American Airlines pilots have dropped plans to consider changes to their contract that would boost productivity because they object to the carrier's plan to pay bonuses totaling $95.8 million to some managers.
The Allied Pilots Association board revoked authorization for the talks, which were approved in November as part of a plan to further lower costs and increase efficiency at American, the world's largest airline. American, a unit of AMR Corp., shouldn't pay the cash bonuses while it continues to lose money, the union said in a message Friday to its 13,000 members.
The dispute threatens American's effort to return to profitability and continue avoiding bankruptcy by working with its unions to increase revenue and reduce expenses. Talks to settle the bonus dispute failed, and an arbitrator will begin hearings on the issue Wednesday.
Seattlepi.com
The Allied Pilots Association board revoked authorization for the talks, which were approved in November as part of a plan to further lower costs and increase efficiency at American, the world's largest airline. American, a unit of AMR Corp., shouldn't pay the cash bonuses while it continues to lose money, the union said in a message Friday to its 13,000 members.
The dispute threatens American's effort to return to profitability and continue avoiding bankruptcy by working with its unions to increase revenue and reduce expenses. Talks to settle the bonus dispute failed, and an arbitrator will begin hearings on the issue Wednesday.
Seattlepi.com