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APA's response to AA's union busting tactics

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aa73

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Cajones with a capital "C".. way to go, Lloyd!

http://www.star-telegram.com/news/story/262227.html

?Posted on Tue, Oct. 09, 2007

New pilots union leaders blister American's Arpey in letter

By: TREBOR BANSTETTER

[email protected]

The new officers of American Airlines' pilots union blasted Gerard Arpey, the airline's chief executive, in a blistering letter that disparages his leadership, condemns executive bonuses and asserts that company sick leave policies are resulting in suicide.

It closes with a warning that Arpey may have to deal with a pilots' strike.

"Enjoy your blood money and your union-busting meeting," wrote Lloyd Hill, president of the Allied Pilots Association. "We'll see you in court, in the newspapers, and on the picket line."

The letter, sent Sept. 18 and obtained by the Star-Telegram, was in response to an email from airline executives that touted cooperative efforts between labor and management. It was also signed by Tom Westbrook, the union's vice president, and Bill Haug, the group's secretary-treasurer.

All three were elected in July after promising to take a harder line with airline management than previous union officials. The letter is a clear indication that they weren't kidding.

Hill "doesn't mince words, and that's pretty clear from the letter," said union spokesman Gregg Overman. "It's very direct."

The letter's contents include:

-- Condemnation of a cooperative union-management program as "a cruel hoax perpetrated upon (American) employees."

-- A statement regarding American's poor customer service ratings that says, "your solution always seems to involve hiring another (vice president) or forming another 'team.' "

-- A statement that the tenure of former chief executive Bob Crandall, long vilified by labor, is "looking more and more like the peak of leadership in AMR's arc of history."

Crandall, Hill says, "did not enjoy big bonus payments unless employees received profit sharing."

Calls to American were not returned by midafternoon.

American and the union have been negotiating on a new contract for a year, but little progress has been made. American recently proposed revamping scheduling that would allow pilots to fly more hours and thus earn more money, but that proposal didn't address wages.

The union, meanwhile, is expected to submit its proposal sometime before the end of the month. While details have not been released, the union is likely to ask for substantial increases in wages and benefits.

Pilots, as well as other American labor groups, approved hefty cuts in pay in 2003 to keep American out of bankruptcy. Now that the airline has returned to profitability, union leaders argue, employees deserve to have their wages restored.

American executives counter that rivals that went through bankruptcy, like Delta Air Lines and Northwest Airlines, now have cheaper labor costs.

By threatening to see Arpey "on the picket line," Hill appears to be warning that the talks could end in a strike -- a move that could be devastating to the airline. A pilot walkout would shut down the airline entirely and cause massive financial losses in a short time.

It could be more than a year, however, before a strike becomes possible. Federal laws that govern airline contract negotiations only allow walkouts after several milestones have been reached, including mediation and cooling-off periods.

And the president of the United States has the ability to end an airline strike. That's what happened in 1997, when President Bill Clinton ordered striking American pilots back to work after seven minutes.

Overman pointed out that the union might also engage in informational picketing at airports.

"We have all sorts of tools at our disposal," he said.

The union has been fighting with American this year over what labor leaders say is an unfair crackdown on sick leave used by pilots. In his letter, Hill blasts the airline for "management's illegal, immoral and retroactive garnishment of earned and rightful sick pay for our pilots," which he calls "a cruel persecution."

Overman said the company has been pressuring sick pilots to return to work, even if they suffer from a psychiatric disorder requiring medication, such as anti-depressants, which may disqualify them from flying. In some cases, he said, pilots have stopped taking their medications to return to the cockpit.

In his letter, Hill alleges that the airline's policy has caused "unprecedented suicide rates" and pilots deserting their families.

"One pilot caught in this drive to reduce costs was forced to come off his medications to try to" return to flying, Hill wrote. "His reaction to this cessation of treatment was to leave his wife and children behind, we are trying to reel him in before *he* kills himself."

Overman declined to comment on any specific cases of American pilots committing suicide, citing union privacy rules.

Shares of AMR Corp., American's parent company (ticker: AMR), were trading at $25.19 per share, down 45 cents, at midafternoon Tuesday.

Trebor Banstetter, 817-390-7064
 
http://media.star-telegram.com/smed...letter_9-18-07AB.source.prod_affiliate.58.RTF

September 18, 2007

Mr. Gerard J. Arpey Chairman
President & CEO American Airlines, Inc.
PO Box 619616
MD5621
DFW Airport, TX 75261-9616

Dear Mr. Arpey:

We are in receipt of Robert Hughes' e-mail and attached PowerPoint presentation stating the purpose and goals of the Joint Leadership Team (JLT).

