This article was posted in Forbes on April 29th, 2013 “Why American Airlines Employees Loathe Management” it is the basis for the comments from TWU President James C.Little as written below.
Subject: RE: Forbes Article
While there are many inaccuracies in the article, the following are some of the most egregious errors:
1. Excessive pay to corporate executives is not just a problem at American Airlines. In 2011, Thomas Horton was paid $6.5 million – outrageous
compensation for someone who took our company into bankruptcy. But the Teamsters were unable to stop United Airlines CEO Jeff Smisek from raking in $14.7 million – twice what Horton received. At FedEx, also represented by the Teamsters, CEO Frederick Smith received $19 million – three times Horton’s compensation.
2. The unions are blamed for the pension freeze. American targeted our pensions because major competitors had already eliminated them to cut costs. The Teamsters, AMFA and IAM had all lost pensions before we did at United Airlines, Delta, US Airways and Northwest.
3. We are criticized for only negotiating an initial 3% initial pay increase in bankruptcy. We agree that our members deserve more. However, the TWU is the first union to successfully negotiate a pay increase with a carrier in bankruptcy. This year, we will receive approximately 11 percent in pay increases by the time American exits bankruptcy.
4. The blogger makes claims about perks that the company gives to union officials. 95% of these benefits were travel passes provided to union officers who were conducting business for the union. In the case of non business pass users pay D2 charges and receive a 1099 from AA on the valuation of the ticket as imputed income to be filed with the IRS. The suggestion that union officers regularly receive free tickets to sporting events is laughable. Five years ago, the company provided a total of three baseball tickets to two local officers and one international officer, none of whom represent mechanics.
5. As part of negotiating an equity stake for our members that will amount to a very substantial payment, the blogger criticizes all three unions for agreeing not to attack equity and other payments given to management employees in the bankruptcy proceedings. We don’t like agreements that seek to limit our right to criticize executive compensation. However, our first obligation is to represent our members’ economic interests. Later this year, when our members receive their equity stake payment, we think they will agree with our decision.
6. The blogger claims that TWU officers are not elected. Every member knows that the TWU Constitution requires the election of all national and local officers.
Why did blogger Richard Finger post this article?
This investment advisor who calls people on Social Security “parasites,” is not concerned with working families. Forbes, the host of his blog has been a cheerleader for globalization and outsourcing of American jobs to China.
TWU has 31 heavy overhaul lines at American Airlines, while Teamsters have just six at United. Finger and Forbes might believe that shipping more of our work to China will be better for their buddies on Wall Street.
Jim
James C. Little,
International President,
Transport Workers Union of America, AFL-CIO.
501 3rd Street NW, 9th Floor,
Washington, DC 20001
202-719-3900
www.TWU.org
“We Move America”