"Working Together" - Something New?

TWU informer

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Record Number: TUL14122

March 14, 1989

Transport Workers Work On

By W.K. Stratton

Section: business
Edition: FINAL HOME EDITION
Page: G1
Estimated Printed Pages: 4

Article Text:

In 1986 American Airlines presented Local 514 of the Transport Workers Union of America a plaque recognizing 40 years of cooperation in Tulsa.

Two clasped hands are depicted. On one side is American's emblem. TWU's is on the other.

Local 514 displays the plaque at the union hall at 11929 E. Pine St.

But Local President Ed Wilson thinks clasped hands do not represent the current state of affairs between the union and the airline. Their contract expired March 1.

"We made concessions in 1983 in order to make American the dominant carrier," he said last week. "Now it is the dominant carrier. All we want is what we gave up. But American turned greedy on us."

Wilson studied the plaque.

"For a long time the union and the company were just like this," he said, jabbing his fists together. "Then we entered into a period of cooperation. The company apparently mistook that spirit as a sign of weakness on the part of the union."

American, he said, is learning it made a wrong assumption. Wilson points to meetings about the impasse held for TWU members Sunday at Tulsa's Brady Theater. Over 3,000 members attended the discussions, braving a winter storm that dumped over nine inches of snow on the city. Many of those attending came from out of town.

"There was not any dissension," Wilson said.

The dispute between the airline and the union involves a number of different issues, some of them complicated. The two sides seem to be far apart. The Local's newsletter, the Union Reporter, said in its Jan. 9 issue "...long, serious negotiations will have to take place before a tentative agreement can be reached."

No strike action is imminent, both sides agree. But neither is a quick settlement.

Contract negotiations are in the conference and consultation period occurring within 30 days of a notice of intent to change agreement.

Union negotiators turned down a contract offer for American mechanics and ground workers. TWU has referred the proposal to its rank-and-file for a decision.

At a press conference in Tulsa March 3, American's Dave Kruise, vice president of maintenance and engineering, said the American offer includes immediate base pay increases, accelerated progression through higher pay scales, increased license premiums and performance-based incentive pay increases.

The offer also includes lifetime job security for 5,317 TWU members, tuition refunds for newly acquired skills and licenses, increased life insurance coverage and insurance coverage for newly hired employees after six months.

The package, American said, is worth $610 million.

In a letter to employees of the airline, American President Robert Crandall blasted TWU's leadership, saying it had "told us it is unwilling to endorse any proposal other than its own without a protracted period of confrontation."

Crandall also alleged, and Kruse reiterated the charge at his press conference, "union politics are more important than the financial welfare of AA employees" to the TWU leadership.

In particular, Kruise said the upcoming Local 514 elections may have prompted union negotiators to reject the proposal.

"The members of this local would have voted me, or any other president, out of office if this offer had been accepted," Wilson said.

Wilson said the offer has many facets that are objectionable to the union, starting with the base pay proposal.

A chart prepared by TWU shows the pay rate of $15.31 for starting mechanics proposed by American would leave them

78 cents below the starting wage paid to USAIR mechanics.

But worse yet for the mechanics - and other workers represented by TWU - is the rate of pay progressions, Wilson said.

The chart shows USAIR mechanics reaching the maximum wage rate of $21.10 after 10 six-month progression steps. American mechanics would reach the maximum of $21.28 after 24 six-month progression steps.

And, the chart shows USAIR mechanics getting a base pay increase to $16.48 in November.

The USAIR mechanic making the new maximum wage of $21.55 per hour would outdraw his American counterpart by over

$9,700 per year, according to the TWU chart.

American's Maintenance & Engineering base in Tulsa stands to lose 1,500 experienced mechanics because of the pay discrepancies, union officials claim.

"There is a nationwide shortage of mechanics," Wilson said.

The union is asking for greater base pay and quicker progression to the upper levels of the pay scale.

"All we want is what our competitors are paying," Wilson said.

There are disagreements beyond wages, among them are:

Insurance. At present, new employees are not covered by the American insurance plan until they have worked for the company for a year. Employees can pay for coverage at a

monthly cost of over $90 for individuals and over $170 for families, the union said.

"This makes it hard on the guys at the lowest end of the salary scale," Wilson said. "They are the least paid, and they have to spend a big chunk of what they make on insurance."

American is offering to take new workers into the insurance system after six months of employment. TWU wants coverage immediately upon hiring.

Also, TWU objects to an American proposal to have workers pay for part of the cost of coverage.

"American is self-insured," said Wilson. "They want to pass cost increases on to the workers when their own people should be working to keep costs down."

Training Reimbursement. American is offering to reimburse workers for fees and tuition used to acquire greater skills.

TWU agrees the company should make the reimbursements, but Wilson said American wants to make one lump payment to an employee after he has completed his training. The union wants American to reimburse after each semester of instruction.

Security Investigations. Wilson said that since TWU mechanics own their own tools and toolboxes with values in the thousands of dollars, the union supports shop security.

However, he said American security officers frequently detain workers for interrogation. TWU wants a union representative to be present for such questioning.

Part-time Workers. TWU says American wants to raise limits on the number of part-time workers. The union wants the limit to stay at 15 percent of the work force. It also wants overtime hours to go to full-time workers before being given to part-timers.

In his office, decorated with Native American paintings and sculpture (Wilson is of Delaware Indian descent), the union leader produced a series of charts showing the majority of TWU workers have joined American since 1983.

"This offer really hurts our workers with the least seniority," Wilson said.

He said American's Tulsa facility has the highest productivity of any M&E base in the world.

"Now that the recession is over," Wilson said, "we want things back."

Is "Working Together" really new to the TWU and AA? When I read this story from 1989, the story sounds very much like what we hear today, only the names have changed but the program is the same.

I hope you enjoyed reading this history lesson. There is mcuh more available where this came from. It is really interesting to read past newspaper articles and view the continuous cycle of repeated mistakes and rhetoric.

HAS ANYONE SEEN MY T-SHIRT WITH A SLOGAN PRINTED ON IT?

I NEED TO WEAR THE SHIRT SOON SO THAT I AM FULLY PREPARED FOR TWU NEGOTIATIONS!
 
Record Number: TUL14122

March 14, 1989

Transport Workers Work On

A chart prepared by TWU shows the pay rate of $15.31 for starting mechanics proposed by American would leave them
18 years later the new starting wage is $9.44 for someone doing the same work the mechanic in 1989 was doing for $15.31. What a union...
 
"All we want is what our competitors are paying," Wilson said.

Does this quote still apply as well?.... Didn't think so. You only want what one of your competitors is paying. Never mind that you're probably still the second or third best paid in the industry...
 
Wow, fond memories of the 1989 sell out, I was working on the ramp at LGA at the time. This was the contract that saw the advent of Flex Benefits, another TWU first. I remember it like it was yesterday, my first experinece with the negotiating prowess of the TWU. The company offered a 25 cent raise, and the union was indignant; "Vote No" stickers and stickers with Crandall's name crossed out were plastered all over the place. Then they came back with Flex Benefits and a 10 cent raise and told us it was the best they could do. The union also told us Crandall had scabs in hotels waiting to take our jobs if we voted no and went on strike. They made it sound like there was no other alternative.
I remember seeing that plaque when I got to Tulsa that same year. I thought to myself: "what a bunch of sell outs!"
Move forward 17 years and the 1989 contract doesn't seem so bad in light of what we have now.
By the way, UPS mechanics make around $93,000 base, SWA mechanics make over $40/hr., I think even FedEx pays more than AA.
Contract time is comming boys, BOHICA!