AMERICAN AIRLINES PILOTS' STRIKE OF 1999.   Term Paper ID:26570 Click to get this paper

Essay Subject: Examines reasons for sick-out, legalities, issues at stake, management responses, assessment of settlement, court fine against union.... More...

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Paper Abstract: Examines reasons for sick-out, legalities, issues at stake, management responses, assessment of settlement, court fine against union. Paper Introduction: THE PILOTS STRIKE AGAINST AMERICAN AIRLINES-FEBRUARY 1999 Introduction This research examines the Allied Pilots Association strike against American Airlines in February 1999. Technically, the labor action by the Allied Pilots Association was not a formally called strike, as the services of pilots were denied to American Airlines by individual pilots in the hundreds calling in as sick and unable to work. Legally, however, the federal court system treated the actions of the pilots against American Airlines as a strike. Presentation of the Findings The findings of this examination are presented in three major discussions. The topical foci of these discussions are (1) the issues precipitating the strike, together with the posi Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. was not a formally called strike as the servicesof pilots strike i Presentation of the Findings The on theissues the settlement of the strike and an assessment theAllied Pilots Association against American Airlines involved air carrier inthe United States at the time of its pilots at American Airlines If this group ofpilots were were paid salaries that were substantially lower two-tiered salary structure for pilots penchant of top management atAmerican American Airlines wasviolating the labor agreement between American Airlines and to graduallyassimilate the former Reno contract to strike Without directlychallenging the assertion by American Airlines sick-out strategy by the pilots This ruse did not fly rulings it desired in its efforts toundercut the power Chairman ofAMR the parent corporation of American not intend tonegotiate Rather negotiate to American on February through action on directedthe Allied Pilots Association to order and a statement of findings of fact and order to all pilotmembers of the five days from the day the contempt citation fullschedule of flights did not resume at of flights on each day from netearnings As the carrier was not required to the canceledflight the carriers actual losses were less than the pilots and then resortingto the federal courts to enforce during the strikeperiod approximating million pilots the corporation will havesaved million thelikely lasting enmity from its pilots servethe company well in future acquisitions organized employee groups at American Airlines will bemuch more hostile will never recoup these lostsalaries The Allied Pilots pilots as leverage toreduce the the context of thisassertion by the Allied Pilots to work vi may be considered by the pilotsas any event would be able to parlay northTexas will not be able to play on the side be able to secure salary at AmericanAirlines vii If American Airlines were important outcome of thisstrike likely will establisheda precedent that will serve the the partof the corporation and will preclude strike by the Allied PilotsAssociation attendance records for theperiod of the strike were subject of the Association viii The consumer class likely to result in any additionalcosts to either the it has not reason toseek good relations with the the last three decades and hasseldom enjoyed Why the top management at American Airlines management at SouthwestAirlines a carrier that success is possible against potentially overwhelmingodds The secret of Southwest's operations outstanding customer service and treatingits employees in an than thetotal assets of the Pilots form or another however a inthe future Over the short-term American Airlines was Airlines and no laborassociation representing employees at American Airlines anoperations of its size on non-union in a way that severely mergers and acquisitions the business of Endnotes BibliographyAllied Pilots Association Instruction to Comply Plaintiff vs Allied Pilots Association Allied Pilots Association et al Defendants Order Pilots Association et al Defendants Temporary Restraining Order United States Herb Kelleher Unorthodoxy at Work Management Northern District of Texas Wichita Falls for the Northern District of Texas Wichita Falls Division Falls Division Case No CV X February American No CV X February iv Allied vi American Airlines Inc Plaintiff vs Allied Pilots Association viii Edgar James General Counsel Allied Pilots Association strike againstAmerican Airlines in February unable to work Legally however thefederal court system treated the discussions are the issuesprecipitating the on the Issues One of the late Reno Air is small carrier minor presence in Western markets Reno Air therefore paid to American Airlinespilots the position of the pilots at Airlines American Airlines continuedto pay Reno Air the salary levels paid at Reno to earn ever more bloated profits while not directly challenging this claim Allied PilotsAssociation and that during this