Past TWU Concessions Concern AA Employees

American Airlines remains the only major U.S. air carrier never to have filed for bankruptcy.

In the view of American executives and the leadership of the 18,661-member Transport Workers Union, which represents its unionized mechanics, the airline also is pioneering a new model in labor-management relations.

It has been three years since the TWU agreed to wage and benefit concessions of $620 million a year over five years to avert a bankruptcy filing by American. Mechanics and American management are working together to cut costs and streamline operations.

At a time when its major competitors are in bankruptcy or outsourcing aircraft maintenance, American is soliciting third-party aircraft overhaul work. The company is seeking to turn its maintenance bases in Tulsa, Kansas City, Mo., and Fort Worth into profit centers.

Fuel prices remain high. The company has posted only two profitable quarters in the last three years.

American executives and TWU leaders, however, believe the airline's financial health is improving, and they are optimistic about the future.

But based on interviews and e-mail communications with several union members, the TWU remains deeply divided over the 2003 concessions and whether their union has been co-opted by management.

Dennis Burchette, president of TWU Local 514 in Tulsa, said he senses an improved outlook in many mechanics. Local 514 represents more than 6,000 mechanics at American's Maintenance & Engineering Center at Tulsa International Airport.

"There is definitely a change in mood -- not just in our membership but in all American employees who are starting to see some hope," Burchette said. "In 2003 and 2004 we didn't know if we were going to make it. Delta (Air Lines) was a hell of an airline -- look what happened to them. Northwest Airlines was a hell of an airline -- look what happened to them.

"Now people have hope. We have an obvious direction here in Tulsa. The company has posted a couple of profitable quarters. We have some money in the bank. You see people working together now. We're starting to work together as a team."

Some TWU members, among them line station mechanics in Dallas, San Diego, New York and other high-cost cities, say their union fails to represent their interests and has become too close with management.

Burchette said his critics aren't realistic.

"The proof is in the pudding: They still have jobs to go to every day," Burchette said. "They have a paycheck coming in. The company is still here. There are a lot of people in our industry who don't have jobs as a result of the traditional head-banging with management.

"We want the company to do well, and when the company does well, we'll do well also. It's that simple. We're doing all we can to make this company healthy. The $620 million a year the TWU gave up made the difference between bankruptcy and not being in bankruptcy."

The $620 million a year in wage and benefit concessions agreed to by the TWU was part of $1.8 billion a year in concessions agreed to by American's unionized mechanics, pilots and flight attendants. The Airline Pilots Association agreed to cuts of $660 million a year; the Association of Professional Flight Attendants gave up $340 million a year in pay and benefits.

The concessions are equivalent to a 25 percent pay and benefit cut per mechanic, officials said.

Did the TWU give up too much?

"The obvious answer, for a traditional labor leader, is to say, 'Yes,' " Burchette said. "Have we made sacrifices to save the company? There is no doubt. But I wasn't there (as president of Local 514) when those concession agreements were made in 2003, and I'm not going to armchair quarterback them. They had to do what they had to do.

"It was the most prudent thing to do. We're still here. The Northwest, United and Delta mechanics' ranks have been devastated. Quite frankly, our people had a voice in what happened, and the majority chose this route."