Don't abuse sick time, American CEO warns

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Don't abuse sick time, American CEO warns
By Dan Reed, USA TODAY

A desperate scramble to find $4 billion to cut from $21 billion a year in=20
expenses has moved the chairman of the world's largest airline to lecture=20
workers on the abuse of sick days. American Airlines CEO Don Carty told his=
=20
110,000 employees this week that the company spends more than $1 million a=
=20
day as a result of absenteeism. He did not say how much of that stems from=
=20
abuse of sick days and "workmens' comp" policies. American's parent AMR=20
lost $1.8 billion in 2001 and is expected to report a 2003 loss of about=20
$3.5 billion. The airline needs to cut about $4 billion in yearly costs to=
=20
break even, Carty says. "We simply can't afford to have any employee take=20
these benefits for granted or to misuse them," Carty said in telephone=20
message recorded Monday. Four years ago some members of the Allied Pilots=20
Association staged an 11-day sickout against American. But there's no=20
suggestion of any such events now. Association of Professional Flight=20
Attendants spokesman George Price says the comments are "a bit=20
bewildering." "We don't know where he's coming from on this," Price says.=20
"We're all very aware that a sick call means money to the company."

Allied Pilots spokesman Gregg Overman says Carty's comments lacked "a=20
certain amount of context." "One explanation is that it's a signal to=20
anyone who cares to listen, be it shareholders or employees, that American=
=20
is leaving no stone unturned" in cutting costs, he says. American spokesman=
=20
Gus Whitcomb says Carty simply was responding to employees asking how they=
=20
can help cut costs. Employees "naturally tend to see things in terms of how=
=20
it effects just them," Whitcomb says. Carty "just wanted to give them some=
=20
information on how big the sick days" issue is. "In no way are we asking=20
people who are legitimately sick or injured to come to work." American's=20
daily absentee rate historically has been about 5%. In 2002, that meant=20
about 3,700 people a day out. Airlines in general tend to have higher rates=
=20
of absenteeism than other businesses. "Ramp guys suffer the fury of Mother=
=20
Nature," says George Price, a spokesman for the Association of Professional=
=20
Flight Attendants, referring to bag handlers and mechanics. "Rain. Sleet.=20
Snow. High winds. You name it, they're out in it."

"Our attendants spend hundreds of hours in an enclosed environment with=20
recirculated air, exposed to hundreds of travelers carrying all sorts" of=20
contagions, he adds. "Agents are exposed to hundreds of customers every=20
day, and whatever those people are carrying. And pilots are in the same=20
enclosed environment as our flight attendants, and can't take medicine."=20
Pilots can be grounded for several weeks by a common cold. They risk=20
potentially career-ending injuries such as burst ear drums if they fly=20
while sick. FAA regulations prohibit pilots from taking most medications=20
commonly used to treat colds. American isn't the only company noticing sick=
=20
time costs. In 2002, the cost per employee for unscheduled absences reached=
=20
an annual average of $789 =97 an increase of nearly 30% since 2000,=
 according=20
to a study by CCH, a human resource information firm.


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