The "American" Way Pays Off

Management And Workers At Airline's Facility In Tulsa Have Generated Big Savings By Working Together

(CBS)  With well-paying U.S. industrial jobs flying overseas these days, American Airlines is keeping 7,000 workers at its mammoth Tulsa maintenance facility busier than ever by turning old business ways upside down, CBS News correspondent Bill Whitaker reports.

"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.

[ranchflyer]

As I watched your news story tonight it was almost funny .... almost. You failed to mention that in 2003 the employees of American took over 1.5 billion in pay cuts and benefits. American made around $215 million in 2006 due in large part to those pay cuts, the first profits since 2000. But last year the top 100 mangers at American took $110 million in bonus and are scheduled to get another $240 million this spring all the while those employees are still working for 1995 wages. Their reasoning (You just don't understand mangement compensation)!! Give me a break!!!!

[rudy654-2009]

American Airlines is one of the worst companies ever. After keeping me on the tarmac for over 3 hours waiting first in line, and then returning to refuel, they made me late for my next flight and I ended up waiting till the next day. No apologies or nothing. Then when I complained, they gave me a stupid 50 dollar coupon. Thanks, but no thanks. If you want to be treated worse than livestock go American. That's how bad they are.

[amazedd]

Woman: Oh. How do you do?
King Arthur: How do you do, good lady? I am Arthur, King of the Britons. Whose castle is that?
Woman: King of the who?
King Arthur: King of the Britons.
Woman: Who are the Britons?
King Arthur: Well, we all are. We are all Britons. And I am your king.
Woman: I didn't know we had a king. I thought we were an autonomous collective.
Dennis: You're fooling yourself! We're living in a dictatorship. A self-perpetuating autocracy in which the working class...
Woman: Oh, there you go bringing class into it again.
Dennis: Well, that's what it's all about! If only people would...
King Arthur: Please, please, good people, I am in haste. Who lives in that castle?
Woman: No one lives there.
King Arthur: Then who is your lord?
Woman: We don't have a lord.
Dennis: I told you, we're an anarco-sydicalist commune. We take it in turns to be a sort of executive officer for the week, but all the decisions of that officer have to be ratified at a special bi-weekly meeting, by a simple majority in the case of purely internal affairs, but by a two thirds majority in the case of...
King Arthur: Be quiet! I order you to be quiet!
Woman: Order, eh? Who does he think he is?

-- Synergy

[jtwaoz]

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.

I feel sorry for employees at other U.S companies that follow AA's ways. They are "absolutely, absolutely" the worst to their employees. American has given up on over 4000 flight attendants that have begun to fall off a recall list, Furloughed because of 9/11. Many of these Flight Attendants were former TWA employees with any where from 2 to 40 years of senority.
AA should be ashamed of themselves for treating their employees like they have and CBS should be ashamed to report such a story. Like the above poster found the story ALmost funny....After 26 years of being a F/A and now being without a job. IT'S NOT FUNNY!!!

[jtwaoz]

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.

I feel sorry for employees at other U.S companies that follow AA's ways. They are "absolutely, absolutely" the worst to their employees. American has given up on over 4000 flight attendants that have begun to fall off a recall list, Furloughed because of 9/11. Many of these Flight Attendants were former TWA employees with any where from 2 to 40 years of senority.
AA should be ashamed of themselves for treating their employees like they have and CBS should be ashamed to report such a story. Like the above poster found the story ALmost funny....After 26 years of being a F/A and now being without a job. IT'S NOT FUNNY!!!

[linfinster]

YES!!!! WAKE UP TO THIS FRAUD!

Who can stop this?

Well worth saying again! : As I watched your news story tonight it was almost funny .... almost. You failed to mention that in 2003 the employees of American took over 1.5 billion in pay cuts and benefits. American made around $215 million in 2006 due in large part to those pay cuts, the first profits since 2000. But last year the top 100 mangers at American took $110 million in bonus and are scheduled to get another $240 million this spring all the while those employees are still working for 1995 wages. Their reasoning (You just don't understand mangement compensation)!!

[linfinster]

Sorry I didn't give credit to:

Posted by ranchflyer at 09:33 PM : Feb 23, 2007

For the posting below!

[jasona300]

Please use up to date facts when reporting your stories. With management poised to take bonuses worth more than the total airlines profit and no reward or compensation for employees who took cuts to make this happen, you will find a much different attitude today. Once again the working people pay so the upper class elite can reap the benefits. Imagine if you were given a 30 to 50 percent paycut at your job and then the managers gave themselves huge bonuses, how would you feel? Shame on American Airlines for their actions and shame on CBS for their untimely and shoddy reporting.

[sharncedar]

"With well-paying U.S. industrial jobs flying overseas these days, American Airlines is keeping 7,000 workers at its mammoth Tulsa maintenance facility "

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.

[kkrrss1]

Mr. Whitaker:
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.

