American's talks with union end without a deal
2:36 p.m. 10/04/2007 Provided by
Oct 04, 2007 (Fort Worth Star-Telegram - McClatchy-Tribune Information Services via COMTEX) -- American Airlines' hopes for snaring a contract extension with mechanics and ground workers were dashed Wednesday after talks with union leaders ended without a deal.
The Fort Worth-based airline had offered an unusual proposal to the Transport Workers Union two weeks ago, which would have extended the current contract for two years and included some form of incentive-based pay increases. Had it been successful, it would have been a significant victory on the labor front for the airline.
But "everything fell apart" late Wednesday, said one source close to the negotiations. In an e-mail to local chapter presidents, union leaders said that the informal talks have finished and that "no agreements have been reached."
The union, which represents 27,000 American mechanics, baggage handlers and other ground workers, will begin traditional negotiations for a new contract in November, officials said.
An airline spokeswoman confirmed that the talks had ended without a deal and declined to comment further.
American executives had hoped by extending the TWU contract to gain breathing room to focus on pilots and flight attendants. Contracts with all three employee groups will be open for changes in May.
A deal with ground workers that included some form of merit-based pay increases could have been a model for the airline's other labor groups. American negotiators are pushing for productivity improvements and say that the airline is already at a disadvantage with competitors when it comes to labor costs.
TWU officials have worked closely with American managers in recent years to boost efficiency at maintenance bases and bring in revenue from outside contracts with other airlines. But union leaders have also said that their members want to see a restoration of wages and benefits lost in 2003, when employees approved concessions that kept the airline out of bankruptcy.
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2:36 p.m. 10/04/2007 Provided by
Oct 04, 2007 (Fort Worth Star-Telegram - McClatchy-Tribune Information Services via COMTEX) -- American Airlines' hopes for snaring a contract extension with mechanics and ground workers were dashed Wednesday after talks with union leaders ended without a deal.
The Fort Worth-based airline had offered an unusual proposal to the Transport Workers Union two weeks ago, which would have extended the current contract for two years and included some form of incentive-based pay increases. Had it been successful, it would have been a significant victory on the labor front for the airline.
But "everything fell apart" late Wednesday, said one source close to the negotiations. In an e-mail to local chapter presidents, union leaders said that the informal talks have finished and that "no agreements have been reached."
The union, which represents 27,000 American mechanics, baggage handlers and other ground workers, will begin traditional negotiations for a new contract in November, officials said.
An airline spokeswoman confirmed that the talks had ended without a deal and declined to comment further.
American executives had hoped by extending the TWU contract to gain breathing room to focus on pilots and flight attendants. Contracts with all three employee groups will be open for changes in May.
A deal with ground workers that included some form of merit-based pay increases could have been a model for the airline's other labor groups. American negotiators are pushing for productivity improvements and say that the airline is already at a disadvantage with competitors when it comes to labor costs.
TWU officials have worked closely with American managers in recent years to boost efficiency at maintenance bases and bring in revenue from outside contracts with other airlines. But union leaders have also said that their members want to see a restoration of wages and benefits lost in 2003, when employees approved concessions that kept the airline out of bankruptcy.
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