Tuesday, April 22, 2003

Workers Unite! I'm not particularly pro-union, and I'm not anti-executive, but this stinks: Get your biggest union to sign on to huge concessions to keep your company out of bankruptcy court, then file your 10K to the SEC, revealing executive bonus and pension-security information. And the union is pissed now. AMR's problem:
"This is a classic 'Catch 22' for American Airlines. If it does not find a way to compensate its top executives for the substantial risks they are taking and the very hard work ahead, many will resign from the company," said William Alderman, president of aerospace investment firm Alderman & Company.
Oh, boo-hoo. Listen, running American Airlines is not that hard a job, and Don Carty got nearly $4 million in 2001. I'd be glad to do it for a lot less money. And I guarantee I could have happier unions, have more satisfied customers, and lose a hell of a lot less money than Carty is. Technically, I have no problem with executive pay, as long as you're not a weasel, as Carty and his minions appear to be. And as long as you don't pretend your job is so tough that you deserve to make a few million. If you can get it, great -- I'd take it, too. But don't pretend that you earned it through long hours and total dedication when your company, your industry is tanking because you can't understand that your way of running an airline has never even hinted at a long-term profit.

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