Turn AAround Plan Complete

[TWU informer]

AA pilots union supports Arpey's pay raise
7/27/2006

FORT WORTH, Texas -- After several years of criticizing most pay raises or bonuses for executives, leaders of American Airlines pilots union are welcoming a hefty salary increase for the company's chief executive.

After all, if Gerard Arpey warrants a 23 percent raise, labor leaders reason, employees deserve a good bump in pay as well.

"I feel confident in stating that we have moved from a period of shared sacrifice to one of shared gain," said Mickey Mellerski, chairman of the Dallas-Fort Worth chapter of the Allied Pilots Association, in a memo to members.

The about-face on executive compensation comes as the union is preparing for talks with management on its next contract, scheduled to begin in September.

Labor leaders have already begun making a case that it's time to reclaim some of the compensation pilots gave up in 2003, when the airline was on the brink of bankruptcy.

Union employees gave up $1.6 billion in annual pay and benefits in 2003, in order to save the airline from a bankruptcy filing. Pilots agreed to $660 million in cuts, including salary cuts averaging 23 percent.

Pilot pay ranges from $35 an hour for new hires to $199 an hour for pilots with 12 years of experience flying a Boeing 777.


In addition to Arpey's raise, union officials point to the airline's slow but steady recovery as evidence that it's time to reward employees. Last week, American reported a profit of $291 million for the second quarter, its largest quarterly profit in eight years.

 

[TIME FOR CHANGE]

As usual the company union will give away something to get something in return.

And then tell you "be glad you have a job brother"

 

[TWU informer]

As usual the company union will give away something to get something in return.

And then tell you "be glad you have a job brother"

But wait a minute!

We have slogans,t-shirts, and hats that prove our strength you know?

"Will Strike if Provoked"

"Strike Force - Dead Serious"

"United we Bargain - Divided We beg"

"United We Stand - Contract Negotiations 1995"

"An Injustice to One - Is an Injustice to All"

"Don't Lower Wages - Oppose Right-to-Work"

"I AM THE UNION"

"Best Workers in the World"

"The 514 coiled Snake"

"What part of UNION dont you understand"

"Triumph With Unity"

"American's Real Strength"

on and on and on....

So what do you mean by your statement about the Strong and Powerful TWU being a company union?


(All Satire Of Course)

 

[Bob Owens]

The pilots got back 9% in 2004, 1.5% in 2005 and another 1.5% in 2006, so they already got back 12%, if they get a 23% increase like Arpey they will be ahead of the game by 2%(figure 3% inflation losses for each of the last three years).

We got 1.5% for each of the three years for a total of 4.5% of the 25% we lost, so if we got a 23% raise like Arpey we would still be in the whole for 7.5%.

 

[eolesen]

The pilots "got back" 9% in 2004 because they agreed to a bigger up-front paycut to offset some of the concessions that had longer lead times (i.e. F-100 retirements). Most if not all of the TWU and APFA's cuts were immediate, so there was no need to do an offset for the first year.

 

[FWAAA]

The pilots got back 9% in 2004, 1.5% in 2005 and another 1.5% in 2006, so they already got back 12%, if they get a 23% increase like Arpey they will be ahead of the game by 2%(figure 3% inflation losses for each of the last three years).

We got 1.5% for each of the three years for a total of 4.5% of the 25% we lost, so if we got a 23% raise like Arpey we would still be in the whole for 7.5%.

You continue to misrepresent the concessions. Maybe because you're stubborn (even when presented the facts) or maybe because you're math challenged. I hope it's the former, since mechanics need to be proficient in math.

The pilots' pay rates were cut 23% in 2003 plus their other concessions.

The mechanics pay rates were cut 17.5% in 2003 plus their other concessions (vacation, sick time, double time, etc).

In 2004, the pilots "got back" 9% while TWU got back only 1.5%. Meanwhile, over at the APA, the long lead time pay cuts were implemented (equipment downgrades and in some cases, loss of left seat).

So in June, 2004, which work group had recovered more?

The answer is easy: The APA pilots. By a negligible amount. Do the math:

APA: 23% 2003 pay rate cut = 77% of pre-concession pay rates. 9% increase in 2004 = 83.93% of pre-concession pay rates (1 - .23 = .77) and (.77 x 1.09 = .8393)

TWU: 17.5% 2003 pay rate cut = 82.5% of pre-concesion pay rates. 1.5% increase in 2004 = 83.74% of pre-concession pay rates (1 - .175 = 82.5) and (.825 x 1.015 = .8374)

Mr Owens, I know that you gave up a lot more than the 17.5% pay rate cut. But so did the pilots. Because the "other" pay cuts for the pilots couldn't be implemented overnight (like yours could), the pilots had a bigger pay rate cut the first year than you. Then, their big "raise" in 2004 brought them back to parity with everyone else who gave up 17.5%.

I've said it before - if you had wanted to give up 23% in year one (in addition to all the other pay cuts that you detail here about once a week), I'm certain that AA would have gone along with it and restored 9% in 2004. But that wasn't the deal your worthless union rammed down your throat.

 

[Hopeful]

You continue to misrepresent the concessions. Maybe because you're stubborn (even when presented the facts) or maybe because you're math challenged. I hope it's the former, since mechanics need to be proficient in math.

The pilots' pay rates were cut 23% in 2003 plus their other concessions.

The mechanics pay rates were cut 17.5% in 2003 plus their other concessions (vacation, sick time, double time, etc).

In 2004, the pilots "got back" 9% while TWU got back only 1.5%. Meanwhile, over at the APA, the long lead time pay cuts were implemented (equipment downgrades and in some cases, loss of left seat).

