Things Change, Part II
The Road Forward
Those who know me well would say that I am neither quick to judge nor quick to anger. I don’t react to every bit of news – positive or negative – that pops up, and I try to exercise patience when working through the challenges that are inevitably a part of my job. I believe hastily drawn conclusions are seldom right.
The current divide did not occur suddenly or without warning. Your APA leadership continued with the collaborative process until it became abundantly clear that we could not bridge the widening gulf between management and pilot expectations. Our participation was a valuable experience. We made a genuine attempt to repair a long history of acrimonious labor relations at American Airlines.
Gerard Arpey is due credit for his attempt to change an insular and dysfunctional corporate culture. The effort has been a sincere and noble one, but one that has thus far failed. I believe Mr. Arpey is an honorable man who has been unable to reconcile the demands of multiple constituencies. Holdovers from AMR’s old school of management were allowed to slowly strangle the collaborative effort in its infancy as they elevated senior management to a protected class that would “win†regardless of the outcome for the rest of the employees. Ironically, “management retention†continues to be cited as a primary reason for a divisive executive compensation program. In reality, the primary management retention problem at this airline is the retention of managers who are out of touch with their employees and place their own personal gain ahead of the good of the company. Management ought to be concerned with retaining the hearts and minds of the employees who have made great sacrifices on behalf of their company.
As we move forward, the relevant issue is not whether Gerard Arpey or any of his senior managers are worth the compensation packages they have been granted. Instead, we take this as a sign that AA has returned to sound financial footing and the time has come to recognize and reward those who made this success possible. The relevant issue is not whether Mr. Arpey is doing a better or worse job than other airline CEOs. By all appearances, American Airlines is doing well, and Mr. Arpey obviously deserves some of the credit.
The relevant issue is management’s abandonment of the fundamental premise – that they themselves created – upon which American Airlines’ recovery was built: “Pull Together/Win Together.†The pilots are key employees who make this airline function every single day. Through our hard work and dedication, American Airlines’ pilots are just as responsible for our company’s increasing financial and operational performance. Although all of us would rather have management freely acknowledge and reward that contribution, we are willing to fight for our rightful share of our airline’s increasing wealth when necessary.
As we transition to this new – some would say, old – phase of labor/management relations, I want to be clear that your APA leadership’s goal has been and always will be to represent the best interests of the membership. We participated in AA’s new and unprecedented collaborative efforts because we sincerely believed that the best possible outcome for the pilots would occur if all parties properly aligned their interests and worked together toward a mutually agreed-upon goal. Our past two years of effort were a necessary and valuable attempt to redefine the nature of management/labor relations in a way that would produce appreciable gains for AA pilots. Unfortunately, a true collaborative effort is simply not possible when management places themselves in a special class and believes they deserve special treatment. We are now faced with the necessity of returning to the familiar pattern of hard bargaining for our future pay, benefits and working conditions.
As most of you know, American Airlines recently decided to exercise the “early opener†provision of our contract, and we will exchange openers on September 20. Your APA leadership is looking forward to presenting the pilots’ case for improved compensation, work rules, benefits, and job and retirement security.
Since management has now changed the rules of engagement, I believe it is appropriate for APA to start our contract negotiations from a clean sheet. Mindful of the APA Board of Directors’ ultimate authority to establish Association policy, I will make the following recommendations for upcoming Section 6 negotiations:
First, since the process associated with the Performance Leadership Initiative (PLI) failed to produce any tangible benefits for our pilots, we should now end any further participation under the PLI framework. Rather, we should require that management first address our needs for improved compensation, benefits and job security before we expend any more significant resources on pilot productivity issues. The airline industry continues in a state of constant flux, and a number of key competitive issues have changed. If management believes this airline still needs more productive pilot work rules, they are free to make their case—after outlining how they are willing to reward that productivity.
Second, APA should continue to conduct its own independent analysis of any management proposals to ensure we receive value in return for any value given. We should consider any reasonable proposal that clearly and unequivocally improves our current contract. On the other hand, we should soundly reject any attempt to further degrade our pay, benefits or working conditions.
Third, we should ignore any comparisons made between our contract and those of undercapitalized, financially distressed or recently bankrupt carriers. American Airlines' employees paid a steep price for keeping our company out of bankruptcy. If management wants the pilot contract of a bankrupt carrier, then they will have to go through bankruptcy to get it.
Finally, I will recommend that APA institute a policy of polling the membership on a frequent basis during Section 6 negotiations. Membership input during this entire process will be absolutely crucial.
Again, APA’s overriding mission continues to be to represent the best interests of American Airlines’ pilots regardless of the environment. In the past, we have demonstrated a willingness to make difficult and painful choices when circumstances dictated. We have likewise worked cooperatively with management when doing so presented the best opportunity to strengthen the long-term career potential of our members. Our efforts at overcoming the historical acrimony between labor and management were a valuable and necessary exercise that could have created meaningful benefits for all. However, now that management has placed their personal interests ahead of line employees, we will not shy away from fighting for our rightful share of any financial gains that are a result of our continuing sacrifices. Much like in a football game, we will adapt our playbook to the changing conditions on the field. The industry environment continues to evolve. As “things change,†so shall we.
