TULSA, Okla., Feb. 23, 2007
The "American" Way Pays Off
Management And Workers At Airline's Facility In Tulsa Have Generated Big Savings By Working Together
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Play CBS Video Video The "American" Way American Airlines has found that listening to its employees and working together is a combination that keeps profits up and good-paying jobs in the U.S. Bill Whitaker reports.
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After 9/11, American was about to follow other big air carriers into bankruptcy. But the airline did the unthinkable in Tulsa: Management and the Transport Workers Union buried the hatchet and decided to work together. (CBS)
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Interactive Industry Turbulence See how the country's top airlines are faring
"It's amazing when you're in a survival mode, how you can change," says Dennis Burchette, president of the Transport Workers Union Local 514.
After 9/11, American was about to follow other big carriers into bankruptcy. But the airline did the unthinkable in Tulsa: Management and the Transport Workers Union buried the hatchet and decided to work together to manage the plant.
"Sharing those decisions with the union just went against the grain," explains Carmine Romano, an American vice president.
"There still is skepticism," Burchette says. But in a leap of faith, the workers gave major concessions. They took cuts in salaries and benefits. In return, they got equal say in running their facility and a promise to save every job if they saved the company money.
"This is a big ol' boat that's got to turn. It's slow, but at least they're listening," says machinist Jim Messick.
They're listening because money talks. Instead of buying new tail cones, workers now make them, saving $205,000 on each. They used to just throw out the dull tools and drill bits. Now they're resharpened — saving American almost $1 million.
The greatest savings came from the biggest job: completely overhauling big planes.
It used to take 800 American mechanics 23 days. Now half the number of mechanics can finish the job in just 13 days.
American CEO Gerard Arpey recently announced that the Tulsa workers saved the company more than $500 million last year. They're so cost-efficient that foreign and domestic carriers now outsource their maintenance to American's plant in Tulsa.
"It was easier for me to argue with them and blame them and cuss them — and now I'm part of them," Burchette says, laughing.
Romano says there is "absolutely, absolutely" a lesson at American for other U.S. companies. "We should not give up on our people," she says.
In other words, do it the American way.
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See all 26 CommentsThen we have the former TWA employees. Prior to 9/11 AA acquired TWA. Top management from both AA and TWA testified before Congress and a bankruptcy judge that all TWA employees would keep their job. They promised "fair and equitable" treatment to the TWA employees. The promise was not honored and today only 7% of the 20,000 TWA employees are employed by AA.
There is not one TWA flight attendant still on the job at AA. The flight attendants have started falling off the recall list. The last flight attendants fall off the list 07/01/08. American Airlines received millions of dollars from the US government after 9/11. The TWA employees, especially the flight attendants, are victims of 9/11. AA has refused to extend the 5 year recall window because they do not want us back. Do you really believe that is the American Way? Perhaps it is time you do an honest story on the plight of American Airlines employees.
Initially, we kept our seniority if we did not transfer from our bases of NY or St. Louis.
9/11 changed that-it changed me, I was in the air over NY City at 8:48 that morning. TWA%u2019s NY base was closed, not AAs'. The cost of running two operations was prohibitive even prior to 9/11.
With 6 children, I had to commute to St.Louis to keep my job.
I too, was under 50 when furloughed. I too will lose everything I worked 24 years for. I loved the job; we all did.
Airlines suffering a down turn in business due to 9/11, that took government funds, have extended the recall rights, not AA. We are held to a contract, negotiated when terrorism on our soil didn't exist ; when hijackers used the people & the plane as negotiating tools, to further their cause.
Some that could-retire did - 2300 remain. By 7/2/08, all F/As, will be cast aside by AA .
AA has over a year to keep operations lean. A new JFK terminal this summer expands the base. TWA NY F/As willing to take back their jobs, saving AA relocation costs to shift the workforce from other bases.
Like Tulsa, there was waste at AA, when compared to the streamlined operation of TWA & we shared every cost savings idea without the benefits of keeping jobs.
Why is the lesson American wishes to convey to other US companies, "not giving up on our people" isn't being implemented throughout all work groups at theirs.
Thank You
Initially, we kept our seniority as long as we did not transfer from our bases of NY or St. Louis.
9/11 changed that-it changed me, I was in the air over NY City at 8:48 that morning. TWA%u2019s NY base was closed, not AAs'. The cost of running two operations was prohibitive even prior to 9/11.
With 6 children, I had to commute to St.Louis to keep my job.
I too, was under 50 when furloughed. I too will lose everything I worked 24 years for. I loved the job; we all did.
Airlines suffering a down turn in business due to 9/11, that took government funds, have extended the recall rights, not AA. We are held to a contract, negotiated when terrorism on our soil didn't exist ; when hijackers used the people & the plane as negotiating tools, to further their cause.
Some that could-retire did - 2300 remain. By 7/2/08, all F/As, will be cast aside by AA .
AA has over a year to keep operations lean. A new JFK terminal this summer expands the base. TWA NY F/As willing to take back their jobs, saving AA relocation costs to shift the workforce from other bases.
Like Tulsa, there was waste at AA, when compared to the streamlined operation of TWA & we shared every cost savings idea without the benefits of keeping jobs.
Ask Romano why the lesson American wishes to convey to other US companies, "not giving up on our people" isn't being implemented throughout all work groups at theirs.
Initially, we kept our seniority as long as we did not transfer from our bases of NY or St. Louis.
9/11 changed that-it changed me, I was in the air over NY City at 8:48 that morning. TWA%u2019s NY base was closed, not AAs'. The cost of running two operations was prohibitive even prior to 9/11.
With 6 children, I had to commute to St.Louis to keep my job.
