April 5, 1989
TWU Rejects American Contract
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 2
Article Text:
Members of the Transport Workers Union of America overwhelming voted down a contract offer made by American Airlines, according to a vote tally released by a union officer Tuesday.
The votes, counted on Saturday, revealed 12,143 members
voted against the offer while only 5,140 voted to accept
the proposal which American says would raise salaries and benefits by $610 million over the next four years.
But Tulsa-based Local 514 President Ed Wilson, who provided the tally, said concessions made by the union in 1983 have saved American billions of dollars.
"The vote was a clear indication TWU will not be bullied by corporate power," Wilson said from Fort Worth, where
he will be among the union negotiators meeting with American officials on Wednesday.
Wilson would not disclose the location of the meeting, but he said it would be held in the Dallas area and begin sometime Wednesday morning.
He said the vote refuted American's earlier claim that most of the opposition to the company proposal was concentrated in Local 514.
Breaking down the voting by city, Wilson said TWU members in New York, Los Angeles, San Francisco, Boston, Washington, D.C., Chicago, Detroit and Raleigh Durham said no to the
offer.
Only Dallas and Detroit voted in favor.
In Tulsa, 4,866 TWU members turned thumbs down on the proposal compared to 804 who favored it.
Over the weekend, TWU International Vice President Ed Koziatek called the voting one of the heaviest turnouts ever.
"We feel obligated to American Airlines," Wilson said. "We're proud of the company we've built. We want to provide reliable and safe transportation to the flying public. But we're also asking for fairness from management."
American did not have a corporate spokesman available to respond on Tuesday afternoon. Over the weekend, the company said it was "terribly disappointed by the decision not
to ratify."
Wilson said relatively lower wages to its workers have given Fort Worth-based American a big advantage over other air
carriers.
"We want to get on a level where we are playing with everyone else," he said. "American is not meeting the industry
standards in pay and benefits."
Wilson also said TWU hopes a strike can be avoided.
"We don't want the public to suffer," he said, adding
the union has only struck twice against American, in 1950 and 1969.
The union's contract with American expired March 1.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL20204
April 6, 1989
American, Union Take Pact Dispute to Mediator
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 2
Article Text:
A federal mediator will attempt to resolve an impasse in
contract negotiations between American Airlines Inc. and
the union representing its mechanics and ground crews.
Negotiators from American and the Transport Workers Union of America met in the Dallas-Fort Worth area Wednesday but both sides emerged saying an impasse had developed.
American spokesman Jim Brown said the Fort Worth-based carrier determined "no purpose would be served by further meetings."
The meeting was held after TWU members rejected a $610 million contract offer in a vote described by the union as "overwhelming and unprecedented." Over 12,000 transport workers voted
against the offer while only 5,140 were in favor of it.
After American rejected further negotiations, TWU asked for federal mediation under the Railway Labor Act.
"We have requested the services of the National Mediation Board in order to fully comply with the provisions of the law," the union said in a release.
Dave Bushnell, a spokesman for the National Mediation Board, said the board accepted the mediation request on Wednesday.
"We were sort of expecting it," he said.
Bushnell said the board's first step will be the appointment of a mediator, which could be done as early as later this week.
"Then the mediator will fly out to meet with each side," he said. "Eventually he will arrange a face to face meeting between the parties."
Under federal mediation laws, work will continue at American facilities under the provisions in place on Wednesday.
"Everything is frozen at current conditions," Bushnell said. "The union is prohibited from taking any job actions or strikes. The company must maintain wages and working
hours and conditions."
Bushnell said there is no prescribed period for mediation to last.
"In the Eastern Airlines situation," he said, "mediation went on for 13 months. While I wouldn't say that was a short mediation period, it also wasn't the longest. It's hard
to predict how long it might take. The mediator can keep
the parties together indefinitely. It's purely at his discretion."
If the mediator determines the impasse cannot be resolved, both sides are released. After a 30-day cooling off period, then TWU would be free to walk out.
In Wednesday's release, the union said the following demands would have to be met for contract ratification:
Employees must not be required to contribute to medical insurance costs.
The company's pay progression scales, which the union
says are inconsistent with industry standards, must be changed.
American must change its incentive pay proposal.
What the union sees as a vacation accrual disparity
must be corrected.
Contract terms must not exceed three years.
