Click on a label to read posts from that part of the world.
Skycaps take American Airlines to court over loss of tips
American Airlines is set to lose quite a bit of money after a Boston judge ruled Skycaps from 85 airports can join a class action lawsuit against the airline.At the heart of the ruling is an American Airlines $2 fee for curbside bag check-in at the airport. In the past, curbside check-in was considered free - but tipping the skycap was customary. Once American implemented the $2 fee, passengers assumed that covered the entire cost.
One Skycap testified that his daily tips dropped from $200 to $70.
Logan airport skycaps already won a ruling, awarding them $325,000 to be split between nine workers.
Sadly for American Airlines, their money making scheme may have backfired quite badly. If other skycaps win in this class action lawsuit, any money the airline made with the fee will probably be wiped out.
I'm torn over the issue - none of the new sources mention whether the skycap tips came on top of their salary, or whether they had to live off tips like some restaurant staff members. Assuming they made a normal salary, their $4000/month in tips seems fairly generous. I'm also sure the IRS will be paying attention to this case as it wouldn't surprise me if cash tips were not always reported accurately.
Filed under: North America, United States, Airlines, Airports, News
Reader Comments (Page 2 of 2)
Barb Feb 6th 2010 6:30PM
I'm sure you knew the tickets were non-refundable when you made the purchase--buy the flight insurance.
pete Feb 10th 2010 12:44PM
Barb, when we look up the meaning of "can't understand normal thinking" I'm sure we will see your photo.
Of course I know the tix were non-refundable, you ignorant twit!
What I didn't know was that a drunk was going to cross the road at nearly 90 miles per hour and run full speed smack dab into the front of my mother's car.
I'm retired from UAL, and if I had the seniority your better believe I would have flown them.
I know what "non-refundable" means. I also know that there are instances when those terms, and terms, can be waived. At least at United. Now I know that a CEO taking away $3.4 MILLION per year plus bonuses and benefits at American Airlines doesn't care about his customers.
I also know for a fact that you feel the same way, and your comments lead me to strongly suspect that you are an AA employee toeing the corporate line.
My first reacting upon reading your post was "I hope the same thing happens to you, you b....!" But then I knew I could never be so cruel - to anybody. That's because I'm a nice person!
Stanley Feb 6th 2010 6:23PM
You can thank Ronald Regan and the Republicans for making tips almost all the wages people get in some professions. Regan was so worried about the poor people making more money than they deserve that he pushed through laws that required a certain percentage of wages in jobs where people make tips to be taxed even if there was no proof that any tips were received. Some waitresses get no wages at all and depend on tips to make any money. Ronald Regan was so anal about poor people having a good life that he actually personally reviewed some welfare cases of single mothers to make sure they weren't getting more money than they should. Nothing has changed, and now that people in Massachsetts have installed their Nazi, things will only get worse.
Susany Feb 6th 2010 6:48PM
Skycaps are NOT employed by any of the airlines. They work for private companies that offer that service. If you don't want to PAY for a Skycaps services, do NOT ask for a Skycaps services. Easy as that. Betty-I'd be somebody's already peed in your food. Carry your own bags, and get your own plate out of the kitchen. Refill your own glass, and take your own plate to the kitchen when you're done. ELA-Skycaps are usually a tip-only service. Wait staff at restaurants make $2.25/hr, or something in that neighborhood, plus tips, and the tips are estimated (I would not report all of mine either). "ME"-they DO PAY TAXES ON THEIR TIPS, albeit not possibly on ALL of their tips...I'm sure you're taxed to the hilt, so I can see why you're complaining. Stop assuming that Skycaps are supposed to carry your crap for you...they're doing it as a convenience to YOU, for whatever pittance you cheap bastards throw at them. Wear a shirt that says "I do not tip", and see how quickly you get help. Before you throw stones, would you work for NOTHING? I sincerely doubt it. Carry your own bags, and quit bitching. Have a nice day.
onealdawg Feb 6th 2010 7:11PM
People that have not worked as Skycaps will never have a clue as to what they go through. All you see is them checking a bag or getting a wheelchair. You don't see the training and experience they have to go through over the long period. For instance, when I was there at the airport, we were literally the first defense against alot of threats. People trying to board (check) fireworks, all types of hazardous goods, people making small jokes about things they should do on the planes, people getting out of their cars too under the influence to fly without causing problems for the rest of the flyers, people trying to smuggle drugs on the plain, and, when you had to testify against them, the airline not paying you a minimum for the time off required to go to court, or even supporting you! There have been Skycaps that actually died working. Back in the '70's one died when a bomb blew up in a passengers bag that he was just carrying to ticket counter, he wasn't even checking it! So only talk about what you really have inside knowledge of. And as for stolen luggage, the don't have the time! Their on the curb! Its usually someone in between the curb and the plane after the skycap is done.
brance Feb 6th 2010 7:04PM
Pay them a good wage and they won't need tips. Same for waiters and waitresses. Pay the wage you cheap bastar+ owners!