Fraternally,
Ralph
The Road Forward
Those who know me well would say that I am neither quick to judge nor quick to anger. I don’t react to every bit of news – positive or negative – that pops up, and I try to exercise patience when working through the challenges that are inevitably a part of my job. I believe hastily drawn conclusions are seldom right.
The current divide did not occur suddenly or without warning. Your APA leadership continued with the collaborative process until it became abundantly clear that we could not bridge the widening gulf between management and pilot expectations. Our participation was a valuable experience. We made a genuine attempt to repair a long history of acrimonious labor relations at American Airlines.
Gerard Arpey is due credit for his attempt to change an insular and dysfunctional corporate culture. The effort has been a sincere and noble one, but one that has thus far failed. I believe Mr. Arpey is an honorable man who has been unable to reconcile the demands of multiple constituencies. Holdovers from AMR’s old school of management were allowed to slowly strangle the collaborative effort in its infancy as they elevated senior management to a protected class that would “win†regardless of the outcome for the rest of the employees. Ironically, “management retention†continues to be cited as a primary reason for a divisive executive compensation program. In reality, the primary management retention problem at this airline is the retention of managers who are out of touch with their employees and place their own personal gain ahead of the good of the company. Management ought to be concerned with retaining the hearts and minds of the employees who have made great sacrifices on behalf of their company.
As we move forward, the relevant issue is not whether Gerard Arpey or any of his senior managers are worth the compensation packages they have been granted. Instead, we take this as a sign that AA has returned to sound financial footing and the time has come to recognize and reward those who made this success possible. The relevant issue is not whether Mr. Arpey is doing a better or worse job than other airline CEOs. By all appearances, American Airlines is doing well, and Mr. Arpey obviously deserves some of the credit.
The relevant issue is management’s abandonment of the fundamental premise – that they themselves created – upon which American Airlines’ recovery was built: “Pull Together/Win Together.†The pilots are key employees who make this airline function every single day. Through our hard work and dedication, American Airlines’ pilots are just as responsible for our company’s increasing financial and operational performance. Although all of us would rather have management freely acknowledge and reward that contribution, we are willing to fight for our rightful share of our airline’s increasing wealth when necessary.
As we transition to this new – some would say, old – phase of labor/management relations, I want to be clear that your APA leadership’s goal has been and always will be to represent the best interests of the membership. We participated in AA’s new and unprecedented collaborative efforts because we sincerely believed that the best possible outcome for the pilots would occur if all parties properly aligned their interests and worked together toward a mutually agreed-upon goal. Our past two years of effort were a necessary and valuable attempt to redefine the nature of management/labor relations in a way that would produce appreciable gains for AA pilots. Unfortunately, a true collaborative effort is simply not possible when management places themselves in a special class and believes they deserve special treatment. We are now faced with the necessity of returning to the familiar pattern of hard bargaining for our future pay, benefits and working conditions.
As most of you know, American Airlines recently decided to exercise the “early opener†provision of our contract, and we will exchange openers on September 20. Your APA leadership is looking forward to presenting the pilots’ case for improved compensation, work rules, benefits, and job and retirement security.
Since management has now changed the rules of engagement, I believe it is appropriate for APA to start our contract negotiations from a clean sheet. Mindful of the APA Board of Directors’ ultimate authority to establish Association policy, I will make the following recommendations for upcoming Section 6 negotiations:
First, since the process associated with the Performance Leadership Initiative (PLI) failed to produce any tangible benefits for our pilots, we should now end any further participation under the PLI framework. Rather, we should require that management first address our needs for improved compensation, benefits and job security before we expend any more significant resources on pilot productivity issues. The airline industry continues in a state of constant flux, and a number of key competitive issues have changed. If management believes this airline still needs more productive pilot work rules, they are free to make their case—after outlining how they are willing to reward that productivity.
Second, APA should continue to conduct its own independent analysis of any management proposals to ensure we receive value in return for any value given. We should consider any reasonable proposal that clearly and unequivocally improves our current contract. On the other hand, we should soundly reject any attempt to further degrade our pay, benefits or working conditions.
Third, we should ignore any comparisons made between our contract and those of undercapitalized, financially distressed or recently bankrupt carriers. American Airlines' employees paid a steep price for keeping our company out of bankruptcy. If management wants the pilot contract of a bankrupt carrier, then they will have to go through bankruptcy to get it.
Finally, I will recommend that APA institute a policy of polling the membership on a frequent basis during Section 6 negotiations. Membership input during this entire process will be absolutely crucial.
Again, APA’s overriding mission continues to be to represent the best interests of American Airlines’ pilots regardless of the environment. In the past, we have demonstrated a willingness to make difficult and painful choices when circumstances dictated. We have likewise worked cooperatively with management when doing so presented the best opportunity to strengthen the long-term career potential of our members. Our efforts at overcoming the historical acrimony between labor and management were a valuable and necessary exercise that could have created meaningful benefits for all. However, now that management has placed their personal interests ahead of line employees, we will not shy away from fighting for our rightful share of any financial gains that are a result of our continuing sacrifices. Much like in a football game, we will adapt our playbook to the changing conditions on the field. The industry environment continues to evolve. As “things change,†so shall we.
Fraternally,
Ralph
