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.