
The Air Transport Division’s campaign against AMR, American Airlines’ parent corporation, extended beyond regular negotiations; it started on the internet, spilled into the streets and was taken to its Chief Executive Officer himself, Gerard Arpey.
Over the past several years, as the airline industry continues to be in a volatile state, TWU has consistently worked with American Airlines, understanding that both parties are dealing with adverse circumstances. In 2003 members gave up $620 million a year in pay, benefits and other concessions to keep AMR out of bankruptcy, only to be left behind every April when the company doles out extravagant bonuses. Over the last four years the company has given $300 million in bonuses. In just the first quarter of 2009 AMR lost $375 million.
“This is about equity,” said TWU International President James C. Little. “TWU members from all airline classifications keep the planes flying, and keep people safe and comfortable. We’ve figured out how to make operations more productive and we have brought outside work into AMR facilities. We’re not asking for the Earth, moon and stars.”
In early April TWU launched the campaign against corporate greed by releasing an online game to highlight the absurdity of executive bonuses. The game, found at americanexeccheck.com, shows AMR’s CEO Gerard Arpey, Google’s CEO Eric Schmidt, Southwest Airlines’ CEO Garry Kelly and Apple’s CEO Steve Jobs. Users discover that Arpey’s salary of $4.6 million is more than the other CEOs’ salaries combined, surprising considering the tough times that have fallen on his industry and company. The game received widespread coverage in many Dallas, Chicago, Miami and Tulsa newspapers, as well as in the Washington Post and on CNN.
A few weeks later the ATD organized the enthusiastic rally outside of AMR headquarters in Fort Worth, the day before the company awarded its executives an estimated $6.5 million in stock-based bonuses - a number that is significantly less than past years’ bonuses, but much higher than any bonuses or salaries that any frontline employees have ever received.
“They’ve taken a select group and given them a reward that the rest of us don’t have any access to,” said John Conley, director of the Air Transport Division. American is bleeding money, has been consistently underperforming for the last several years and frontline employees’ wages have been essentially frozen after the 30 percent pay cuts made in 2003. “It’s the beginning of a fight,” said Local 513 member Anthony Hardy at the rally. “We’re happy to be here as a union to fight together because we are American,” he said. “We are what makes the company work.”
Conley and Assistant ATD Director Bobby Gless led the crowd of hundreds of members at the rally in the “excessive American Exec Check.” Conley announced into a bullhorn, “Cancel Those Checks!” just before members ripped, burned and stomped on large novelty checks for $300 million made out to “American Corporate Executives.”
On the morning of AMR’s annual shareholders’ meeting on May 20, ATD continued its message by posting signs that read “STOP Outrageous Checks to American Execs,” along the roadways and bridges that led to the Flagship University Conference Center in Fort Worth where the meeting was held.
Gless and several members from the ATD Negotiating Committee attended the somber meeting where Gerard Arpey gave a gloomy assessment of the company’s precarious situation and the industry’s distressing environment. Local 564 President J.R. Ruiz addressed the slow pace of negotiations and asked Arpey what he is going to do to help move both parties towards a reasonable agreement. Arpey did not have any comforting answers and would not discuss pay increases for members, but he emphasized possible improved cost savings that members could contribute to something they’ve done time and again in recent years. Arpey acknowledged the sacrifice all employees have made for the company and his inability to do much at this juncture to ease TWU members’ anxiety over negotiations and the unpredictable economic situation.
ATD Director Conley says that the Union will continue to persevere and work towards an equitable contract. “Our members made concessions in 2003 and they have earned the right to share, especially if American continues to allocate awards to a select few. Working class families should not bear the brunt of corporate excess or mismanagement, even in tough times, while they continue at the trough. We are fighting to make sure that does not happen.”
TWU |
TRANSPORT WORKERS UNION OF AMERICA AFL-CIO 501 3rd. St. NW 9th Floor Washington, D.C. 20001 202-719-3900 OFFICE 202-347-0454 FAX |
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