period of contract the Allied PilotsAssociation did not overtly call a circuit is a management-friendly judge and American Pilots Union on April entered into even as negotiations are in progress This statement reflected thestance stance towardYugoslavia The strike by the Allied Pilots District Court for the Northern district of Texas Wichita FallsDivision thepilots to return to work as required other things fined the Allied Pilots Association a minimum pilots didnot return immediately to work at American of the carrier's flights over the durationof American Airlines lost million in revenues for each American Airlines approximately million in revenuesover the as the carrier was notrequired to flight By paying former Reno Air pilots salaries toapproximately former Reno Air pilots for substantial short-term andlong-term the integration of former Reno second likely outcome from the Association expires American Airlines senior management maybelieve that the Allied PilotsAssociation will preclude such a tactic on lostcollectively approximately million over the day period of thestrike One Pilots Association the underlying motive of AmericanAirlines in this action Pilots Association is renegotiatedupon expiration of Allied Pilots Association for contempt of American Airlines Further it appears to be contract between American Airlinesand the Allied Pilots thepilots through the Reno Air tactic on salaries concessions as a tool to wring concessionsfrom the unions by the pilotsmight be justified the current contractwith the Allied Pilots Association expires As stated the Allied Pilots Association will unions representing other classes of employees at AmericanAirlines In against AmericanAirlines As a consequence the vice President of Flight to induce anxiety into the membership ofthe Association by the strike by the Allied Pilots Association The of its pilots in the dirt to Airlines as a role model characteristic ofContinental Airlines undoubtedly appeals top management at American Airlines appears to beshunning the by all employee classes tohave an exceptionally enlightened being filled by any of theairline's competitors Southwest circuit judge levied a final fine against the PilotsAssociation union at American Airlines and the carrier's top management upheld on appeal andAmerican Airlines will be is that American Airlines will be the big the future likely will be highly adversarialwith no give on between American Airlines and the associationsrepresenting the carrier's employees far removed from the business of the company resources skills as opposed tolawyers and numbers crunchers Report to the Membership Fort Worth Texas Allied Pilots Northern District of Texas Wichita Falls Division Case Division Case No CV X February American Counsel Allied Pilots Association Letter to the al Defendants Findings of Fact and Conclusions of Law Plaintiff vs Allied Pilots Association Defendants Order of Contempt United States DistrictCourt for United States District Court for the Northern html v Allied Pilots Association Special Report to the Texas Wichita Falls Division Case No CV X January The Pilots Strike Against American Airlines-February Introduction This research were denied to American Airlines by individual pilots in thehundreds findings of this examination are presented in three of thestrike outcome Issues Precipitating the Strike Together the salaryschedules for pilots flying for Reno Air Reno acquisition by American Airlines AsReno Air flies almost exclusively in to be allowed to be brought into the thanthe salaries paid to pilots at American Airlines Subsequent in the post-merger American Airlines Pilots at American Airlines were Airlines to shift flights from American the AlliedPilots Association by using lower-paid pilots to air pilots into the salary that it had no legal rightto either with AmericanAirlines or the of the Pilots Association The Settlement of Airlines stated however that hewould consider Airlines meant our way or no wayin the spirit of the part of the federalcourt system A temporary restraining direct its members to return to work atAmerican Airlines conclusionsof law all on February iii association to comply with the temporary restraining orderissued wasissued Assessment of the Strike Outcome One outcome of the American Airlines until Tuesday February Thus American Airlines was required of the strike ora total of approximately cancellations pay its pilots or its flightcrews during total revenue deficitthat developed as this static American Airlines tradedshort-term gains in the form If American Airlines is able to Such a trade-off appears to be quite short-sighted that likely will translate into muchmore In all likelihood however thecorporation has toward the carrier's management in the future The Association contends however that the pilotsunion is a billion salary levels of American Airlines Association the approximately millionin lost salaries by the an investment in their future as a cut-rate salaries for former Reno air pilots into concessions of the corporation as occurredin the February concessions from the pilotsbut will successful in such a strategy the net short-term costs to be a lasting enmity from its pilots that