Originally Posted by
Thunderroad
I'm usually pretty pro-union, but I'm struggling to understand the AA unions' stance with regard to a merger with US. Hasn't Parker screwed up his previous merger and his management of US as it currently stands? I don't doubt that the recent and current AA leadership has not served its employees well in many respects, but relative to other airlines (not least US) didn't it at least make an effort to keep the airline out of bankruptcy? And wouldn't the US-AA merger cost current AA employees in terms of seniority, job security, etc. as the airline inevitably streamlined its operations? How do current US employees feel about Parker and his management team, especially in view of his failure to even complete the previous US merger? And why do you think you can trust Parker to keep his promises to you and keep the airline out from getting into financial trouble in view of the wages he's promising, his track record in US employee relations, and the other costs he's incurring?
Honestly, I'd welcome your enlightening me as to as many of these matters as possible. I may well be missing something, or many things, in my own analysis.
The two drivers behind the we want Horton out no matter what stance by the unions are:
- long-term resentment about the two-tier wage structure.
- pent up anger about the 2006(?) management bonuses ($100 million). The bonuses were based on stock price and technically earned - but the unions who had made large givebacks in 2003 were incensed that management was making big bonuses while they were still under the gun for more savings.
When AArpey took over for Carty he actually had a bit of a honeymoon with a shared sacrifice theme - but the bonuses basically created a "let's burn the place down" environment for the unions.
Horton IMO aligned himself with AArpey when he came in, made no personal concessions to his pay, essentially blowing his only chance of winning over the unions.
From that point it really didn't matter what Horton offered - they don't want him (period).
At some point - even if AA remains independent - Horton is going to have a challenge winning back employee confidence in his leadership. Hopefully he can do it if that is the road things go down. It is rare that top performing companies have the type of employee - management acrimony AA does right now.