Partnership Between TWU and American
Airlines and its Importance to
Shareholders
Statement by Transportation Workers
Union of America President James C.
Little
May 16,
2007
For immediate release
For
further information contact:
Jamie Horwitz, 202/549-4921
jhdcpr@starpower.net
Relationships between workers and
management at American Airlines have
often been adversarial. However, in the
past four years, in the words of
American’s CEO Gerald Arpey, "we pulled
together." Since 2003, ground workers
represented by TWU have worked as a
partner to save the company money,
create new revenue and keep American off
the list of bankrupt airlines. This new
spirit of cooperation and the associated
gains have indisputably contributed to
the dramatic rise in the airline’s share
value.
TWU members made incredible sacrifices
to return the company to profitability.
In return they were told they would
‘share in the gain.’ So far this has
been an empty promise. Instead of
rewards for their hard work and
commitment, mechanics and others have
witnessed the company’s executives take
a $160 million dollar windfall in April,
while frontline workers were left high
and dry.
Over the past month, the good will built
over the past four years has been
largely erased. Management and labor are
once again adversaries. The partnership
brought AMR more than $700 million
dollars in recurrent savings and $100
million dollars in new revenue from
overseas carriers and other clients.
Revenue projections show an additional
$100 million dollars for 2007 and $175
million dollars for 2008. But will these
projections be made? Will gains continue
if the workforce is demoralized and no
longer willing to go the extra mile?
If the share value is to continue to
increase and if American is going to
continue to grow revenue from
maintaining and overhauling the aircraft
of other airlines it must invest in its
human capital and not just reward
executives. The American way should be
about growth not greed. Keeping the
partnership alive is equally important
to both shareholders and stakeholders.
Transport Workers Union of America (TWU)
represents 130,000 workers, primarily in
commercial aviation, public
transportation and passenger railroads.
The union is an affiliate of the
AFL-CIO.
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