Brundage now says labor is a brick in AA's backpack

[Hopeful]

http://www.bloomberg.com/news/2010-09-21/american-struggles-with-costs-unions-as-mergers-erase-top-airline-status.html

I don't know about everyone else, but I'm more motivated now than ever.

 

[jetmechjer]

I would have to say dead weight like him and bone us's are the bricks in our back pack!!!!!!

 

[TIME FOR CHANGE]

Kind of makes you want to help them out... NOT


“They’re playing the hand they were dealt by avoiding bankruptcy,” said Hunter Keay, a Stifel Nicolaus & Co. analyst in Baltimore. “It’s unfortunately costing them dearly.”

:blink: :unsure: :blink:

 

[FrequentFlierCA]

There is something fundamentally unfair - to all AA employees - about the fact that avoiding bankruptcy has put AA at such a competitive disadvantage. I think your anger should be directed at the system (and companies who used that system) that allowed the other legacies to walk away from mountains of debt and tear up labor contracts.

Something is very wrong in a world where a company that meets its obligations gets punished so severely while its competitors are able to move forward as if nothing happened.

 

[Rogallo]

Something is very wrong in a world where a company that meets its obligations gets punished so severely while its competitors are able to move forward as if nothing happened.

Is it the same all around the world? Or is that just a figure of speech? I don't know. Or is it just a USA thing where "He who has the money makes the rules???

 

[Hopeful]

There is something fundamentally unfair - to all AA employees - about the fact that avoiding bankruptcy has put AA at such a competitive disadvantage. I think your anger should be directed at the system (and companies who used that system) that allowed the other legacies to walk away from mountains of debt and tear up labor contracts.

Something is very wrong in a world where a company that meets its obligations gets punished so severely while its competitors are able to move forward as if nothing happened.

Something is very wrong when a handsomely compensated VP makes statements like this. Like I stated many times before, AA had its chance to file bankruptcy and for whatever reason(s) chose not to. I truly doubt they chose not to go down that path for the sake of employees. If you believe that, then you are truly misguided.
They had the chance to abbrogate all labor agreements, cut wages, get rid of thousands, eliminate pensions, turn pension obligation over to PBGC...
They had their chance and they chose not to NOT because of employees.
They chose that path because our spineless unions let them get a concessionary bankrupcty contract instead and they did not have to give up control.

By the way, does anyone know of Brundages' Backround?


I wonder how long it is going to ake the employees of AA to wakeup to AArogance!

 

[WorldTraveler]

The notion that AA's competitors simply walked away from their obligations is not accurate.

Most of the creditors to the other network carriers (including the PBGC) received equity in return for allowing those companies to reduce their obligations. Chapter 11 is REORGANIZATION.
It should also be remembered that AMR did its own out-of-court restructuring in 2003 that ALSO included reducing debt in return for equity; AMR used the same process as the other carriers did. Chapter 11 does have more teeth but it is not accurate to say those carriers simply walked away from their obligations of that they did something that AMR did not also do.

Note once again that the focus of the aritlce is on PRODUCTIVITY not direct employee costs because on averae AA employees make comparable salaries to its network peers. The reason why DL has grown and is growing and AMR is not is because DL's productivity is so much higher than AMR's.
DL is now almost as large post-NW merger in terms of capacity as the combined DL and NW were in 2000 but with the number of employees that DL alone had. DL's productivity has increased about 40% over the past 10 years.
In contrast, AA's productivity has improved about 20% over the past 10 years.
And for those who want to argue that AA does in-house overhauls, AA should have about 12,000 fewer employees to have comparable productivity to CO, DL, and UA. It doesn't take 12K employees to do overhaul maintenance on AA's fleet of aircraft.

 

[Mrs. McFly]

There is something fundamentally unfair - to all AA employees - about the fact that avoiding bankruptcy has put AA at such a competitive disadvantage. I think your anger should be directed at the system (and companies who used that system) that allowed the other legacies to walk away from mountains of debt and tear up labor contracts.

Something is very wrong in a world where a company that meets its obligations gets punished so severely while its competitors are able to move forward as if nothing happened.

It is completely wrong and everyone has paid a price for not gaming the system like the others did. The system stinks!

 

[Hopeful]

Note once again that the focus of the aritlce is on PRODUCTIVITY not direct employee costs because on averae AA employees make comparable salaries to its network peers. The reason why DL has grown and is growing and AMR is not is because DL's productivity is so much higher than AMR's.
DL is now almost as large post-NW merger in terms of capacity as the combined DL and NW were in 2000 but with the number of employees that DL alone had. DL's productivity has increased about 40% over the past 10 years.
In contrast, AA's productivity has improved about 20% over the past 10 years.
And for those who want to argue that AA does in-house overhauls, AA should have about 12,000 fewer employees to have comparable productivity to CO, DL, and UA. It doesn't take 12K employees to do overhaul maintenance on AA's fleet of aircraft.

BRAVO! For eliminating thousands of jobs...BRAVO! THE AMERICAN WAY!

Where did you get the 12k from?

There are about 9500 Title I employees IN ALL of aircraft maintenance!
Please give me the breakdown of the 12k!

Also, while you are at it!,, tell us all about the productivity of ANYONE ELSE OTHER THAN A MECHANIC!!!

It is very easy to hear the know-it-alls give their analysis on how AA is at a competitive disadvantage becase of -in-house overhaul..
Tell us about EVERY WORK GROUP'S PRODUCTIVITY!