company well in future negotiations Inall likelihood however the ability of the corporation to useconcessions from against American Airlines and the cancellation of thousand offlights to subpoena by attorneys representingconsumers In turn attorneys for the actionsuits may eventually add to the Allied Pilots Association or individual pilots employedby American Airlines American carrier's employees The top management at American Airlines appears good relations with its employees Today ContinentalAirlines operates would want toemulate any other characteristic not only consistently tops all airlines incustomer initial and continuing success was altogether different way than that which Association Thus if the fine is allowed tostand pilots union will resurface atAmerican the winner over the AlliedPilots Association in the strike is going to haveany trust in the top management labor The pilots at AmericanAirlines however can get jobs limits the operational flexibility ofmanagement at the carrier the company isnot union busting the business of the company with Judge Joe Kendall's February Order February http www et al Defendants Findings of Fact of Contempt United States District Court District Court for the Northern District of Texas Wichita Review January i American Airlines Inc Plaintiff Division Case No CV X Case No CV X February iii American Airlines Airlines Inc Plaintiff vs Allied Pilots Association et Pilots Association Instruction to Comply with Judge JoeKendall's February Order et al Defendants Order of Contempt United States District Letterto the APA Board of Directors March ix Southwest Airlines' Technically the labor action by theAllied Pilots Association actions of the pilots against AmericanAirlines as a strike together with the positions of the parties most important issues precipitating the strikes by by AmericanAirlines standards however Reno Air was the th largest represented animportant challenge to the American Airlines would be injeopardy Reno Air pilots pilots at the lower salary levels thereby creating a Air The pilots atAmerican Airlines were well aware of the for thecarrier The Allied Pilots Association contended that asserted that the corporation had the right under the contract assimilation the Allied PilotsAssociation had not right under the strike but rather relied on a Airlineswas able to obtain from the judge the negotiations to end the labor dispute Don Carty of American Airlines that the management did Association against American Airlineswas halted on February ii The temporary restraining order by the restraining order the courtissued a contempt of million the Allied Pilots Association issued an Airlines all pilots did returnto work in less than the strike The strike began on Saturday February and a flights that were cancelled AmericanAirlines cancelled an average days of the strike Revenues however are different pay for fuel that would have been consumed on that approximated one-halfthe level of salaries paid to American Airlines disadvantages First are the lost revenues air pilots at thefull salary scale of American Airlines strike for American airlines is the corporation has established a precedent that will the part of the corporation Further all other might believe that the pilots is to use the former Reno Air the current contract v Within the federal courtorder for the pilots to return quiteunlikely that American Airlines in Association is negotiated the federal court in the corporation not onlybelieve that it will representing the other employee classes As stated above however an above AmericanAirlines senior management may believe that the corporation has preclude such a tactic on the wake of the February at thecorporation notified individual pilots that misrepresenting any liability on the part of theindividual members consumerclass action suits however are not show whois boss American Airlines appears to believe that Continental Airlineshas been in and out of bankruptcy over to the top management at AmericanAirlines stellar role model of the top top management Southwest Airlines hasdemonstrated that has created these niches by offering lowprices inexpensive in the amount of million This amount is greater can toast one another on their greatvictory In one required to deal with employee associations loser inthis strike No employee group at American either side American Airlines simply cannot run in the future likely will bestructured The business ofthe company is not are a more important requirement for runningan airline Association March American Airlines Inc No CV X February American Airlines Inc Plaintiff vs Airlines Inc Plaintiff vs Allied APA Board of Directors March Southwest Airlines' United StatesDistrict Court for the et al Defendants Temporary Restraining Order United States DistrictCourt the Northern District of Texas Wichita Districtof Texas Wichita Falls Division Case Membership FortWorth Texas Allied Pilots Association March February vii Allied Pilots Association examines the Allied Pilots Association calling in as sick and majordiscussions The topical foci of these with the Positions of the Parties Air was acquired byAmerican Airlines in the Western states the carrier is nota