AA Workers Pi$$ed!

Derg

New Arizona, Il Duce/Warlord
Staff member
Associated Press
American Discloses Perks; Union Outraged
Thursday April 17, 5:51 pm ET
By David Koenig, AP Business Writer
After Employees Agree to Cuts, American Airlines Discloses Trust to Shield
Executives


FORT WORTH, Texas (AP) -- One day after American Airlines employees agreed to
annual cuts of $1.8 billion, the cooperative spirit turned acrimonious Thursday
as union leaders expressed outrage over newly disclosed perks granted to
executives.

One angry union leader said if workers had known earlier about a pension trust
created last year to protect executives' benefits in the event of a bankruptcy
filing, they might have voted against the steep concessions intended to keep
the world's largest carrier out of Chapter 11.
 

pilot602

If specified, this will replace the title that
I think this would be a perfect time to try out the old "blue flu" and "work to the rule" philosophies.

Like I said in the other thread - B.S. through and through.
 

Derg

New Arizona, Il Duce/Warlord
Staff member
Probably a story you won't see in the Wall Street Urinal...err... Journal!
 

pilot602

If specified, this will replace the title that
Nah ... and why would you? Considering their advertising base consists of the very companies they cover. Never a good idea to pi$$ on the plate that feeds 'ya!

In the good ole days there was a much better line between business and editorial. Nowadays, these papers are not much more than one giant P.R./advertising rag.
 

Derg

New Arizona, Il Duce/Warlord
Staff member
Unfortunately, look at Flying magazine. The flight schools have completely taken over Flying and it's darned near unreadable.

Almost like watching the evening news. Every other story is an entertainment story about a television program conveniently hosted on their network.

"American Idol's 'blah blah blah' in a touching interview, tonight on News 5!"

or

"Touchstone debuts a movie about a guy and a dog and their quest to stop Ben Affleck from destroying the world on ABC Nightly News"

Aww, damn it all to hell!
 
AMR union may not sign off

Concession plan threatened as management benefits anger airline union.
April 17, 2003: 7:27 PM EDT

DALLAS (Reuters) - The union that represents American Airlines' mechanics and ground workers said Thursday it may not sign off on a concession vote, even if that would result in a bankruptcy at the world's largest carrier.

Jim Little, the director of the Air Transport Division of the Transport Workers Union, berated a plan to provide funds for a pension trust that would pay top executives a portion of their pensions in the event of bankruptcy. He said unions were informed of the plan through a Securities and Exchange Commission filing made as rank and file were concluding the vote on the concession deals.

"We have signed no new agreement, and in light of the disclosure of American Airlines' SEC filing, we must reconsider whether we will sign off, even if the consequence is bankruptcy," Little said in a communication with members.

Earlier, Bruce Hicks, a spokesman for AMR Corp. (AMR: Research, Estimates), which runs American, told the Wall Street Journal that he had understood the unions had been briefed in advance of ratification voting on the compensation issues.

"My understanding was that they were" briefed, Hicks said, according to the Journal, but added that he was double-checking. "I'm still trying to get a final answer," he said.

Elsewhere, pilots at American said they were irate over news that executives had funded special pensions. They wanted clarification as to why they were not informed while the union concession negotiations took place.

"We have sacrificed deeply to enable American Airlines to avoid an immediate bankruptcy filing," said Allied Pilots Association President John Darrah. "Unfortunately, it appears that management is not off to a very promising start at making the most of the reprieve the unionized employees have provided through our collective sacrifices."

The dispute comes a day after American's flight attendants union became the last labor group to ratify cost-cutting plans that total about $1.8 billion per year and were designed to keep the airline out of Chapter 11.

As for the flight attendants, the head of the union that represents them called the pension package an "outrage."

"It's the equivalent of an obscene gesture from management to employees, especially after the gut-wrenching decision thousands of flight attendants and other union employees at American Airlines made in just the last two days to drastically change their lives and keep this company out of bankruptcy," said John Ward, president of the Association of Professional Flight Attendants.
 
