American Airlines union leader put on leave after comments
By TREBOR BANSTETTER
Star-Telegram Staff Writer
A top official at the union representing American Airlines ground workers has been put on leave after recent comments about the potential impact of high fuel prices on contract negotiations.
John Conley, air-transport division director for the Transport Workers Union, was placed on administrative leave Tuesday by James Little, the union's international president. According to a letter sent by Little to presidents of union locals, Conley "will continue working on his other operational assignments."
Union spokesman Tim McAninley said the labor group had no comment beyond Little's letter. But several union officials said the action followed comments Conley made at an aviation conference in Phoenix last week.
Conley told a Star-Telegram reporter March 27 that an unprecedented spike in oil prices could present challenges at the negotiating table as the union tries to craft a new contract with American.
He echoed that view during a panel discussion at the conference. "This could very well be a seismic-shift year," Conley told attendees. He said the environment "could be an opportunity to consider not being as intractable as folks have been in the past."
Jet-fuel prices reached $3.40 per gallon this week, according to the Energy Information Administration. That's up nearly 70 percent from a year earlier.
The union's offices have been flooded with complaints from members after Conley's comments, said several union officials, who spoke on the condition of anonymity because they are not authorized to discuss the matter publicly.
The comments became the subject of heated criticism on Internet message boards for airline employees. One union member began an online petition to have Conley fired, which had garnered more than 200 signatures by Wednesday evening.
"His defeatist comments are inexcusable, and we have no confidence in his ability to bring us back a fair deal," the petition reads.
American's other unions have said that fuel prices shouldn't prevent them from winning higher wages at the bargaining table.
"This contract is going to take a long time" to negotiate, said Laura Glading, the new president of the Association of Professional Flight Attendants. Fuel prices are likely to fluctuate considerably during that period, she said.
All three of American's unions are in talks to update contracts that open for changes at the end of this month. Under federal laws governing airline labor talks, the current contracts will remain in force until new deals are approved.
Union leaders have said that they want to regain wages and benefits lost in 2003, when the labor groups approved $1.6 billion in annual concessions to keep American out of bankruptcy.
Several analysts predict that the industry's harsh financial environment could indeed make it difficult for labor to achieve significant raises at American. "It is unrealistic, in our opinion, to believe that a high-labor-cost carrier will negotiate to become an even higher-cost one," Michael Derchin, an airline analyst with FTN Midwest Securities, wrote in a recent report.
Shares of AMR Corp., American's parent company (ticker: AMR), closed at $9.59 in trading Wednesday, down 26 cents.