So in June, 2004, which work group had recovered more?

The answer is easy: The APA pilots. By a negligible amount. Do the math:

APA: 23% 2003 pay rate cut = 77% of pre-concession pay rates. 9% increase in 2004 = 83.93% of pre-concession pay rates (1 - .23 = .77) and (.77 x 1.09 = .8393)

TWU: 17.5% 2003 pay rate cut = 82.5% of pre-concesion pay rates. 1.5% increase in 2004 = 83.74% of pre-concession pay rates (1 - .175 = 82.5) and (.825 x 1.015 = .8374)

Mr Owens, I know that you gave up a lot more than the 17.5% pay rate cut. But so did the pilots. Because the "other" pay cuts for the pilots couldn't be implemented overnight (like yours could), the pilots had a bigger pay rate cut the first year than you. Then, their big "raise" in 2004 brought them back to parity with everyone else who gave up 17.5%.

I've said it before - if you had wanted to give up 23% in year one (in addition to all the other pay cuts that you detail here about once a week), I'm certain that AA would have gone along with it and restored 9% in 2004. But that wasn't the deal your worthless union rammed down your throat.

Pilots usually have one factor going for them when a contract or a concessionary one is being negotiated.
They have the advantage of knowing that X amount of pilots will be retiring each year.They have to retire at 60!
So they can factor in how many other pilots will move up to captain slots, how many pilots move up to larger aircraft. So even though they take whatever concessions, some of it can me made up through transition to captain and larger aircraft.


By the way FWAAA, it is not just about the 17.5 percent paycut. It is about everything that was negotiated away that comes out to roughly $20,000 a year for a mechanic.

Would you like to post your concessions?

SHOW ME YOUR LIST, I'LL SHOW YOU MINE!

 

[TWU informer]

Why are we still debating and talking about concessions?

Obviously that is now past, the Turn AAround Plan was successful enough to warrant a 23% pay raise for Arpey.

We should now be debating Shared Gains.

Flat out we begin with a shared 23% payraise or there is nothing "shared" about it. In addition, we should all receive some "long term" stock option incentives on top of the 23% pay raise.

This debate is no longer about sharing the sacrifice, it is now about being vigilant watch dogs and "Sharing in the Gains"!

PULL TOGETHER, WIN TOGETHER

Surely that wasn't just another slogan?

 

[local 12 proud]

PULL TOGETHER, WIN TOGETHER

Surely that wasn't just another slogan?

Care to make a wager on that? <_<

 

[Oneflyer]

Why are we still debating and talking about concessions?

Obviously that is now past, the Turn AAround Plan was successful enough to warrant a 23% pay raise for Arpey.

We should now be debating Shared Gains.

Flat out we begin with a shared 23% payraise or there is nothing "shared" about it. In addition, we should all receive some "long term" stock option incentives on top of the 23% pay raise.

This debate is no longer about sharing the sacrifice, it is now about being vigilant watch dogs and "Sharing in the Gains"!

PULL TOGETHER, WIN TOGETHER

Surely that wasn't just another slogan?

Perhaps if there was only one AMT like there is only one CEO you could get a 23% raise.

 

[TWU informer]

Perhaps if there was only one AMT like there is only one CEO you could get a 23% raise.

Perhaps you under estimate how employees feel about this matter.

But time will tell.

I suspect the "Working Together" will deteriorate rapidly if your attitude is anything more than a one man flamer.

Of course from your position, I am sure you have a better feel for employee opinions than myself, I just work around the others...

...and your position is what again? I forget.

 

[Hopeful]

Perhaps if there was only one AMT like there is only one CEO you could get a 23% raise.

What part of SHARED SACRIFICE don't you comprehend.

The person who makes $300,000, $400,000 or $500,000 per year who takes a 17% paycut is not feeling the "pain" as the person who makes $70,000 a year.
AGAIN, NO ONE IS BELITTLING A CEO MAKING COMPARABLE COMPENSATION, BUT AFTER EMPLOYEES GAVE BACK BILLIONS AND THE COMPANY IS STILL IN EXCESS OF $21 BILLION IN DEBT, HE SHOULD GET WHAT WE GOT--------------$.40 AN HOUR!

So if there were only 1 amt at AA, would his pay and compensation package be equal to that of Arpey?

 

[artiefufkin1]

Nobody is getting any raises.

AA must get it's balance sheet in order, improve it's debt rating, and refinance at lower rates.

The revenue picture has peaked. Yield increases have run their course. Anymore and you just cut into demand by the same amount.

Oil is a unknown that could really hit airlines again.

Industry capacity had been slightly decreasing over the last year but that's run it's course as well. Capacity will slighty rise starting at the end of the year. And by that time the recession will be in full swing due to oil, consumer debt, and housing fizzle.

Believe it or not we are at the peak of the industry cycle now and it's downhill from here.

 

[local 12 proud]

Nobody is getting any raises.

Believe it or not we are at the peak of the industry cycle now and it's downhill from here.

so einstien these bonuses and raises are deserved?

 

[Hopeful]

Nobody is getting any raises.

AA must get it's balance sheet in order, improve it's debt rating, and refinance at lower rates.

The revenue picture has peaked. Yield increases have run their course. Anymore and you just cut into demand by the same amount.

Oil is a unknown that could really hit airlines again.

Industry capacity had been slightly decreasing over the last year but that's run it's course as well. Capacity will slighty rise starting at the end of the year. And by that time the recession will be in full swing due to oil, consumer debt, and housing fizzle.

Believe it or not we are at the peak of the industry cycle now and it's downhill from here.

But not for the CEO and upper executives!