Wages must be retroactive to March 1 (when the old
contract expired).
American's Brown did not comment on the demands but said the airline "regrets this situation has developed."
TWU said it will take "all actions available . . . to
obtain the just demands of our membership" if mediation
fails.
In the April 1 vote in which TWU's rank-and-file voted to reject the offer, union leaders also were authorized to
call a strike.
Local 514 President Ed Wilson said earlier this week TWU's last strike against American was in 1969.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL20480
April 11, 1989
Mediator Named in American Contract Flap
By Staff Reports
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: B5
Estimated Printed Pages: 1
Article Text:
Harry Bickford of Miami, Fla., has been named mediator in the contract dispute between American Airlines Inc. and
the Transport Workers Union of America.
The National Mediation Board confirmed on Monday it had
selected Bickford.
A meeting has been scheduled between union and company negotiators in Dallas on April 18.
TWU requested the involvement of the NMB after contract negotiations broke down. In votes tallied on April 1, TWU members rejected an offer from American. The Fort Worth-based carrier announced after a meeting the following week that it saw no purpose in continuing negotiations.
American termed the contract package rejected by TWU as its final offer.
The union and the carrier disagree over wages and seniority schedules.
TWU represents American's mechanics and ground crews.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL21486
April 15, 1989
Transport Workers Stage Brief Picket
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b5
Estimated Printed Pages: 2
Article Text:
No service disruptions were reported at Tulsa International Airport Friday afternoon as members of Local 514 of the
Transport Workers Union of America marched in an informational demonstration connected with the union's contract dispute with American Airlines Inc.
Local President Ed Wilson estimated the number of marchers at over 1,000.
The union members, carrying signs reading "What is right is right" and "AA expansion at workers expenses, began
the march at about 4 p.m. It ended around an hour later.
Wilson said the union is demanding industry standards for wages, progression rates and benefits in exchange for what TWU estimates have been over $2 billion worth of concessions made by the union since 1982.
Wilson called American the most profitable airline in the world and pointed to its recent expansion as evidence.
TWU represents about 22,000 of American's 67,000 employees.
The union requested federal mediation after its members voted down what American termed its final offer. The company then broke off negotiations, saying further talks would
serve no purpose.
The mediator appointed for the dispute, Harry Bickford, has called the two sides together for a meeting at Dallas on Tuesday.
The union's contract with American was up for renewal on March 1, but the advent of federal mediation has frozen
the terms of the old contract in place until the mediator releases the parties.
"It is the TWU's intention to continue to bargain in good faith until TWU members regain a small portion of those
concessions that resulted in American Airlines being the
dominate airline with records profits," the union said.
The informational picketing at Tulsa was part of a national demonstration called by TWU.
Associated Press reported "a couple of hundred" demonstrators were at American's home terminal at Dallas-Fort Worth International Airport. Similar numbers were at O'Hare in Chicago.
Demonstrators in smaller numbers were reported at numerous other airports where American operates.
The demonstrators at Tulsa marched in front of the main entrances of the terminal at the airport.
Airport Director Brent Kitchen said the demonstrators had posed no interference to traffic flow.
"The union was truly cooperative in avoiding disruptions," Kitchen said.
An American spokesman said the company was "frankly puzzled" by the union's decision to demonstrate.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL22537
May 3, 1989
American, Transport Workers Reach Agreement
By Associated Press
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 2
Index Terms:
AIRLINES
UNION
AVIATION
Article Text:
DALLAS - American Airlines and the Transport Workers
Union reached agreement Tuesday on a contract for the company's 23,000 ground service workers after 2 1/2 weeks of mediation.
Details of the contract were not released pending agreement on final language and a vote by the membership.
The mediation was requested after union members turned down American's $610 million offer 12,143-to-5,140.
The offer included raises of as much as 99 percent for some workers, but union leaders had objected to a two-tier wage scale under which it takes new hires as long as 12 years
to reach top pay. The union had sought to reduce that to
about five years. The union also objected to provisions
which would have employees contribute to the company health plan for the first time.
Airline officials complained that the contract was a victim of union politics because several locals were in the midst of election campaigns and candidates used the contract as an issue.
Ed Koziatek, the union's international vice president for American, just last week had expressed doubts that the mediation would lead to a contract.
