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American offers pilots union 2 separate proposals
Posted Monday, Nov. 14, 2011
BY ANDREA AHLES
[email protected]
American Airlines gave its pilots union two contract proposals late Monday as the Fort Worth-based carrier increased the pressure on pilots to approve a tentative agreement by the end of the week.
The airline said both offers to the Allied Pilots Association, which came after the two parties took a weekend break from negotiations, included pay raises and job protection for pilots in exchange for increased productivity and operational flexibility.
"As pilots look at the components of the proposal, there may be some who describe it as concessionary," the company said in a message posted on its negotiations website late Monday evening. "The reality is that in virtually every area of the proposal, we have offered industry-leading terms."
Officials with the pilots union declined to comment on the company's proposal Monday, as its board of directors will review it when it meets today.
A tentative agreement would cover about 10,000 pilots.
American, which has been losing money, has been pressuring the pilots union to agree to a tentative contract deal before the board of directors of AMR Corp., its parent company, meets Wednesday.
Bankruptcy rumors have buffeted the company's stock in recent months.
"It seems increasingly likely that AMR will fail to reach agreements with its unions soon enough and effective enough to keep the company out of bankruptcy," Gimme Credit analyst Vicki Bryan wrote in a research note Monday. "AMR's operating trends are deteriorating at an accelerating pace, draining its already razor-thin liquidity and even more limited options."
Issues on which the company and the union remain far apart include a new pension structure for new pilot hires, sick and vacation time, and more exceptions to domestic code-sharing, which allows American's passengers to book tickets that connect to flights on other carriers.
Pilots are worried that American wants to expand its ability to code-share with domestic carriers, particularly JetBlue Airways, for flights on the East Coast. American's passengers arriving on international flights at New York's JFK Airport and Boston's Logan Airport can connect on JetBlue flights to certain cities where American does not offer nonstop service.
On Friday, the APA had offered a pay proposal with a 10 percent signing bonus and then 7 percent raises each year in the next three years.
American's latest "option A" proposal:
Offers a 4 percent average signing bonus, and then a 3 percent raise at 15 months, a 2 percent raise at 30 months and a 2 percent raise at 45 months.
Removes the hard monthly flying cap and creates an average monthly flying range of 72 to 83 hours with immediate productivity gains.
Gives pilots the choice of keeping their pension plans or changing to an age-based contribution plan.
Increases medical benefits with employee costs at 22 percent, increasing to 25 percent by the end of the contract.
Its "option B" proposal:
Offers a 5 percent average signing bonus, and then a 4 percent, 2 percent and 3 percent raise in year one, two and three, respectively, of the contract.
Removes the hard monthly flying cap and moves to an average monthly flying range of 72 to 83 hours with productivity gains phased in over the contract.
Immediately freezes pilots' pensions in the primary plan.
Keeps employee medical benefit costs at 19 percent through the contract.
"We hope our pilots will have an opportunity to vote on what the company has put forward," the company said. "Right now, it's not a tentative agreement. It's a comprehensive proposal that can turn into a tentative agreement if APA chooses to do so."
While there is no agreement with the pilots, the carrier did reach a tentative contract agreement with its dispatcher group Monday.
About 180 dispatchers and "operational coordinators" are represented by the Transport Workers Union. The two sides have been in negotiations since May 2006, the longest of any of American's labor groups. Details of the agreement were not released.
"Both parties worked collaboratively to reach a tentative agreement that addresses the interests of our TWU-represented dispatchers and the company," said American spokeswoman Missy Cousino.
American has a tentative agreement with its fleet services group, which will vote on the contract in December.
It is still in negotiations with its flight attendants and mechanics unions.
Posted Monday, Nov. 14, 2011
BY ANDREA AHLES
[email protected]
American Airlines gave its pilots union two contract proposals late Monday as the Fort Worth-based carrier increased the pressure on pilots to approve a tentative agreement by the end of the week.
The airline said both offers to the Allied Pilots Association, which came after the two parties took a weekend break from negotiations, included pay raises and job protection for pilots in exchange for increased productivity and operational flexibility.
"As pilots look at the components of the proposal, there may be some who describe it as concessionary," the company said in a message posted on its negotiations website late Monday evening. "The reality is that in virtually every area of the proposal, we have offered industry-leading terms."
Officials with the pilots union declined to comment on the company's proposal Monday, as its board of directors will review it when it meets today.
A tentative agreement would cover about 10,000 pilots.
American, which has been losing money, has been pressuring the pilots union to agree to a tentative contract deal before the board of directors of AMR Corp., its parent company, meets Wednesday.
Bankruptcy rumors have buffeted the company's stock in recent months.
"It seems increasingly likely that AMR will fail to reach agreements with its unions soon enough and effective enough to keep the company out of bankruptcy," Gimme Credit analyst Vicki Bryan wrote in a research note Monday. "AMR's operating trends are deteriorating at an accelerating pace, draining its already razor-thin liquidity and even more limited options."
Issues on which the company and the union remain far apart include a new pension structure for new pilot hires, sick and vacation time, and more exceptions to domestic code-sharing, which allows American's passengers to book tickets that connect to flights on other carriers.
Pilots are worried that American wants to expand its ability to code-share with domestic carriers, particularly JetBlue Airways, for flights on the East Coast. American's passengers arriving on international flights at New York's JFK Airport and Boston's Logan Airport can connect on JetBlue flights to certain cities where American does not offer nonstop service.
On Friday, the APA had offered a pay proposal with a 10 percent signing bonus and then 7 percent raises each year in the next three years.
American's latest "option A" proposal:
Offers a 4 percent average signing bonus, and then a 3 percent raise at 15 months, a 2 percent raise at 30 months and a 2 percent raise at 45 months.
Removes the hard monthly flying cap and creates an average monthly flying range of 72 to 83 hours with immediate productivity gains.
Gives pilots the choice of keeping their pension plans or changing to an age-based contribution plan.
Increases medical benefits with employee costs at 22 percent, increasing to 25 percent by the end of the contract.
Its "option B" proposal:
Offers a 5 percent average signing bonus, and then a 4 percent, 2 percent and 3 percent raise in year one, two and three, respectively, of the contract.
Removes the hard monthly flying cap and moves to an average monthly flying range of 72 to 83 hours with productivity gains phased in over the contract.
Immediately freezes pilots' pensions in the primary plan.
Keeps employee medical benefit costs at 19 percent through the contract.
"We hope our pilots will have an opportunity to vote on what the company has put forward," the company said. "Right now, it's not a tentative agreement. It's a comprehensive proposal that can turn into a tentative agreement if APA chooses to do so."
While there is no agreement with the pilots, the carrier did reach a tentative contract agreement with its dispatcher group Monday.
About 180 dispatchers and "operational coordinators" are represented by the Transport Workers Union. The two sides have been in negotiations since May 2006, the longest of any of American's labor groups. Details of the agreement were not released.
"Both parties worked collaboratively to reach a tentative agreement that addresses the interests of our TWU-represented dispatchers and the company," said American spokeswoman Missy Cousino.
American has a tentative agreement with its fleet services group, which will vote on the contract in December.
It is still in negotiations with its flight attendants and mechanics unions.