And don't forget the Executives!

 

[chris perry]

The notion that AA's competitors simply walked away from their obligations is not accurate.

Most of the creditors to the other network carriers (including the PBGC) received equity in return for allowing those companies to reduce their obligations. Chapter 11 is REORGANIZATION.
It should also be remembered that AMR did its own out-of-court restructuring in 2003 that ALSO included reducing debt in return for equity; AMR used the same process as the other carriers did. Chapter 11 does have more teeth but it is not accurate to say those carriers simply walked away from their obligations of that they did something that AMR did not also do.

Note once again that the focus of the aritlce is on PRODUCTIVITY not direct employee costs because on averae AA employees make comparable salaries to its network peers. The reason why DL has grown and is growing and AMR is not is because DL's productivity is so much higher than AMR's.
DL is now almost as large post-NW merger in terms of capacity as the combined DL and NW were in 2000 but with the number of employees that DL alone had. DL's productivity has increased about 40% over the past 10 years.
In contrast, AA's productivity has improved about 20% over the past 10 years.
And for those who want to argue that AA does in-house overhauls, AA should have about 12,000 fewer employees to have comparable productivity to CO, DL, and UA. It doesn't take 12K employees to do overhaul maintenance on AA's fleet of aircraft.

It takes about 2 managers per employee so the estimate is correct lol!!

 

[texasreb]

I see office people being very un productive every place I go. Maybe everyone in the USA should take a pay cut.

 

[WorldTraveler]

BRAVO! For eliminating thousands of jobs...BRAVO! THE AMERICAN WAY!

Where did you get the 12k from?

There are about 9500 Title I employees IN ALL of aircraft maintenance!
Please give me the breakdown of the 12k!

Also, while you are at it!,, tell us all about the productivity of ANYONE ELSE OTHER THAN A MECHANIC!!!

It is very easy to hear the know-it-alls give their analysis on how AA is at a competitive disadvantage becase of -in-house overhaul..
Tell us about EVERY WORK GROUP'S PRODUCTIVITY!

And don't forget the Executives!

The American Way is not to eliminate jobs but for people to work and for their companies to succeed in order for the employees themselves to benefit.
Protecting jobs for the sake of protecting jobs has never worked in the US.... protecting jobs to allow the company to grow has absolutely worked.

The point is precisely that if AA had to reduce 12K jobs in order to get productivity up to competitive levels, every group would have to take a hit either in the number of employees - or AA would have to be a lot more productive.
There are people here who have argued that AA's employee numbers are higher because they do in-house overhauls. Given that AA has 9500 mechanics and the company needs to get rid of 12K in order to have competitive employee numbers relative to other carriers, it obviously IS NOT in-house maintenance that is driving the problem.
I never said that AA maintenance was the reason for AA's productivity issues... in fact, the problem exists throughout the company's contracts which is why it is so difficult for management to address outside of bankruptcy.

 

[Hopeful]

The American Way is not to eliminate jobs but for people to work and for their companies to succeed in order for the employees themselves to benefit.
Protecting jobs for the sake of protecting jobs has never worked in the US.... protecting jobs to allow the company to grow has absolutely worked.

Really? Why is outsourcing all the craze these days? Other airlines are sending their heavy maintenance to lands where they don't speak English! And all the maintnenance manuals are written in English..You know what the going rate for a mechanic is in those places?

From where I stand, AA got bankruptcy contracts WITHOUT the bankruptcy. Tens of thousands of jobs have been shed. We are doing more with less people. but according to people such as yourself, it is still not enough.
For the past 30 years, the airlines has decimated the airline worker. And they are still not done. And they will not be happy until every pension is eliminated, every employee pays for his/her medical entirely, and basically they won't be happy until they just give you a pay check for a weeks work.

But unlees you wear a suit and tie, you are screwed in this industry.

You want to shed 12k so AA can be compete? Sounds good to me.. Lets start with supervisors and work our way up.

Would you care to recap the major management decisions over the last 25 years?
Millions$$$ and Millions$ spent to build hubs at RDU and BNA....What are they now?
MRTC (more room throughout coach)? What is the seat pitch now?

I can give another one, but why rehash ill feelings...

You speak of contract restricing a company to manage properly?
I have a solution for you...If AA wants to loosen up the restrictive contracts,,,THEN THEY NEED TO COMPENSATE PROPERLY FOR IT! Something AArogant AAirlines is unwilling to do.

 

[eolesen]

But unlees you wear a suit and tie, you are screwed in this industry.

What a load of BS. As a percentage of the workforce, management employees are probably 4x more likely to be laid off than non-management when things get tough. And by the way, there's no recall for management workers. It's not uncommon to lay off the middle aged guy who gave 15-20 years of their life to AA, and six months later, replace them with someone younger and cheaper.

 

[Hopeful]

What a load of BS. As a percentage of the workforce, management employees are probably 4x more likely to be laid off than non-management when things get tough. And by the way, there's no recall for management workers. It's not uncommon to lay off the middle aged guy who gave 15-20 years of their life to AA, and six months later, replace them with someone younger and cheaper.

thanks for your input. I wasn't referring to layoffs. I was referring to the things that the worker has lost over the past 30 years as opposed to the suits at the top.
You just argued one benefit of a union. They can't layoff the older guy in exchange for a younger one.