I’ve now heard from quite a few folks who were at the American Airlines’ annual meeting last week — and given what snippets I’ve been told from a number of folks — Mitchell Schnuman’s column in the Ft. Worth Star-Telegram is spot on in terms of capturing the sense that most felt who were there.
Entitled “What is Gerard Arpey Up To Now?” the column discusses Arpey’s attempt to simply “stonewall” the issue of executive bonuses.
“For months, employees have slammed the chairman and chief executive of American Airlines for the $160 million in stock awards given to management, so he couldn’t have been surprised when the subject came up repeatedly Wednesday. But he offered almost no defense.
“In all likelihood,” Arpey said, “this is an issue on which we may have a hard time finding common ground.”
He used the no-common-ground line all morning, as shareholders and reporters asked how he would rebuild the trust with American workers. It was a nonanswer answer, a way of saying: “There’s nothing to talk about. Move on.”
No one on the board stepped forward to bail him out and justify the company’s pay plan. Or to explain why workers shouldn’t feel betrayed, after management cashed in on the airline’s rebound and the rank and file didn’t.
It was almost painful to watch, if you’re an Arpey fan — as I am. His critics, particularly Ralph Hunter of the pilots union and Bobby Gless of the Transport Workers Union, sounded more reasonable and more genuinely concerned about the company’s welfare. In contrast, Arpey looked like a stonewaller with something to hide.
It was a disappointing, even baffling, performance, given the preparation time and the spotlight of the annual meeting. And it was reminiscent of how Arpey and American handled the Wright Amendment fight for more than a year.
Then, like now, they flew in the face of public sentiment, got labeled the bad guys and stubbornly refused to be drawn into any talk of a compromise. At times, they looked foolish, petulant and self-serving.”
While as Mitchell argues, it could be said that the airline’s behavior in the Wright mess ended up well for the airline, all things considered, is this same gameplan one that is going to work with the employees?
I think not. So does he, as he calls it a “a risky strategy — more risky than Wright, because the showdown is with American’s own employees, rather than with a rival carrier and politicians.
He then adds, “Making enemies of Southwest Airlines or Dallas Mayor Laura Miller is one thing. This is more akin to playing passive-aggressive with your spouse: You can win and still lose.”
Mitchell — I couldn’t agree more.
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