Big Slick
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American's pilot relations hit snag
[SIZE=+1]Union leader calls executives' payout 'end of shared sacrifice'
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[SIZE=-1]12:00 AM CDT on Wednesday, April 26, 2006
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[SIZE=-1]By ERIC TORBENSON / The Dallas Morning News [/SIZE]
The fragile state of labor-management relations at American Airlines Inc. hit another bump Tuesday, when a prominent union leader declared "the end of shared sacrifice" in a stern memo to fellow pilots.
"In one fell swoop, management has placed themselves above the employees," said Mickey Mellerski, incoming chairman of the Allied Pilots Association's Dallas/Fort Worth domicile, in the e-mail message.
The nearly 1,000 executives at American set to receive a cash-and-stock payout represent "a sort of class above the others – ones who do not have to continue to work under the shared sacrifices made in 2003."
Three years ago, American's unions agreed to $1.62 billion in annual pay concessions.
Facing pressure from angry union officials, American's board voted last month to change the payout plan to mostly stock instead of all cash.
But the value of the payouts – nearly $100 million – remained the same, and union leaders remain upset.
"It is not so much the size of the payouts that hits me in the gut," Mr. Mellerski continued. "It is the violation of the social contract – the loss of any sense that we were in this struggle together that causes that gut shot to radiate into my entire being."
Fort Worth-based American has attempted to forge better labor relations as part of a plan to return to financial health.
American spokesman Roger Frizzell said that the carrier understands there will be difficulties between labor and the airline over the payouts, which were triggered based on American parent AMR Corp.'s strong stock performance in recent years.
Joint meetings between the carrier's unions and managers continue and "are stronger than ever," Mr. Frizzell said. "We're going to continue to sit and talk through these issues."
Still, pilots now say that they won't discuss productivity improvements with American outside of negotiations set out under the Railway Labor Act, which governs how unions and airlines make deals.
The Allied Pilots moved last fall to initiate early talks, but the payout plans halted that movement.
The airline has worked with unions to identify areas in which American lags in overall productivity, including its management ranks.
American chairman and chief executive Gerard Arpey said last week that without labor's cooperation, cost-savings efforts would not have been nearly as successful.
The airline has outlined $700 million in annual savings this year that probably would be impossible without union help.
"Look at our maintenance productivity that is up 20 percent without one contractual change," Mr. Arpey said on AMR's earnings conference call. "Unions have a strong voice in this process." American lost $761 million last year.
[SIZE=+1]Union leader calls executives' payout 'end of shared sacrifice'
[/SIZE]
[SIZE=-1]12:00 AM CDT on Wednesday, April 26, 2006
[/SIZE]
[SIZE=-1]By ERIC TORBENSON / The Dallas Morning News [/SIZE]
The fragile state of labor-management relations at American Airlines Inc. hit another bump Tuesday, when a prominent union leader declared "the end of shared sacrifice" in a stern memo to fellow pilots.
"In one fell swoop, management has placed themselves above the employees," said Mickey Mellerski, incoming chairman of the Allied Pilots Association's Dallas/Fort Worth domicile, in the e-mail message.
The nearly 1,000 executives at American set to receive a cash-and-stock payout represent "a sort of class above the others – ones who do not have to continue to work under the shared sacrifices made in 2003."
Three years ago, American's unions agreed to $1.62 billion in annual pay concessions.
Facing pressure from angry union officials, American's board voted last month to change the payout plan to mostly stock instead of all cash.
But the value of the payouts – nearly $100 million – remained the same, and union leaders remain upset.
"It is not so much the size of the payouts that hits me in the gut," Mr. Mellerski continued. "It is the violation of the social contract – the loss of any sense that we were in this struggle together that causes that gut shot to radiate into my entire being."
Fort Worth-based American has attempted to forge better labor relations as part of a plan to return to financial health.
American spokesman Roger Frizzell said that the carrier understands there will be difficulties between labor and the airline over the payouts, which were triggered based on American parent AMR Corp.'s strong stock performance in recent years.
Joint meetings between the carrier's unions and managers continue and "are stronger than ever," Mr. Frizzell said. "We're going to continue to sit and talk through these issues."
Still, pilots now say that they won't discuss productivity improvements with American outside of negotiations set out under the Railway Labor Act, which governs how unions and airlines make deals.
The Allied Pilots moved last fall to initiate early talks, but the payout plans halted that movement.
The airline has worked with unions to identify areas in which American lags in overall productivity, including its management ranks.
American chairman and chief executive Gerard Arpey said last week that without labor's cooperation, cost-savings efforts would not have been nearly as successful.
The airline has outlined $700 million in annual savings this year that probably would be impossible without union help.
"Look at our maintenance productivity that is up 20 percent without one contractual change," Mr. Arpey said on AMR's earnings conference call. "Unions have a strong voice in this process." American lost $761 million last year.
