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View Full Version : AMR AA Pilot's $45.5 MIL Penalty!!


Kimberley
September 23, 2000, 04:58 AM
Unreal! I just can't believe it...
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=blk&bt=blk&s=AOcuWjRP_QU1SJ3Mg

Girt-bar_Gal
September 25, 2000, 07:09 PM
I guess I'm confused...what is so unreal about it? APA pilots deliberatly ignored a federal judge when ordered to cease a child-like sickout. There are consequences for our actions and this is the consequence for APA.

Don't misunderstand - I am extremely pro-union and pro-crewmember rights. But APA deliberatly mislead the public about what the sickout was for: time and time again they stated that they were fighting for higher pay for the Reno pilots....and that is b.s. All they wanted - and what they achieved - was to staple the 300 Reno Air pilots on the bottom of the seniority list without any discussion with the ALPA represented Reno pilots. APA thought they were above the law. They aren't. Now they did accomplish stapling the Reno pilots at the bottom of the list. But the consequences are a $45 mil fine AND a lawsuit filed by the Reno pilots for non-representation (which they very well may win).

I may be wrong (wouldn't be the first time, ha!), but I see APAs actions as doing flight crews in the US a great disservice. We already have a reputation for unreasonable union demands (not true), and when a union such as APA abuses the hard-won clout we have fought for it frankly ticks me off. Of course, this is all just my opinion and doesn't mean squat..... http://www.crewstart.com/ubb/images/icons/smile.gif

Kimberley
September 26, 2000, 12:37 AM
Girt-bar Gal,
Your points are well taken with regard to Reno Air; my shock was more a reaction at the amount of the judgement (which exceeds APA's estimated worth in assets by nearly $7 million dollars).
It's funny - coming from Colorado (not at all union country) it's hard for me to be pro-union in the traditional sense. But the top dogs in this industry can play "grab ankles, guess who" with some of the meanest S.O.B.'s on the planet--and win. So I find myself siding with labor more often than not. As for the under-handed play with Reno - I'm sure they would justify it as protecting their own security.
Whatever the case I feel the judgement probably speaks more to frustration level than it does actual damages. And where labor disputes are involved - that could be a pretty nasty precedent to set.

Just my humble opinion,
m.

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The meek shall inherit the earth, but not the mineral rights. - J. Paul Getty

RiverCity
September 26, 2000, 12:04 PM
From day one, and continuing to this moment, I have had bad feelings about the sickout -- regardless of the real or advertised reasons.

So many people lost so much money when they could not get to their cruise ships for a planned (and expensive) trip. You don't get refunds and the pilots were responsible for the grief that they caused.

This still angers me. They simply didn't care for the pax who, incidentally, pay their salaries. Here or hereafter, they will have to face the damage they did to the people they hurt.

RiverCity

Kimberley
September 26, 2000, 05:52 PM
Not being an APA insider, it would be helpful to hear from someone who made the dicision to "call-in" on this one.
Having said that, I tend to believe that most of them would need to feel that legitimate tactics had hopelessly stalled, to their detriment, before deciding to participate in a "sick-out". They know that this will have a negative impact on public favor. And, I just find myself wanting to give the benifit of the doubt, and assume that they felt compelled to risk it.
I agree with you that these labor disputes can, and do, inconveniece the flying public; but unfortunatley that is the ultimate leverage; that's the trump card.
If you sincerely believed that your management was not negotiating in good faith, I can understand your wanting to rachet up the pressure.
Like I said - I'm not a member of the APA and I couldn't speak honestly about what was going through their minds. They're paying through the nose for it though...they are most definitely doing that.

Just my humble opinion,
m.

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The meek shall inherit the earth, but not the mineral rights. - J. Paul Getty

Welcome_Aboard
September 26, 2000, 10:09 PM
<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by Girt-bar Gal:
But the consequences are a $45 mil fine AND a lawsuit filed by the Reno pilots.....<HR></BLOCKQUOTE>

There is also the class-action lawsuit by passengers that were affected by the AA pilot sick-out. If the APA loses that case, it will cost them $50 million. Plus, punitive damages could add 10s of millions more $$$ to the $50 million.

