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Jim Little & the Politics of Appeasement
In early 2003, negotiators for AA & its Unions met for the purpose of
lowering Labor costs. Amongst the Unions in attendance was the
industry's most docile . . . our own TWU. The negotiations were called
by the AMR CEO, Don Carty, to subsidized his mismanagement. ATD Director
Jim Little justified these discussions under the pretense of it being
looked upon favorably by any future bankruptcy court. However, Little
had ulterior motives. Paramount in his mindset was to avoid conflict at
all cost.
To understand how weak men rise to positions of authority it's necessary
to examine the culture within the TWU. It is a rigid structure that
rewards obedience. The delegate system which elects Int'l officers is
actually the mandate for incumbents. These same incumbents will be
running the convention and controlling the process. The result is that
the membership won't have real input. Int'l Pres Sonny Hall will then
appoint all his lieutenants without a vote. He rationalizes his power to
name the ATD Director as needing a working relationship with the
position. In reality, he means that he wants an ideological clone &
political ally as ATD Director. Likewise, Jim Little surrounds himself
with Int'l reps who will faithfully serve him.
Without accountability divergent forces will corrupt well-intentioned
officers. Labor leaders comforted by 6-digit salaries & generous
benefits are obsessed in maintaining their status in the Union. The goal
of TWU negotiations is securing a steady stream of dues revenue to
finance the dalliances of the leadership, even if it entails growing the
workforce through b-scale without raising the pay scale. To reach these
ends, the treasury CANNOT be compromised. Hence, the strike option is no
longer a bargaining tool, & capitulation is the result. Yet, everything
the TWU hierarchy fails to provide in collective bargaining they give
themselves as a reward for increasing dues receipts.
Meek men know their limitations & aren't predisposed to fighting. From
9/3/93 to 11/24/99 IAM workers were locked-out of Alitalia at JFK for a
total of 2,273 days. For 2,273 days TWU members crossed the picket line
& worked at Alitalia. The ATD Director during this sorry episode was Ed
Koziatek, who wasn't serving the cause of Unionism, but rather the TWU's
pacifist agenda. In early 2001, AA locked-out passengers at JFK to
discredit Labor. Those were dark days as the media condemned the
mechanic group for the disruption. AA went for the jugular & sued the
TWU. The TWU suddenly forced to defend its bloated treasury acted
decisively by counter suing. AA's request for a permanent injunction was
denied. The TWU stood on the brink of extracting revenge on the company
in a very public forum. Instead, Jim Little drops the counter-suit to
appease an adversary who wouldn't be as chivalrous.
AA's road to record losses was the ramification of an incompetent CEO.
Carty claimed our cost structure couldn't support the pricing pressures
from low-cost carriers. To compete with the discounters his only
strategy was to buy debt-laden TWA for $800 million. The use of the
pension as an accounting gimmick has necessitated huge cash payments to
meet minimum federal funding levels. Removing seats from airplanes was a
disastrous marketing stunt which handicapped the airline. Although
terrorism was widely blamed for the slump in the economy, the events of
9/11/01 had domestic origins. The industry extensively lobbied the gov't
from enacting costly security upgrades. Carty squandered AA's assets on
1 dreadful business decision after another. Yet, this is the man Little
trusted to return AA back to profitability.
When Little entertained concessions he played into the old stereotype of
Labor contracts being the cancer of the industry. Our brave brethren at
EAL shutdown their airline for a fraction of our proposed cuts. Still,
here was Little promoting the deep restructuring of a Labor contract
never dreamt by industry tyrant Frank Lorenzo. This while Carty publicly
lobbied Congress to deny Unions the right to strike.
Jim Little is the type of man who won't accept responsibility. The AA
Pres Council negotiated the concessions while the membership ratified
it, contends Little. In actuality, he nurtured the process from
inception to fruition. Throughout 2003 Little was the poet laureate of
concessions. The negotiating committee was convened & sent to DFW on
Little's orders. Virtually all 1st hand negotiations with AA executives
were conducted by Little & his disciples. Even after he was personally
embarrassed by revelations of executive perks & reports of $700 million
in paper losses Little continued to champion concessions.
