American
Airlines sent letters to three employee unions
reminding them of labor laws as several workers plan
protests of executive bonuses that were paid out in
April. The letters are going out to the Allied
Pilots Association, Association of Professional
Flight Attendants and the Transport Workers Union.
The three unions are protesting payouts of as much
as $200 million to nearly 900 American Airlines
senior executives. The unions have opposed the large
payouts in light of an estimated $6.4 billion in
wages and benefits the unions have given up since
2003 as part of concessions made to keep the airline
out of bankruptcy.
As part of the 2003
restructuring that helped American Airlines avoid
Chapter 11 bankruptcy, labor and management agreed
to an Annual Incentive Program (AIP). The three
unions’ collective bargaining agreements cover the
AIP, which was structured to align the interests of
management and other employees. The unions’
collective grievances cite the scheduled cash
bonuses as "a violation of the terms of the AIP.”
The leaders of the three unions issued the following joint statement:
“The elected leaders of our three unions and the
employees we represent remain deeply concerned over
the irrationality of tying cash bonuses solely to
the performance of our stock. Moreover, upon
reviewing contractual language governing the AIP, we
believe these cash bonuses to be in violation of our
collective bargaining agreements.” The letter added:
"If we are unable to reach an agreement through
continued dialogue with senior management, the
grievance arbitration process ensures an eventual
resolution. “A quick scan of the airline industry
today illustrates all too clearly what happens when
labor and management maintain a traditional,
adversarial approach with each other.”
Flight Attendants & Pilots Picket
The flight attendants union has organized a rally
and march from its headquarters to American's main
corporate office building. The group opted to hold
nationwide informational picketing and protest,
which took place on April 17. Meanwhile, the pilots
union held a national membership unity rally and
march from its Fort Worth headquarters. “Hundreds of
pilots signed up to participate”, the group claimed.
Federal law prohibits airline's employees from
participating in activities that disrupt the
airline's operations. "We expect the unions will
respect the law, and they're free to express their
opinions as they see fit within the law itself," a
company official told the Dallas Business Journal.
"Even though American management has touted
rhetoric such as 'Pull Together - Win Together' only
the top 874 AA senior executives will reap the
rewards of employee sacrifices," the Association of
Professional Flight Attendants said in a statement.
"The flight attendants believe that enough is
enough.”
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