This transcript is automatically generated
Unions gone wild first Chicago teachers shut schools now American airline pilots are grounding planes.
More union violence -- calling in sick because they're sick of cuts in this new labor agreement and that's forced the airline to cancel hundreds of flights does this week.
Union claiming that this is not an all all intentional but former America -- CEO Bob Crandall says this is intentionally messing up.
A lot of flyers and -- your argument is that that's hard to win that will be back -- Well that's exactly right it is but the fact there -- you know that there's people.
Get the impression -- they certainly haven't got the impression.
-- and media coverage.
That they can't count on the flight going on time it can't cannot fight going at all.
They're gonna make alternative arrangements -- You know this is this is something and -- it's that kind of behavior -- has been rampant throughout the airline industry.
But many years.
That the pilots have great leverage you know they have great leverage.
And the consequence -- whatever you get into a contract dispute to have this kind of thing.
At at the moment.
I think I think the American pilots are being very foolish because America has dissipated we get any -- -- as a kind of split bankruptcy effected government in I they've got a larger.
Problem that is that.
This kind of action.
At this juncture in the company's history.
It has very profound effects which bush -- have adverse effects on the pilots as well.
But they've signed -- this deal I dated -- the deal.
But they -- signed onto the -- No this is the one they turned down you know all of our reality it's.
-- having it -- signed consent to a contract.
On terms which wish site be better it is somewhat added that the company wouldn't it -- as it -- -- -- it simply oppose contacted proposed that the bankruptcy court.
But yet safety pick pick companies been trying to reach consensual deal was and they proposed some agreement star over union and all the unions -- the pilots accepted.
-- -- -- and I -- -- so let me ask you this then if you know worker.
Be -- -- -- baggage handler is deliberately intentionally calling in sick or whatever.
And it does seem to be happy consistently among a large group com.
You don't have to be.
You know Marcus Welby to figure this doesn't seem entirely medical zeroed in what it what is management options.
But -- -- bill.
What about about the only thing that airline and it can do in the circumstances it was go to court.
America has done that there is to if have been put in a statistical data that is what the frequency of these events.
It is far out have been -- this is -- sometimes on the that the fugitive illegal job actions.
Aren't unfortunate that he.
Other -- that there will be very little little -- -- -- in.
So what does it look like now I was big win when taxes like these.
Our active on the on either side whether it's in hockey weren't there have been some players and -- and -- It kills both sides and it it if it kills the brand in this case American allies -- a lot of people look.
Territories -- and American flight or delta flight.
I'm just gonna take delta because I don't want any risk right now that I'm not gonna fly so what hurts both sides.
-- -- this case monetary interests everybody you know -- -- it inherits all the other employees at a park and it certainly damages be.
The creditors and by diminishing the value American you know.
And -- today and in the long run it's it it's gonna hurt the pilots because.
You know pilots -- not marriage who has seniority system.
Which power locks have been to give an airline and to the extent that they do anything to -- as a parent.
It has an adverse effect that narrow a career path and their own.
Yet but they're clearly -- write Bob that there are your bread and butter I mean there -- Your most important votes in their eyes and that you need them and that push comes to -- you'll bad.
-- -- -- IDA and in fact that's what has happened over the is management have been but in this particular case.
The bank because America is in bankruptcy and be better it is altogether unions agreed consent to a terms.
Which are you know as it it in this to take the case there really isn't it.
A sensible way to cut management to give it so if got a very very damaging situation for the company -- -- as -- say at least for the pilots themselves.
Our enemy generals fuel costs are getting any cheaper you're just quickly -- economic land.
I know we're in this pot election season but had hitting the economy's going and what are you sensing.
Well I think the economy continues to be very weak you know I think they'll follow all of the -- -- -- that.
That this is going to be a long Sloc equipped with but I -- be looking at growth rates and what -- I have 2% for the next several years.
And the economy needs our help -- -- get it doesn't need debt.
More importantly the destruction and one way or the other whether -- even -- left or the right like it.
We -- gonna have to raise taxes on everybody.
And we are gonna have to cut spending in some areas where people would prefer not to cut spent.
Well that's a good prescription for making a weak economy.
Even weaker him.
-- -- I think yesterday you if you adapt since then -- or.
-- as it was -- -- right I think what I think what you would find is that this simple adoption of Simpson Bowles the adoption of applying.
-- -- -- there's so much general optimism that so much I'm not so much -- have a level of confidence.
That you're going to someone that -- -- -- -- the direction is right I can't I I think the biggest drawback that we have Citi currently right now.
Is that everybody believes that the government is totally dysfunctional.
You know it has no plans and it doesn't -- it is there isn't any consensus in the evident that we simply have got to -- -- solution to these problems.
And the consequences everybody sort of -- down put their money under the mattress.
You know -- you're -- you're you're right about that pomp.
Robert always good talking to you are you very pale spirit stay well Bob Crandall the former head of -- --