Management’s 1113 proposal proposes to eliminate all international rates of pay for pilots and pay pilots domestic rates of pay for both domestic and international flights.
International pilots at American and every other carrier are tasked with a great responsibility. American’s international pilots fly aircraft costing as much as $200 million that carry upwards of 250 passengers to destinations all over the world on four separate continents. International pilots, unlike domestic pilots have to be trained and knowledgeable of their Company’s international policies and procedures, air traffic control procedures for each separate country they fly to, customs procedures for each destination, special mountainous training procedures and special route procedures that require international pilots to be capable of exercising emergency divert procedures into some of the most remote and environmentally unforgiving airports in the world. To accomplish this, international pilots must attend an additional day of training each year in addition to any training a domestic pilot undergoes.
As compensation for that extra responsibility, international pilots are currently paid an additional stipend known as international override of $6.00 an hour or about 3% of their hourly pay. Of the 10 biggest US passenger carriers, and two cargo carriers, FedEx and UPS, only two carriers do not currently pay an international override, Continental and United. Both of these carriers are currently in negotiations and as a result of their upcoming integration, the new United CEO Jeff Smisek has publicly stated that United is expected to conclude a new pilot agreement within the next twelve months. As part of this agreement, the pilots at the new United are expected to negotiate an international override pay rate like every other pilot group.
AMR management on the other hand wants to eliminate this provision and pay pilots only domestic rates of pay because apparently they do not believe pilots need to be compensated for the additional responsibilities and burdens placed on an international pilot. AMR management has also proposed that flight attendants be paid strictly domestic hourly pay rates. However, in a strange twist on fair and equitable they propose ADDING a new provision for flight attendants, “to pay an override for International segments on top of Domestic base pay rate,” a 6.5% override of $3.00 an hour in addition to their Domestic base pay rate. Their proposal for flight attendants offers a new provision that is similar to the international override that is currently paid to pilots, the pilot provision they want to eliminate.
Unlike almost every other US carrier’s management, AMR management apparently does not believe pilots at American Airlines deserve additional compensation for all the additional responsibilities required of an international pilot. Even worse, while AMR management is proposing that a very experienced Captain who is in command of a $200 million aircraft and 250 lives does not deserve a $6.00 per hour override for his added responsibilities, they are proposing adding a new provision for flight attendants who are tending to customers in the cabin of the aircraft that provides additional compensation of $3.00 an hour for their responsibilities.
Is this really a fair and equitable proposal?
For years, the public, the media, and analyst have witnessed the very divisive and often destructive relationship AMR management has had with its employees, particularly its pilots. These parties are left trying to figure out the cause of this destructive behavior that does nothing to improve American’s standing but just continues to drive American further behind its competitors.
On February 1st, AMR Chairman and and CEO, Tom Horton wrote a letter to AMR employees, in his letter he wrote the following:
“Another risk comes from within. Divisive and destructive rhetoric of the past has not served American or its people well, and indeed has only served to strengthen our competitors. Believe me, our competitors see an opportunity to take advantage of any internal uncertainty or instability. This is a moment when such discord can have profound consequences. It is time to turn the page and open a new chapter for American.
... Our industry is now defined by the changes our competitors made in restructuring to secure their futures, and the landscape is littered with those airlines that failed to change..."
American’s corporate communications continues to produce literature for its managers with catch phrases such as, fair and equitable, necessary and consensual in an effort to paint management as the reasonable party in the process. But the international pay override proposal is just one example that illustrates the complete disconnect between their catchy phrases and well-written correspondence and their internal actions.
The pilots at American Airlines cannot understand why management, especially those charged with fostering better employee relations at American Airlines, continue what appears to be a punitive and demeaning management doctrine directed at their employees, particularly one of the most important employee groups in the eyes of American’s passengers, the professionals to whom they entrust their lives on a daily basis.
If Mr. Horton is sincere about his well written statement above, if he is sincere about leaving past discord behind and turning the page to start a new chapter, if he is sincere about seeking just those changes AMR’s competitors made in restructuring and nothing more and if he is sincere about avoiding joining the littered landscape of bankrupt carriers that didn’t survive, he might want to start by not just having those words written for him by his managers, but by having the action of those words instituted for him by his managers.
If Mr. Horton is truly trying to turn the page to a new chapter, he needs to be aware his managers are not yet even reading from the same book.
