NEl STATE
THE BATTALliHE BATTALION
7A
Wednesday, April 23, 2003
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By David Koenig
THE ASSOCIATED PRESS
FORT WORTH, Texas —
kmerican Airlines chairman
nd chief executive Donald J.
’arty says he thought employ
es would admire his plan to
etain key executives, but the
uror over management perks
s left American close to fding
'or bankruptcy.
On Monday, the second of
American’s three main unions
aid it would hold a new election
>n the company’s plan for cutting
abor costs by $1.8 billion a year.
The Transport Workers
Jnion joined the Association of
tofessional Flight Attendants
n calling for another vote,
ncreasing the possibility that
he deal will be rejected. The
bird big union, representing
American’s pilots, said its board
would meet in emergency ses-
iion Tuesday.
All three unions voted last
week to approve the concessions
iut were outraged to learn of
xecutive perks while their own
embers were approving big
ay and benefit cuts. American
has vowed to file for bankruptcy
protection if any of the unions
reject the cuts.
Before the transport work
ers’ announcement, investors
showed their concern by bidding
down shares of American
Airlines’ parent, AMR Corp.
u
All of our employees
... did what was
necessary to help avoid
bankruptcy, and then
I stumbled.
99
— Donald J. Carty
American Airlines chairman
Last year, the AMR board
approved bonuses for seven
executives if they stayed at the
company through January 2005
and $41 million in payments to
a pension trust for 45 execu
tives that would be protected in
bankruptcy, just like other
employees’ pensions.
The company has dropped the
bonuses, not the pension funding.
Carty defended the payments
as necessary to keep senior
executives and said he thought
the retention plan would win
praise as more modest than
plans at other airlines.
The benefits were approved
last year but only publicly dis
closed last week, on the same
day that employees were sched
uled to finish voting on the con
cession deals.
Carty said the late disclosure
in a mandatory securities filing
was a mistake. He said he didn't
release details sooner because he
feared the public would think
there was a mass exodus of sen
ior officials from the company.
Then there was another delay this
month while the company’s out
side auditors reviewed tax treat
ment of the provisions, he said.
“All of our employees, union
and nonunion alike, did what
was necessary to help avoid
bankruptcy, and then I stum
bled,” Carty said.
Union leaders said it was
unclear whether Carty’s apology
would prevent unions from
reversing their earlier approval
to head off bankruptcy.
Lockheed machinists get benefits
FORT WORTH, Texas (AP) — The union strik
ing for better wages and relief from high medical
insurance and prescription drug costs at Lockheed
Martin Aeronautics Co. says new machinists at the
it which manufactures fighter jets will qualify
for strike benefits.
About 450 employees at Lockheed Martin
Corp.’s North Texas aircraft manufacturing plant
were approved for benefits of the International
Association of Machinists even though they
haven’t yet worked the three months required by
association bylaws to become eligible for such pay,
the union’s president said Monday.
Pat Lane, president of IAM Local 776, told the
Fort Worth Star-Telegram that “this will help the
solidarity of the union. There were quite a few new
hires who could have fallen between the cracks but
the union will take care of them.”
The strike began April 14 after about 4,000
JAM members voted against a proposed contract
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with wage increases that some union members said
would be sharply cut by higher health care costs.
One provision was greater co-payments on pre
scription drugs by workers.
Union leaders and managers reported no nego
tiations or contacts on Monday. A federal mediator
has been in contact with the opposite sides, but no
sessions have been scheduled.
Striking employees at Lockheed Martin will
miss their first paycheck Friday. Workers under
union rules can receive the $125 weekly strike pay
after a walkout has lasted three weeks, IAM
President Tom Buffenbarger wrote union members.
Bethesda, Md.-based Lockheed Martin’s Fort
Worth plant, the second largest employer in the
Dallas-Fort Worth area, will build the Polish gov
ernment 48 F-16 jet fighters for $3.5 billion, the
biggest defense contract by a former Soviet bloc
country since the end of the Cold War, it was
announced on Friday.
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