FORT WORTH, Texas (AP) -- American Airlines, which dodged bankruptcy this week, finds itself in the middle of another firestorm as employees facing huge pay cuts reacted angrily to news that top executives were promised big bonuses.þþThe leader of American's largest union suggested he may refuse to sign a labor-concessions agreement that would help the company save $1.8 billion a year -- even if that pushes the world's largest carrier into bankruptcy.þþLeaders of all three of the airline's biggest unions said Thursday they are consulting attorneys to see whether they can prove American negotiated the concession packages in bad faith -- not telling the unions about the executive perks until workers voted on the cost cuts.þþ``We are appalled and just disgusted. It's the equivalent of an obscene gesture from management,'' said John Ward, president of the flight attendants' union, which rejected concessions -- then approved them after the union and the company agreed to extend voting by one day.þþJust Wednesday, the mood at American's Fort Worth headquarters was one of celebration after the union narrowly approved the concessions deals.þþ``We have all shared in the sacrifices necessary to restructure our costs, and I have every reason to believe that by working together, we will be successful in creating a leaner, smarter, more competitive airline,'' said chairman and chief executive, Donald J. Carty, as headquarters employees cheered.þþBy Thursday, James C. Little was having none of the teamwork pep talk. Little directs the airline division of the Transport Workers Union, and he raised the threat of sinking the concessions package by refusing to sign the agreement.þþIn an interview, Little said the union's 34,000 members at American might have rejected the agreement if they had known about the executive perks. He said he was talking to union lawyers about his next move.þþOn the union's Web site, Little said members must consider rejecting the concessions deal ``even if the consequence is a bankruptcy.''þþThe unions' outrage was directed at perks American's parent, AMR Corp., did not disclose until a filing this week with the Securities and Exchange Commission.þþThe company said it agreed to partially fund a pension trust for 45 top executives and shield those benefits if there is an AMR bankruptcy. In addition, the company promised six top executives bonuses equal to twice their salaries if they stay through January 2005.þþCarty, who has a base salary of $811,000, could get a $1.6 million bonus at a time when employees will still be struggling under huge pay cuts.þþBruce Hicks, a company spokesman, said the retention benefits were a standard policy at many large companies to prevent senior executives from leaving. He also said the supplemental pension plan is similar to one for American's pilots.þþThe timing of the disclosure also angered employees. AMR delayed filing the documents until the last scheduled day for employees to vote on the concessions deals. Union officials doubted it was a coincidence.þþThe flap appears to have already worsened management-labor relations at a company famous in the industry for bad relations.þþ``People have this view of management. They don't deal fairly with their employees,'' said Ward, the president of the flight attendants' union. ``You ask probing questions and they dodge the question or they provide limited information or just don't provide it.''þþJohn Darrah, president of the pilots' union, urged company executives to withdraw the perks. If not, he was consulting with lawyers on a next step. Darrah stopped short of vowing to unravel the concessions deal, but said he would decide a course of action next week.þþ
Source: NY Times
