America West Pilots Reject Contract
By BETH DeFALCO
Associated Press Writer
December 2, 2003, 3:33 PM EST
PHOENIX -- The Air Line Pilots Association on Tuesday narrowly rejected a proposed three-year contract with America West Airlines -- the second rejected contract in less than a year.
The agreement would have included 14 percent raises for 1,700 pilots over the life of the contract, an improved retirement package and enhanced job protections.
Of the 1,487 members of the Air Line Pilots Association eligible to vote, 97.2 percent cast ballots, and the contract was rejected by just five votes.
"It's a disappointment, but it signals we're getting close," said America West spokeswoman Elise Eberwein.
Michael Boyd, an airline industry consultant in Evergreen, Colo., said he was surprised at the union's rejection of the contract.
"The industry is marginally profitable. It's not an industry rolling in dough," he said.
America West Holdings Corp. reported a $32.9 million profit in the third quarter -- its second consecutive quarterly profit after more than two years of losses.
America West and the union renewed negotiations early in September using a federal mediator after a previous tentative agreement was rejected by pilots in March.
That rejected agreement had called for an immediate 11 percent pay raise and a 3 percent raise in 2005. Terry Stadler, the Air Line Pilots Association's chairman, has said key contract disputes were on retirement, job protection and work rules.
The contract negotiations originally began in early 2000.
America West employs 13,000 employees and serves nearly 55,000 customers a day. It is the nation's eighth largest carrier with hubs in Phoenix and Las Vegas.
America West shares fell 83 cents to $14.62 on the New York Stock Exchange in late afternoon trading.
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On the Net:
America West Airlines: www.americawest.com
Air Line Pilots Association: www.alpa.org
Copyright © 2003, The Associated Press
By BETH DeFALCO
Associated Press Writer
December 2, 2003, 3:33 PM EST
PHOENIX -- The Air Line Pilots Association on Tuesday narrowly rejected a proposed three-year contract with America West Airlines -- the second rejected contract in less than a year.
The agreement would have included 14 percent raises for 1,700 pilots over the life of the contract, an improved retirement package and enhanced job protections.
Of the 1,487 members of the Air Line Pilots Association eligible to vote, 97.2 percent cast ballots, and the contract was rejected by just five votes.
"It's a disappointment, but it signals we're getting close," said America West spokeswoman Elise Eberwein.
Michael Boyd, an airline industry consultant in Evergreen, Colo., said he was surprised at the union's rejection of the contract.
"The industry is marginally profitable. It's not an industry rolling in dough," he said.
America West Holdings Corp. reported a $32.9 million profit in the third quarter -- its second consecutive quarterly profit after more than two years of losses.
America West and the union renewed negotiations early in September using a federal mediator after a previous tentative agreement was rejected by pilots in March.
That rejected agreement had called for an immediate 11 percent pay raise and a 3 percent raise in 2005. Terry Stadler, the Air Line Pilots Association's chairman, has said key contract disputes were on retirement, job protection and work rules.
The contract negotiations originally began in early 2000.
America West employs 13,000 employees and serves nearly 55,000 customers a day. It is the nation's eighth largest carrier with hubs in Phoenix and Las Vegas.
America West shares fell 83 cents to $14.62 on the New York Stock Exchange in late afternoon trading.
* __
On the Net:
America West Airlines: www.americawest.com
Air Line Pilots Association: www.alpa.org
Copyright © 2003, The Associated Press
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