'Sorry' doesn't sway AMR workers By Dan Reed, USA TODAY FORT WORTH =97 AMR (AMR) Chief Executive Don Carty apologized to workers=20 Monday for not fully disclosing executive compensation policies before they= =20 voted last week to help AMR save $1.8 billion a year through pay cuts,=20 reduced benefits and working harder. At least two unions still say they=20 want to revote on the concessions, which American Airlines' parent company= =20 said were essential to keep the company out of Chapter 11. Carty said the=20 company remains "on the precipice of bankruptcy" and can't afford any delay= =20 in taking advantage of the labor cost savings. The controversy has damaged= =20 AMR's labor relations and increased doubts on Wall Street about the=20 company's ability to avoid a bankruptcy filing. AMR shares fell 23% Monday= =20 to close at $3.85. It may also weaken Carty's ability to lead the company.= =20 In a televised news conference, Carty said he was responsible for not fully= =20 briefing labor leaders on the company's policies for retaining key=20 executives and pledged to keep them informed in the future. "It was never=20 my intent to mislead anyone, and I hope my apology can begin to heal the=20 hurt I've caused," he said. Within minutes of Carty's news conference, John= =20 Ward, president of the flight attendants union, issued a statement saying=20 the union will put the concessions package back out for a vote. By=20 withholding information about bonuses and pension contributions for=20 executives, AMR "committed a material breach of its obligation to disclose= =20 all relevant financial information" to employees voting on the concessions. Some union leaders said Monday that Ward can't do that without approval of= =20 the union's board, which will meet today in an emergency session to discuss= =20 the matter. But Ward said the board would address how, not whether, the=20 revote will be conducted. Jim Little, head of the Transport Workers Union,= =20 which represents mechanics and other ground workers, said his union also=20 would put the matter to another vote, by mail, which could take a month.=20 However, Little said TWU leaders still believe members have more to gain by= =20 an agreement that keeps AMR out of Chapter 11. John Darrah, president of=20 the Allied Pilots Association, said his union's board also will meet today= =20 to decide whether to hold another vote. "I think if it were to be put out=20 for a revote, there's a high probability that it would be defeated. And I=20 don't think management will wait for that to happen" before putting the=20 company into bankruptcy court protection. Last week, just as voting in the= =20 cost-cutting deals was ending, AMR revealed in a Securities and Exchange=20 Commission filing that an executive retention plan would pay AMR's top six= =20 officers bonuses equal to twice their salaries if they stayed through=20 January 2005. The carrier also noted the creation of a trust partially=20 protecting the otherwise unfunded pensions of AMR's top 45 officers from a= =20 potential bankruptcy filing. AMR canceled the retention payments Friday.=20 Carty said Monday that AMR put $30 million into that trust and paid $16=20 million more in taxes on it. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.pscutt.com TnT Webdirectory: http://search.co.tt *********************************************************