Anger may derail American offer

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Anger may derail American offer
By Dan Reed, USA TODAY

GRAPEVINE, Texas =97 The $1.6 billion package of labor concessions that=20
American Airlines' managers say are needed to avoid a bankruptcy court=20
filing next week is in danger of rejection by angry union workers.=20
Opposition to the proposed agreements is impossible to quantify. But the=20
depth of employees' anger and mistrust of American's management has been on=
=20
vivid display this week at union "roadshows" held to explain the details of=
=20
the proposals and in Internet chat rooms for American's employees.That has=
=20
both American executives and union leaders worried. Late Wednesday, the=20
Transport Workers Union, which represents 35,000 mechanics and ground=20
workers, accepted a deal sweetener that would give their members a shot at=
=20
temporary 12-month raises in each of the last three years of the proposed=20
six-year agreement.

The offer is perceived by some employees as a token gesture because of the=
=20
remote chance that the airline can achieve the financial goals that would=20
trigger the additional raises in 2006-08. It was made only after TWU=20
officials begged for something to help sell the deal to their skeptical=20
members. Management's survey of employees confirmed weak support for the=20
tentative agreements. Similar sweeteners have been offered to the unions=20
representing flight attendants and pilots. Neither has responded. The=20
original tentative agreements were reached on March 31, just minutes before=
=20
American attorneys were to file a petition for Chapter 11. The company also=
=20
is seeking $200 million a year in savings from non-union employees.

Workers at Dallas/Fort Worth airport this week said in interviews that they=
=20
don't want American to enter Chapter 11, but they're also suspicious that=20
company management wants them to pay for its mistakes. Many said they=20
hadn't decided how to vote. Keenly aware of the widespread anger and=20
cynicism among his employees, American CEO Don Carty begged workers at=20
American's Kansas City maintenance base on Wednesday to give up the belief=
=20
that a "no" vote would lead to less-onerous concessions.  In bankruptcy=20
reorganization, American officials say, the company will need $500 million=
=20
a year more in labor cuts to meet the demands of the banks that will=20
provide the debtor-in-possession loans necessary to continue flying. "A=20
better contract is not an option," Carty says. "Voting 'no' is a vote for=20
bankruptcy. Voting 'no' is a vote for additional job cuts. There is simply=
=20
no more time and no more money." Similarly, Jim Philpot, an American=20
captain and chairman of the Allied Pilots Association's pilots based at=20
Dallas/Fort Worth airport, said Thursday that he's concerned that workers=20
might not have time to deal with the emotions and anger generated by "this=
=20
ugly pig of a contract" before they have to vote. "That's a big concern,"=20
he said.


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