United Continental paid CEO Smisek $4.4 million

For United Continental CEO Jeff Smisek, running a bigger airline is paying off

Joshua Freed, AP Airlines Writer, On Friday April 22, 2011, 7:38 pm EDT

Jeff Smisek is running a bigger airline, and now he's getting a bigger paycheck.

The president and CEO of United Continental Holdings Inc. collected compensation worth $4.4 million last year, according to an Associated Press calculation from a proxy statement the newly merged airline filed on Friday.

When 2010 began, Smisek, 56, had just taken over as CEO of Continental Airlines. He helped negotiate a merger with United. After the deal closed Oct. 1, he took over as CEO of the combined company, which will be the world's largest airline and fly under the United name.

The compensation figure for last year includes his salary for his time at both airlines plus a cash incentive of $3.6 million and $9,766 in extras. His total compensation was $3.6 million in 2009, when he was president and chief operating officer of Continental.

As head of Continental, Smisek had said he would not take a salary or bonuses until it earned a full-year profit. It did -- $854 million, counting the results for both companies. Because of that, United Continental said in the filing, it paid Smisek's salary retroactively at the end of 2010, partly at the Continental rate and partly at a higher rate after the merger.

Smisek's base salary was $730,000 as head of Continental. The combined company's board raised his salary to $975,000 after the merger "in consideration of his enhanced responsibility and leadership," the filing said.

He also received $6,735 for a 401(k) contribution and $3,031 in tax reimbursement.

US Airways Rattles Anticompetitive, Anticonsumer Claims at Sabre

April 24, 2011
by Zvi Bar

US Airways (LCC) filed a federal civil lawsuit in the Southern District of New York against Sabre Holdings Corp. to halt anticompetitive and anticonsumer practices, and seeking to recover monetary damages. US Airways noted that the Antitrust Division of the United States Department of Justice and the United States Department of Transportation previously recognized that Sabre exercises significant market power over some airlines.

US Airways complains that Sabre's distribution of airline fares and content to travel agents shows a pattern of exclusionary conduct that prevents others from competing with what they allege is monopoly pricing power and a technologically-obsolete business model. US Airways contends that Sabre makes exclusionary and anticompetitive requirements that affect travel agents, other Global Distribution Systems ("GDSs") and US Airways, among other airlines, and that Sabre's actions hurt consumers through higher prices, reduced innovation and fewer choices.

Sabre is a large American GDS and US Airways revealed that over 35% of corporate revenue is booked through Sabre and Sabre's affiliated travel agents. Saber is also the parent company of Travelocity and is owned by private-equity companies Silver Lake and TPG. The complaint claims Sabre imposes economic penalties on travel agents for bookings not made using Sabre and that Sabre can threaten that it will remove an airline's flights from its offerings, resulting in an unlikelihood that travel agents would book that airline. US Airways alleges that it must comply with monopolistic Sabre practices because it cannot survive if it were to lose that business.

Sabre and US Airways actually executed a new distribution agreement in February of this year and Us Airways now claim's it was forced to succumb to Sabre's "my way or the highway" demands (such deals are more common to roadhouse deals than airway deals). The complaint also alleges that Sabre aggressively suppresses travel agents from booking tickets directly with airlines using "direct connections."

Unions blast American Airlines CEO's compensation

Gerald Arpey, Chairman of the Board, Chief Executive Officer of the Company and American Airlines

Unions, locked in stalled wage talks, blast increased compensation for American Airlines CEO

David Koenig, AP Airlines Writer, On Friday April 22, 2011, 6:48 pm EDT

DALLAS (AP) -- Unions locked in wage negotiations with American Airlines accused the CEO of greed on Friday because he got an 11 percent boost in compensation, to $5.2 million, while the company was losing money.

Garry Drummond, director of the airline division at the Transport Workers Union, said CEO Gerard Arpey's increase was "almost beyond belief and certainly shameless."

The airline's other two unions also attacked the CEO's compensation. "Whatever happened to pay for actual performance?" said flight attendants' president Laura Glading.

Labor unions said their members haven't gotten raises since at least 2008. All three are in contract negotiations.

"This is the type of rhetoric expected around contract talks and is aimed at putting public pressure on the company," American spokeswoman Missy Cousino said in response to the union comments.

Cousino said employees at American, which still has pension plans and retiree medical benefits, are better off than workers at many other airlines.

American has resisted wage increases, saying its labor costs are already too high. Two of the unions have asked federal officials for permission to start a countdown toward strikes, but the requests have not been granted.