[chat526]

As I watched this news story, I could not believe what I was hearing. I am a former TWA Flight Attendant and American Airlines promised if the deal was successful in acquiring TWA that
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

Mr Whitaker - Just because Carmine Romano a VP at American Airlines feeds you a story to spin for their purposes and publicity, please do not believe it to be true. You are a news reporter, you do not have to take what PR American gives you at their word. If you do a little research there is actually a more truly sordid side to this story this is more interesting than the "puff" piece AA gave you if you want to dig for it .
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.

[twangel2]

I am one of the employees that American Airlines gave up on as I dropped off the recall list in January. I will never be able to get the retirement I was counting on because I was not quite 50 years old when they sent me to the unemployment line. There is not one TWA flight attendant still working for American Airlines. All I wanted was a chance to come back and work for the few years it would have taken to get a pension. AA management doesn't really care about their employees. If they did care management wouldn't be giving themselves millions of dollars as they cross people off the rehire list on a technicality. I hope you will tell the rest of the story.

[fwasko50]

I am uncertain just why the news reports everything that benefits corporate America and neglects the issues pertaining to the worker. I lost my 33 year career as a flight attendant when American laid off ALL of the TWA flight attendants. I want my job back and have nothing against American Airlines. In fact, I hope it does well so that they will, indeed, call me back. Unfortunately, we only have 5 year recall rights and many of us have already been permanently displaced. Those that are already gone have lost their jobs, their pensions, their health insurance and the rest of their benefits. When we try to have our story told, we are ignored. Mr. Whitaker, don't you think that the public is interested in the whole story and the worker bee who is harmed in the process of corporate security? It is a shame that our story is NEVER told.

[z7774]

If what happened to the former TWA flight attendants when AA purchased TWA is the "American Way", I feel sorry for the American worker.

[amazedd]

Don't Worry Be Happy!

Haven't you heard, all former TWA flight flight attendants are alive and well and living in the Bermuda Triangle, on Hawaiian Tropic!

-- 'ENRY

[tdubgirl]

In the spirit of "good employee relations" why has AA turned its back on thousands of talented former TWA employees of which,the flight attendant workforce in particular,simply wants to return to a career they loved. American's 5 year recall policy for flt. attendants is expiring 7/2008 with no plans to recall. We'd like an extension.
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.

[debberke-2009]

CBS News and Mr. Bill Whitaker should be ashamed that they did not completely investigate American Airlines' treatment of their employees before airing this piece on national tv. I suppose having a PR person from AA told one side of the story, but what about the other side straight from the the front-line employees? I'm not referring only to the furloughed ex-TWA pilots, agents, and flight attendants, but also to the AA workers. They would attest to AA's noncaring and greedy corporate business ways. Corporate greed, bonuses and perks for the top echelon of employees, and pay cuts, longer working hours, and cost increases for medical benefits. I live both sides of this nightmare...my husband, an AA employee for 35 years, and I am an ex-TWA employee with over 25 years of service,furloughed by AA. This was my career, not just a job that one can go and find again. How tough it has been on all of us furloughees. Do an article on us and believe me, CBS will have more viewers than they did on your fluff piece. These stories will hit a nerve in all Americans, and may generate more substantial audience for CBS news. Until that happens, my family will continue to watch ABC and NBC news. CBS shows one-sided, biased reports of Corporate America.

[whosnextu2]

..the American way..How about do the right thing American Airlines?? We have support in Washington D.C thanks to Sen.McCaskill, we have support of the Union APFA at American Airlines under a new Resolution #8 for extended recall rights. All that American Airlines has to do now is meet with Sen.McCaskill and APFA and do the right thing. The American Airlines Flight Attendants who are laid off are NOW victim's twice over from 9/11. Who now makes us victims again from 9/11? American Airlines, do it the American way! Mr. Whitaker if you need more info on the Flight Attendants that are once again victim's please email me back..Thank You, WhosnextU2

[twa21years]

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

[amazedd]

"From now on," Major Major said to the middle-aged enlisted man who took care of his trailer, "I don't want you to come here while I'm here to ask me if there's anything you can do for me. It that clear?"
"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

[kentonmm]

Bill,
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

[martiemh]

4000 TWA F/As to merge with 25000 AA F/As. A senior work crew at TWA over the 12 year payroll cap.
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.

[martiemh]

4000 TWA F/As to merge with 25000 AA F/As. A senior work crew at TWA over the 12 year payroll cap.
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.

[martiemh]

4000 TWA F/As to merge with 25000 AA F/As. A senior work crew at TWA over the 12 year payroll cap.
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

[ml1949]

It appears you did little or no research for this story. All American Airlines contract employees have taken concessions. Most are angry because while they are earning less and working more than they did prior to 9/11, management is not sharing the sacrifice. They have continued to reward themselves with large bonuses. The moral of the contract employees is very low.

Then 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.