I believe that Girt-bar Gal is absolutely correct when she states, ” I see APAs actions as doing flight crews in the US a great disservice.” and ”..…when a union such as APA abuses the hard-won clout we have fought for…..”

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<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by mriya:
.....my shock was more a reaction at the amount of the judgement (which exceeds APA's estimated worth in assets by nearly $7 million dollars). <HR></BLOCKQUOTE>

Hello mriya,
I am an AA F/A, not a pilot, but I have had the opportunity to read most of the communication that the APA has had with the pilots during and after the sick-out...and information from other sources. (It’s all in who you know. http://www.crewstart.com/ubb/images/icons/smile.gif) Anyway.....

The reason that the judgment was so large is because the APA defied a federal judge’s orders to call off the sick-out and return to work. The evening that the judge gave this order, APA leadership issued a very weak communication to the pilots to return to work. The communication was more along the line of...Well, guys and gals, this judge has ordered us back to work, but, ya know, uh, he only mentioned the APA leadership in this order, and well, ya know, if you’re sick, well, you can’t work sick. Besides, we have to check with our attorneys and see if there are any loopholes. **wink, wink**

In fact, more pilots called in sick the day after the APA kinda/sorta ordered the pilots back to work (again...**wink, wink**). Not only that, but, several APA union officials also called in sick after the judge issued his order. Now, consider that you are a federal judge. You have issued an order. The defendants (figuratively) laugh in your face and (figuratively) say, “NO one is going to tell ME what to do!”. If the APA was that arrogant, and the judge slapped them with a $45 million judgment to...ahem...get their attention, then the APA should realize they have to live with the consequences of their own actions. They shouldn’t stamp their feet and declare, “It’s not fair!!”.

The APA still had legal tactics they could have pursued. The APA leadership chose to have a sick-out instead. Many, many AA pilots disagreed with the sick-out and did not call in sick. Some that initially agreed with the sick-out (before the $45 million judgment) have now turned on the APA leadership like pit bulls. Then, there are the pilots that still defend and justify the sick-out.

I have overheard pilots discussing the sick-out in military terms...war, battles, civilian casualties (passengers), etc.

<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by mriya:
I agree with you that these labor disputes can, and do, inconveniece the flying public; but unfortunatley that is the ultimate leverage; that's the trump card.<HR></BLOCKQUOTE>

In some cases it’s not just a matter of inconveniencing the flying public.

The sick-out also disrupted ‘urgent’ travel...passengers trying to see family/friends that were critically ill, funerals that were missed, organs to be transplanted that perhaps didn’t reach their destination (Organs only have so many hours before they become useless. I wondered about the scheduled recipients of the organs. Did another airline take them in a timely manner? Were the organs perhaps unusable by the time another flight/airline was available?). The list could go on and on. A lot of travel is on a ‘time is of the essence’ basis.

If this had been a planned strike, the flying public would have had at least 30 days (cooling off period) to make other arrangements. But there is no way to protect yourself against an illegal sick-out. Passengers were blind-sided.

As a union member, I want responsible leadership. I want them to make rational decisions that won’t take away our credibility, make us look foolish, and possibly have huge fines levied against us.

Well...I think that’s all I have to say. Did that help?.....Or did it just confuse you? http://www.crewstart.com/ubb/images/icons/smile.gif


[This message has been edited by Welcome Aboard (edited September 26, 2000).]

Kimberley
September 27, 2000, 06:46 AM
Hi Welcome Aboard,
http://smilecwm.tripod.com/net2/burnout.gif
Yes, actually it does help a bit...

Just to clarify then, I read your post to understand that you feel your (AA) management was negotiating with their pilots in good faith, is that correct?