In a regulatory filing Thursday, parent company AMR Corp. disclosed that Arpey received compensation valued at more than $5.2 million in 2010, when AMR was the only major U.S. airline operator to lose money. That was up from $4.7 million in 2009 because the value of Arpey's 2010 stock grants and options was higher than similar grants the year before.

The company said Arpey was paid below the median of CEOs at similarly sized companies.

United Continental: No more bag check discounts

United Continental drops $2-$3 discount for customers who prepaid for checked bags online

On Saturday April 23, 2011, 4:37 pm EDT

CHICAGO (AP) -- There's no more incentive to prepay online for your checked bags if you're flying United Continental. The carrier has done away with the $2 to $3 discount that passengers used to get if they paid for their luggage online instead of at the ticket counter.

The charge for domestic flights operated by Chicago-based United Continental Holdings Inc. is now $25 for the first bag and $35 for the second, no matter how or when you pay. The change began for tickets sold since March 9.

United and Continental used to offer a $2 discount on the first bag and $3 off the second to encourage passengers to pay up before arriving at the airport.

Delta Air Lines Inc. still offers a similar discount. Other carriers, including AMR Corp.'s American Airlines, never offered different prices.

Southwest Airlines Co. continues to allow passengers to check two bags for free.

Florida's presidential straw poll could help pick GOP frontrunner

In 2008, Florida's January primary made John McCain the clear frontrunner in the race for the Republican presidential nomination.

By WILLIAM MARCH | The Tampa Tribune
Published: April 24, 2011

TAMPA - Florida Republicans are taking advantage of the state's size and swing-voting status to try to make this the decisive state in the 2012 Republican primary contest.

If they're successful, Republicans in Florida, more than any other state, could pick the nominee to run against President Barack Obama in 2012.

In the last two weeks, party leaders have acted to hang onto an early presidential primary date, despite opposition from the national party.

They've also set up an early presidential straw poll for this fall that insiders believe could shape the primary contest – a straw poll designed to be a more valid test of the candidates than most presidential straw polls.

In the amorphous field of potential candidates with no clear frontrunner, the Presidency 5 straw poll could pick a frontrunner; or it could create momentum for lesser-known candidates, converting them into serious contenders.

The straw poll's importance will increase if Florida gets the primary date legislative leaders have said they want, immediately after the four small, early states now scheduled to hold primaries and caucuses in February.

"Florida arguably was the state that made the decision in 2008" in the GOP primary, said University of Virginia political scientist Larry Sabato, a long-time analyst of national politics.

"If Florida could maintain its 2008 position, it could probably decide the 2012 nomination also."

In 2008, Florida's January primary made John McCain the clear frontrunner in the race, effectively ending Rudy Giuliani's campaign and leaving Mitt Romney as McCain's only significant competitor.

Koch Brothers Tell Employees Whom to Vote For

by James Parks, Apr 24, 2011

The right-wing extremist billionaire brothers David and Charles Koch are not satisfied with spending millions on Capitol Hill to mold, gut or kill more than 100 prospective bills or regulations or funding blatantly anti-worker front groups. Now they want to control how the more than 50,000 people who work in their companies think and vote.

The Nation magazine obtained and published a 14-page Koch Industries election “packet” mailed out before last November’s election to the employees, telling them who they should vote for and warning them of the consequences to their families, their jobs and their country if they voted wrong,

Experts say employers likely will send out more of this political propaganda in 2012.

Although employers can spew out political propaganda like this in the workplace, they can bar unions from even handing out a list of endorsed candidates on the job.

Says UCLA law professor Katherine Stone:

If a union wanted to hand out political materials in the workplace not directly relevant to the workers’ interests—such as providing a list of candidates to support in the elections—the employer has the right to ban that material. They could even prohibit its distribution on lunch breaks or after shifts, because by law it’s the company’s private property.

Read “Big Brothers: Thought Control at Koch” here. And make sure to check out the election packet here.

Jobs Clock Tick Tocks as Republicans Can’t Find Time for Jobs Bill

by Mike Hall, Apr 23, 2011

House Republicans talk the jobs talk, but they sure aren’t walking the jobs walk. Here we are, 109 days into the 112th Congress, and House Republicans haven’t produced one piece of jobs legislation. This clock will keep on ticking until we see a real jobs bill. (Click here to get the code so you an embed the clock on your web page or FaceBook page.)