Sorry to ruin your day 602!!
I'm also beating you in total posts--621 to 617. Wanna fight?!
j/k Back on topic...the reactions here in the DFW area are quite interesting. On one hand, any decision regarding AMR affects a lot of the people here directly. On the other hand, AMR going bankrupt would hurt a lot of the ancillary industries and municipalities that depend on airlines for income. So you've got some people saying that AA employees should be ultimately unselfish so that the pocketbooks of DFW businesses aren't thinned out. And you've got other people who support the unions more, because there are so many people here that will be in the unemployment line when they get furloughed. I personally know 4 AA pilots, and either situation sucks--big time. It's a complex situation, let's hope that AA comes out of this mess before too many folks get hurt!


Wow--hope that post makes sense, I'm sleepy.
 

justme

New Member
It's because of crap like this that I never feel any kind of loyalty to a company that I work for....because that company has no loyalty towards me. These execs at AA are just selfish pricks. All these union employees are making huge sacrifices to keep AA out of the crapper, and all the while they are getting fu**ed in the a** by executive management. Now I am fully aware that pension packages and protective deals for executives is a very common practice in corporate America, and I fully agree that this is a legitimate practice. However, in a situation like AA it is totally unacceptable. I can't believe they expect all the union folks to make these kind of sacrifices while they are stockpiling cash to protect their a**es. What a load of crap!!
 

Richman

That's "Lord Garth" to you
Hi all,

Another mag I can now do without...Aviation Week. They use to be a pretty good source of info, but now is just rah rahing management to cut labor costs and bust the unions.

I let my subscription lapse...When they call me at home trying to get me to renew it (like they did last time), I'm going to tell them that I can't afford it anymore because someone listened to their business suggestions.

I don't fly or buy brand new multi million biz-jets, so I quit reading Flying. The only guys there worth reading, Bax and Len Morgan, are long gone anyway.

I hate to say it, but the only real aviation mag I read now comes free with my AOPA membership (I'm gonna win that Waco, darn it!).

Of course, I read Model Aviation since thats probably where my next new plane with come from.


Best to all,
RM
 

H46Bubba

Well-Known Member
I as a former AA employee, I think this is a sham and an injustice for AA workers and pilots. Is there something that can be done to get those guys? They're the ones than need to take a paycut! They aren't running the company very efficiently. Thes jokers need to go back to school and re-take all those business classes! Most of us could run AMR better than those fools! People get laid off and scamble to find another source of income to feel their families, and these slick fat cats want to get paid more and have their pensions increased and secured. Travisty is what comes to my mind.

Just my $.02 cents!
 

A320_DUDE

Well-Known Member
It\'s time for the AA folks to........

....go kidnap Bob Crandall and bring his bony old ass back to AA Hdq. He has got to be among the best airline CEOs out there and should be back in his spot at DFW. He might have been a jerk,but he was their jerk and saved AA during the last downturn. It's time to send Mr Carty back to Canada.
 

pilot602

If specified, this will replace the title that
American defends exec pay

Despite outcry from unions that gave up pay, airline calls exec bonuses and pensions "responsible."
April 18, 2003: 11:26 AM EDT


NEW YORK (CNN/Money) - American Airlines admitted Friday that its unions had not been briefed about controversial pension and retention bonuses for its top executives before membership voted on concession contracts, but said the airline stood behind its plans calling them "conservative and responsible."

News of the plans, revealed in a Tuesday Securities and Exchange Commission filing by American parent AMR Corp. and reported in Thursday's Wall Street Journal, sparked outcry from American's unions, whose members this week approved concession agreements designed to help save American $1.8 billion a year in labor costs in order to avoid bankruptcy.

"This fund is the opposite of shared sacrifice and calls into question the basis of each of our contracts," said a statement by James Little, president of the unit of the Transport Workers Union which represents most ground workers at American, in a message to his membership Thursday.

"We have signed no new agreement, and in light of the disclosure in AA's SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy. Unless the company reforms itself on the issue of executive compensation, there is no basis to cooperate in its effort to survive."