I too, was under 50 when furloughed. I too will lose everything I worked 24 years for. I loved the job; we all did.
Airlines suffering a down turn in business due to 9/11, that took government funds, have extended the recall rights, not AA. We are held to a contract, negotiated when terrorism on our soil didn't exist ; when hijackers used the people & the plane as negotiating tools, to further their cause.
Some that could-retire did - 2300 remain. By 7/2/08, all F/As, will be cast aside by AA .
AA has over a year to keep operations lean. A new JFK terminal this summer expands the base. TWA NY F/As willing to take back their jobs, saving AA relocation costs to shift the workforce from other bases.
Like Tulsa, there was waste at AA, when compared to the streamlined operation of TWA & we shared every cost savings idea without the benefits of keeping jobs.
Ask Romano why the lesson American wishes to convey to other US companies, "not giving up on our people" isn't being implemented throughout all work groups at theirs.
About you're article on American Airlines happy group ("The American Way") American Airlines took millions of $'s after 911, stapled their T.W.A. Flight attendants to the bottom of the senority list, layed them all off (4,000+). We only have 5 years for recall, many have died, given up and retired, or fallen off the list, about 2000 T.W.A. Flight Attendants remain on the list. We would like extended recall rights- it's the right thing to do- but I read American Airlines is busy giving millions of $'s to it's management again (bonuses) instead, because it has so much extra money.
How about finishing the story?
Kenton Murray
"Yes, sir," said the orderly. "When should I come here to find out if there's anything you want me to do for you?"
"When I'm not here."
"Yes, sir. And what should I do?"
"Whatever I tell you to."
"But you won't be here to tell me. Will you?"
"No."
"Then what should I do?"
"Whatever has to be done."
"Yes, sir"
"That will be all," said Major Major.
-- The Management
American Airlines Touted their Horn with the purchase of TWA back in 2001. Their slogan being "Two Great Airlines, One GREAT future"! Too bad we can't say the same for some of our former TWA flight Attendant Group. For some, their lives have ended! Many former TWA Flight Attendants have taken their own lives since the Take Over at American Airlines. All former TWA f/as have lost their future careers, pension, and all benefits while American f/as with little as TWO years are able to continue with their careers. We have asked our union for help in getting the company to extend our recall rights from 5 years to 10 years to match the other work groups, other ground workers have a 10 year recall , with the exception of our pilots, who have unlimited. To this day all other groups have ex-TWA members working as AA employees except the TWA f/as.
. Please do not allow American Airlines to continue to discriminate and segregate us while using the events from 911 as an excuse to continue their behavior. We feel just as much of a victim from 911 as American Airlines. The only difference is that American received help due to this event while we are still being victimized at the hands of American Airlines themselves. We have reached out to several groups for help. We would also like to ask you to give us a chance to have our voices heard. We are not asking for a hand out, just a hand up. Please extend your hand in helping us achieve this goal.
Thank You in Advance
Efforts have been made to bring our plight to the public. 4000 former TWA flight attendants and a few hundred American Airline flight attendants were layed off due to 911.
As a mostly older workforce, the TWA flight attendants are suffering finding it hard to replace career and income. Most are over 40. Suicides,foreclosures,and yet our pleas for extension of recall fall on deaf ears. Is this the "American Way?" You betcha.
Haven't you heard, all former TWA flight flight attendants are alive and well and living in the Bermuda Triangle, on Hawaiian Tropic!
-- 'ENRY
Carmine Romano states "We should not give up on our people."
Ask her why AA after purchasing TWAs lucrative routes gave up nearly 4,000 ex-TWA flight Attendants?
Ask her why the newly elected senator from Missouri, Claire McCaskill has pledged support to the ex-TWA flight Attendants because their OWN EMPLOYER AA will not?
Ask her why after 9/11 American Airlines took the governments money, but will not extend recall rights to those of us patiently waiting to get back to work?
Ask her why already over 1,000 former TWA flight attendants have already been fallen off the recall list?
Keep in mind, Mr Whittaker, us former TWA flight attendants only asking to go back to work if openings occur. Such openings could occur next year or 3 years from now, and we can wait. If Ms Romano is "not giving up on its people" she wouldn't be giving up on us.
we would be treated fair. There slogan at the time was "Two Great Airlines, One Great Future"
That could not have been further from the truth.
After 23 years of service I found myself on the street with nothing as did 3,999 other flight attendants. Today only 7% of the TWA employess are employed by American Airlines. So much for one great future.
You need to have your facts straight before reporting stories such as this.
American does not treat their employees well. I invite you to do a follow-up to this story and report the facts once you have done a little more investigating
The next time you write a story about a subject as well-known as AA and their reputation of being a horrible employer, you might want to consider checking your facts and doing some background research on your topic. This airline has treated their employees, both former-TWA and their own AA workers, with nothing but disdain - it's well documented and a commonly-known fact industry-wide. This kind of reporting is enough to make any viewer question the purpose of this "P.R. piece" for American Airlines and the real reason as to why it was put on the air in the first place.
As one of the many former-TWA flight attendants who AA kicked to the curb after 9/11 (after being stripped of all our seniority) I find this kind of half-truth journalism offensive, destructive and very hurtful to those of us (and there are thousands) who have suffered at the hands of AA's complete lack of concern about their employees. Most of all their TWA employees. I'm shocked that CBS would allow a story like this on the air.
Not sure how they planned to offshore airplane maintenance workers. Probably the genius management had a plan to offshore its maintenance, until one of them said, "but how will we get the planes there, duh?". and so, out of the generosity of their black hearts, they decided on a big pay cut instead.
Let us remember, let us repay.
Sorry I didn't give credit to:
Posted by ranchflyer at 09:33 PM : Feb 23, 2007
For the posting below!
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