TWU Campaigns Against ‘Outrageous’ Exec Bonuses at American

by James Parks, Apr 7, 2009

Tired of corporate executives taking seven-figure bonuses while other workers are laid off, the Transport Workers (TWU) launched a national advertising campaign to raise awareness about outrageous pending awards at AMR, the parent company for American Airlines and American Eagle.

The union began running ads April 2 in major news outlets such as CNN and in newspapers in Dallas, Chicago, Miami, Tulsa and other major American Airlines markets.

TWU also is reaching out to the public through ads on Google and other Internet sites and search engines. Each message encourages frequent flyers and the general public to play the “American Exec Check” game here. The interactive online game challenges the public to guess how much various CEOs make and to drag their caricatures to a desk marked with differing dollar figures.

On the site, you also can send an e-mail to AMR’s board of directors and sign an online petition asking the board to stop paying executive bonuses until front-line workers are included in bonus compensation.

Even though the airline has been losing money during the recession, AMR executives have taken $300 million in bonuses in recent years, with more awards expected in mid-April, while the wages of front-line employees essentially have been frozen after 30 percent pay cuts in 2003.

Says TWU President James Little:

In many ways, American has become the poster boy for outrageous executive bonuses. This is about equity. Mechanics and other ground workers keep the planes flying. We’re not asking for the Earth, moon and stars. We’ve shared the pain; shouldn’t we also share any bonuses or gains that the execs make?  And if the company is in truly bad shape, shouldn’t execs be barred from taking bonuses?

TWU, working with AMR, has found ways to reduce the cost of airplane maintenance, including major overhauls. The company and union jointly market maintenance facilities to other airlines, which has led to hundreds of millions of dollars in outside revenue. Despite these improvements and hundreds of millions of dollars saved through other efforts to boost productivity, workers at American and American Eagle have been unable to reach agreement with management on a fair contract.

“Times have changed,” Little says. “There is no more divine right of kings.”

The public, shareholders and workers will no longer tolerate outrageous checks to American execs. We can’t stop the awarding of bonuses at AIG or Merrill Lynch, but AMR’s board can do the right thing and stop this imbalance in AMR and our society.

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