American Wants Concessions From its Unions

Oct 14, 2002
85
0
[blockquote]
----------------
On 12/6/2002 3:03:54 PM WingNaPrayer wrote:

[DIV class=Headline][STRONG][FONT size=4]American Airlines Wants Concessions From Unions[/FONT][/STRONG][/DIV]
[DIV class=SubHead]Airline's Biggest Rival Facing Bankruptcy[/DIV]

[DIV class=posted]POSTED: 9:42 a.m. EST December 6, 2002[/DIV]

[DIV class=StoryBody][!--startindex--][B class=Dateline]DALLAS -- [/B]American Airlines chairman and Chief Executive Officer Don Carty says he'll need the help of American workers if the airline is to stay financially viable.

Carty is meeting with employees this week and next week to discuss the company's financial status. The meetings come as American's biggest competitor, United Airlines, [A href="http://www.channeloklahoma.com/sh/travelgetaways/stories/travel-headlines-182374620021206-081238.html"]tries to stave off bankruptcy.[/A]
Carty wants to cut $4 billion in annual costs, and American's management team has found about half that total. The carrier hopes to persuade its labor unions that concessions are crucial to American's long-term survival.

American is in mediated contract talks with its pilots, but it hasn't yet started formal discussions with any of its unions about concessions.

The airline lost almost $3 billion from January through September, and some analysts project it'll lose $588 million in the current quarter.

But American's situation isn't as dire as United's. American has cash and assets on hand worth more than $2 billion.[/DIV]
----------------
[/blockquote]
Two Billion Ain"t what it used to be!
they will burn through that by next Sep.
 
Oct 14, 2002
85
0
[blockquote]
----------------
On 12/6/2002 3:03:54 PM WingNaPrayer wrote:

[DIV class=Headline][STRONG][FONT size=4]American Airlines Wants Concessions From Unions[/FONT][/STRONG][/DIV]
[DIV class=SubHead]Airline's Biggest Rival Facing Bankruptcy[/DIV]

[DIV class=posted]POSTED: 9:42 a.m. EST December 6, 2002[/DIV]

[DIV class=StoryBody][!--startindex--][B class=Dateline]DALLAS -- [/B]American Airlines chairman and Chief Executive Officer Don Carty says he'll need the help of American workers if the airline is to stay financially viable.

Carty is meeting with employees this week and next week to discuss the company's financial status. The meetings come as American's biggest competitor, United Airlines, [A href="http://www.channeloklahoma.com/sh/travelgetaways/stories/travel-headlines-182374620021206-081238.html"]tries to stave off bankruptcy.[/A]
Carty wants to cut $4 billion in annual costs, and American's management team has found about half that total. The carrier hopes to persuade its labor unions that concessions are crucial to American's long-term survival.

American is in mediated contract talks with its pilots, but it hasn't yet started formal discussions with any of its unions about concessions.

The airline lost almost $3 billion from January through September, and some analysts project it'll lose $588 million in the current quarter.

But American's situation isn't as dire as United's. American has cash and assets on hand worth more than $2 billion.[/DIV]
----------------
[/blockquote]
Two Billion Ain"t what it used to be!
they will burn through that by next Sep.
 

WingNaPrayer

Veteran
Aug 20, 2002
1,742
0
EYW
Visit site
[DIV class=Headline][STRONG][FONT size=4]American Airlines Wants Concessions From Unions[/FONT][/STRONG][/DIV]
[DIV class=SubHead]Airline's Biggest Rival Facing Bankruptcy[/DIV][BR]
[DIV class=posted]POSTED: 9:42 a.m. EST December 6, 2002[/DIV][BR]
[DIV class=StoryBody][!--startindex--][B class=Dateline]DALLAS -- [/B]American Airlines chairman and Chief Executive Officer Don Carty says he'll need the help of American workers if the airline is to stay financially viable. [BR][BR]Carty is meeting with employees this week and next week to discuss the company's financial status. The meetings come as American's biggest competitor, United Airlines, [A href="http://www.channeloklahoma.com/sh/travelgetaways/stories/travel-headlines-182374620021206-081238.html"]tries to stave off bankruptcy.[/A] [BR]Carty wants to cut $4 billion in annual costs, and American's management team has found about half that total. The carrier hopes to persuade its labor unions that concessions are crucial to American's long-term survival. [BR][BR]American is in mediated contract talks with its pilots, but it hasn't yet started formal discussions with any of its unions about concessions. [BR][BR]The airline lost almost $3 billion from January through September, and some analysts project it'll lose $588 million in the current quarter. [BR][BR]But American's situation isn't as dire as United's. American has cash and assets on hand worth more than $2 billion.[/DIV]
 

