AA Pilot Contract Negotiations: Realistic Expectations

To:  APA Board of Directors and National Officers

To the Board of Directors and National Officers of the Allied Pilots Association:
As everyone knows, American Airlines is at a critical moment in it's history. The
nation is in the mists of the worst financial crisis since the great depression and
there are no sectors of the economy that have spared including the
airline industry. It now seems inevitable, barring an intervention from the Obama
administration, that there will be some variety of work action initiated by the
American Airline pilots in an effort to pressure management to capitulate to
drastic improvements in the pilot's compensation package.
A cursory review of airline analysts and economist's comments concludes that a
work action will result in a bankruptcy filing by American Airlines. The result of
other major airline bankruptcies, which includes every other airline but
Continental, has been a drastic reduction in pay rates, the loss of retirement
lump-sum payouts and some retirement plans in total, the elimination of virtually
all work rules, and a drastic weakening of most other benefits. As the American
Airline pilot contract exists today, it is the most generous in almost all of these
areas and remarkably in the environment, lump-sum payouts are still available to
retirees. It seems clear and is a consensus among analysts that the pilots at
American Airlines have more to lose from a work disruption and a subsequent
bankruptcy than any other stakeholder. There are those that say that the state of
the economy, industry, or American Airlines is not as dire and precarious as
experts portrait, but do we really want to gamble with something so important to
so many people.
Most of those in management could find employment elsewhere in the industry
or some other for similar or better pay and benefits. It seems clear that it is in
the pilot's best interest that American Airlines remain a viable, profitable, on-
going concern. Although management has a fiduciary responsibility to operate
the company profitably, individually and personally they have much less to lose
if the airline suffers financially. Everyone agrees that it was irresponsible and
disgusting that management paid itself handsome bonuses at a time when rank
and file employee's pay had been drastically reduced but it is difficult to see how
this wrong could be made right by financially crippling the company. Such an
action is analogous to holding a gun to one's own head and threatening to
pull the trigger if one's demands are not met. Additionally, the demise of American
Airlines would mean not just the loss of jobs and retirement for pilots but for all
other employees as well, not to mention a disruption to the transportation system.
It is unfortunate that we as a group have very little leverage but we have; arguably,
as much leverage as we will have and considerably more than if the company is
forced into bankruptcy.
In light of these realities, it seems clear that the most sensible course of action
is to negotiate the best contract possible under the current circumstances that
does not do harm to our airline, and move on. Everyone appreciates your hard
work and passion as you work towards a better contract; however, it is to
considered opinion of more than a few pilots that, considering the economic
realities, we rethink our tactics and goals.

Sincerely,

The Undersigned

The AA Pilot Contract Negotiations: Realistic Expectations Petition to APA Board of Directors and National Officers was created by AA pilots and written by Ken Headley (bartndc@yahoo.com).  This petition is hosted here at www.PetitionOnline.com as a public service. There is no endorsement of this petition, express or implied, by Artifice, Inc. or our sponsors. For technical support please use our simple Petition Help form.