It is not the goal of saving money or creating revenue that I oppose, I think this is a great idea.
It is the shared reward and lack of negotiated benefit to the membership in exchange that makes by blood boil and pressure rise.
I agree that AA should have offered to share some portion of the $500 million - and a BBQ sandwich doesn't cut it.
Of course, those management stooges or, as I like to call them, Greedy Bastard Republican Management Apologists (
GBRMA for short) are gonna say "Well, we did give you employees stock options on 38 million shares that are currently worth $1.275 Billion in profit (above and beyond the $5 issue price). Not our problem many of you sold your chance to participate in the success. If you'd just held on, your current winnings would be worth much more than the total (so far) 2005 and 2006 management performance incentives of about $320 million. In fact, about FOUR times greater. Usually, management bonuses dwarf the gains by the rank and file. Not this time. This time, rank and file were given enough stock to equal $1.275 Billion of gain as of this morning. Oh, you were in a hurry to sell the very first day you were permitted to sell? Jesus. You can lead the rank and file to the buffet - but you can't make them eat."
And ya know what? Lotsa people are gonna agree with management on that one. Two years in a row, top management has claimed its negotiated incentive payments totalling about $320 million. Almost four years ago, the other employees were granted their incentive which is now worth four times management's payouts.
I have no doubt that AA can make money doing maintenance for third parties, and I also believe keeping their own maintenance in-house is the right choice.
I just cannot for the life of me wonder why this wasn't an option when AA wanted $620 nillion in concessions and the "lawyers were loitering on the BK Court Steps" for 3 months. As it is, we gave the concessions, and the millions in savings with nothing to show for it. We didn't really "save the jobs", through attrition, the employment levels have dropped significantly.
I agree that AA's continuation of in-house maintenance is a good thing. For lotsa reasons.
I realize that your idiot union leaders told you that the wage concessions would "save all the jobs." It's too bad they lied to you. Here's what GBRMA said in the 10-Q in May, 2003 on that very issue:
Of the approximately $1.8 billion in savings, approximately $1.0 billion relate to wage and benefit reductions while the remaining approximately $.8 billion will be accomplished through changes in work rules which will result in additional job reductions. The Company expects to incur severance and benefits related charges in connection with these job reductions beginning in the second quarter of 2003. The amount of such charges could not be reasonably estimated at the time of the filing of this Form 10-Q. Wage reductions became effective on April 1, 2003 for officers and May 1, 2003 for all other employees. Reductions related to benefits and work rule changes will be phased in over time. The Company expects total savings from wages, benefits and work rule changes to be approximately $200 million in the second quarter of 2003, $400 million in the third quarter of 2003 and $450 million ($1.8 billion annually) in the fourth quarter of 2003. In connection with the changes in wages, benefits and work rules, the Modified Labor Agreements provide for the issuance to American's employees of approximately 38 million shares of AMR stock in the form of stock options which will generally vest over a three year period (see Note 10 for additional information).
http://www.shareholder.com/aa/EdgarDetail....0&SID=03-00 (page 5)
So, the wage cuts were about $1 billion and the lost jobs would equal the other $800 million. It was no secret at the time that lotsa additional people would be furloughed and that attrition wouldn't be replaced.
About the concessions "saving the jobs." Do you really think AA would still employ thousands of in-house mechanics in Tulsa, Kansas City and Fort Worth if AMR had filed for bankruptcy? Maybe you'd still be employed there. But then again, maybe some non-union hack shop would be leasing the TULE, MCIE and AFW bases (just like at IND, where thousands of UAL mechanics used to work for UAL).
So the concessions didn't "save all the jobs." Maybe they saved yours. And everyone else who belongs to the TWU at AA who fixes airplanes. Was that worth it? Only you can say.
I'm not giving any credit to your worthless union for that hollow victory - AA simply said "Here's your concessions. Enjoy." And it sounds like your idiot union leaders mis-informed you and your co-workers. Wouldn't be the first time union leaders lied.
It just so happens, that I was with my Mother as she had emergency surgery this morning and so I wasn't even at work to enjoy/refuse the BBQ or get a speak session with Arpey.
Wishing your Mother a speedy recovery.