The Journal story quoted an American spokesman as saying the union leadership had been briefed on the program before membership voted in a ratification process concluded earlier this week. AMR CEO Donald Carty, in a letter to Little released by American, conceded that was not the case.

"Given the controversy surrounding other companies' handling of their [executive compensation plans]...and the fact that the company did not fully brief you...I can certainly appreciate the concern of your membership and your own strong feelings about our handling of the situation – especially at a time when you and your membership have done so much to help save this company from bankruptcy," said Carty's letter to Little. But he did not offer to make any changes in the plans.

"I agree that you and your members are owed an answer on the [compensation plans], and once the program is fully explained and examined, I think you will find it conservative and responsible," said Carty's letter.

The company has long had a pension plan for top executives that paid them amounts in excess of Internal Revenue limits on pension payments. But it had not funded the plans, instead making the payments out of general operating funds, said the airline's statement.

In October it decided to create a trust fund to provide some guarantees for executives due payments from that pension plan that they would receive payments even if the airline went bankrupt. The plan is about 60 percent funded, the company said, which is a greater level of underfunding than the company's other pension plans.

"[AMR] felt it was important to provide the senior management and their families with the same level of pension security as that of its other employees," said Carty's letter to Little in defending the plan.

The company also agreed to pay retention bonuses to six top executives equal to two times their base pay if they stay through January of 2005, and equal to 1.5 times base pay for a seventh executive.

Carty's letter points out that he took a 33% cut in pay, declined a bonus for three years and canceled his stock share grant. He also deferred his 2004 retention payment.

American also announced late Thursday that it had laid off 5 percent of management Thursday, and that it would cut management by another 5 percent by July 1.

"It is critical that management continues to lead our recovery," said a statement from Carty announcing the cuts. "Unfortunately, in what is certainly the most difficult outcome of this process, this means many individuals will no longer be active members of the American Airlines team."

While Little's letter to his members threatens to refuse to sign off on the concession contracts, even if it puts the airline into bankruptcy, his letter to Carty does not make that threat.

"I believe the failure to disclose the existence of this program was a material breach of the company's duty to provide relevant information, and I have asked our legal staff to determine whether there are remedies at law," said Little's letter to Carty. "In the meantime, I urge you to carefully examine the impact of the existence of this sort of program on the morale of your rank and file work force and the credibility of any notion of shared sacrifice to preserve American."

American would not comment on Little's threat that he made to members, saying only, "Despite some reports, the company has not received any indication that its unions will not sign the agreements ratified by employees this week."

Little could not be reached for comment Friday morning.

----------

Screw Carty, the horse he rode in on and the Millions in pension security and "retention" bonuses.
 

Derg

New Arizona, Il Duce/Warlord
Staff member
You know what kills me is the fact that AMR, like Delta, is going to get a fat check from the government paid with tax dollars that laid off workers paid.

Talk about a redistribution of wealth!
 

pilot602

If specified, this will replace the title that
Shhh, Carty doesn't want the general public to know they're paying for his four homes, eight BMWs and a golden parachute that would make the Golden Knights jealous! AA is just another "poor, hurting, helpless victim" of 9/11 and the war.
 

ed207063

New Member
Re: AA Workers Pi$$ed! - This Just In.....

This just in: AMR has apparently CANCELLED at least some of the bonuses.....it's breaking news on CNN as I type.

Don Carty is apologizing to the union leaders for the company's behavior....
 

tonyw

Well-Known Member
Of course he's going to defend his perks. I don't know what disease execs get that makes them think they are worth millions of dollars when they are steering their companies to the brink of bankruptcy.

Let's put it like this -- basically, what they have done with their companies is the equivalent of a pilot slamming his plane down so hard that it can't be used without major repairs. We'd all say that any pilot that did that should get fired, right?

But if that pilot were an exec, he'd demand a ten million dollar bonus.

Sad thing is, with the lapdog boards that we have, he'd get it, too.

And they dare to call pilots overpaid?
 
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