Employees Sacrifice for Executives Compensation
May 17, 2008 · Print This Article
At the same time that American continues to nickel and dime its passengers, they continue to disregard the sacrifices made by their employees to keep them financially afloat.
American Airlines was able to avoid filing for Chapter 11 bankruptcy after 9/11 when, in 2003, the unions representing pilots, flight attendants, and ground workers agreed to concessions of $1.6 billion in pay and benefit cuts.
American showed their appreciation for the concessions made by awarding 1,000 management employees with bonuses totaling $250 million, while the non-management employees contend that they continue to work under the terms of the concessions.
In 2006, American Airlines CEO Gerard Arpey received compensation valued at $5.4 million, in addition to a bonus worth about $6.6 million. As of April 16, 2008, their top executives have not turned down their stock awards for 2008 despite the $328 million loss from this past quarter that did not even count the losses from the over 3,000 flights that were cancelled due to the FAA inspections.
American has not been good lately. I talked my friend in to flying them and wow, what an embarassing mistake. She missed two connecting flights because of their sceduling delays. Connecting flights they scheduled. It cost her more money in shuttles and accomodations she didn’t plan on, both ways on this trip.