American Air Union Steps Up Pay Battle Against CEO

[Omaha Steve]

http://online.wsj.com/article/BT-CO-20090402-700037.html

By Ann Keeton
Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--American Airlines faces a fresh controversy over executive pay after one of its largest unions on Thursday revived a campaign against Chairman and Chief Executive Gerard Arpey.

The Transport Workers Union of America is backing a series of ads that feature an online game inviting users to guess Arpey's annual compensation.

The move opens up a fresh front amid long-running employee grievances over executive compensation at American, which steered clear of bankruptcy protection in 2003 with the help of employee concessions.

Union action has become an annual ritual since a new performance pay scheme kicked in at American in 2006.

The harmonious labor relations that fostered cost-cutting deals under American's "Working Together" initiative have long since soured, with sporadic protests by flight and ground personnel over the past three years.

"What makes it so frustrating at American is that we worked with management, making concessions beginning in 2003, and finding new ways to generate revenue," said TWU President James Little in an interview.

FULL story at link.