WASHINGTON (Reuters) - The biggest U.S. airlines, struggling to cement their shaky recovery, face a rising challenge from angry unions looking to recoup billions in wages and pensions lost since 2001.þþBut labor experts question whether pilots, mechanics, bag handlers and flight attendants will be able to take back a measurable percentage of restructuring givebacks, even if profits improve from a modest 2006.þþThe performance outlook for airlines this year has been dimmed by softer demand, stubbornly high fuel costs, diminished pricing power and expectations of intensifying competition.þþNevertheless, unions are demanding a bigger share of any recovery after losing 160,000 jobs and absorbing $8 billion in lost wages, benefits and pensions from 2001-2006.þþDetermined to upgrade contracts even before January's forecast of a second-straight profitable year, labor amplified its demands after executives at big airlines got millions in stock when restructurings were completed and performance improved.þþÿI would have to say they're frustrated and angry,ÿ said Gregg Overman, a spokesman for 9,000 active and 2,600 furloughed pilots at AMR Corp.'s American Airlines.þþPilots at American lost more than $2.5 billion from wage cuts and work rule changes since 2003. They joined other labor groups at the company's annual shareholders meeting to blast about $160 million in stock awards for senior management.þþUnions also complained about awards at Northwest Airlines and United Airlines. .þþAmerican pilots are seeking a 30 percent raise, the amount the union calculates it gave up to see American through its out-of-court restructuring.þþAmerican made $230 million in 2006, while Continental Airlines earned $343 million. United Airlines posted a small profit for the 11 months it operated outside bankruptcy, and US Airways pulled in $300 million.þþThere is labor peace at Delta Air Lines Inc. where pilots are the lone major union. Unions are quiet at Northwest, which won a contract with flight attendants this week.þþBut pilots at US Airways are in bitter negotiations and their counterparts at United, along with other unions, want to reopen contracts early, something United is not expected to do.þþÿI think you will see people getting more and more aggressive with their companies and their management,ÿ said Patricia Friend, international president of the Association of Flight Attendants, whose 46,000 members fly for United, US Airways, Northwest and other carriers.þþFriend's organization surrendered 40 percent in wages and benefits and lost 15,000 members during the downturn. She said unions likely will make more demands and raise questions more often in public.þþSince 2002, four major carriers, US Airways, United, Northwest and Delta, overhauled operations in bankruptcy. Continental, like American, restructured out of court. All carriers slashed operating costs and debt, and are looking to hold down expenses permanently.þþÿCost cutting has become a way of doing business,ÿ said Susan Gordon, a spokeswoman for American.þþDaniel Petree, dean of Embry-Riddle Aeronautical University's business school, and other experts agree some gains by labor are possible. But they say the overall economic pressure on airlines, including shifts in demand that have weakened revenue, are enormous.þþÿThe cost structure that is emerging in recovery is different than what was in place before. It makes the prospects for substantial recoveries under traditional collective bargaining arrangements more difficult,ÿ Petree said.þþJerrold Glass, a consultant and a former executive with US Airways, said a one-year recovery is not a trend. However, he added, individual airline managements may be open to discussing possible changes and limits if performance improves.þþAt American, Gordon said the pilot's pay proposal will be considered but cost concerns are paramount. American hopes to save at least $300 million this year. She added that employees share in the carrier's success, having received stock options that are now worth more than $1 billion.þþFriend, the flight attendants leader, acknowledged any recovery of concessions would be incremental. ÿWe have no illusions that we will recover everything that we gave up in one contract, but we have to start,ÿ she said.þþ
Source: NY Times