The four-year pact became amendable on March 1. Under federal law, airline contracts do not expire. If the two sides cannot reach agreement, a mediator is called in to spark negotiations; if the mediator declares an impasse in the talks, there
is then a 30-day cooling off period.
A strike can be called only after that period expires.
The TWU represents about 23,000 of American's 67,000 employees. Its members include the airline's mechanics, bag handlers, ground crews, stock clerks, guards, meteorologists and aircraft cleaners.
Also Tuesday, American's parent company, AMR Corp., confirmed it is on the verge of ordering about 100 new commuter aircraft in a "several hundred million dollar" deal.
The aircraft, seating between 30 and 40 people, will be used for the company's AMR Eagle Inc. subsidiary that feeds some of its major hubs.
Published reports have said the company is leaning toward Swedish manufacture Saab although others mentioned as possible suppliers include Boeing Canada-DeHavilland Division, based near Toronto, and ATR, a joint French-Italian company.
Fort Worth-based American is coming off its most profitable year ever, during which it became the nation's largest carrier. AMR posted 1988 net income of $476.8 million, a 140.3 percent increase from 1987 and 37.9 percent higher than the previous record of $345.8 million in 1985.
The company also reported first quarter profits of $101 million, a 47.7 percent jump from 1988's first three months. Operating revenues were $2.45 billion.
The purchase would be the fourth by American this year. In March, American announced a $3.09 billion deal with Dutch manufacturer Fokker for 75 F-100 planes and options for
another 75; and an approximately $2 billion purchase of
25 Boeing 757s and 10 Boeing 767s.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL27104
May 3, 1989
American, union come to terms
By AP
Section: BUSINESS
Edition: FINAL HOME
Page: 7B
Estimated Printed Pages: 2
Article Text:
DALLAS (AP) - A marathon bargaining session has led
to an agreement in principle between AMR Corp. and the Transport Workers Union on a new contract, averting a threatened strike at American Airlines, the nation's largest carrier.
Neither side released details of the pact Tuesday, except a brief company statement that said union and management
officials believe "the agreement benefits both the company and the union and will enable American to continue the growth plan that has made the airline an industry leader."
The statement by Fort Worth-based AMR said the agreement was reached following a 27-hour continuous bargaining session. Details were withheld pending "agreement on final language and ratification."
The airline and union, which represents about 23,000 of the company's 67,000 employees, had submitted to mediation after American's proposed $610 million four-year contract was rejected in March.
The rejected contract guaranteed raises for all employees, ranging from about 28 percent over four years to about 100 percent during the contract. However the union objected
to American's two-tier wage scale, under which it takes
new employees 12 years to reach top pay. The union had wanted that reduced to five years.
In addition, there were complaints that even with the increases American mechanics and ground service employees would not be the industry's highest-paid.
Also at issue was the company's plan to have employees pay $10 per person - and up to $30 per family - toward health insurance each month. The company previously has paid the entire premium.
The mediation, led by Harry Bickford, continued daily from its April 14 beginning until last Friday, when the parties took a two-day break before resuming Sunday, according to Ed Koziatek, the TWU's international vice president for
American.
As late as Friday, however, Koziatek continued to predict that the talks would not be successful.
Airline officials have complained that the contract suffered from union politics as several locals were conducting election campaigns while the pact was up for ratification in March.
The four-year pact became amendable on March 1, but was rejected 12,143-to-5,140. However under the federal Railway Labor Act, transportation contracts do not expire until
after a lengthy process which involves mediation, followed by a 30-day cooling-off period should the mediator declare an impasse in the negotiations.
The TWU represents the airline's mechanics, bag handlers, ground crews, stock clerks, guards, meteorologists and aircraft cleaners.
Also Tuesday, AMR confirmed it is on the verge of ordering about 100 new commuter aircraft in a "several hundred million dollar" deal.
The aircraft, seating between 30 and 40 people, will be used for the company's AMR Eagle Inc. subsidiary that feeds some of its major hubs.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL27031
May 4, 1989
TWU President Says Much to Be Resolved
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 1
Index Terms:
AIRLINES
UNIONS
Article Text:
Negotiators for American Airlines and the Transport Workers Union of America still have much work ahead of them before their contract impasse is resolved completely, a union official said Wednesday.