WingNaPrayer

Veteran
Aug 20, 2002
1,742
0
EYW
Visit site
[DIV class=Headline][STRONG][FONT size=4]American Airlines Wants Concessions From Unions[/FONT][/STRONG][/DIV]
[DIV class=SubHead]Airline's Biggest Rival Facing Bankruptcy[/DIV][BR]
[DIV class=posted]POSTED: 9:42 a.m. EST December 6, 2002[/DIV][BR]
[DIV class=StoryBody][!--startindex--][B class=Dateline]DALLAS -- [/B]American Airlines chairman and Chief Executive Officer Don Carty says he'll need the help of American workers if the airline is to stay financially viable. [BR][BR]Carty is meeting with employees this week and next week to discuss the company's financial status. The meetings come as American's biggest competitor, United Airlines, [A href="http://www.channeloklahoma.com/sh/travelgetaways/stories/travel-headlines-182374620021206-081238.html"]tries to stave off bankruptcy.[/A] [BR]Carty wants to cut $4 billion in annual costs, and American's management team has found about half that total. The carrier hopes to persuade its labor unions that concessions are crucial to American's long-term survival. [BR][BR]American is in mediated contract talks with its pilots, but it hasn't yet started formal discussions with any of its unions about concessions. [BR][BR]The airline lost almost $3 billion from January through September, and some analysts project it'll lose $588 million in the current quarter. [BR][BR]But American's situation isn't as dire as United's. American has cash and assets on hand worth more than $2 billion.[/DIV]
 

RV4

Veteran
Aug 20, 2002
1,885
80
www.usaviation.com
Any concessions better take place in ways other than wages first and foremost.

I do not PAY American to have a job, they PAY me to work for them.
 

RV4

Veteran
Aug 20, 2002
1,885
80
www.usaviation.com
Any concessions better take place in ways other than wages first and foremost.

I do not PAY American to have a job, they PAY me to work for them.
 

flydcoop

Senior
Dec 3, 2002
281
0
St. Louis
If there is any truth to the rumor that Crandall said in a TV interview that he would come back for $1.00, that seems to be an excellent cost-cutting measure.
 

flydcoop

Senior
Dec 3, 2002
281
0
St. Louis
If there is any truth to the rumor that Crandall said in a TV interview that he would come back for $1.00, that seems to be an excellent cost-cutting measure.
 

WingNaPrayer

Veteran
Aug 20, 2002
1,742
0
EYW
Visit site
More work....less pay. Any employee group that falls for it deserves what it gets.[BR][BR]AA thinks it's going to steal a ton of business from UA if they file BK....unfortunately AA doesn't seem to realize that by laying off thousands of employees, they aren't going to be able to service all the business they plan on picking up.
 

WingNaPrayer

Veteran
Aug 20, 2002
1,742
0
EYW
Visit site
More work....less pay. Any employee group that falls for it deserves what it gets.[BR][BR]AA thinks it's going to steal a ton of business from UA if they file BK....unfortunately AA doesn't seem to realize that by laying off thousands of employees, they aren't going to be able to service all the business they plan on picking up.
 

s80dude

Veteran
Aug 19, 2002
721
5
USA
Visit site
American Freezes Management Wages; Asks All Employees to Forgo 2003 Increases
Friday December 6, 7:51 pm ET


FORT WORTH, Texas, Dec. 6 /PRNewswire-FirstCall/ -- American Airlines today asked all employees to forgo pay increases next year as part of the company's aggressive efforts to stem short-term financial losses. Company executives met today with union leaders representing pilots, flight attendants and ground personnel at AA headquarters to make the request. They also met with other employee groups to explain the need to forgo these pay increases.
ADVERTISEMENT


In a letter to labor representatives and other employee groups, AA Chairman and CEO Don Carty and President and COO Gerard Arpey said management and support staff would forgo pay increases for the second consecutive year. They explained the need for other employee groups to forgo scheduled wage increases in 2003 to "buy enough time to find the additional $2 billion in permanent, annual structural changes needed to survive."

By forgoing all of the scheduled pay increases, the company will avoid an immediate annual cost increase of $130 million, which will keep American's financial situation from worsening.

In recent weeks, Carty and Arpey have been meeting with employees in large and small groups around the country.

"American's employees have an enormous stake in the financial stability of our company, and I have been heartened by their support and willingness to work with us to position American to survive and prosper," Carty said. "American Airlines employees understand the seriousness of our situation and the need to protect our future by working together."

Flight attendants, represented by the Association of Professional Flight Attendants, are currently scheduled to receive a three-percent wage increase on Jan. 1, 2003, plus applicable premium increases in July. Aircraft mechanics, fleet service clerks and other employees represented by the Transport Workers Union are scheduled for a three-percent pay increase, plus applicable premium increase for some classifications, on March 1. Airport and reservations agents, who are not union represented, are slated for an average 90-cent hourly wage increase in 2003.

The letters to the employee groups explained that the company's long-term survival will require it to be leaner, more efficient and more productive -- a business model contingent upon labor agreements that allow American to compete more effectively in the new aviation marketplace.

"While forgoing scheduled increases is a necessary and important short- term step in our march toward survival, it cannot be the only one," the letter stated. "The restructuring of our labor agreements is inevitable and fundamental to our long-term goal of remaining competitive and restoring profitability."

