At the height of the recession, American Airline’s pilots union was demanding 10% signing bonuses and 7% annual raises for three years.
Management countered with job protection, signing bonuses and 3.21% raises for the first year and an additional 1% raise each year thereafter for three years.
The union refused to make concessions. They care nothing about the economic downturn.
American Airlines went into Chapter 11 to obtain a court-ordered reorganization.
At the same time, U.S. Airways sought a merger with American. The American Airlines union bosses, overwhelmed by greed, saw this as an opportunity.
The labor bosses saw it as a way to do an end-run around American Airlines and the courts by scheming with U.S. Airways union bosses.
Read more about the story at Human Events