Lawmakers Take American Airlines to Task over Poverty Level Wages

More than 80 Congressmen signed a letter to American Airlines CEO Doug Parker asking that the company give front-line workers a living wage to “provide for the ability to support themselves and their families.”

This month, 81 Congressional leaders called on American Airlines CEO Doug Parker to see that a collective bargaining agreement is reached with passenger service agents at subsidiary Envoy Air. A letter to Parker chided the CEO for paying frontline employees at the airline “poverty level” wages.

“We were surprised to learn that many of these agents earn less than $11-an-hour and as a result must deal with constant churn at work and struggle at home to make ends meet,” the February 8th letter on Congressional letterhead noted. “In September, you pointed out that the industry has become more reliably profitable and that, in fact, the company would never lose money again. In light of those strong assurances, we believe that passenger service employees who have played a major role in achieving continued company profitability share in it’s benefits.”

Parker has so far taken a hands-off approach to labor negotiations at the subsidiary airline which operates flights as American Eagle. Union leaders and lawmakers, however, say that one phone call from the American Airlines chief could easily resolve the issue overnight.

“I hope that ongoing contract negotiations between the Communications Workers of America and Envoy – American Airlines’ wholly-owned subsidiary – are promptly concluded and that passenger service agents receive living wages,” Representative Jan Schakowsky of Illinois said in a statement. “Americans who work hard should receive wages that allow them to meet their families’ needs – not be required to work multiple jobs or rely on food stamps to get by.”

The exact number of employees at the American Airlines subsidiary who require public assistance, including food stamps, to get by isn’t clear. The Communications Workers of America (CWA) which represents passenger service agents at the company, recently sent Envoy agents a questionnaire to learn more about the various ways workers rely on taxpayer help to survive. The questionnaire asked specifically about government-funded programs including WIC, Medicaid, welfare and heating assistance.

Many Envoy employees were surprised and grateful for a recent $1,000 bonus that American Airlines management attributed to a windfall from recently approved changes to the federal tax code. In a front page New York Times feature story this month, however, Envoy employee Takisha Gower said that a onetime tax reform bonus doesn’t go very far for employees whose wages hover near the poverty level.

“We need a livable wage that we can support our families off,” Gower told the newspaper. “A lot of employees qualify for government assistance. Some have to work 60 hours a week to make ends meet.”

According to a report in the Dallas Morning News, starting employees at Envoy earn less than $9.50 per hour. In addition to relying on public assistance, workers say that they have resorted to selling blood, borrowing from retirement accounts and turning to GoFundMe to pay medical bills.

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