Sky Talk

AA unions tout turnaround, blast 'money grab'

Union leaders at American Airlines have been highly critical of company's direction in recent years, but today they have some hopeful things to say about the future. Blasts from the Allied Pilots Association and the Association of Professional Flight Attendants both highlighted AMR Corp.'s better-than-expected first-quarter financial performance, and noted that analysts have expressed optimism for the rest of the year.

"Mmost analysts now foresee a industry turnaround throughout the remainder of the year as the high travel season progresses, capacity cuts come closer to matching passenger demand and the economy overall begins to show its long-hoped-for improvement," the APFA wrote to members.

And the APA wrote that "industry analysts agree that the end of the quarter could signal the beginning of a long-awaited turnaround and most are upgrading their 2009 earning projections for AMR and the industry."

It should be noted, of course, that the unions are in contract negotiations, and a return to profitability would bolster their argument that AMR can afford to give employees raises and improved benefits and work rules. Still, any positive talk from AA labor is worth some attention.

And lest one think it's suddenly all roses and sunshine from the unions, both groups slammed executives for their annual stock bonuses, which were paid out this week. Pilots said the payouts were "just another example of how detached AMR management is from their employees," while flight attendants said they were the "2009 version of the AMR spring money grab."

- Trebor Banstetter

Flight attendant layoffs at American

Laura Glading, president of the Association of Professional Flight Attendants, told members last night that American will be furloughing 323 attendants on April 1 as the airline downsizes

"The most senior Flight Attendant who will be furloughed has a current DECS seniority number of 16900.  These members were only recently recalled back to active status and of course this will be most devastating for them," she wrote. "Our heart goes out to our members who will soon be without income, active coverage for health benefits and the career they love."

We have a story on the layoffs here at Star-Telegram.com.

Keep reading for the full text of Glading's hotline to members.

- Trebor Banstetter

AA attendants ask Obama to boot NMB chair

Laura Glading, the president of the Association of Professional Flight Attendants, wrote a letter to Barack Obama asking him to replace Read Van de Water, chairwoman of the National Mediation Board. Glading wrote that Van de Water "has long overstayed her term, and her welcome."

Glading said that the board, which is appointed by the president, "still carries the Bush-era anti-worker stamp that marked his presidency." She adds that "the consistent decisions by the NMB favoring management have had a debilitating effect on workers in our industry."

The attendants are currently in mediated contract talks with American Airlines, so any change to the board's three members could have a significant impact on the outcome. Many labor leaders think a pro-labor board would be more willing to declare talks to be at an impasse, which would open the door for a strike or other job action. American's pilots have been openly pushing for an impasse declaration for months now, although they say they aren't planning on a full-blown strike.

- Trebor Banstetter

AA attendants may face 410 furloughs

American Airlines has informed union leaders that it may furlough up to 410 flight attendants as the airline shrinks. We have full coverage here at Star-Telegram.com.

- Trebor Banstetter

No layoffs for AA flight attendants

Because of its plans to shrink capacity this year, American Airlines had too many flight attendants on the payroll - up to 400 unneeded attendants. But it looks like the workforce can be reduced without layoffs, thanks to a voluntary leave program, according to the Association of Professional Flight Attendants.

We have a story on the developments here.

- Trebor Banstetter

AA attendants hope mediation will kick-start talks

American resumes contract talks with the Association of Professional Flight Attendants tomorrow, but the negotiations will now be overseen by a federal mediator from the National Mediation Board. Union president Laura Glading said this morning that she's hopeful the extra help will get things moving toward a new contract.

"With a new Administration and Congress friendly to workers taking their seats in Washington, we expect that airline workers can get a fair shake under federal law,” Glading said. “American Airlines flight attendants have sacrificed for years to help our company succeed, and we’re determined to get back what we lost. In light of management taking multi-million dollar bonuses the last three years, it’s not asking much to restore what we gave up six years ago to keep this airline out of bankruptcy."

She added that since accepting concessions in 2003, attendants have been "transformed into the working poor."