It was difficult for us to get past the first PPT slide, which advertised "immediate, significant bottom line improvement" and "unified regular delivery of credible 2-way business information." All we can see from our vantage point is the vast enrichment of AMR executives from bottom line improvement that is levered into their pockets via the 10-to-1 leverage of the P/E ratio, and an unlimited opportunity for continued one-way delivery of corporate business information. Meanwhile, labor is deprived of any of the bottom line benefits mentioned because profit sharing does not kick in until $500 million (after all of management's bonuses are accounted for in the Salary Expense line), and AIP Financial does not pay until $1.2 billion in pre-tax profits.

AMR executives love to listen to labor's ideas for solving "their* problems, but have nothing to say in response to our bitter complaints of being cut out of the rewards while management counts the gold. In our view, the JLT has been a cruel hoax perpetrated upon AA employees. We were promised regular meetings to discuss and improve our gain-sharing programs, yet after 47 months we are still waiting for this promise to be kept. You promised that if we would "pull together," we would "win together." Yet despite our sacrifices and hard work to provide ideas through forums such as the JLT, AA continues to deprive pilots of advancement opportunities by shrinking, while more and more VPs are hired. Rather than address the causes of the poor ratings our customers give us on the many surveys you take, your solution always seems to involve hiring another VP or forming another "team." At least in the old days of Bob Crandall, which are looking more and more like the peak of leadership in AMR's arc of history, we were all rewarded congruently. Executives did not enjoy big bonus payouts unless employees received profit sharing.

When we met with you last month, we spent four hours in the room with your senior leadership helping them brainstorm issues that they are being paid handsomely to address. Still we participated and offered our observations and ideas. After the meeting we attempted to get one minor issue of our own addressed by Mark Burdette and were rejected out of hand. Upon returning to our offices, we discovered that the "hypothetical" American Way article you asked about had been delivered earlier in the day to our safety committee in a nearly final form. We also discovered that a letter to the pilots about the state of negotiations had been delivered to our members and the press, even as we sat in the room with the author, who never had the courtesy to share it with us face-to-face.

In our view, the JLT has become a classic "union busting" exercise, devoid of rewards for our members and lacking the basic respect and courtesy expected in a cooperative professional relationship. We no longer have time to participate, as we are needed back at APA headquarters to work on issues such as restoring our members' pay and overturning management's illegal, immoral, and retroactive garnishment of earned and rightful sick pay for our pilots...a cruel persecution pressed on APA by oblivious human resources and flight departments. Now that you have decided to start persecuting the most defenseless pilots in the group, disabled pilots with mental/nervous disorders, we are seeing unprecedented suicide rates and pilots deserting their families. One pilot caught in this drive to reduce costs was forced to come off his medications to try to get his medical back. His reaction to this cessation of treatment was to leave his wife and children behind; we are trying reel him in before *he* kills himself.

Enjoy your blood money and your union-busting meetings. We'll see you in court, in the newspapers, and on the picket line.

Regards,

Captain Lloyd Hill
President

Captain Tom Westbrook
Vice President

Captain Bill Haug
Secretary-Treasurer

cc: Robert Reding Jeff Brundage Mark Burdette
 
As usual, the actual letter is far less heated and rhetorical than the newspaper made it out to be. The local paper made it a page 1 giant news story, sceaming out "MANAGEMENT AND PILOTS IN STEEL CAGE DEATHMATCH! HILL AND GANG ARE GOING TO KILL EVERYONE WHO RECIEVED A BONUS!!!"

The funniest part was someone actually went to Crandall for comment, and he probably smiled and in that gravelly voice declared "I'm proud of the hard work I did, and that we had a decent relationship."

I miss Crandall. How sad is that. Crandall knew the business, he knew it very well, even if he was an SOB. Arpey is simply incompetent and unimaginative.
 
What exactly is unprecidented suicide rates?

While I like the hardball tactics, using a pilot's personal saga of leaving his wife and children as a polictical tool for leverage is pretty disgusting in my book.
 
I'm sure that Arpey and his overpaid execs could care less. They know the cards are stacked heavily against organized labor and in favor of the ruling elite in this country and they're out to emasculate the union once and for all.
 
Cajones with a capital "C".. way to go, Lloyd!

Roger That!
Finaly a union with some balls!
Of course we always have (alpa) Prater's "takinging it back" campaign.:laugh: :laugh: :laugh:

737
 
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I'm sure that Arpey and his overpaid execs could care less. They know the cards are stacked heavily against organized labor and in favor of the ruling elite in this country and they're out to emasculate the union once and for all.
Exactly. The power of a strike has been forever taken away, and AMR knows this. You will hear tough talk from the APA over the next few months, but in the end they will bend over and say thank you just like the rest. I hope I'm wrong, time will tell...
 

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