New trouble for AA

[flaps30]

This is George Price, APFA National Communications Coordinator, with an APFA Hotline Update for Thursday, April 17, 2003.

It's been reported in the press today AMR revealed in a filing it just made with the Securities and Exchange Commission that it agreed to provide a special supplemental pension trust for its top 45 executives that would protect a portion of their retirement income in the event of a bankruptcy filing, that the Company delayed in filing this SEC report until the ratification voting was concluded, and that the unions had been briefed on this trust.

To set the record straight: APFA had absolutely no knowledge of this special trust fund until today's published reports appeared and was never briefed on these special pension benefits. The information regarding executive compensation that was provided to APFA has already all been made public. APFA is outraged by these latest revelations, which extend even beyond the sorry course of conduct that the Company pursued throughout the past several weeks.

Please stay on the line for the remainder of the APFA Hotline.

 

[flaps30]

TWU reaction on AA CEO pension

IMMEDIATE ATTENTION

April 17, 2003


TO: All TWU/AA Members

Dear Sisters & Brothers:

Yesterday, as contract ratification for all three union groups was being completed, the Company made a filing with the Securities and Exchange Commission, indicating it had established a special pension fund for its executives. The existence of this fund was never revealed to our consultants while they examined AA's books, nor were we informed of it in the bargaining which led to the concessions we agreed to in order to avoid a bankruptcy. We regard the failure to timely disclose the existence of this fund in bargaining by American as a material breach of its obligations to provide relevant information.

The concessions our members barely ratified the other day were based on the premise of shared sacrifice. This fund is the opposite of shared sacrifice and calls into question the basis of each of our contracts. We have signed no new agreement, and in light of the disclosure in AA's SEC filing, we must reconsider whether we will sign off, even if the consequence is a bankruptcy. Unless the Company reforms itself on the issue of executive compensation, there is no basis to cooperate in its effort to survive.

Sincerely & fraternally,

James C. Little
Director Air Transport Division
Intl. Administrative Vice President

 

[Duke 6]

In the immortal words of Captain Rex Kramer

"Airline Management, they are all CHEATS and LIARS"

 

[N1atEcon]

yikes....

That is really low. I sure hope you folks can revote.

 

[Heavy Set]

Good Faith? Nope

What ever happened to "lead by example"? I doubt Herb Kelleher would ever do this....... First Leo Mullin and now Carty.

Who can you trust in this business? Not many people... This industry is falling apart!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Midnight Mike]

Scumbags! They should be ashamed of themselves..... I thought the people at AA
were a little more classier than that...

 

[T45Flyer]

Totally UNSAT!

Unfreakinbelievable.......

Did all of the Big three Airline Exec's go to the Michael Milliken school of ethics !??!

Don Carty praised his employee's for thier huge sacrifices and teamwork then stabs them in the back the next Damm Day! WOW! He must have a HUGE Sack or he is just plain stupid! I wouldn't blame any of the AA work groups for thier actions now! GO GET EM!

 

[LJDRVR]

To my fellow Aviators at American Airlines,

I am so sorry y'all have to go through this. While I don't buy into the train of thought that all high-level executives are evil and greedy, your latest dilema really makes me wonder what this world is coming to.

You have my deepest sympathies, no one should have to work for people without honor and integrity. We're pulling for you guys and gals, may your "leaders" rot in H_ll!

 

[Heavy Set]

A Great Idea!!!!!!!!!!!

I have a suggestion - why don't you replace Carty with someone reputable like Frank Lorenzo?

I bet Frank Lorenzo wouldn't be this sneaky...............

Where's Carl Ichan when you need him?

 

[jetexas]

Hmmm. The level of discontent at AMR will certainly be raised over this one.
I wonder if the TWU mechanics will nullify their vote?
Could this be the death knell of AMR's upper management? I wonder if the stockholders will still buy the insinuations that all this is "labors fault"?
Without trust a free market is nothing.

 

[C150Heavy]

I'm sorry you guys at American are having a hard time. I'm praying for ya. I will say this; it is past time for pilots to get better negotiators. When you take a cut, you have to insist that management and everyone else take a cut. I know the Pilots Union does negotiate some cuts for the other unions and management. However, it you are surprised by the golden parachute move then you’re either stupid or gullible. You should have language in your contracts concerning everything. Weather management hid this information or not, you only have to look at US Air and know that you have to cover all of your bases. The pilots at US Air should have insisted that if they lost their retirement, then everyone in the company should lose theirs. The world is made of details. There should be a no bonus clause. I bet American Airlines management gives themselves bonus at the end of the year. Once again, let me be clear. I feel for every person that struggling but as pilots we need to pay better attention.

 

[C150Heavy]

I bet if someone told Bill O'Riley of Fox it would make the news. He busted Delta's CEO the other day.

 

[AA717driver]

Re: Totally UNSAT!

Unfreakinbelievable.......

Did all of the Big three Airline Exec's go to the Michael Milliken school of ethics !??!

T45--Yes. They fail to learn from SWA and JB. Unbelievable.TC

 

[VMA214]

Just watched Crandall on CNBC Power Lunch the other day say that he would be more than willing to come back if he was asked to.
Now don't get me wrong...Crandall is NO friend of Labor. BUT, he is heads and tails smarter than the BOZO we currently have. Not to mention, and I know the words "integrity" and "management" are mutually exclusive, but with Crandall, at least he'll tell you right to your face what he's going to do and not make an end run.

As a proud "NO" voter I hope Little makes good on his threat.

BRING BACK BOB!!!

 

[J3CubCapt]

AMR leadership sux

I worked for AMR from 1989 until 1997 and they have always been liars and cheats.

I feel for all of you who took the cuts and made the sacrifice, only to have them protect themselves. I have been through the furlough thing and I tell ya, Those %^%#% should not get anything better for putting the airline in the position its in now!

I agree they should learn a new managment style like my company and JB. When will they learn that they need your support, not hatred?

Good luck and I hope you get "Who ever" to investigate this action!

J3

 

[Palerider957]

Underdog:

I understand your point, but a union in the airlines is a necessary evil. This labor/managment feud is typical and no one pilot can go it alone.

You AA and AE folks need to drive that company into the dirt, it seems the management has absolutley no concern for you or you family. If I worked there, I'd do all I could to sink the company into bankruptcy. At least the board of directors might me moved to change the leadership (after they get their golden parachutes of course)

Good luck, welcome to the revolution..............

 

[Maynard]

O'Reilly Factor...

Forwarded to the O'Reilly factor email. Lets see if he jumps on it...

 

[LiveFreeorDie]

WITH ANY LUCK

With any luck the SEC will hang these bastards. Hopefully they violated some kind of disclosure law. And we should all email O'Reiley about this crap.

My biggest fear is I will be at SWA twenty years from now when all the execs from the Herb era are gone and this crap will happen to me. I can't imagine what kind of hell all the AMR employees are going through right now. But I do hope you get to share that hell with all the suits and shirts at the exec level.

 

[sgu]

MgMt can be so stupid, hope this comes back to bite them in the old A$$.

 

[jetexas]

Perhaps now finally the public will begin to see what many employees at AMR, and especially at Eagle, have known for years.
Life is not one big hAApy family at the old AMR workplace.