dispatchguy
Dad is my favorite title
- Joined
- Nov 30, 2001
- Posts
- 1,569
American Airlines is freezing pay for about 19,000 noncontract employees during a steep drop in demand for travel, according to a report in the Fort Worth Star Telegram.
The Fort Worth-based airline told employees in a letter Monday that they will not receive a 1.5% annual pay raise that many had expected. AA has been giving the raises since 2003 under a five-year pay plan, which ended last year.
“The current economic recession has left organizations across the country facing unprecedented decisions about business, workforce, spending and overall operations,” said Jeff Brundage, s.v.p-Human Resources for AA in a letter to employees. “American is no different.”
He noted that revenues are declining as bookings and cargo services drop. AA also is facing increased costs for pensions and medical benefits.
The carrier is in contract negotiations with all three of its unions, which represent pilots, flight attendants and most ground workers. All of American’s employees accepted steep pay cuts in 2003, when the carrier was on the brink of a bankruptcy filing.
I am sure that Arpey and his cronies will still get theirs...
The Fort Worth-based airline told employees in a letter Monday that they will not receive a 1.5% annual pay raise that many had expected. AA has been giving the raises since 2003 under a five-year pay plan, which ended last year.
“The current economic recession has left organizations across the country facing unprecedented decisions about business, workforce, spending and overall operations,” said Jeff Brundage, s.v.p-Human Resources for AA in a letter to employees. “American is no different.”
He noted that revenues are declining as bookings and cargo services drop. AA also is facing increased costs for pensions and medical benefits.
The carrier is in contract negotiations with all three of its unions, which represent pilots, flight attendants and most ground workers. All of American’s employees accepted steep pay cuts in 2003, when the carrier was on the brink of a bankruptcy filing.
I am sure that Arpey and his cronies will still get theirs...