Reported AFTER American's wage concession vote

Derg

Cap, Roci
Staff member
Reported AFTER American\'s wage concession vote

Dow Jones Business News
AMR Created Special Pension Trust for Top Executives

Thursday April 17, 12:41 am ET


Amid intense cost-cutting last year, American Airlines' parent, AMR Corp.
(NYSE:AMR - News) , funded a supplemental pension trust for its top 45
executives that protects a portion of their retirement income in the event of a
bankruptcy filing, Thursday's Wall Street Journal reported.

The world's largest airline also offered its top six executives "cash
retention" bonuses of twice their base salaries if they stay through January
2005.

The executive perks, similar to ones at other airlines that drew fire from
Congress and unions, were disclosed late Tuesday in exhibits attached to the
company's year-end financial filing. AMR, based in Fort Worth, Texas, had
delayed filing the report because the company was negotiating pay and benefit
cuts with its unions. The filing coincided with the scheduled end of voting by
workers to ratify $1.8 billion worth of concessions to avoid a bankruptcy
filing.

American defended its supplemental pension program. Bruce Hicks, a company
spokesman, noted that the executives' primary pension program would be at risk
in a bankruptcy, just like other employees. The supplemental program funds
pension benefits above the regular employee program, and is actually similar,
the company said, to a trust American's pilots have for supplemental pension
benefits.

Wall Street Journal Staff Reporters Scott McCartney, Theo Francis, Joann S.
Lublin and Ellen E. Schultz contributed to this article.
 
G

Guest

Guest
Re: Reported AFTER American\'s wage concession vote

[ QUOTE ]
The world's largest airline also offered its top six executives "cash
retention" bonuses of twice their base salaries if they stay through January
2005.


[/ QUOTE ]

Very depressing to read things like that...who knows how many more will be furloughed thanks to their greediness.
 

Timbuff10

Well-Known Member
Re: Reported AFTER American\'s wage concession vote

Maybe my girlfriend is on the right track with getting her MBA and going into management. Those snakes in management seem to always come out on top in this industry.
 

Derg

Cap, Roci
Staff member
Re: Reported AFTER American\'s wage concession vote

In my world that's damned near criminal. Not more than 12 hours after the labor groups made one of the hardest non-flying decisions of their careers, management starts promising themselves bonuses and stashing money in mayonnaise jars outside the CR Smith building.



But I guess they're going to enjoy bonuses because they were successful in convincing labor to take food out of their families mouths so a select few could buy move up from a MBZ S430 to a MBZ S500.
 

zombie5225

New Member
Re: Reported AFTER American\'s wage concession vote

So you mean Im losing 17% of my pay, my vacation, sick time, overtime and my holiday pay, and these guys are getting bonuses?
 

pilot602

If specified, this will replace the title that
Re: Reported AFTER American\'s wage concession vote

This is only the tip of the iceburg. This type of bash and grab goes far deeper than wht they put in their public reports. With auditors in their pockets a company can hide damn near anything.

There's a reason why the $1.8 Billion in labor savings still only represents 45-50% of the total $4 +/- billion AMR wants to save each year. With this in mind he magic question becomes: where the hell is the other 50% going/coming from if it's not coming from - what the management always claims - "the most expensive part of the airline business:" labor?

The sickening thing is this behavior is not isolated. It's common knoweledge and accepted throughout all of American big business. Things like Enron, Tyco, United, Global Crossing, K-Mart, etc don't "just happen" it takes severe, conscious and criminal mismanagement to get results like these. And until D.C. does something in the form of stricter regulations (or simply enforcing the regulations we already have) nothing will ever change.

Free enterprise does not mean "no rules!"
 

davetheflyer

New Member
Re: Reported AFTER American\'s wage concession vote

[ QUOTE ]
The world's largest airline also offered its top six executives "cash
retention" bonuses of twice their base salaries if they stay through January
2005

[/ QUOTE ]

Screw rentention! Why would they want to retaint the very people who are running their company into the ground?

Give them their money, but kick them out and promote a few pilots to management positions. Hire a few MBA students to add to the mix. Get some people in there who realize that a new solution is needed because the same old "pay cuts and furloughs" mantra is not working.
 

davetheflyer

New Member
Re: Reported AFTER American\'s wage concession vote

Wow! It's almost like Back to the Future. I suggest they scour NYC's garages for a Delorean with a Mr. Fusion on the back.

[ QUOTE ]
Officials are quite confident the "time-traveler's" claims are bogus. Yet the SEC source admits, "No one can find any record of any Andrew Carlssin existing anywhere before December 2002."



[/ QUOTE ]

[Twilight Zone Theme]
 

vickiepp

New Member
Re: Reported AFTER American\'s wage concession vote

What a BUNCH of • BAGS!!!
A huge company like AA can RUN itself. Once you've got the thing up and running, IT SHOULD run itself or you haven't done your job as a top exec!
So , IF the top execs are going to rape and pillage the company, and leech off of the backs of the workers, then get them out of there.
I agree with Dave, promote from within, throw in a few MBA interns for good measure AND hire HERB as a consultant!! I'm sure Colleen would give him the day off!!
 
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