Were we facing Bankruptcy in 1989 also?
June 5, 1989
TWU ratifies pact
By DON STEWART
Section: BUSINESS
Edition: FINAL HOME
Page: 6C
Estimated Printed Pages: 3
Article Text:
In a vote that surprised and disappointed its leadership, members of American Airlines'' Transport Workers Union have ratified a four-year contract worth $610 million in wages and benefits.
Throughout American''s system, affirmative votes were cast by 75.8 percent of the 22,000-member TWU membership, union leaders said.
In Tulsa, where 6,300 union members are employed at American''s Maintenance and Engineering Center at Tulsa International Airport, 66 percent of those voting cast ballots favoring ratification, said Ed Wilson, president of Local 514 of
the TWU.
American officials said they were pleased with the results of the vote, which was conducted nearly a month ago by the various union locals.
"We are delighted at the outcome of the TWU vote," said Charles Pasciuto, American''s vice president, employee relations.
"This contract includes many innovative provisions that will benefit both the company and its employees. This clears the way for us to continue building the airline by giving our customers the finest possible service on the industry''s youngest and best maintained fleet.
"It is a real win-win deal."
Wilson, who last month urged union members to reject the proposed contract in favor of a more generous proposal that would pay workers more than $900 million in wages and benefits, said he was surprised at the outcome.
"We made concessions while they (American) are making enormous profits," Wilson said. "I think it (the contract) is a big mistake on the part of both parties.
"We are going to give them $1.5 billion in wage concessions over the next four years. They are going to make so much money they''ll make General Motors look like pikers."
The new contract includes union concessions on work rules, wages, benefits and starting wage rates, Wilson said.
However, the contract did not include American''s initial proposal whereby employees would begin contributing toward their own health insurance, a key obstacle in early negotiations between the two sides.
That stumbling block was overcome with the company''s proposal of "flex benefits," under which the company will allocate to each employee a certain amount of money to be used toward benefits and the worker will be able to select the desired coverage.
The contract also accelerates the advancement of workers along American''s 14-step pay scale. Currently, it takes
workers 12 years to reach the top of the wage scale; workers sought to advance to the top in five years.
Under a compromise agreement, the two sides agreed that some workers could advance to the top of the scale in 10
years. The new scale will take effect in three years, Wilson said.
Much of the wage increases will go to workers at the top of American''s wage scale, TWU officials said.
Today, the industry average pay for senior TWU workers is about $20.50 per hour. American''s senior ground workers
will be paid $21.50 per hour under the new contract, Wilson said.
American, which is in the midst of an expansion program that calls for the airline to buy up to $2 billion worth
of new aircraft per year through the mid-1990s, sought to avoid a strike or wage concessions that would have come
at the expense of long-term growth, said American spokesman Al Becker.
"This contract allows us to continue our growth plan and through that we can continue to provide job opportunities and increasing job security.," Becker said.
Wilson said American negotiators told him that the new contract includes wages and benefits for 7,000 workers the company intends to hire during the next four years.
Instead of the new contract offering American TWU workers wages and benefits of more than $600 million, a more accurate figure would be about $390 million, not counting the money for new employees, Wilson said.
"We weren''t negotiating for those (new) people. We were negotiating for workers who are already with the company," Wilson said.
As far as the company''s assertion that the new contract assures workers job security, Wilson said, "The job security they gave us was for people who would not have been laid
off anyway in a growing industry."
Record Number: TUL36631
June 5, 1989
TWU ratifies pact
By DON STEWART
Section: BUSINESS
Edition: FINAL HOME
Page: 6C
Estimated Printed Pages: 3
Article Text:
In a vote that surprised and disappointed its leadership, members of American Airlines'' Transport Workers Union have ratified a four-year contract worth $610 million in wages and benefits.
Throughout American''s system, affirmative votes were cast by 75.8 percent of the 22,000-member TWU membership, union leaders said.
In Tulsa, where 6,300 union members are employed at American''s Maintenance and Engineering Center at Tulsa International Airport, 66 percent of those voting cast ballots favoring ratification, said Ed Wilson, president of Local 514 of
the TWU.
American officials said they were pleased with the results of the vote, which was conducted nearly a month ago by the various union locals.
"We are delighted at the outcome of the TWU vote," said Charles Pasciuto, American''s vice president, employee relations.
"This contract includes many innovative provisions that will benefit both the company and its employees. This clears the way for us to continue building the airline by giving our customers the finest possible service on the industry''s youngest and best maintained fleet.
"It is a real win-win deal."
Wilson, who last month urged union members to reject the proposed contract in favor of a more generous proposal that would pay workers more than $900 million in wages and benefits, said he was surprised at the outcome.
"We made concessions while they (American) are making enormous profits," Wilson said. "I think it (the contract) is a big mistake on the part of both parties.
"We are going to give them $1.5 billion in wage concessions over the next four years. They are going to make so much money they''ll make General Motors look like pikers."
The new contract includes union concessions on work rules, wages, benefits and starting wage rates, Wilson said.
However, the contract did not include American''s initial proposal whereby employees would begin contributing toward their own health insurance, a key obstacle in early negotiations between the two sides.
That stumbling block was overcome with the company''s proposal of "flex benefits," under which the company will allocate to each employee a certain amount of money to be used toward benefits and the worker will be able to select the desired coverage.
The contract also accelerates the advancement of workers along American''s 14-step pay scale. Currently, it takes
workers 12 years to reach the top of the wage scale; workers sought to advance to the top in five years.
Under a compromise agreement, the two sides agreed that some workers could advance to the top of the scale in 10
years. The new scale will take effect in three years, Wilson said.
Much of the wage increases will go to workers at the top of American''s wage scale, TWU officials said.
Today, the industry average pay for senior TWU workers is about $20.50 per hour. American''s senior ground workers
will be paid $21.50 per hour under the new contract, Wilson said.
American, which is in the midst of an expansion program that calls for the airline to buy up to $2 billion worth
of new aircraft per year through the mid-1990s, sought to avoid a strike or wage concessions that would have come
at the expense of long-term growth, said American spokesman Al Becker.
"This contract allows us to continue our growth plan and through that we can continue to provide job opportunities and increasing job security.," Becker said.
Wilson said American negotiators told him that the new contract includes wages and benefits for 7,000 workers the company intends to hire during the next four years.
Instead of the new contract offering American TWU workers wages and benefits of more than $600 million, a more accurate figure would be about $390 million, not counting the money for new employees, Wilson said.
"We weren''t negotiating for those (new) people. We were negotiating for workers who are already with the company," Wilson said.
As far as the company''s assertion that the new contract assures workers job security, Wilson said, "The job security they gave us was for people who would not have been laid
off anyway in a growing industry."
Record Number: TUL36631
