AMR sidesteps Chapter 11 but unions grumble

Hatu

Veteran
Aug 20, 2002
645
132
MIA
FORT WORTH, Texas (CBS.MW) -- Shares of AMR Corp., the parent of American Airlines, rose 18 percent Thursday after the carrier''s flight attendants became the final union to approve labor concessions, keeping the airline out of bankruptcy for now.

But even as investors cheered the decision by the attendants to accept concessions, another union indicated it might go back on its decision to sign on in light of new information about executive pensions.

Voicing concern over executive pension protection disclosed in the airline''s latest filing with the Securities and Exchange Commission, the head of the Transport Workers Union''s American Airlines group said AMR didn''t disclose the information. The TWU voted to approve concessions on Tuesday, the same day as the 10-K filing.

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, wrote James Little, director of the TWU Air Transport Division, in an online message to members.

The company''s top executives, according to a trust agreement detailed in that SEC filing and first reported in The Wall Street Journal, have protected part of their company retirement program in the event of bankruptcy.

The flight attendants union, which voted Wednesday to accept labor contract concessions, said the pension protection was the equivalent of an obscene gesture from management.

Knowledge of this outrage would probably have doomed any agreement, and rightly so, wrote John Ward, president of the APFA in an online update
 

Bob Owens

Veteran
Sep 9, 2002
14,274
6,112
What Else Did They Miss?

Maybe we didnt have to give all those concesions after all?

Six years!!!!

So as Little collects his $120K for the next six years while our pay drops 17.5 % minus all the other cuts what is he going to say? "Sorry guys, they lied to me" Isnt that what we have been saying all along as he sold this POS contract to the members?

Jim Little said "Not on my watch" will we ever settle for a six year contract but that is exactly what he brought back. Who is the liar, Jim Little or Don Carty? My guess is BOTH.

Lets see how tomorrow they claim that they had a "miscommunication". May 1 Little will sign unless Local 562 is succesful with the injunction.

Lets see the stock went from $1.25 to $5.35. Not bad, over 400% return, now drop it down with this talk of not signing, then buy some more, sign on May 1 and sell again. Who says the stockholders dont make any money in the airlines?
 

jbguru

Newbie
Apr 4, 2003
6
0
Lets not forget this...

It was disclosed in an attachment to the company’s annual report, filed Tuesday with the Securities and Exchange Commission. Some members of the airline’s unions were aware of the arrangement after it was filed Tuesday, and union representatives were apparently told of it during negotiations — though negotiators were required by American to sign confidentiality agreements and could not reveal certain details to rank-and-file union members.