Last Straw At American Airlines

by Mark Scheinbaum

AMR, the airline parent, is again on the verge of bankruptcy. Post Sept. 11 woes, deregulation, high pension and labor costs, rises in jet fuel, and war jitters have all worsened their problems.

But nothing has hurt American as badly as the liars in top management.

Just as the bigshots congratulated themselves on an unheard of third round of deep pay and benefit cuts and give backs by the three major unions, press reports leaked that a funny thing would happen on the way to the bankruptcy judge.

If the airline went belly up, employees would lose many of their fringe and pension benefits.

If the airline went belly up, the CEO and his cronies would keep their pensions, and bonuses, and perks, and benefits, which actually had increased by $45 million while the employees were playing "give back."

A similar scandal at Delta forced the CEO to disgorge his sweetheart deal three weeks earlier, and Delta is now trying to avoid a similar fate to that of American by launching a second cut-rate carrier called "Song." At American Airlines, once the flagship of U.S. pride for many travelers, it will take more than a song to shake the impact of a sour melody.

As an anti-union person, who never wanted a 40-hour week, social security, or child labor laws, you probably figure greedy unions caused the problem, and should not be allowed a second (or in some cases a third) vote on the management give back package. Yet, how would you feel if you voted on a statewide referendum, and three or four lines of the proposed amendment were accidentally dropped by the printer and left off your ballot? Better yet, let's say it wasn't an accident!

At the very least, the American Airline flight attendants, the last union to (revote to) ratify the yellow dog give back package, needed to know all the facts about the dire straits facing the airline coffers. While we're at it, the union was actually asked to vote on an emergency package to keep the company from possible death.

Like a different Dire Straits, the management Sultans of Swing partied on with unpublicized perks which they knew would have been a deal-killer if revealed to the union. All of which finally brings is to the misguided American parlor game pastime of: "How The Unions Killed (fill in the blank)."

As a kid, my uncles told of how "The Unions killed the garment industry." Of course the same industrialists who cried when the textile plants moved from Manhattan to North Carolina, eventually unionizing against lousy wages and conditions, were the first to complain when the Carolina plants moved to Sri Lanka and El Salvador. As a teenager it was "The Unions who killed the newspapers," with no regard to technology, TV, radio, Internet, or a growing functionally illiterate portion of the populace.

It's easy to say that Eastern Air Lines was killed by its unions. On the other hand, I always thought it was pretty neat that a hard-working African American, with 30 years as a porter, could earn $40,000 per year, plus overtime. This same worker could pay his mortgage and send his kids to college. As a full-time employee of Eastern, and not a subcontractor looking only for tips, he actually had a vested interest in representing his company.

I also remember astronaut hero Col. Frank Borman, who squeaked out of controversy and possible prosecution by the skin of his space suit after liquidating a chunk of EAL stock the day before announcing plans for bankruptcy.

"Well, I was in need of money for a nursing home for my mom," he tried to explain to regulators.

In short: pilots, mechanics, and flight attendants for American Airlines have already "given at the office" as the hand of charity once again knocks on their door. In fact, they've given at their office, their doctors' offices, their retirement offices, and probably their shrinks' offices.

A vote now to reject the compromise package would be a spite vote for bankruptcy. A vote for bankruptcy probably voids their contract provisions, but ironically keeps the management deals (which they now claim they will refuse) in place. If the company actually went under, some folks would blame "the unions."

The truth is that I meet a few dozen alumni of Eastern, National, Ozark, Pan Am, TWA, etc., every year in my travels. They each have a few nostalgic stories, but at least one "last straw" story. The "last straw" was the incident or experience which led them to chuck it all and start a new life at age 40, 50, or even 60. For some it meant early retirement. For most it was a catalyst to work in an environment healthier for their physical and mental well-being.

As an American Airlines frequent flyer, I hereby forgive the unionized employees, if management's secret slush fund is viewed as their last straw.