Jason Feb 6th 2010 7:11PM
What is really funny, Joe, is that you assassinate the characters of those who work hard and make an honest living (and want to keep the tips that they earned), and you do so as if they are unintelligent cretins who deserve no respect. And yet in YOUR posting you spell "loser" incorrectly (twice) and have a glaring grammatical error in your own posting. Why don't YOU start acting in an intelligent manner before you slam "them?" Perhaps it is because you are actually the one who is devoid of intelligence.
Mark Ackery Feb 6th 2010 7:12PM
This is why I do not fly AA - They are a con and rude and deserve to lose this action. Bunch of cowboys American are
Karen L. Feb 6th 2010 7:52PM
Tacking on a fee makes people less generous, just like increasing taxes will lower donations to charities. People feel like they have less money to spend and are less likely to tip well. Whenever we have to travel as a family, we're always prepared to tip (AA doesn't accept cash, and I guess that is for reporting purposes) well for services rendered.
beegee Feb 6th 2010 8:06PM
I'm still gasping that they use to make $200 per day in tips. Say they worked five days a week, that adds up to $52,000 per year. Six days a week would be $62,400 per year. Who knew?
TroyG Feb 6th 2010 11:38PM
I was surprised as well, Karen. Even at 5 days a week that's $48,000. Assuming that, ah-hem, very little is taxed, that's the equiv. of a $65k-$70k salary. Wow! After my 4-year degree in IT, it still took me 2 promotions to make that salary
Now, whether someone deserves that for carrying bags a few feet is questionable. They're making more than the check-in agents inside who deal with a LOT more crap. (Skycap - "sorry can't check you in - please see the agent inside. Next?!") Then again, they work outside in whatever weather we have that day - compared to my nice warm office.
Now, on the flip side, did I use Skycaps when I lived in the US? Of course - the guys at NW / MSP were great!. With online check-in, my $2 saved me from a ridiculous queue inside, and I could go right to the gate. Did it matter to me that it was the equiv of him making $90 an hour or so during the morning rush? Not at all. Simple fact is he provided a service, which I could chose to take or not, and with a customary fee of $2 or so.
The part I have issue with is AA putting in a fee which was EXACTLY the same as the tip, and also a fee that I can't see being tied to any costs. Assuming the Skycaps don't work for the airline, they could be viewed as SAVING the airline money since there's now less manual work do be done inside. That's just a tacky move by AA.
(OK, before I get skewed, I know there are airline costs of the check-in terminals, the maintenance of the conveyors, the training, etc etc.)
Judith Feb 6th 2010 8:09PM
They get away with paying them as little as they want because skycaps work as "independent contractors". They have no benefits or insurance--just tips. Pretty sad. Jg
pj Feb 7th 2010 12:09AM
Scott Carmichael is a jerk for writing this very weak article. Hey Scott? You don't have to worry about the IRS auditing you for your writing earnings.
Seasoned Traveler Mar 23rd 2010 12:59PM
Yes, in many tipped positions (including waiters for instance) there is a sub min wag that takes the tips into account
Czechbikr Feb 7th 2010 11:47AM
If you cannot afford to fly, take the train or bus. When I worked at O'Hare some years ago the Skycaps were on the same scale as the Agents which is currently 50-60K annually, not exactly starvation wages. Add to that 60K in tips and you end up with more than most people reading this blog make. If you really believe that the airlines are gouging the public and enjoying windfall profits (like the oil companies who have just about ruined the industry) then you had better load up on UAL or AMR stock and get rich. I think that the wait staff in restaurants who raise their menu prices ought to sue their employers as that will certainly impact their tips also. Get a clue folks, the airline biz is a thankless marginal way to make money despite it's essential nature to our way of life and even our national defense. I can't wait for the myopic public and crusading congress to enact a "passenger bill of rights" and see that happens to service after that.