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.

[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.

[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

[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.

[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

[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

[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

[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

[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.

[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.