The Baumert Report April 21, 2003

1AA

Veteran
Aug 20, 2002
6,056
4,305
www.usaviation.com
The Baumert Report April 21, 2003
A Failure of Management: AMR Labor Relations (An Update)


From Robert Crandall''s administration to Donald Carty''s, AMR''s senior
management has regarded its employees as recalcitrant children rather than
valued professionals. They have perpetuated the idea that employees are a
liability rather than an asset; a necessary burden rather than a necessity
for success; an adversary to be fought rather than a respected partner in
business.

Indeed, the creation and the intentional concealment of the special trust
and bonuses are indicative of the low regard AMR management has for their
employees. It also speaks to the character of Don Carty and his senior
executives. AMR employees should not be left with any doubt now as to the
trustworthiness and integrity of their management.

In the 1960 book The Enemy Within Robert Kennedy wrote, Some otherwise
honest businessmen look on the relationship between labor and management as
a great power struggle in which ''anything goes''. In their anxiety to gain
the upper hand in this struggle they resort to unethical and dishonest
tactics on the mistaken theory that they must do this to win. It seems AMR
management still subscribes to this mistaken theory.

Yet, in any service industry a company''s most valuable resource is their
employees. They are the lifeblood of the business. It is obviously
counter-productive to manage these employees by means of deception and
intimidation. Indeed, such tactics are so flawed and disgraceful that the
management who adheres to them ensures their own competitive failure.

Ironically, shortly after becoming CEO, Mr. Carty actually vowed to change
AMR''s corporate culture and improve employee relations. Yet, his
disgraceful and inexcusable actions have forever undermined and corrupted
what little was left of labor relations and has alienated his entire
workforce.

Though he is still CEO, Carty has relinquished his role as leader of the
company. A leader requires qualities of honor, integrity, honesty and
setting the example for all. Carty evidently feels the required activity of
his job is lying. A few years ago, Mr. Carty had the impudence to complain
in the Wall St. Journal that AMR''s biggest problem was getting our
employees to believe we care about them. There''s no sense in his trying
anymore. His employees now know with certainty that he doesn''t care about
them.

Labor troubles at AMR will persist and recur as management perpetuates their
own mistakes and failures with employees. They would do well to remember
the words of Cicero, To be ignorant of the past is to remain a child. And
given those words, it''s clear who the recalcitrant children really are.

It is obvious AMR management does not deserve the trust and loyalty of its
employees. In fact, it is a reprehensible management that continues to take
measures of unrestrained greed and engage in a labor policy that
disenfranchises employees, workgroup by workgroup, individual by individual.
As AMR management continues to deceive, intimidate and demoralize, they
also continue to blatantly ignore the inherent benefits of high morale and
excellent labor relations. The result will be the long-term business
consequences of lost productivity, poor customer relations and the forfeit
of potential profits.

In conclusion, the opinions and judgments put forth here may seem harsh.
However, I assure you they pale in comparison to the treatment thousands of
employees have endured at the hands of AMR management.

Steven Baumert
 
Let's all take a look at what is the Big picture.NO one wants a B/K,NO one wants jobs cut or wages reduced.We all got into this for several reasons,I did it because i wanted to be around Airplanes i chouldn't fly so i decided to fix them.I was rasied in a blue collar family,and very proud of it.I will never fault anyone for seeking higher eduction or advantacing themselfs in the comapny.The problem I see is the old saying "Absolute power,Courpts Absolutly!!!! we will see better times ahead,and to told you the truth if there was one wish I had,It whould be,I want it to be Sept10 again.We have be given a new chance and maybe very soon a new start.This is now a time when we Together as a company can start again,Yes change will be made and people will learn frome thier mistakes.As Mangement this is a REAL chance to prove it self and our responabile as employee's is to do what we need to uphold the reputation of this Airline.If B/K brings us a new start( and yes i think it will) then we can correct what is broken,rebuild and move ahead.The concession package is wrong it prolongs the suffering and accomplishes nothing.But change must come for within,and only then will it determine if we(employee and mangement together) and American will stand or fall.
 
Do we demand a new Leadership! Or do we allow upper management to succeed?

A word of caution, Sending AA to its death is not the Answer!

Their is an avenue we have! Stock holders and the Board of Directors!

Do they allow Carty to send AA to its Death or step up to the Plate and Do the right Thing.

The Vast majority of AA Employees ( Union and Non-Union) have lost convidence in Carty!

Is their someone from within that can fill his shoes or do we allow Bob to come back and shrink the airline and wages further?

A few Questions to ponder!
 
Checking it out;
BOB, or no BOB, the answer to your question is,
(AND I KNOW "DENIAL" IS A TOUGH THING)

The company is broken down, like a once fine old house.
But wait;
"Not all is lost"
As it was in the late 70''s/early 80''s AA was faced with a similiar situation. They addressed that situation quite sucsessfully I might add, AND THEY SHRANK THE COMPANY !!! "PERIOD", "CASE CLOSED" !!!!!!!!!!!!!!!!!!!
They swallowed the bitter medicine "UP FRONT", and lo and behold, AA got "better", and over time vitually all of the UNION members got a one time chance to be RE-CALLED.
Problem is/was(EVEN BEFORE CARTY GOT CAUGHT WITH HIS HAND IN THE COOKIE JAR), he(Carty) "championed" 2 DUMB IDEA''s
1. Shared sacrifice
2. Threat of BK-11

If Carty followed Crandall''s lead(23/24 years ago), in the long run, we''d be better off.

Your thoughts ??

NH/BB''s
 
----------------
On 4/22/2003 11:13:57 AM NewHampshire Black Bears wrote:

Checking it out;
BOB, or no BOB, the answer to your question is,
(AND I KNOW "DENIAL" IS A TOUGH THING)

The company is broken down, like a once fine old house.
But wait;
"Not all is lost"
As it was in the late 70''s/early 80''s AA was faced with a similiar situation. They addressed that situation quite sucsessfully I might add, AND THEY SHRANK THE COMPANY !!! "PERIOD", "CASE CLOSED" !!!!!!!!!!!!!!!!!!!
They swallowed the bitter medicine "UP FRONT", and lo and behold, AA got "better", and over time vitually all of the UNION members got a one time chance to be RE-CALLED.
Problem is/was(EVEN BEFORE CARTY GOT CAUGHT WITH HIS HAND IN THE COOKIE JAR), he(Carty) "championed" 2 DUMB IDEA''s
1. Shared sacrifice
2. Threat of BK-11

If Carty followed Crandall''s lead(23/24 years ago), in the long run, we''d be better off.

Your thoughts ??

NH/BB''s

----------------​
Even if we down size, AA still faces the fact our competitors still have costs lower than AA.

Our costs now are 9.2 cents asm. We all take cuts our costs will be 8.3 asms. That is still 30 % higher than SW.

Since the industry has changed and low cost is here to stay! we need to look at alternatives to survive. Outsourcing or mass elimination of jobs is not the answer. Better managing with fewer boses may help along with production increases and bring work inhouse.

Fighting amongst ourselves is having a damaging effect on moral also.

Just a note; I here AA Board of Directors is hinting Carty has until Thursday to mend fences.