- Dec 21, 2002
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AA mechanics blast new productivity goals
By D.R. STEWART World Staff Writer
9/9/2006
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Days after company and union leaders announced new productivity goals at American Airlines' line maintenance stations nationwide, mechanics from San Diego to New York denounced the proposals and their union.
"The general consensus is that we have given you more than enough over the last three years -- $320 million, which equates to $100,000 per mechanic over six years -- to save the company from bankruptcy," said Chuck Schalk, a mechanic at John F. Kennedy International Airport in New York.
"Where's the shared sacrifices? If the executives of this company and the officers of this union are unwilling to make those same sacrifices, don't come around preaching to me about sacrifices."
On Wednesday, representatives of American and its Transport Workers Union (TWU) announced that mechanics at line maintenance stations, which perform light or overnight maintenance, will try to achieve $95 million in annual cost savings or third-party maintenance work by the end of 2008.
Company executives said the productivity gains are necessary to offset high fuel prices and the competitive pressures of low-cost airlines. Similar goals have been set for American's three maintenance bases in Tulsa, Kansas City and Fort Worth.
But line mechanics, who generally live in cities with higher costs of living than Tulsa's, said they are struggling to pay their bills after 2003 wage and benefit concessions that took a bigger bite out of their standard of living than those imposed on mechanics in Tulsa.
"You can't squeeze anymore out of a rock," said Ken MacTiernan, a line mechanic in San Diego.
American's unionized mechanics, pilots and flight attendants agreed in 2003 to $1.8 billion in wage and benefit concessions over six years to avert a bankruptcy filing. Ameri can has lost more than $8 billion since 2001.
For the average mechanic, the concessions amounted to a 17.5 percent wage cut, loss of premium and overtime pay and vacation days.
In Tulsa, 6,000 TWU mechanics work at American's Maintenance & Engineering Center, the world's largest aircraft maintenance base.
Line mechanics claim their smaller numbers -- 350 American mechanics work at JFK -- are dwarfed by the TWU's strength in Tulsa, where decisions are made for mechanics companywide.
"Tell me what it would like to live on $20,000 a year in Tulsa, which is what it's like for us in New York," said Bob Owens, an American mechanic at JFK.
According to a cost-of-living calculator for the Bureau of Labor Statistics, a person making $40,000 a year in Tulsa would need $64,954 in New York to maintain the same standard of living; $58,908 in Dallas; $64,127 in Miami; $71,179 in San Diego; $78,043 in Boston; $80,293 in Los Angeles; $82,704 in Chicago and $110,489 in San Francisco.
At the same time American executives and union leaders are asking for more productivity for less pay, American executives are receiving pay increases, mechanics said.
Last month, American Chairman and CEO Gerard Arpey received a 23 percent salary increase, to $650,000. Arpey said several other executives received benefits related to stock-based compensation.
The salary increases and bonuses were disclosed in the wake of American's second quarter earnings of $291 million, its best second quarter performance in eight years.
"These latest (line station) proposals are pretty disturbing because the company collaborated with our union to come up with the $95 million goal at the same time they handed out millions in bonuses to executives," said Russ Dittmer, an 18-year American mechanic in Chicago.
"I'm willing to give concessions, but I expect to get something back if the company becomes profitable. The bonuses they offered us were a pittance and a slap in the face compared with the executive bonuses."
Increasingly, line mechanics believe the concessions they agreed to three years ago will be permanent and that more pay and benefit cuts may be on the horizon.
American spokesman John Hotard said he has heard nothing about the concessions becoming permanent. The increased productivity goals are necessary due to industry conditions, he said.
"The TWU and the company are involved in a joint effort," Hotard said. "The TWU understands the competitive position American Airlines is
By D.R. STEWART World Staff Writer
9/9/2006
View in Print (PDF) Format
Days after company and union leaders announced new productivity goals at American Airlines' line maintenance stations nationwide, mechanics from San Diego to New York denounced the proposals and their union.
"The general consensus is that we have given you more than enough over the last three years -- $320 million, which equates to $100,000 per mechanic over six years -- to save the company from bankruptcy," said Chuck Schalk, a mechanic at John F. Kennedy International Airport in New York.
"Where's the shared sacrifices? If the executives of this company and the officers of this union are unwilling to make those same sacrifices, don't come around preaching to me about sacrifices."
On Wednesday, representatives of American and its Transport Workers Union (TWU) announced that mechanics at line maintenance stations, which perform light or overnight maintenance, will try to achieve $95 million in annual cost savings or third-party maintenance work by the end of 2008.
Company executives said the productivity gains are necessary to offset high fuel prices and the competitive pressures of low-cost airlines. Similar goals have been set for American's three maintenance bases in Tulsa, Kansas City and Fort Worth.
But line mechanics, who generally live in cities with higher costs of living than Tulsa's, said they are struggling to pay their bills after 2003 wage and benefit concessions that took a bigger bite out of their standard of living than those imposed on mechanics in Tulsa.
"You can't squeeze anymore out of a rock," said Ken MacTiernan, a line mechanic in San Diego.
American's unionized mechanics, pilots and flight attendants agreed in 2003 to $1.8 billion in wage and benefit concessions over six years to avert a bankruptcy filing. Ameri can has lost more than $8 billion since 2001.
For the average mechanic, the concessions amounted to a 17.5 percent wage cut, loss of premium and overtime pay and vacation days.
In Tulsa, 6,000 TWU mechanics work at American's Maintenance & Engineering Center, the world's largest aircraft maintenance base.
Line mechanics claim their smaller numbers -- 350 American mechanics work at JFK -- are dwarfed by the TWU's strength in Tulsa, where decisions are made for mechanics companywide.
"Tell me what it would like to live on $20,000 a year in Tulsa, which is what it's like for us in New York," said Bob Owens, an American mechanic at JFK.
According to a cost-of-living calculator for the Bureau of Labor Statistics, a person making $40,000 a year in Tulsa would need $64,954 in New York to maintain the same standard of living; $58,908 in Dallas; $64,127 in Miami; $71,179 in San Diego; $78,043 in Boston; $80,293 in Los Angeles; $82,704 in Chicago and $110,489 in San Francisco.
At the same time American executives and union leaders are asking for more productivity for less pay, American executives are receiving pay increases, mechanics said.
Last month, American Chairman and CEO Gerard Arpey received a 23 percent salary increase, to $650,000. Arpey said several other executives received benefits related to stock-based compensation.
The salary increases and bonuses were disclosed in the wake of American's second quarter earnings of $291 million, its best second quarter performance in eight years.
"These latest (line station) proposals are pretty disturbing because the company collaborated with our union to come up with the $95 million goal at the same time they handed out millions in bonuses to executives," said Russ Dittmer, an 18-year American mechanic in Chicago.
"I'm willing to give concessions, but I expect to get something back if the company becomes profitable. The bonuses they offered us were a pittance and a slap in the face compared with the executive bonuses."
Increasingly, line mechanics believe the concessions they agreed to three years ago will be permanent and that more pay and benefit cuts may be on the horizon.
American spokesman John Hotard said he has heard nothing about the concessions becoming permanent. The increased productivity goals are necessary due to industry conditions, he said.
"The TWU and the company are involved in a joint effort," Hotard said. "The TWU understands the competitive position American Airlines is
