Union Says Bonuses Benefit Those Who Sacrificed Least

It takes a large issue to unite employees of cross-town rivals Southwest Airlines and American Airlines... or, some large bonus money. Southwest flight attendants have joined their counterparts at American, to protest massive bonus payouts for executives at the latter airline.

Transport Workers Union Local 556, which represents more than 9,000 Southwest Airlines flight attendants, is encouraging its members to sign an online petition opposing the bonuses... and to walk on informational picket lines organized by American Airlines flight attendants' union, the Association of Professional Flight Attendants.

As Aero-News has reported, nearly 900 executives at American will soon partake of nearly $200 million in stock... money American employees say came only after workers agreed to steep pay cuts, as the carrier fought to avoid filing for bankruptcy.

"Our members are stunned and angered by the size of the stock give-aways to American's executives," said TWU Local 556 President Thom McDaniel. "Southwest Airlines has remained profitable throughout the very worst times in the airline industry through shared sacrifice and commitment from management and labor. The result has been growth for the airline and job security for all employees. Our executives are paid fairly and employees share in the profits of the company."

American, in a prepared statement, defended its decision. "Since 2003, American has made information available to its unions and employees about management and executive compensation programs. American's executive compensation program is conservative relative to companies with similar revenue and complexity and is designed to pay at the mid-point of the market. Each executive's target compensation is closely linked to the company's performance and each executive's job performance."

The world's largest airline added decisions on executive compensation are made by the board of directors at parent company AMR... a subtle passing of the proverbial buck.

TWU Local 556 also is asking members to send notes to their congressmen asking them to support HR 1257, a bill that would provide shareholders with an advisory vote on executive compensation.

The online petition accuses American's top executives of corporate greed.

"Top executives should not take millions when employees made personal sacrifices to save the company from bankruptcy and still have not had their wages and benefits restored," the petition states.

So far, 173 people have signed the petition.

American's pilots and flight attendants unions have planned protests this week over payouts to executives. American will announce its first-quarter 2007 results Wednesday.

FMI: www.aa.com, www.swa.com, www.thepetitionsite.com