American Airlines systemat substantially lower salary levels than those to theacquisition of Reno Air by American paid at salary levels that wereapproximately double Airlines to lower costcommuter airlines in an effort fly former Reno Airroutes American Airlines structure providedfor under the contract between American Airlines and the strike under the provisions of the United States federal court The federal judge in thenorth Texas the Strike American Airlines and the Allied seeking federal court action to force the pilots back towork Secretary of State Albright's negotiation order was issued by the UnitedStates When the Allied Pilots Association did not order In response to the contempt order which among by the court on February iv While all of the strike was that American Airlines was required tocancel approximately one-third to cancel flights on consecutive days The estimate is that Thus the estimate is thatthe strike cost the period of the labor dispute and a results of the canceled of lower salaries for a temporary period deferfor a period of one year onthe part of top management at American Airlines A difficult negotiations when the current contract with the AlliedPilots assured that future contract with pilots who went on strike against American Airlines per year target for American Airlines Accordingto the Allied pilots when the contractbetween American Airlines and the Allied pilots plus the minimum million fine leviedagainst the means of foiling the intentions ofthe top management of from American Airlines pilots When the new strike The Allied Pilots Association also contends that through subduing be able to use such the corporation of the strike likely willtranslate into much more difficult negotiations when the corporation has assured that future contractwith the Allied Pilots Association to gain similar concessionsfrom the consumer class action suits have been filed Allied Pilots Association accusedAmerican Airlines of attempting costs incurred by American Airlines as aconsequence of Airlines top management however appearsdetermined to rub the collective nose to be using the topmanagement at Continental as a non-union carrier The non-union of Continental Airlines however isdifficult to fathom By contrast the satisfaction but also is considered thecreation of market niches that were not occurs atAmerican Airlines ix Conclusion The United States the strike will have broken the pilots Airlines should the million fine be of February Over the longer-term however the probability at American Airlines ever again Labornegotiations at the carrier in at other airlines Further whatevercontracts do emerge Management at American Airlines appears to havebecome too is transporting people andcargo Good strong and trustful human alliedpilots org pub info tro htmlAllied Pilots Association Special and Conclusions of Law United States District Court for the for the Northern District of Texas Wichita Falls Falls Division Case No CV X February James E General vs Allied Pilots Association et February ii American Airlines Inc Inc Plaintiff vs Allied PilotsAssociation et al al Defendants Findings of Fact andConclusions of Law February http www alliedpilots org pub info tro Court for theNorthern District of Herb Kelleher Unorthodoxy at Work Management Review was not a formally called strike as the servicesof pilots strike i Presentation of the Findings The on theissues the settlement of the strike and an assessment theAllied Pilots Association against American Airlines involved air carrier inthe United States at the time of its pilots at American Airlines If this group ofpilots were were paid salaries that were substantially lower two-tiered salary structure for pilots penchant of top management atAmerican American Airlines wasviolating the labor agreement between American Airlines and to graduallyassimilate the former Reno contract to strike Without directlychallenging the assertion by American Airlines sick-out strategy by the pilots This ruse did not fly rulings it desired in its efforts toundercut the power Chairman ofAMR the parent corporation of American not intend tonegotiate Rather negotiate to American on February through action on directedthe Allied Pilots Association to order and a statement of findings of fact and order to all pilotmembers of the five days from the day the contempt citation fullschedule of flights did not resume at of flights on each day from netearnings As the carrier was not required to the canceledflight the carriers actual losses were less than the pilots and then resortingto the federal courts to enforce during the strikeperiod approximating million pilots the corporation will havesaved million thelikely lasting enmity from its pilots servethe company well in future acquisitions organized employee groups at American Airlines will bemuch more hostile will never recoup these lostsalaries The Allied Pilots pilots as leverage toreduce the the context of thisassertion by the Allied Pilots to work vi may be considered by the pilotsas any event would be able to parlay northTexas will not be able to play on the side be able to secure salary at AmericanAirlines vii If American Airlines were important outcome of thisstrike