- Dec 21, 2002
- 5,998
- 347
It's time for the TWU to take the company leash off & publicly comment on this charade called "good Labor relations."
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Union leader: American efforts failing
By TREBOR BANSTETTER
STAR-TELEGRAM STAFF WRITER
FORT WORTH — American Airlines’ three-year-old effort to improve labor relations is faltering and in danger of disintegrating over continued fallout from a management bonus plan, according to the president of the carrier’s pilots union.
In a letter to members, Ralph Hunter, who heads the Allied Pilots Association, said that “in contrast to what senior management is publicly stating, the collaborative spirit that once existed has nearly vanished.â€
He wrote that the airline is having a “crisis of leadership†and that “all our hard work to date is now on the verge of collapse.â€
The letter, obtained by the Star-Telegram, will be published in the next issue of the union magazine. It makes Hunter the second union leader in recent days to criticize the state of labor relations at the airline.
Last week, Tommie Hutto-Blake, president of the Association of Professional Flight Attendants, said her union is no longer participating in joint initiatives with management. She blasted the airline for suggesting otherwise during employee meetings.
Airline officials said they continue to work with labor groups despite the turmoil. “We have every intention of continuing to work collaboratively with all of our employee groups,†spokeswoman Susan Gordon said. “We’re absolutely committed to that as a way of doing business.â€
However, the statements from two of American’s three unions are an indication that the airline’s highly touted efforts to enhance labor relations are in serious jeopardy. That could create a significant obstacle for executives as they look ahead to the next round of contract negotiations, which could begin next year.
It would also create problems for American’s ongoing drive to save money by improving productivity. That effort depends heavily on cooperation from employees.
Historically, American and its unions have had an often-bitter relationship, with labor groups battling former longtime Chief Executive Robert Crandall over a host of issues. The hostility came to a head in 2003, when the airline disclosed a slate of bonuses and lucrative pension benefits for top executives shortly after union members had approved $1.6 billion in annual concessions.
The uproar resulted in the resignation of then-CEO Don Carty.
Since then, Gerard Arpey, the airline’s current CEO, has made improving labor relations a top priority. He hired a consultant to work with unions and management. The program had some notable successes, particularly among mechanics, who embraced a drive to improve efficiency at American’s maintenance bases. And last year, pilots began discussing voluntary changes in work rules to make flight operations more productive, even though the changes could increase their workload and slow career advancement for some.
But a furor this year over another slate of management bonuses has wiped out much of the good will. The bonuses, valued at more than $90 million, were awarded to about 1,000 top managers. After being criticized, American’s board of directors changed the payouts to stock rather than cash.
But Hunter said despite the change, the airline’s senior management “sharply diminished their moral authority to lead†with the bonuses.
“We are no longer willing to collaboratively work with or for a management team that insists on elevating itself to a protected class,†he wrote. But there is still a chance for the relationship to be salvaged, the letter says. “Management decisions over the upcoming weeks and months will determine the outcome of the Great American Experiment,†Hunter wrote.
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Union leader: American efforts failing
By TREBOR BANSTETTER
STAR-TELEGRAM STAFF WRITER
FORT WORTH — American Airlines’ three-year-old effort to improve labor relations is faltering and in danger of disintegrating over continued fallout from a management bonus plan, according to the president of the carrier’s pilots union.
In a letter to members, Ralph Hunter, who heads the Allied Pilots Association, said that “in contrast to what senior management is publicly stating, the collaborative spirit that once existed has nearly vanished.â€
He wrote that the airline is having a “crisis of leadership†and that “all our hard work to date is now on the verge of collapse.â€
The letter, obtained by the Star-Telegram, will be published in the next issue of the union magazine. It makes Hunter the second union leader in recent days to criticize the state of labor relations at the airline.
Last week, Tommie Hutto-Blake, president of the Association of Professional Flight Attendants, said her union is no longer participating in joint initiatives with management. She blasted the airline for suggesting otherwise during employee meetings.
Airline officials said they continue to work with labor groups despite the turmoil. “We have every intention of continuing to work collaboratively with all of our employee groups,†spokeswoman Susan Gordon said. “We’re absolutely committed to that as a way of doing business.â€
However, the statements from two of American’s three unions are an indication that the airline’s highly touted efforts to enhance labor relations are in serious jeopardy. That could create a significant obstacle for executives as they look ahead to the next round of contract negotiations, which could begin next year.
It would also create problems for American’s ongoing drive to save money by improving productivity. That effort depends heavily on cooperation from employees.
Historically, American and its unions have had an often-bitter relationship, with labor groups battling former longtime Chief Executive Robert Crandall over a host of issues. The hostility came to a head in 2003, when the airline disclosed a slate of bonuses and lucrative pension benefits for top executives shortly after union members had approved $1.6 billion in annual concessions.
The uproar resulted in the resignation of then-CEO Don Carty.
Since then, Gerard Arpey, the airline’s current CEO, has made improving labor relations a top priority. He hired a consultant to work with unions and management. The program had some notable successes, particularly among mechanics, who embraced a drive to improve efficiency at American’s maintenance bases. And last year, pilots began discussing voluntary changes in work rules to make flight operations more productive, even though the changes could increase their workload and slow career advancement for some.
But a furor this year over another slate of management bonuses has wiped out much of the good will. The bonuses, valued at more than $90 million, were awarded to about 1,000 top managers. After being criticized, American’s board of directors changed the payouts to stock rather than cash.
But Hunter said despite the change, the airline’s senior management “sharply diminished their moral authority to lead†with the bonuses.
“We are no longer willing to collaboratively work with or for a management team that insists on elevating itself to a protected class,†he wrote. But there is still a chance for the relationship to be salvaged, the letter says. “Management decisions over the upcoming weeks and months will determine the outcome of the Great American Experiment,†Hunter wrote.
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