Cites Membership Mandate, Dramatic Increase In Management
They're not backing down. The Allied
Pilots Association (APA), representing 12,000 pilots of American
Airlines, presented a pay proposal Tuesday to the carrier’s
management, designed to restore the pilots' lost purchasing
Current American Airlines pilot pay rates are slightly lower
than what they were in 1992, according to the union, as inflation
eroded the pilots’ purchasing power by more than 33 percent
since that time. APA says its proposal calls for adjusting current
pay rates to account for post-1992 annual inflation, as reflected
by the Consumer Price Index.
American Airlines management rejected an earlier pay proposal
APA’s previous leadership made in May. Shortly thereafter,
the membership elected its current national officers by the widest
margin and with the largest voter turnout in APA history.
Upon taking office, the newly elected leadership commissioned a
survey of the membership regarding the ongoing contract
negotiations with American Airlines management.As ANN reported, those
leaders also took the fight for a new contract straight to AMR
Corp. CEO Gerard Arpey's mailbox, with a blistering letter
comparing Arpey -- unfavorably -- to former, and much despised, CEO
"Our pilots were unequivocal in our recently concluded
membership survey—it’s time to restore their purchasing
power," said APA President Captain Lloyd Hill on Tuesday.
"Moreover, that erosion accelerated dramatically for our pilots and
their families with the deep concessions we made beginning in
Hill pointed out the majority of American Airlines’ pilots
have been with the airline since the early 1990s, which means that
pilots have endured an ongoing decline in their standard of living
for much of their careers with the carrier.
"In sharp contrast to what our pilots have endured, American
Airlines management has given itself what amounts to an exponential
increase in compensation over the same period. What we are seeking
for our pilots doesn’t even begin to approach
management’s gains," Hill said.
APA states American Airlines’ five "Named Executive
Officers" -- as identified in documents filed with the Securities
and Exchange Commission -- have experienced an increase of 469
percent in their total compensation since 1992.
For the CEO, the increase has been even more dramatic. In 1992,
Crandall's total compensation was $1,013,471. Current CEO Gerard
Arpey’s total compensation for 2007 will be $8,344,971 -- an
increase of 723 percent, representing a 560 percent increase in
purchasing power when adjusted for inflation, accoridng to the
"It is well past time to restore our pilots’ purchasing
power," Hill said. "After all, management compensation has done
much more than simply keep pace with inflation. By any measure, the
past 15 years have been extremely lucrative for our airline’s