Union Mulls American Air Offer Tying Raises To Co Performance

[Omaha Steve]

Source: Associated Press

FORT WORTH, Texas (AP)--Union negotiators are studying a proposal from American Airlines that would link pay raises for mechanics and other ground workers to company performance.

Neither side disclosed details, but the Transport Workers Union published letters exchanged last month between its president and the airline's CEO on its Web site.

Union President James C. Little wrote that cooperation with the company was eroding because workers had not been rewarded for American's improved financial performance.

While a contract is not expected before next spring, Little wrote that American should consider immediate and nontraditional compensation to improve those relations.

Read more: http://money.cnn.com/news/newsfeeds/articles/djf500/200709181236DOWJONESDJONLINE000557_FORTUNE5.htm

[Donnachaidh]

1. Books can be cooked

I certainly hope the union requests an outside verification of the company's *performance* books.

[LiberalFighter]

2. Will wages of executives be tied to performance too or will

they get raises even if they don't raise the companies performance?

[aquart]

3. Make sure it's gross, not net.

[Thothmes]

4. Performance

May not be a bad idea if the link is to Gross Sales. Bad idea if it is linked to profits. These can be cooked in so many ways depending who the accountant is loyal to.