Immediately following the events of Sept. 11, 2001, American launched a top-to-bottom review of the company's operations, and implemented a plan that will cut capital expenditures by several billion dollars by deferring aircraft purchases, facility improvements and information technology investments.

In addition, it has identified more than $2 billion a year in annual, structural cost savings all across the company. American's goal is to achieve total annual cost-savings of $3 to $4 billion.

Throughout this process, American has taken a different approach to addressing its financial challenges from some of its competitors, which sought immediate concessions from employees, rather than working first to restructure their business, increase revenue and aggressively control costs.

"We felt it was essential to do things differently -- to trim every cost we could find before turning to our employees for financial help, and we've made a concerted effort to do so," Carty said.

The U.S. airline industry is projected to lose a total $9 billion this year.

Current AMR Corp. (NYSE: AMR - News) news releases can be accessed via the Internet. The address is http://www.amrcorp.com .
 

s80dude

Veteran
Aug 19, 2002
721
5
USA
Visit site
American Freezes Management Wages; Asks All Employees to Forgo 2003 Increases
Friday December 6, 7:51 pm ET


FORT WORTH, Texas, Dec. 6 /PRNewswire-FirstCall/ -- American Airlines today asked all employees to forgo pay increases next year as part of the company's aggressive efforts to stem short-term financial losses. Company executives met today with union leaders representing pilots, flight attendants and ground personnel at AA headquarters to make the request. They also met with other employee groups to explain the need to forgo these pay increases.
ADVERTISEMENT


In a letter to labor representatives and other employee groups, AA Chairman and CEO Don Carty and President and COO Gerard Arpey said management and support staff would forgo pay increases for the second consecutive year. They explained the need for other employee groups to forgo scheduled wage increases in 2003 to "buy enough time to find the additional $2 billion in permanent, annual structural changes needed to survive."

By forgoing all of the scheduled pay increases, the company will avoid an immediate annual cost increase of $130 million, which will keep American's financial situation from worsening.

In recent weeks, Carty and Arpey have been meeting with employees in large and small groups around the country.

"American's employees have an enormous stake in the financial stability of our company, and I have been heartened by their support and willingness to work with us to position American to survive and prosper," Carty said. "American Airlines employees understand the seriousness of our situation and the need to protect our future by working together."

Flight attendants, represented by the Association of Professional Flight Attendants, are currently scheduled to receive a three-percent wage increase on Jan. 1, 2003, plus applicable premium increases in July. Aircraft mechanics, fleet service clerks and other employees represented by the Transport Workers Union are scheduled for a three-percent pay increase, plus applicable premium increase for some classifications, on March 1. Airport and reservations agents, who are not union represented, are slated for an average 90-cent hourly wage increase in 2003.

The letters to the employee groups explained that the company's long-term survival will require it to be leaner, more efficient and more productive -- a business model contingent upon labor agreements that allow American to compete more effectively in the new aviation marketplace.

"While forgoing scheduled increases is a necessary and important short- term step in our march toward survival, it cannot be the only one," the letter stated. "The restructuring of our labor agreements is inevitable and fundamental to our long-term goal of remaining competitive and restoring profitability."

Immediately following the events of Sept. 11, 2001, American launched a top-to-bottom review of the company's operations, and implemented a plan that will cut capital expenditures by several billion dollars by deferring aircraft purchases, facility improvements and information technology investments.

In addition, it has identified more than $2 billion a year in annual, structural cost savings all across the company. American's goal is to achieve total annual cost-savings of $3 to $4 billion.

Throughout this process, American has taken a different approach to addressing its financial challenges from some of its competitors, which sought immediate concessions from employees, rather than working first to restructure their business, increase revenue and aggressively control costs.

"We felt it was essential to do things differently -- to trim every cost we could find before turning to our employees for financial help, and we've made a concerted effort to do so," Carty said.

The U.S. airline industry is projected to lose a total $9 billion this year.

Current AMR Corp. (NYSE: AMR - News) news releases can be accessed via the Internet. The address is http://www.amrcorp.com .
 

flydcoop

Senior
Dec 3, 2002
281
0
St. Louis
A couple of years ago, level 3 management starting pay was raised to $38,000 (at least) a year. Everytime they lateral transfer between departments...a 10% raise.

Sorry, I know some real dead-weight management in Miami that did not get laid off. They laid-off some of the best and brightest....yeah, we're ahead of the curve. :rolleyes: if I could.

I might actually reach $25,000 this year....thanks Don.
 

flydcoop

Senior
Dec 3, 2002
281
0
St. Louis
A couple of years ago, level 3 management starting pay was raised to $38,000 (at least) a year. Everytime they lateral transfer between departments...a 10% raise.

Sorry, I know some real dead-weight management in Miami that did not get laid off. They laid-off some of the best and brightest....yeah, we're ahead of the curve. :rolleyes: if I could.

I might actually reach $25,000 this year....thanks Don.
 

Latest posts