American flight attendants in deal
American Airlines apparently dodged the threat of bankruptcy for the fourth time in the past month Friday when its flight attendants union agreed to a concession contract with the airline.
Association of Professional Flight Attendants spokesman George Price would not give details of the deal, saying announcements were due later Friday afternoon. But the agreement apparently allows the world's largest airline to avoid filing for protection from creditors by saving $1.6 billion in labor costs annually from its unions. The savings come from across-the-board wage cuts for union members and changes in work rules that will allow for additional staffing cuts...
...American pulled back part of the controversial compensation plans on April 18. Thursday night it announced that CEO Don Carty, who admitted he made a mistake in not informing the unions of the compensation packages before their members voted on concessions, had resigned from the company...more [CNN MONEY]
Two observations on this whole mess. The first is that the Uniion almost refused the deal before they found out about the stupid management retention packages. That would have been 'cutting off your nose to spite yourself' in a big way. Bankruptcy would have allowed American to gut their contracts. The second observation is that I salute American and the former CEO for doing the right thing by having him resign. Resignation for failure is a rare thing in this country...mj
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