Labor unrest added to American's woes

[Omaha Steve]

http://www.chicagotribune.com/business/chi-wed-pilots-protest-aaapr16,0,531581.story

By Julie Johnsson | Tribune reporter
April 16, 2008

Still reeling from the inspection debacle that caused it to cancel thousands of flights last week, American Airlines on Tuesday came under fire from its own employees, who say they are embarrassed by the recent service meltdowns and angry at executive pay.

About 1,200 American Airlines pilots brandished picket signs in Chicago and nine other cities Tuesday to protest about $40 million in bonuses to be handed out Wednesday to the carrier's top executives.

They also sought to bring attention to sagging customer service at American, which lagged its peers last year in on-time performance and other measures. They've created a Web site, www.tellyourAA story.com, where they encourage customers to share horror stories.

All of this, pilots said, is an attempt to change priorities at American, which has seen service slide even as executives pocketed bonuses worth about $300 million over the past three years.

"We're as frustrated as our passengers are," said Alan Tempin, an American Airlines pilot.

The stock payouts to executives have enraged employees, who accepted deep salary cuts in 2003 to help the carrier avoid bankruptcy. The discontent also is increasing the heat on American Chief Executive Gerard Arpey, who drew fire last week for his slow public response to an FAA mandate that the carrier reinspect its fleet of MD-80s jets.

FULL story at link.

[Selatius]

1. If American wants to treat its workers like shit, then customer service will decline

For the life of me, how can a company ensure good customer service if its employees, the ones who actually interact directly with customers, are unhappy and unenthusiastic to be at work?