Will American Airlines Be the Next AIG?

High executive salaries and outrageous bonus checks are all over the news right now. The wage gap in the United States between the average worker and the average CEO is 344 to 1, a ten-fold increase since the 1980s. And people are taking notice and speaking out.

“It’s just not right when the average CEO makes $10,000 more every day,” Vice President Joe Biden pointed out at a recent AFL-CIO Executive Council meeting. “$10,000 more every day than what the average worker makes every year.”

No, Vice President Biden, it’s just not right. From the outpouring of anger at AIG to the disgust at Merrill Lynch, it’s a wonder that any company is even considering giving bonuses to their highly paid executives this year. But sure enough, American Airlines is the latest company to ponder big checks for execs.

It’s worth backing up a moment to understand just how wrong this is. In 2003, American Airlines parent company AMR’s CEO, Gerard Arpey, asked workers to sacrifice for the company, telling them, “we would share the pain and share in the gain.” Workers responded; ground crews created new efficiencies and streamlined the process so much that foreign airlines are now flying their planes to the U.S. for repairs at American’s facilities.

But as the Wall Street Journal reports, “Rank-and-file staff believe they have not been properly rewarded for keeping the airline out of bankruptcy. [Union President James] Little estimated that employee concessions had saved AMR $6 billion, and said union members have not shared in those gains.” That directly contrasts to Arpey’s 2003 statement.

Indeed, Arpey and AMR executives have instead taken $300 million home in bonuses while laying off thousands and reducing wages for non-management employees. And American Airlines pays their CEO more to run a company that is less profitable than other big players. For example, Apple’s Steve Jobs, Google’s Eric Schmidt and Southwest Airlines’ Gary Kelly – all depicted above – make less than Aprey for more successful companies.

Will American executives get outrageous bonuses again this year? Hopefully not – and the Transport Workers Union is collecting signatures on a petition to give to the AMR Board of Directors, urging them to stop giving excessive bonus checks to their execs. Join the effort today – your anger about outrageous bonuses could make the difference in AMR’s decision!

Read more: politics

Disclaimer: The views expressed above are solely those of the author and may not reflect those of
Care2, Inc., its employees or advertisers.

Lynn J.

9:31AM PDT on Apr 16, 2009

How about a boycott until they treat their workers a little better?? There are options out there, and America is only one of them. Just make sure to tell them why you are flying on another airline...

send a green star

Delores D.

1:15PM PDT on Apr 4, 2009

Here we go again-The rich get richer and the poor get kicked in the a_ _. The blue collars made America what it is and the greedy CEO try to take all the credit and they spend more on a dinner than some people live on all week or maybe even a month.They should foot the biggest % of taxes geared to their income and give the average Joe a chance to live the good life.No more bonuses for CEO"s they don't need them.It's all about Greed.

Rosanne C.

12:56PM PDT on Apr 3, 2009

I'm praying that President Obama and the Congress do not bail out AA. I say to let American Airlines die or go bankrupt -- there are enough airplanes in our air space as it is!!! If AA cannot manage its own company properly they deserve to fail like any small or large business would if they don't balance their books.

Roxanne M.

10:53AM PDT on Apr 3, 2009

NO!!!!! ceo`s bonuses!

Terry G.

10:43AM PDT on Apr 3, 2009

Didn't Continental airlines get taken over by their employees, years ago, and didn't they succeed in keeping it running? ? ?
At any rate until such Greed is no longer taught in the Universities and colleges, this kind of un-real, un-balanced "gemme, gemme attitude will continue to exist.
Meanwhile crime on the street, hate killings because the poor and un educated are out there getting revenge . . . their way. Doesn't bode well for the ordinary, honest, working man/woman. I feel sorry for the kids coming up having been raised to think everyone owes them something and now find they have to work for their living. Really put out.

William D.

6:40AM PDT on Apr 3, 2009

The big boys are lined up on the runway playing the same game as GM & GE. The problem is there should be take off due to foul weather that has blown in from Wall Street. No to all these clowns!

Shevlin R.

6:03AM PDT on Apr 3, 2009

This is absolutely ridiculous. The top execs get the company in trouble, the workers pull it out, and the execs get rewarded. Fire them all and let the blue-collars run the place. (we could say the same about Congress, too)

Allan C.

5:25AM PDT on Apr 3, 2009

I think it is Wrong for the hightely paid CEO's to be getting big Bonuses for what they do,It is wrong when they lay off people from there jobs and get the Big Money.I feel that way about All of the Big Banks and the rest of the Companies, They should have to give it Back To The Tax Payers and one's that were layed off.Give the money to help get the unemployed back to work.Plus;I am All for makeing all of the Big Money Makers Pay More Taxes than the normal people that work Small Pay and have a hard time Getting be on what they make.The USA is Going Down Hill Day by Day,And it don't look like it is going to get any Better,Thank's to the Big Bail Out and the Big Money Makers the little guy is getting a Raw Deal.Thank You,Allan Chamberlain.