FA''s to join the other 2 unions

wts54

Senior
Sep 16, 2002
374
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www.usaviation.com
Really wheres the link?
http://www.washingtonpost.com/wp-dyn/artic...-2003Apr25.html

This one says the f/a's still havent agreed.
In the end I think they will agree.

American Is Back to Brink of Bankruptcy


By DAVID KOENIG
The Associated Press
Friday, April 25, 2003; 8:18 AM


FORT WORTH, Texas - On one of the most turbulent days in American Airlines' history, the embattled chairman and chief executive resigned, the board met in emergency session and the company's unions split over concessions designed to slash labor costs.

After all the scrambling, the world's biggest carrier was right where it started Thursday: staring down the barrel of a potential bankruptcy filing.

The outcome may rest with flight attendants, who balked at approving a slightly sweetened package of concessions aimed at saving $1.8 billion a year. A spokesman said the union's board probably would meet by telephone Friday morning.

With the airline's fate still up in the air, Donald J. Carty resigned as chairman and CEO, the victim of his deteriorating relationship with employees and increasingly shaky financial situation. On Wednesday, parent AMR Corp. reported a $1 billion loss for the first quarter.

Gerard Arpey, the company's president, will replace Carty as CEO, while board member and former Sears CEO Edward A. Brennan will take over as chairman.

It was not clear, however, whether the combination of Carty's resignation and the more generous labor deal would be enough to prevent a bankruptcy filing.

Unions representing pilots and ground workers agreed to the company's latest concession offer, but leaders of the flight attendants' union balked.

George Price, a spokesman for the Association of Professional Flight Attendants, said the group objected to the duration of the concessions - now five years - the "lack of incentives" for employees and specific items affecting attendants.

Late Thursday night, Arpey invited four national officers of the union to his office to discuss the impasse, Price said.

"The APFA is committed to working with the company to avoid bankruptcy," Price said. "Discussions are ongoing."

The union might not have much time to make a decision. Company officials have said American would file for Chapter 11 protection in New York unless all three unions accepted the wage and benefit concessions, and the chief financial officer flew there late Thursday.

The new deal shortens the length of concessions by nearly one year to five years and provides bonuses of up to 10 percent of wages for meeting company-performance goals that will be the same for labor and management, said officials of the pilots' and ground workers' unions.

The original concessions package was approved by workers last week but unraveled when employees learned of previously undisclosed executive perks, including bankruptcy-proof pensions and huge bonuses. Employees harshly criticized Carty, who had said management was sharing in the sacrifices to strengthen AMR.

Carty apologized for not telling workers sooner about the executive benefits. The company eventually canceled bonuses for the top seven executives but left in place the $41 million in pension funding for 45 executives.

Two unions announced plans for new elections on the concessions, which American had hoped to avoid.

"It is now clear that my continuing on as chairman and CEO of American Airlines is still a barrier that, if removed, could give improved relations - and thus long-term success - the best possible chance," Carty, 58, said in a statement.

Arpey, who will remain president, said he would work to "restore the confidence of all employees in their great company."

Arpey, 44, has held a variety of management jobs at the airline since 1982, including chief financial officer, executive vice president of operations and president and chief operating officer of American and AMR since April 2002.

Brennan, 69, retired as chairman and CEO of Sears in 1995. Some shareholders had demanded his resignation because of the retailer's flagging fortunes and its sales or spinoff of successful side businesses. He joined the AMR board in 1987.

"It's a very good team that's been put in place, and I'm very supportive of it," said board member David Boren, president of the University of Oklahoma, who had called for Carty's removal.

Airlines have been hit hard by a downturn in travel caused by the weak economy, the 2001 terrorist attacks, fear of new terrorism around the Iraq war, and the SARS outbreak. Competition from low-fare carriers has also restrained fares.

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WXGuesser

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Aug 20, 2002
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www.usaviation.com
This sounds like the old "friend-of-a-friend" thing, but the local DFW media were reporting this morning that a spokesperson for the Pilots union said the flight attendants have agreed to a revised T/A, similar to what the other unions had agreed to.

Hopefully we will all know soon.

TANSTAAFL
 

AAStew

Veteran
Feb 24, 2003
877
15
I for one am tired of this, anyway you look at it accept or not accept, we are going to take huge concessions. I truly believe that if it is accepted AMR will do everything possible to stay out of BK. Not only for financial reasons but to "Save Face". After all the rhetoric yesterday about rebuilding trust with the employees it only seems logical. But maybe I am being naive....
 
OP
T

twaokc

Senior
Aug 19, 2002
336
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OKC
AMR sharres shake losses on union report (AMR) By Emily Church
AMR Corp. (AMR) shares were recouping losses in pre-open trading and were last down 1 percent at $4 amid reports flight attendants will reportedly accept revised labor concessions. Sources within the Allied Pilots Association tell KRLD radio, Dallas, news that the Association of Professional Flight Attendants will approve a revised labor concessions package. A news conference is scheduled later this morning to make the official announcement.
 

FWAAA

Veteran
Jan 5, 2003
10,251
3,900
Exactly. The vote is not really a vote on the concessions (never was) but is really a vote on whether the work groups prefer that AA waste hundreds of millions more doing this in bankruptcy.

Concessions suck, but the reality is that the workgroups take them or the airline liquidates. And for all the bluster from 5 or 6 employees about how that would suit them just fine, nobody really wants AA to liquidate, do they?
 

gogogadget

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Aug 21, 2002
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From the way I see it, and I dont trust things yet, It looks like the company really wants to avoid the BK thing right now. At least that is perceived with their wantingness to get these deals done or extend or delay any filings. Things may change later but that is how it looks.
 

FA Mikey

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Aug 19, 2002
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miami
goldwatermiller08.com
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On 4/25/2003 8:42:18 AM FWAAA wrote:

Exactly. The vote is not really a vote on the concessions (never was) but is really a vote on whether the work groups prefer that AA waste hundreds of millions more doing this in bankruptcy.

Concessions suck, but the reality is that the workgroups take them or the airline liquidates. And for all the bluster from 5 or 6 employees about how that would suit them just fine, nobody really wants AA to liquidate, do they?

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So it was never a vote on concessions? Interesting because the unions came forward to work with the company. We didn''t want BK. But they gave up crap TA''s on a take it or leave it proposition. AA at that point had NO desire or interest in working with the unions. Only using them against themselves and the media.

AA wastes millions on a daily basis. Even with the information they chose to ignore and go on business as usual. I dont think losing a few hundred million more will matter much to this company.

Let me tell you a thing or two about concessions. I am the one having to take them not you. The idea of concessions or liquidation, is a little to simplistic. Them again your rhetoric is basically to trash on company employees.