Pay Cuts

[Hatu]

American Airlines parent AMR Corp. (AMR: news, chart, profile) traded lower by 14 cents, or 1.7 percent, to $8.11, the day after the company said it will cut capacity another 3.2 percentage points by March. By that time, American will be putting 18 percent fewer flights in the air. AMR Chief Executive Donald Carty told employees in Chicago on Monday that he would have to ask for pay cuts as the carrier struggles to find a profitable path. His comments came a week after leaders of UAL''s mechanics union joined their colleagues in making wage concessions to help knock out $5.8 billion in operating costs over the next 5 1/2 years. Carty did not mention how deep the cuts would be or which employee groups would be most affected.
http://www.marketwatch.com/news/yhoo/story...542F594FF04B%7D

 

[F/A TWAA]

What's that you say? Possible paycuts? Now why does that not come as a surprise? I seem to remember alot of AAnatives on the message boards telling us exTWA'ers that we should have started looking for a new job when our company was going through financial crisis, instead of sticking it out ..........well maybe it's time you start heeding your own advice, because it's only going to get worse around here folks. The airline industry is in one hell of a mess........and it's only going to get worse.

 

[Wild Onion]

I agree totally and I am working on my resume. I still think that AA will escape through the flames, but it will be a different airline that I'm not sure I really care to work for. It's sad because I love AA, but I've got to take care of #1 first.

 

[Oliver Stone''s Apprentice]

[blockquote]
From Marketwatch.Com:
AMR Chief Executive Donald Carty told employees in Chicago on Monday that he would be looking at making changes to their contracts, in addition to other areas where he's made cuts, as the carrier struggles to find a profitable path.
[/blockquote]

Read the statement, folks. Changes to contracts (i.e. workrules) are not always analogous to pay cuts.

The discussions between the APA and management on RJ's and ASM caps constitute changes to a contract. I don't think pay cuts would even be mentioned in those discussions.

 

[AAirMale]

 

[WingNaPrayer]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 11/26/2002 115 PM eolesen wrote:
[P]
[BLOCKQUOTE]Read the statement, folks. Changes to contracts (i.e. workrules) are not always analogous to pay cuts.[BR]----------------[/BLOCKQUOTE][/BLOCKQUOTE]
[P]Since [STRONG]WHEN? [/STRONG]It's inevitable, changes in work rules [EM]always[/EM] eventually lead to some type of pay cut.[/P]

 

[La Treal]

[blockquote]
----------------
On 11/26/2002 11:59:47 AM F/A TWAA wrote:

What's that you say? Possible paycuts? Now why does that not come as a surprise? I seem to remember alot of AAnatives on the message boards telling us exTWA'ers that we should have started looking for a new job when our company was going through financial crisis, instead of sticking it out ..........well maybe it's time you start heeding your own advice, because it's only going to get worse around here folks. The airline industry is in one hell of a mess........and it's only going to get worse.
----------------
[/blockquote]

Dont you worry, I will be the first one to tell my wife that after the second bancruptcy, and when talk of a third one is bing wispered, it is time to go.

Oh yeah that is not the case here.

 

[NewHampshire Black Bears]

WingNaPrayer;
IF the membership of APA,APFA, and the TWU get to vote on any pay cuts, you and I know what the results will be,NO WAY JOS'E. If AA then threatens major layoffs, so be it.

IF the Executive boards of the above mentioned unions, vote for us, again we're sure of the outcome from APA, and APFA. NO way JOS'E. Layoffs first !!!!!!!!

Now as far as my weak sister union, TWU, the jury is still out as to if they would cave into not protecting our holy grail OCCUPATIONAL SENIORITY !

So in a worst case scenario, Carty would have 2 out of 3 unions telling him, LAYOFFS FIRST !!!!!!!!!!!!!

This will get to be very interesting !!

You NEVER, EVER give back one red cent of the base hourly wage, NEVER !!!!!!!!!!!!!!!
Just think of how many years, and crappy contracts it took to get the wage up to where it is today.

NH/BB's
AA/AFL-CIO

 

[Boomer]

eolesen,
Do you have the text of his remarks or were you there? The text of the remarks are not posted on jetnet.

The first paragraph of the story cleary says that Carty told the AA employees that pay cuts may be necessary.

The following paragraph says that contractual changes may be necessary.

If Carty did not say the words attributed to him, let Corp Comm issue a denial over jetnet.

 

[WingNaPrayer]

[BR][BR]
[BLOCKQUOTE][BR]----------------[BR]On 11/26/2002 635 PM Boomer wrote: [BR][BR]If Carty did not say the words attributed to him, let Corp Comm issue a denial over jetnet.[BR]----------------[/BLOCKQUOTE][BR][BR]He also could have cleared it up right quick in JetWire. . . . but he didn't.[BR][BR]And of course, from a scant two weeks ago....I remember [EM]this[/EM] headline:[BR][BR][SPAN class=BodyFont]
[DIV class=body-head][SPAN class=headline][STRONG][FONT size=4]Carty: Airline wages too high[/FONT][/STRONG][/SPAN][BR][FONT size=-1][SPAN class=byline]By Trebor Banstetter[/SPAN][/FONT][BR][FONT size=-1][SPAN class=creditline]Star-Telegram Staff Writer - November 8, 2002[/SPAN][/FONT][BR][BR]A tentative deal to cut $2.2 billion in pilots wages at United Airlines probably won't be enough to help that airline win a loan guarantee from the federal government, Don Carty, chairman and chief executive of American Airlines, said Wednesday.[BR][BR]Speaking to analysts gathered at the American Airlines Center, Carty said that the trend of rapidly rising wages in the industry must level off or even reverse itself before airlines can become profitable again.[BR][BR]<snip>[BR][BR]Carty said that the industry's labor costs must be addressed.[BR][BR][FONT color=#ff0033]We clearly have to slow wage escalation in the industry, if not halt it for a while or in some cases roll it back, he said.[BR][BR][/FONT][FONT color=#000000]*****[BR][BR]I don't doubt that he said wage concessions one bit.[/FONT][/SPAN][/DIV]

 

[Oliver Stone''s Apprentice]

If CorpComm had to issue a statement everytime a reporter screwed up what was said or mistated the truth, they'd be issuing statements three or four times a day.

I spoke with someone actually at the meetings. And since these were employee-only meetings, please explain to me how the Trib reporter heard what Carty said?...

And no, contractual changes do not have to be wage cuts, WNP.

 

[WingNaPrayer]

And this from a corporate drone.[BR][BR]Carty has already given direct interviews in the past where he clearly states that he believes airline employee wages are TOO HIGH and need to be halted or rolled back. Whether the chicken-Å¡hit came right out and said it to his employee's faces is inconsequential at this point.

 

[Oliver Stone''s Apprentice]

Boomer, I wasn't there, so I didn't hear him say it. The person from ORD who was there didn't hear him say it, and the actual quotes attributed to Carty didn't say it.

When Carty brings that presentation to DFW next week, I'll let you know if he does or doesn't say it.

 

[Boomer]

eolesen,
Are you saying that the Don did not say the words attributed to him?

 

[NewHampshire Black Bears]

Bravo Eric,
That should freeze the naysayers, in their tracks !!

(as I know you will), let us know EXACTLY what DC says, or does'nt say, at the HDQ/meeting.

Regards
NH/BB's