million fee for the company to accept the deal if he (and Jefferies) fails to raise the funding.

Carl Icahn Expresses His Confidence in Jefferies in ALL CAPITAL LETTERS
By Matt Levine, Dealbreaker.com, July 20, 2011

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Jefferies has done well for Icahn in the past, including as sole bookrunner on a bond deal for his favorite company, Icahn Enterprises.

L.A. Broker Will Plead Guilty in Stock Probe : Boyd Jefferies Resigns From Firm He Founded; Charge Contends He Aided Speculator Boesky
March 20, 1987|MICHAEL A. HILTZIK | Times Staff Writer

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The charges against Jefferies, whose firm specializes in handling large, difficult stock trades for institutional clients--among them such key players in the corporate takeover world as Carl C. Icahn, chairman of Trans World Airlines--represent a major expansion of the federal investigation into illicit practices on Wall Street. They also serve notice that some takeover practices considered widespread, though improper, on Wall Street, including "parking" stocks, will be treated as criminal violations.

Boesky Reportedly Sold Stocks Before Charges Announced
MARYBETH NIBLEY , Associated Press, Nov. 20, 1986

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The continuing federal investigation has led to inquiries of possibly many firms and individuals, including Los Angeles-based Jefferies & Co.

A former senior vice president at Jefferies, Michael C. Singer, resigned Wednesday from his new job at the Salomon Brothers Inc. investment banking firm, Salomon said in a statement.

Singer, who joined Salomon Oct. 6 after leaving Jefferies, has been served with a subpoena. Salomon said that the scope of the subpoena covers stock transactions before he took the job at Salomon six weeks ago.

It was previously reported that Boyd L. Jefferies, chairman of the firm which has played a critical role in many stock deals associated with takeovers, also has been subpoenaed. Jefferies has denied violations of insider-trading laws.

Meanwhile, New York entreprenuer Carl C. Icahn said Wednesday he too had received an SEC subpoena, but that ''no allegations have been made against me by the SEC and I have no reason to believe that any will be made in the future.''

He denied ever trading stocks on the basis of confidential corporate information.

''I should like to state categorically that I have never traded on inside information,'' Icahn said in a letter to employees of Trans World Airlines Inc., and ACF Industries Inc., companies of which he is chairman.

AMR Institutional Shareholders (Jefferies)
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