AA execs proclaim airlines can't survive bankruptcy. They ignore the
simple fact that most airlines continue to be mismanaged after a
bankruptcy court fixes the ledger. This leads to their demise rather
than the actual proceeding. 1 airline benefiting from bankruptcy was
Continental which emerged in 1993 perfectly placed for future growth.
Continental is now the model of full-service carriers. In contrast, AA's
$8 billion of debt is nearing critical mass. AA can't expand nor sustain
its current size. Wall St experts unanimously recommend bankruptcy for
massive debt relief. Global Crossing recently erased $11 billion of debt
in bankruptcy. Nevertheless, this was not the preferred choice for AA
execs who would suffer financially if AMR stock was liquidated in
bankruptcy. Carty's trump card was the TWU & their legacy of appeasement.
Jim Little, in his sheltered vacuum, serves the interest of Sonny Hall &
his own political aspirations. His personal wealth & title is
guaranteed. The days of TWU leaders telling a judge to "drop dead" are a
distant memory. Collective bargaining has become a messy entanglement
not worth fighting to its logical conclusion, especially if the
workforce becomes aroused. The TWU retreats into its defeatist mode.
Every potential conflict with the company becomes a ‘no-win' situation.
All too often we hear "this is the best deal we're going to get."
I personally don't believe in the ‘no-win' scenario. During the turn of
the 19th century, our fledgling country was tested on the high seas by
England. US merchant ships were boarded & American sailors seized. To
defend the eastern seaboard & patrol the shipping lanes the US Navy
could only muster 20 warships. The Royal Navy had 2,000 ships in its
inventory. Frightful odds by any definition. If the American Pres was
cut from the same fibre as Sonny Hall or Jim Little he might have
justified American citizens committed to a life of servitude on foreign
soil as "the best deal we're going to get." Fortunately, Pres James
Madison asked for & received a declaration of war. The War of 1812
proved too costly for the British economy & after 3 years both sides
agreed to peace. The British would never again interfere with American
shipping.
"Cowards die many times before their deaths, the valiant never taste
death but once," reasoned Shakespeare. In the leadership's quest to
protect their 6-digit salaries, generous benefits, & general standing in
the Union, the TWU has died many times.
G Santos
Member-in-Good Standing
Air Transport Local 562
In early 2003, negotiators for AA & its Unions met for the purpose of
lowering Labor costs. Amongst the Unions in attendance was the
industry's most docile . . . our own TWU. The negotiations were called
by the AMR CEO, Don Carty, to subsidized his mismanagement. ATD Director
Jim Little justified these discussions under the pretense of it being
looked upon favorably by any future bankruptcy court. However, Little
had ulterior motives. Paramount in his mindset was to avoid conflict at
all cost.
To understand how weak men rise to positions of authority it's necessary
to examine the culture within the TWU. It is a rigid structure that
rewards obedience. The delegate system which elects Int'l officers is
actually the mandate for incumbents. These same incumbents will be
running the convention and controlling the process. The result is that
the membership won't have real input. Int'l Pres Sonny Hall will then
appoint all his lieutenants without a vote. He rationalizes his power to
name the ATD Director as needing a working relationship with the
position. In reality, he means that he wants an ideological clone &
political ally as ATD Director. Likewise, Jim Little surrounds himself
with Int'l reps who will faithfully serve him.
Without accountability divergent forces will corrupt well-intentioned
officers. Labor leaders comforted by 6-digit salaries & generous
benefits are obsessed in maintaining their status in the Union. The goal
of TWU negotiations is securing a steady stream of dues revenue to
finance the dalliances of the leadership, even if it entails growing the
workforce through b-scale without raising the pay scale. To reach these
ends, the treasury CANNOT be compromised. Hence, the strike option is no
longer a bargaining tool, & capitulation is the result. Yet, everything
the TWU hierarchy fails to provide in collective bargaining they give
themselves as a reward for increasing dues receipts.
Meek men know their limitations & aren't predisposed to fighting. From
9/3/93 to 11/24/99 IAM workers were locked-out of Alitalia at JFK for a
total of 2,273 days. For 2,273 days TWU members crossed the picket line
& worked at Alitalia. The ATD Director during this sorry episode was Ed
Koziatek, who wasn't serving the cause of Unionism, but rather the TWU's
pacifist agenda. In early 2001, AA locked-out passengers at JFK to
discredit Labor. Those were dark days as the media condemned the
mechanic group for the disruption. AA went for the jugular & sued the
TWU. The TWU suddenly forced to defend its bloated treasury acted
decisively by counter suing. AA's request for a permanent injunction was
denied. The TWU stood on the brink of extracting revenge on the company
in a very public forum. Instead, Jim Little drops the counter-suit to
appease an adversary who wouldn't be as chivalrous.
