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State of the Union
A Message From International President James C. Little

American companies that produce everything from televisions to cordless drills have been abandoning our shores for decades.
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AA ground workers, management out of sync

By TREBOR BANSTETTER

For several years, American Airlines has touted its fruitful relations with mechanics and other ground workers, pointing to joint projects that have brought in money and reduced costs valued at hundreds of millions of dollars.

But today, that relationship is at a breaking point, according to a top union official, and many workers have lost their drive to continue cooperating with the airline's management.

"The wind has gone out of our sails," said Jim Little, international president of the Transport Workers Union, which represents mechanics, baggage handlers, dispatchers and other ground workers at American.

In an interview with the Star-Telegram, Little said ground workers, like pilots and flight attendants, have been disillusioned by a slate of stock bonuses for top managers and executives.

But the bonuses aren't the only issue, he said. While TWU members have generated about $700 million in cost savings and new revenue for the airline, they feel the company has refused to let them share in the rewards.

"It's nice to have a barbecue and get a T-shirt," Little said, referring to a recent "thank you" event at American's maintenance base in Tulsa. "But come on, that doesn't seem very fair when you're giving (CEO Gerard Arpey) millions of dollars."

Workers based at American's maintenance base at Alliance Airport in Fort Worth recently voted to stop participating in joint programs with managers, Little said. And American executives recently rejected a union proposal to issue more stock options to employees.

"The employees have put a lot of effort into turning this company around, and they feel like they don't have much to show for it," he said.

If it persists, the change in mood among ground workers could have an impact on contract negotiations, and ultimately on the airline's ability to keep its labor costs in check and increase productivity.

American executives say they have the highest labor costs in the industry, and they are eager to keep them in check.

The TWU begins contract talks with America in November. The union's contract becomes open for changes the next April.

Sue Gordon, an American spokeswoman, said the airline wants to continue to work closely with employees.

"I think everyone involved understands that cooperation between management, front-line employees and unions is a unique and powerful way to achieve progress toward sustained profitability," she said.

During the past year, American's pilots and flight attendants have loudly criticized the airline over the bonus issue. Pilots, who started their contract negotiations last year, have asked for 30-percent raises and lucrative signing bonuses. Flight attendants will begin negotiations sometime in the next year, although talks are not yet scheduled.

Amid the criticism from those labor groups, American frequently has pointed to the TWU as an example of a positive relationship. In April, the carrier took out ads in newspapers and aviation trade publications that touted the "groundbreaking business relationship" between American and the TWU that has helped transform costly maintenance bases into profit centers.

Little said the marketing campaign made some of his members "feel a little used."

He said the union is still crafting its strategy for contract talks, but said he has an ambitious proposal to finish negotiations by April 2008.

"In order to do that, we're going to have to be creative and be willing to work together," he said.

Gordon said a speedy timeline could happen.

"In the past, we've negotiated contracts with the TWU in a six-month window," she said. "So it's in the realm of possibility."
 

 

© Copyright, Transport Workers Union, 2006