The economy is not going to heal itself. Instead of a jobs bill that could help the more than 24 million Americans who are unemployed or underemployed, Republicans have given us their proposed budget—straight out of Rep. Paul Ryan’s (R-Wis.) horror movie economics laboratory. It could cost between 1.7 million and 2.2 million jobs in the first two years alone.

It’s as if they have shrugged their shoulders, looked at the 24 million in need of work, and said:

So be it. Let’s cut corporate taxes, give the rich a break on taxes, while privatizing Medicare, decimating Medicaid, repealing health care reform—and when we get the chance, privatize Social Security.

It’s time for Republicans to reject their “So Be It” spending plan, which puts ideology before jobs, and make a bipartisan effort to create a plan that reduces the deficit, creates jobs, and strengthens the middle class.

Tick tock. Tick tock.

NLRB Cites Boeing for Illegal South Carolina Move

Thu. April 21, 2011

In response to charges filed by the IAM, the National Labor Relations Board (NLRB), this week issued a blistering complaint against the Boeing Company, declaring their move to South Carolina was a violation of federal labor law and constituted illegal retaliation against IAM members employed by Boeing in the Puget Sound area.

The NLRB complaint cited repeated statements by senior Boeing executives that union members’ activity was the “overriding” factor in the decision to locate a 787 assembly line in South Carolina.

“A worker’s right to strike is a fundamental right guaranteed by the National Labor Relations Act,” said NLRB Acting General Counsel Lafe Solomon, who issued the complaint against Boeing. “We also recognize the rights of employers to make business decisions based on their economic interests, but they must do so within the law.”

According to the NLRB, Boeing’s conduct was “inherently destructive” of rights guaranteed to workers. As a remedy for the violation, the Board is seeking an order requiring Boeing to operate the second 787 line, including supply lines, with IAM members in the Puget Sound.

“Boeing’s decision to build a 787 assembly line in South Carolina sent a message that Boeing workers would suffer financial harm for exercising their collective bargaining rights,” said IAM Vice President Rich Michalski. “Federal labor law is clear: it’s illegal to threaten or penalize workers who engage in concerted activity, and it’s illegal in all 50 states.”

The decision by Boeing to locate a 787 assembly line in South Carolina followed years of 787 production delays and an extraordinary round of mid-contract talks in which the IAM proposed an 11-year agreement to provide Boeing with the labor stability it claimed was necessary to keep 787 production in the Puget Sound area.

Click here to read a statement from the NLRB announcing the complaint.

Click here to view full text of the NLRB complaint.

Click here to read a summary of facts in the case.

Single Carrier Ruling Issued for United Stock and Stores

Thu. April 21, 2011

The IAM welcomed this week’s National Mediation Board (NMB) single carrier ruling for the Stock and Stores classification at the recently combined United Airlines, Continental Airlines and Continental Micronesia Airlines.

“We are very pleased with the NMB decision,” said IAM District 141 President and Directing General Chairman Rich Delaney. “The IAM is looking forward to welcoming all Stock and Stores employees as members of the Machinists Union.”

The NMB will proceed to address representation of the Stock and Stores craft or class following a 14-day period from today.

The IAM represents United’s 785 Stock and Stores employees while Continental’s 233 Stock and Stores employees, called Material Specialists, are unrepresented.

The IAM presented the NMB with sufficient evidence that the Continental Stock and Stores employees wanted to join the IAM last fall. The Board combined that case with the current single carrier application pending at the Board. Continental Micronesia’s 17 Stock and Stores employees are represented by another union.

AFL-CIO Paywatch Notes Runaway Pay for CEOs

Thu. April 21, 2011

The 2011 Executive Paywatch website shows CEOs at 299 U.S. companies earned a combined income of $3.4 billion in 2010. Viacom’s CEO Philippe P. Dauman earned $84.5 million alone last year, one of the highest among the executives.

“The disparity between CEO and workers’ pay has continued to grow to levels that are completely stunning,” said AFL-CIO President Rich Trumka. Trumka said the U.S. is facing “runaway CEO pay.”

According to the Federal Reserve, U.S. corporations held a record $1.93 trillion in cash on their balance sheets last year, but they are not investing to expand their companies, grow the real economy or create good middle-class jobs. Corporate CEOs are literally hoarding their company’s cash - except when it comes to their own paychecks.

Fortunately, the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act contains new tools to help limit runaway CEO pay. Shareholders now have a “say-on-pay” vote on executive compensation, and companies must disclose the ratio of CEO-to-worker pay at each company.

For a list of the 100 highest-paid CEOs and more on the Executive Paywatch website, click here.