AA's road to record losses was the ramification of an incompetent CEO.
Carty claimed our cost structure couldn't support the pricing pressures
from low-cost carriers. To compete with the discounters his only
strategy was to buy debt-laden TWA for $800 million. The use of the
pension as an accounting gimmick has necessitated huge cash payments to
meet minimum federal funding levels. Removing seats from airplanes was a
disastrous marketing stunt which handicapped the airline. Although
terrorism was widely blamed for the slump in the economy, the events of
9/11/01 had domestic origins. The industry extensively lobbied the gov't
from enacting costly security upgrades. Carty squandered AA's assets on
1 dreadful business decision after another. Yet, this is the man Little
trusted to return AA back to profitability.
When Little entertained concessions he played into the old stereotype of
Labor contracts being the cancer of the industry. Our brave brethren at
EAL shutdown their airline for a fraction of our proposed cuts. Still,
here was Little promoting the deep restructuring of a Labor contract
never dreamt by industry tyrant Frank Lorenzo. This while Carty publicly
lobbied Congress to deny Unions the right to strike.
Jim Little is the type of man who won't accept responsibility. The AA
Pres Council negotiated the concessions while the membership ratified
it, contends Little. In actuality, he nurtured the process from
inception to fruition. Throughout 2003 Little was the poet laureate of
concessions. The negotiating committee was convened & sent to DFW on
Little's orders. Virtually all 1st hand negotiations with AA executives
were conducted by Little & his disciples. Even after he was personally
embarrassed by revelations of executive perks & reports of $700 million
in paper losses Little continued to champion concessions.
AA execs proclaim airlines can't survive bankruptcy. They ignore the
simple fact that most airlines continue to be mismanaged after a
bankruptcy court fixes the ledger. This leads to their demise rather
than the actual proceeding. 1 airline benefiting from bankruptcy was
Continental which emerged in 1993 perfectly placed for future growth.
Continental is now the model of full-service carriers. In contrast, AA's
$8 billion of debt is nearing critical mass. AA can't expand nor sustain
its current size. Wall St experts unanimously recommend bankruptcy for
massive debt relief. Global Crossing recently erased $11 billion of debt
in bankruptcy. Nevertheless, this was not the preferred choice for AA
execs who would suffer financially if AMR stock was liquidated in
bankruptcy. Carty's trump card was the TWU & their legacy of appeasement.
Jim Little, in his sheltered vacuum, serves the interest of Sonny Hall &
his own political aspirations. His personal wealth & title is
guaranteed. The days of TWU leaders telling a judge to "drop dead" are a
distant memory. Collective bargaining has become a messy entanglement
not worth fighting to its logical conclusion, especially if the
workforce becomes aroused. The TWU retreats into its defeatist mode.
Every potential conflict with the company becomes a ‘no-win' situation.
All too often we hear "this is the best deal we're going to get."
I personally don't believe in the ‘no-win' scenario. During the turn of
the 19th century, our fledgling country was tested on the high seas by
England. US merchant ships were boarded & American sailors seized. To
defend the eastern seaboard & patrol the shipping lanes the US Navy
could only muster 20 warships. The Royal Navy had 2,000 ships in its
inventory. Frightful odds by any definition. If the American Pres was
cut from the same fibre as Sonny Hall or Jim Little he might have
justified American citizens committed to a life of servitude on foreign
soil as "the best deal we're going to get." Fortunately, Pres James
Madison asked for & received a declaration of war. The War of 1812
proved too costly for the British economy & after 3 years both sides
agreed to peace. The British would never again interfere with American
shipping.
"Cowards die many times before their deaths, the valiant never taste
death but once," reasoned Shakespeare. In the leadership's quest to
protect their 6-digit salaries, generous benefits, & general standing in
the Union, the TWU has died many times.
G Santos
Member-in-Good Standing
Air Transport Local 562
