Union blasts American Airlines in newspaper ads
Wednesday August 27, 8:43 pm ET
By David Koenig, AP Business Writer
Union representing American Airlines mechanics blasts company in newspaper ads
DALLAS (AP) -- Newspaper readers in three cities, including the hometown of American Airlines, will get a glimpse Thursday into the rising tension between labor and management at the nation's biggest carrier.
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The Transport Workers Union, the airline's biggest labor group and the one seen as most friendly toward management, took out advertisements to blame company leaders for the lack of a new labor contract.
And, picking open an old sore, the union criticized American for giving stock-based compensation to executives while thousands of rank-and-file workers face layoffs.
The company says the payments totaling more than $250 million over the last three years to several hundred managers are part of their compensation and are not bonuses.
The union says in the ad that Fort Worth-based American's "unwillingness" to give incentive pay to ground workers "while lining the pockets of executives is tearing a once-proud airline apart."
The ads were scheduled to run in the Fort Worth Star-Telegram, the Chicago Sun-Times and Tulsa (Okla.) World, union officials said.
A spokeswoman for the airline, Tami McLallen, said it was "disappointing that the TWU has taken this approach to the current contract negotiations."
McLallen said the airline has negotiated fairly. In May, the company offered lump-sum payments of 5 percent of salary upon signing and 3.5 percent a year later, but TWU rejected the deal. Efforts to strike short-term agreements have failed.
"These are indeed difficult days for airlines, yet American's employees are among the best compensated in the industry," McLallen said. "Forging an agreement that meets their needs and keeps American competitive is in the long-term best interests of American and all of its employees."
The ground workers began negotiations on a new contract last year with the goal of recovering from pay cuts averaging nearly 18 percent that they accepted in 2003, when American was on the brink of bankruptcy.
Union President James C. Little said the union has lowered its expectations, aware that high jet fuel prices are hurting American -- parent AMR Corp. lost nearly $1.8 billion in the first half of this year, and American plans to cut 8 percent of its work force, or about 6,800 jobs.
"Our negotiating committee has been pretty realistic in assessing the condition of the industry," Little said. "We're looking for a reasonable contract with a reasonable return, and a chance to build on that as the industry goes forward, hopefully for the better."
The Transport Workers' highly visible attack on American's leadership is notable because since 2003, the group has been less militant toward management than have the pilots' and flight attendants' unions.
TWU agreed to productivity increases at maintenance facilities that cut costs but also helped American bid for work on planes owned by other airlines. Little said his union has contributed $5 billion in lower costs, including the 2003 wage and benefit concessions, and new revenue from third-party work.
"We wanted to be able to share in that partnership," he said.
American says it outsources only 11 percent of its maintenance compared with 35 to 75 percent at rivals including Delta, United, Continental and Northwest.
Wednesday August 27, 8:43 pm ET
By David Koenig, AP Business Writer
Union representing American Airlines mechanics blasts company in newspaper ads
DALLAS (AP) -- Newspaper readers in three cities, including the hometown of American Airlines, will get a glimpse Thursday into the rising tension between labor and management at the nation's biggest carrier.
ADVERTISEMENT
The Transport Workers Union, the airline's biggest labor group and the one seen as most friendly toward management, took out advertisements to blame company leaders for the lack of a new labor contract.
And, picking open an old sore, the union criticized American for giving stock-based compensation to executives while thousands of rank-and-file workers face layoffs.
The company says the payments totaling more than $250 million over the last three years to several hundred managers are part of their compensation and are not bonuses.
The union says in the ad that Fort Worth-based American's "unwillingness" to give incentive pay to ground workers "while lining the pockets of executives is tearing a once-proud airline apart."
The ads were scheduled to run in the Fort Worth Star-Telegram, the Chicago Sun-Times and Tulsa (Okla.) World, union officials said.
A spokeswoman for the airline, Tami McLallen, said it was "disappointing that the TWU has taken this approach to the current contract negotiations."
McLallen said the airline has negotiated fairly. In May, the company offered lump-sum payments of 5 percent of salary upon signing and 3.5 percent a year later, but TWU rejected the deal. Efforts to strike short-term agreements have failed.
"These are indeed difficult days for airlines, yet American's employees are among the best compensated in the industry," McLallen said. "Forging an agreement that meets their needs and keeps American competitive is in the long-term best interests of American and all of its employees."
The ground workers began negotiations on a new contract last year with the goal of recovering from pay cuts averaging nearly 18 percent that they accepted in 2003, when American was on the brink of bankruptcy.
Union President James C. Little said the union has lowered its expectations, aware that high jet fuel prices are hurting American -- parent AMR Corp. lost nearly $1.8 billion in the first half of this year, and American plans to cut 8 percent of its work force, or about 6,800 jobs.
"Our negotiating committee has been pretty realistic in assessing the condition of the industry," Little said. "We're looking for a reasonable contract with a reasonable return, and a chance to build on that as the industry goes forward, hopefully for the better."
The Transport Workers' highly visible attack on American's leadership is notable because since 2003, the group has been less militant toward management than have the pilots' and flight attendants' unions.
TWU agreed to productivity increases at maintenance facilities that cut costs but also helped American bid for work on planes owned by other airlines. Little said his union has contributed $5 billion in lower costs, including the 2003 wage and benefit concessions, and new revenue from third-party work.
"We wanted to be able to share in that partnership," he said.
American says it outsources only 11 percent of its maintenance compared with 35 to 75 percent at rivals including Delta, United, Continental and Northwest.