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On 4/6/2003 1:07:01 PM lesstrawn wrote:
It''s too bad we wouldn''t be able to do a line item veto on the TA and have the leadership go back and try to reach agreements on parts membership do not want. Some things are ok and others or not.
How about a stock option plan for those who will lose their jobs as a direct result of the TA implementation. Give them a percentage based on years of service. If a turnaround is actually accomplished, then they will receive some compensation for their sacrifice.
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I''m getting the idea that AA made a huge blunder in trying to weather this storm without demanding concessions at the beginning. If AA had demanded wage cuts in October, 2001, you would have had lots of time to debate which particular provisions were offensive (yet acceptable) and which were simply taboo.
But Nooooo... Instead, AA kept paying the help with borrowed money it didn''t have (to the tune of several billion dollars) and waited until it was cut off from borrowing any more money to demand wage concessions from the hired help.
And now employees are shocked to learn that time has run out. I''ll admit - failing to convince the employees that bankruptcy and failure is just around the corner is glaring incompetence on the part of management. Cash flow has been negative for over 18 months while management spent and borrowed like a drunk with a gambling problem - apparently hoping the problem would go away all by itself.
If AA survives, B-Schools will teach that Carty is a Brilliant Executive. If AA fails, historians will write that AA should have asked for the concessions long ago...