This next question is not at all meant to be a wise-a** comment - I'm genuinely interested in your thoughts on this:

*** As I said earlier - I'm not pro union, I'm pro fair labor practices, but not pro union; I like the ideology one helluva lot more than I like it's practice.***

But am I the only one here who finds a judgement well in excess of a labor organization's net worth objectionable?
I'm not advocating carte blanche to throw a monkey wrench into worlwide travel, obviously. But I'm concerned for those who have their backs against the wall in the future, maybe fighting a more readily acceptable fight, fearing that if they push too hard (even though they've exhausted legitimate bargaining tactics, to get management's attention) they face being financially broken up in court.
Does this seem like a realistic bit of cynicism to you?

m.



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The meek shall inherit the earth, but not the mineral rights. - J. Paul Getty

traveler
September 27, 2000, 03:31 PM
If anybody out there has legal knowledge, could a union organization claim bankruptcy and than forfeit the payment ? And naturally soon afterwards create the American Cockpit-crew Association. Just wondering.

Welcome_Aboard
September 28, 2000, 08:15 PM
<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by Mriya:
……you feel your (AA) management was negotiating with their pilots in good faith, is that correct? <HR></BLOCKQUOTE>

AA management has been accused of many things…”negotiating in good faith” is not one of them. http://www.crewstart.com/ubb/images/icons/wink.gif
I believe that AA was negotiating for their own best interest, just as the APA or any union group at AA or other airlines do.

<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by Mriya:
……am I the only one here who finds a judgement well in excess of a labor organization's net worth objectionable? <HR></BLOCKQUOTE>
The reason for the $45 million judgment was because the APA conducted an illegal sick-out and blatantly disobeyed a federal judge’s order to return to work. $45 million may seem to be an unusually large amount, but the judge had the power to choose whatever figure he wanted. The article you linked to in your first message on this thread states that the sick-out cost AA $250 million. If you look at that figure, maybe the APA got off easy?

If the APA leadership had issued a strongly worded “return to work” communication to the pilots, and the pilots had obeyed that order (remember: the sick list grew larger the day after the judge’s order), perhaps the fine would not have been that large. Instead of exhausting all legal means available to them, the APA leadership chose an illegal job action, and it backfired on them. $45 million may seem to be an excessive amount, but the APA leadership and the pilots chose to p*ss off the one person who had the authority to set the amount of the fine.

There will be people that see the $45 million fine as being excessive. There will be others that see the fine as perhaps not being large enough. Don’t forget that there is still the $50 million (plus punitive damages) passenger class action lawsuit hanging over their head…passengers trying to recoup some of their losses, the ones that were caught in the crossfire of APA’s dispute with AA.

I am a big believer in taking responsibility for your own actions. Can you tell? http://www.crewstart.com/ubb/images/icons/smile.gif

<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by Mriya:
But I'm concerned for those who have their backs against the wall in the future, maybe fighting a more readily acceptable fight, fearing that if they push too hard (even though they've exhausted legitimate bargaining tactics, to get management's attention) they face being financially broken up in court.<HR></BLOCKQUOTE>

I agree with you. What if APA’s job action and subsequent fine has set a precedent?…scary thought.

I am a union member. Hopefully my union wouldn’t intentionally ask its membership to perform an illegal job action, no matter how frustrated they become with negotiations.

Now, I’ll ask a few questions. Should the APA be held responsible for compensating the passengers (for their monetary loss) that were caught up in this little drama?...…Considering that it was a deliberate act on the part of the APA that caused those losses? And what about punitive damages? Should a judge or jury send a message that this type of action won’t be tolerated?

The plot thickens. http://www.crewstart.com/ubb/images/icons/smile.gif

Welcome_Aboard
September 28, 2000, 08:21 PM
<BLOCKQUOTE><font size="1" face="Arial, Verdana ">quote:<HR>Originally posted by traveler:
If anybody out there has legal knowledge, could a union organization claim bankruptcy and than forfeit the payment ? And naturally soon afterwards create the American Cockpit-crew Association. Just wondering. <HR></BLOCKQUOTE>
I would be curious to know the answer to that question too. I wonder…because this is a decision by a federal judge…if it could/would be negated by declaring bankruptcy, or if the fine would have to be paid regardless.