Union says it won't sign agreement with American Airlines
04/17/2003
The Transport Workers union briefly considered not signing its concessionary contract Wednesday because it was upset with a lack of disclosure over a company pension plan for executives, but later backed off that stance and simply asked the company to reconsider its actions.
In a flash message to 35,000 ground workers, Jim Little wrote that he was outraged that American didn't reveal a special pension plan for 44 top executives while the union was examining the carrier's finances and business plan. The airline disclosed the pension plan in a Securities and Exchange Commission filing late Tuesday, after the TWU had ratified its concession deal giving back $620 million a year to the company for the next six years.
This fund is the opposite of shared sacrifice and calls into question the basis of each of our contracts. We have signed no new agreement, and in light of the disclosure in AA's SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy, Mr. Little wrote in a letter posted Thursday afternoon. Unless the Company reforms itself on the issue of executive compensation, there is no basis to cooperate in its effort to survive.
AMR had no immediate comment on Mr. Little's statement. Other carriers such as Delta Air Lines Inc. have created a similar trust for executives.
John Ward, president of the Association of Professional Flight Attendants, in a statement Thursday, called the pension trust a slap in the face to every working person who wears an AA uniform.
04/17/2003
The Transport Workers union briefly considered not signing its concessionary contract Wednesday because it was upset with a lack of disclosure over a company pension plan for executives, but later backed off that stance and simply asked the company to reconsider its actions.
In a flash message to 35,000 ground workers, Jim Little wrote that he was outraged that American didn't reveal a special pension plan for 44 top executives while the union was examining the carrier's finances and business plan. The airline disclosed the pension plan in a Securities and Exchange Commission filing late Tuesday, after the TWU had ratified its concession deal giving back $620 million a year to the company for the next six years.
This fund is the opposite of shared sacrifice and calls into question the basis of each of our contracts. We have signed no new agreement, and in light of the disclosure in AA's SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy, Mr. Little wrote in a letter posted Thursday afternoon. Unless the Company reforms itself on the issue of executive compensation, there is no basis to cooperate in its effort to survive.
AMR had no immediate comment on Mr. Little's statement. Other carriers such as Delta Air Lines Inc. have created a similar trust for executives.
John Ward, president of the Association of Professional Flight Attendants, in a statement Thursday, called the pension trust a slap in the face to every working person who wears an AA uniform.