Union Troubles Start For American Airlines

The short-sightedness of American Airlines leadership is beginning to cause it some trouble. The airline has been in preliminary negotiations with the Transport Workers Union, which covers American's ground workers. Management had hoped to extend the current contract for two years, with some "incentive-based" merit increases in pay.

I can't believe they thought that even had a chance of succeeding, and evidently the union saw it that way also. The contract talks have ended without an agreement being reached.

In 2003, the union agreed to a cut in pay to help the ailing airline survive. This year, with the airline being on a sound and profitable financial footing, the employees expected to be rewarded for their sacrifice by getting at least some of their pay-cuts back. That did not happen.

Instead, they left the pay-cuts in place for workers, and rewarded management with millions of dollars in bonuses. Now they want to extend the pay-cuts for another two years, and give a few merit raises. The workers said no. They want their pay restored.

The pay-cuts should have been rescinded before a single penny in management bonuses was paid. Did the airline really expect workers to continue their sacrifices for another two years while management gets rich with huge bonuses?

Now the airline will have to begin serious negotiations with the TWU in November, followed closely by contract talks with the pilot's and flight attendent's unions. It won't be easy. These unions all still remember the slap in the face of the ill-timed management bonuses.

The airline should have known this would happen, but its leadership was too greedy to care. Now they must pay the price for their short-sighted greed.