AA767AV8TOR
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Things Change, Part III
Getting Our Money Back
We are now formally in Section 6 negotiations. The APA Board of Directors has, in consultation with the membership, National Officers, Negotiating Committee and subject matter experts, formulated and presented our openers to management. We have received and reviewed management’s openers. Management’s Section 6 goals distill down to three basic objectives: lowering their costs, increasing their options to schedule and staff the operation and maintaining the appearance of a collaborative relationship with labor. Senior management continues to perpetuate the myth that the “Working Together” process survived the PUP controversy unscathed. We continue to point out that it did not.
APA’s objectives in Section 6 are slightly more numerous than management’s, but they all begin with one primary aim: we want our money back. On this goal, both the APA leadership and membership are united. In 2003, we made painful choices to rescue this airline from a crisis that was brought on not only by external events, but also by a series of poor management decisions that squandered billions of dollars during the preceding years. We did this not as an act of charity, but as an act of value preservation and calculated self-interest. Keeping money from flowing out of the corporation and into the coffers of the bankruptcy “industry” was the first step in restoring our purchasing power.
Now that American Airlines has returned from the financial brink, we want our money back.
Your union leadership’s goal has always been to collect on our investment – it was just a question of how and when. APA entered into the collaborative process and associated Performance Leadership Initiative (PLI) because we believed helping the company find ways to generate more revenue and cut non-labor costs was a prudent and necessary step to getting our money back. We also hoped that a true collaborative process would open an avenue to recover our sacrifices earlier than we likely will through the traditional Section 6 process. That outcome, of course, relied on management honoring the pledge of “Pull Together/Win Together.” While they may still mouth the words, they did not keep their promise. Instead, management created and endorsed a system by which those who sacrificed the least were rewarded the most. AMR shareholders have seen their investment multiplied several times over, creditors were made whole and senior management has restored their lost earnings plus some. Now, it is time to get our money back.
Any Section 6 negotiations will involve some degree of give and take, but the order in which we address the issues is crucial. We will discuss management’s legitimate business concerns, but not before we first arrive at an understanding regarding exactly how and when we will be getting our money back. The concept of shared sacrifice and deferred gratification died with the PUP. Our approach will now be the same as that adopted by senior management – restore our pay today and then we’ll work toward a better tomorrow.
It should come as no surprise that management believes we deserve nothing more than we currently have. In fact, they believe we should cede even more contractual real estate to help the company’s bottom line today, and then later maybe they will see what they can do for us. They could not be more wrong! We believe if a change to our contract is of value to the company today, then management should be willing to pay for it today.
Current negotiations on new flying to China provide a good example of the challenge we face. In fact, this issue is a possible indicator for how Section 6 negotiations are likely to proceed. To secure this new route authority, American Airlines only needs the consent of two parties – the U.S. government and APA. To date, management has expended vast resources to lobby and gain the favor of the DOT, but they have completely ignored the pilots’ legitimate expectations. Taking our cooperation for granted on the company’s application for Dallas-Beijing route authority is a grave error. APA recognizes the strategic opportunities associated with new China flying, but in the near term it largely represents a reallocation of resources from one market to another with little tangible benefit to the pilots. APA has informed management that when the pilots see some immediate improvements to our contract, we will enthusiastically support new long haul flying. The APA Board of Directors and National Officers are unanimous in our resolve to ensure that any additional China flying be done in a manner consistent with the goal of rewarding pilots for the value we bring to the table. Management must now decide whether they value our participation, or if they would rather sacrifice a coveted route award in the pursuit of a misguided labor strategy.
Whether we are talking about China or any other part of our agreement, expect management to cry foul and demand pilot concessions for little or nothing in return. Expect management to downplay the value of our contribution to AA’s success. Expect continued comparisons to bankrupt or financially troubled carriers. Expect threats – real or implied. Expect a great amount of uncomfortable and unpleasant rhetoric. Nevertheless, the sooner we break management of these bad habits, the better off everyone – management and shareholders included – will be.
We will not break management’s bad habits with superior arguments, mountains of data or appeals to fairness. Those avenues have been tried and have failed. What will ultimately convince management to give us our money back can be summed up in a single word – RESOLVE.
Think of resolve as unity over time. Saying that we want our money back today does little good by itself. We must say it today and tomorrow and the next day. We must say it next week, next month and – most likely – next year. Our elected leaders must say it and our line pilots must say it. You need to say it to your fellow pilots and say it to your supervisors. If you choose to attend any management briefings, you should not leave without telling them that you want your money back, and you are willing to do what is necessary to achieve that end. We are under no illusion that management will accept our view willingly or quickly. We must all remain unified and consistent in our message and demeanor until our goal is achieved.
This resolve cannot be built in a vacuum. It will take the combined efforts of the APA leadership and membership. The APA Board of Directors has formulated its negotiating strategy and directed the Negotiating Committee to engage in discussions with management. In the meantime, we are taking steps to build up APA’s strike preparedness and communications networks. APA will soon be seeking volunteers to fill positions in these efforts.
If you help provide the resolve, we will get our money back.
In Unity,
Ralph, Sam and Jim
