Bernie Sanders is taking on overpaid CEOs to address the issue of underpaid workers at companies like Disney, Amazon, and American Airlines.
“Sanders is calling out other major companies, too. He recently held a town hall event to discuss “something that is never discussed,” with workers from Amazon, American Airlines, Walmart, McDonald’s, as well as Disney,” AOL reported.
But is Sanders, who is expected to put his hat in the ring again for the 2020 presidential election, right about American Airlines? Is America worse than the other carriers when it comes to staff salaries?
Sanders posted on social media recently: “Last year American Airlines made $1.9 billion in profits. Its CEO Doug Parker is on track to make $31 million this year.
They need to explain why 27 percent of workers at their subsidiary Envoy Air said they must accept food stamps and other public assistance to make ends meet, and some must borrow from retirement accounts and even sell blood to get by.”
What makes American airlines standout is that it is the world’s largest carrier–and successful. But its staff says the can not make ends meet without government support.
“A survey of 900 workers at regional carrier Envoy Air found that 27% of those who responded said they must accept food stamps and other public assistance to make ends meet. Other workers say they are forced to buy out-of-date food, borrow from retirement accounts and even sell blood to get by,” the Los Angeles Times reported.
Taking a look at some of the salaries for airlines, at American airlines customer service representative made about $13.30 per hour, according to Indeed. Flight attendants take home a salary of $39,962 annually. Baggage handlers earn only $12.18 per hour, while reservation agents make $13.05 per hour. Compare these to Delta, whose employees seem to make slightly less. Delta flight attendants earn $38,685. At United Airlines, flight attendants earn more–with an annual salary of $40,000, while customer service representatives at the carrier make an hourly rate of $14.
“American Airlines hasn’t been shy about handing out raises to pilots, flight attendants, mechanics and other mainline workers amid a run of record earnings that included a $1.9 billion profit in 2017. The carrier’s subsidiaries have also raised starting pay for regional pilots as qualified aviators become increasingly in demand,” Dallas News reported.
But the same can not be said for the company’s three regional subsidiaries–Envoy, Piedmont, and PSA airlines.
“The three airlines, along with six other regional carriers contracted by American, operate 3,400 of the carrier’s 6,700 daily departures. Envoy is headquartered in Irving, with operations at DFW as well as airports in Chicago, New York and Miami. It’s also in smaller markets like Abilene, Texas; Bentonville, Ark.; Marquette, Mich.; and Springfield, Mo,” Dallas News reported.
These workers have not seen the same wage increases.
Sanders’ argument is that since American Airlines, being the largest and making the most money, the workers should be taking home more in their salaries and not have to depend on food stamps.
@AmericanAir makes millions on ancillary fees; seat assignments, bag check, even mileage purchases & calls to the service ctr to book a flight! Can they honestly claim they can't pay their employees, who make them profitable, higher wages to improve standards of living? Greedy.
— Edith E Horwitz (@EEHELI) July 17, 2018
