AA Pilots Consider Contract Proposal That Includes 2,500 Job Cuts

FA Mikey

Aug 19, 2002
Associated Press
American Pilots Mull Deal That Cuts Jobs
Wednesday April 2, 3:12 pm ET
By Angela K. Brown, Associated Press Writer
American Airlines Pilots Consider Contract Proposal That Includes 2,500 Job Cuts

FORT WORTH, Texas (AP) -- Over the next two weeks, American Airlines pilots must decide which is worse -- steep salary cuts and 2,500 positions culled from their ranks or a company bankruptcy filing in which a court is likely to impose even harsher measures.

Under an agreement to save American''s parent AMR Corp. $660 million annually, pilots would take a one-year pay cut of 23 percent and a 17 percent pay cut for the remainder of the six-year agreement, union leaders say.

The deal also includes 1.5 percent annual pay raises beginning in May 2004, profit sharing of up to 15 percent annually and stock options. Pilots will retain medical disability but will see some health-care benefit changes.

I don''t think anybody''s thrilled with the significant pay cuts and furloughs ... but the alternative clearly would be even worse, said Gregg Overman, a spokesman for the Allied Pilots Association, on Tuesday, a day after the pilots and company reached the agreement.

Pilots have 14 days to ratify the new contract and will vote electronically in a speedier method recently approved by the union board.

To reduce the pilot workforce by 20 percent, cuts will begin at the bottom of the seniority ladder. It''s unclear how many pilots will retire.

As a stand-alone, it is apparent that we gave a tremendous amount of concessions, union president John E. Darrah told pilots.