The attendants began contract talks with the company last May. While there has been some progress, key issues like compensation and benefits remain unresolved. The union was particularly concerned when American offered ground workers a contract that included bonuses but no guaranteed increase in pay rates. That's when they decided to request help from mediators.

- Trebor Banstetter

AA attendants refute company on cost, productivity

Speaking of flight attendants, we spoke recently with some of the folks at the Association of Professional Flight Attendants about American's presentation on their expense and productivity. Airline management claims that AA attendants are the most expensive and least productive in the industry.

Officials with the union argued that the company had cherry-picked employment data to present a negative picture. Analyst Dan Akins, who is working for the union, gave us his own figures (derived from DOT data) that suggest that American attendants are in the middle of the pack when it comes to cost, and are second only to Southwest when it comes to productivity.

Here are charts that Akins provided:

Anyone who is following the negotiations between American and its pilots has seen this kind of point-counterpoint between the company and the union on cost and productivity data. Clearly the information war is going to be a key battleground in talks with attendants as well.

- Trebor Banstetter

Too many flight attendants at AA

American Airlines has told its flight attendants union that it has too many attendants on the payroll, given its plan to continue capacity cuts this year. Officials with the Association of Professional Flight Attendants told members in a hotline that the surplus is between 200 and 400 attendants. The company is trying to trim the ranks with personal leaves, and is also offering a program that would allow attendants who quit to keep travel benefits for up to 10 years.

American has not announced any flight attendant layoffs, union officials said. Any furloughs will depend on the number of attendants who leave as well as American's capacity plan for this summer.

Currently 1,180 American attendants are already on furlough.

- Trebor Banstetter

AA: Our attendants are least productive, most expensive

American Airlines has made increasing productivity a top goal on its ongoing (and seemingly endless) negotiations with pilots. Now, it looks like productivity will be a push for flight attendants as well.

The airline updated its negotiations web site today with a new section making the argument that American flight attendants are the least productive and most expensive in the industry. Under their contract, attendants fly a maximum of 77 hours per month (82 for international attendants) while costing the company $77.30 per hour.

American outlined this with two charts. Here's the one on productivity:

And here's the chart on attendant expense:

- Trebor Banstetter

Mediator assigned to AA/flight attendant talks

The National Mediation Board has assigned Ernie DuBester to oversee contract negotiations between American Airlines and the Association of Professional Flight Attendants. Here's DuBester's biography, from the NMB's site:

Ernie DuBester rejoined the National Mediation Board in July of 2005 as a Mediator. From 1993-2001, he had served as Chairman and Member of the NMB. In that capacity, he mediated dozens of collective bargaining disputes in the airline and railroad industries. He also worked individually and jointly with fellow board members to introduce and promote innovative approaches to dispute resolution, including the creation of an alternative dispute resolution program that includes training, facilitation, grievance mediation, and interest-based bargaining.

Ernie's experience with the airline and railroad industries dates back to 1981 when he joined the predominantly RLA law firm of Highsaw & Mahoney. As an associate in that firm, his experiences included extensive involvement in the airline bankruptcy proceedings of the early eighties.

Immediately before rejoining the NMB, Ernie worked as a Mediator and Arbitrator and as a Professor and Director of the Dispute Resolution Program at George Mason University School of Law from 2001 to July of 2005. At GMU, he taught a variety of dispute resolution courses including Mediation, Negotiation, and ADR.

Ernie received his undergraduate degree from Boston College, his law degree from the Columbus School of Law, Catholic University of America, and his Masters of Law in Labor Law from the Georgetown University Law Center.

Here's what Laura Glading, the union's president, had to say about the appointment:

We are pleased that the Board has responded so quickly to our request and that our negotiations with American can move forward with minimal delay under the guidance of a seasoned mediation specialist. Our Team is now working diligently to prepare for meetings with Mr. DuBester. We are ready to resume substantive work and to reach an agreement with American that meets our membership’s need for scheduling and work-life improvements, and financial well-being and security.

- Trebor Banstetter