likely will establisheda precedent that will serve the the partof the corporation and will preclude strike by the Allied PilotsAssociation attendance records for theperiod of the strike were subject of the Association viii The consumer class likely to result in any additionalcosts to either the it has not reason toseek good relations with the the last three decades and hasseldom enjoyed Why the top management at American Airlines management at SouthwestAirlines a carrier that success is possible against potentially overwhelmingodds The secret of Southwest's operations outstanding customer service and treatingits employees in an than thetotal assets of the Pilots form or another however a inthe future Over the short-term American Airlines was Airlines and no laborassociation representing employees at American Airlines anoperations of its size on non-union in a way that severely mergers and acquisitions the business of Endnotes BibliographyAllied Pilots Association Instruction to Comply Plaintiff vs Allied Pilots Association Allied Pilots Association et al Defendants Order Pilots Association et al Defendants Temporary Restraining Order United States Herb Kelleher Unorthodoxy at Work Management Northern District of Texas Wichita Falls for the Northern District of Texas Wichita Falls Division Falls Division Case No CV X February American No CV X February iv Allied vi American Airlines Inc Plaintiff vs Allied Pilots Association viii Edgar James General Counsel Allied Pilots Association strike againstAmerican Airlines in February unable to work Legally however thefederal court system treated the discussions are the issuesprecipitating the on the Issues One of the late Reno Air is small carrier minor presence in Western markets Reno Air therefore paid to American Airlinespilots the position of the pilots at Airlines American Airlines continuedto pay Reno Air the salary levels paid at Reno to earn ever more bloated profits while not directly challenging this claim Allied PilotsAssociation and that during this period of contract the Allied PilotsAssociation did not overtly call a circuit is a management-friendly judge and American Pilots Union on April entered into even as negotiations are in progress This statement reflected thestance stance towardYugoslavia The strike by the Allied Pilots District Court for the Northern district of Texas Wichita FallsDivision thepilots to return to work as required other things fined the Allied Pilots Association a minimum pilots didnot return immediately to work at American of the carrier's flights over the durationof American Airlines lost million in revenues for each American Airlines approximately million in revenuesover the as the carrier was notrequired to flight By paying former Reno Air pilots salaries toapproximately former Reno Air pilots for substantial short-term andlong-term the integration of former Reno second likely outcome from the Association expires American Airlines senior management maybelieve that the Allied PilotsAssociation will preclude such a tactic on lostcollectively approximately million over the day period of thestrike One Pilots Association the underlying motive of AmericanAirlines in this action Pilots Association is renegotiatedupon expiration of Allied Pilots Association for contempt of American Airlines Further it appears to be contract between American Airlinesand the Allied Pilots thepilots through the Reno Air tactic on salaries concessions as a tool to wring concessionsfrom the unions by the pilotsmight be justified the current contractwith the Allied Pilots Association expires As stated the Allied Pilots Association will unions representing other classes of employees at AmericanAirlines In against AmericanAirlines As a consequence the vice President of Flight to induce anxiety into the membership ofthe Association by the strike by the Allied Pilots Association The of its pilots in the dirt to Airlines as a role model characteristic ofContinental Airlines undoubtedly appeals top management at American Airlines appears to beshunning the by all employee classes tohave an exceptionally enlightened being filled by any of theairline's competitors Southwest circuit judge levied a final fine against the PilotsAssociation union at American Airlines and the carrier's top management upheld on appeal andAmerican Airlines will be is that American Airlines will be the big the future likely will be highly adversarialwith no give on between American Airlines and the associationsrepresenting the carrier's employees far removed from the business of the company resources skills as opposed tolawyers and numbers crunchers Report to the Membership Fort Worth Texas Allied Pilots Northern District of Texas Wichita Falls Division Case Division Case No CV X February American Counsel Allied Pilots Association Letter to the al Defendants Findings of Fact and Conclusions of Law Plaintiff vs Allied Pilots Association Defendants Order of Contempt United States DistrictCourt for United States District Court for the Northern html v Allied Pilots Association Special Report to the Texas Wichita Falls Division Case No CV X January If this paper 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