The company and the union announced an agreement had been reached during negotiations on Tuesday. But Local 514 President Ed Wilson termed it a "handshake agreement."
"The language still has to be drawn up and written down," said Wilson in a telephone interview from Dallas, where
he has been taking part in negotiations.
He also said while an accord had been reached on major issues, there remained differences between the union and the company on other aspects of the contract.
"Those will have to be worked out," Wilson said.
The veteran Tulsa labor leader described the sessions as "really tough."
"I won't say they were the most difficult I've been involved with," he said. "But there have been many that were easier."
Neither American nor TWU is releasing details of the contract.
Wilson said the agreement was reached after a 27-hour negotiating session. Before that, union negotiators met for five hours.
He said he thought work on the contract might be finished by Friday.
"But everything is still subject to ratification," Wilson added.
Wilson said once the contract has been drafted, ratification ballot will be mailed to union members.
"While they're in the mail, we hold informational meetings."
He said contract details will be released after those meetings.
The agreement was reached after two-and-a-half weeks of mediation.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL27405
June 5, 1989
TWU ratifies pact
By DON STEWART
Section: BUSINESS
Edition: FINAL HOME
Page: 6C
Estimated Printed Pages: 3
Article Text:
In a vote that surprised and disappointed its leadership, members of American Airlines' Transport Workers Union have ratified a four-year contract worth $610 million in wages and benefits.
Throughout American's system, affirmative votes were cast by 75.8 percent of the 22,000-member TWU membership, union leaders said.
In Tulsa, where 6,300 union members are employed at American's Maintenance and Engineering Center at Tulsa International Airport, 66 percent of those voting cast ballots favoring ratification, said Ed Wilson, president of Local 514 of
the TWU.
American officials said they were pleased with the results of the vote, which was conducted nearly a month ago by the various union locals.
"We are delighted at the outcome of the TWU vote," said Charles Pasciuto, American's vice president, employee relations.
"This contract includes many innovative provisions that will benefit both the company and its employees. This clears the way for us to continue building the airline by giving our customers the finest possible service on the industry's youngest and best maintained fleet.
"It is a real win-win deal."
Wilson, who last month urged union members to reject the proposed contract in favor of a more generous proposal that would pay workers more than $900 million in wages and benefits, said he was surprised at the outcome.
"We made concessions while they (American) are making enormous profits," Wilson said. "I think it (the contract) is a
big mistake on the part of both parties.
"We are going to give them $1.5 billion in wage concessions over the next four years. They are going to make so much
money they'll make General Motors look like pikers."
The new contract includes union concessions on work rules, wages, benefits and starting wage rates, Wilson said.
However, the contract did not include American's initial proposal whereby employees would begin contributing toward their own health insurance, a key obstacle in early negotiations between the two sides.
That stumbling block was overcome with the company's proposal of "flex benefits," under which the company will allocate to each employee a certain amount of money to be used toward benefits and the worker will be able to select the desired coverage.
The contract also accelerates the advancement of workers along American's 14-step pay scale. Currently, it takes
workers 12 years to reach the top of the wage scale; workers sought to advance to the top in five years.
Under a compromise agreement, the two sides agreed that some workers could advance to the top of the scale in 10
years. The new scale will take effect in three years, Wilson said.
Much of the wage increases will go to workers at the top of American's wage scale, TWU officials said.
Today, the industry average pay for senior TWU workers is about $20.50 per hour. American's senior ground workers
will be paid $21.50 per hour under the new contract, Wilson said.
American, which is in the midst of an expansion program that calls for the airline to buy up to $2 billion worth
of new aircraft per year through the mid-1990s, sought to avoid a strike or wage concessions that would have come
at the expense of long-term growth, said American spokesman Al Becker.
"This contract allows us to continue our growth plan and through that we can continue to provide job opportunities and increasing job security.," Becker said.
Wilson said American negotiators told him that the new contract includes wages and benefits for 7,000 workers the company intends to hire during the next four years.
Instead of the new contract offering American TWU workers wages and benefits of more than $600 million, a more accurate figure would be about $390 million, not counting the money for new employees, Wilson said.
"We weren't negotiating for those (new) people. We were negotiating for workers who are already with the company," Wilson said.
As far as the company's assertion that the new contract assures workers job security, Wilson said, "The job security they gave us was for people who would not have been laid
off anyway in a growing industry."
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL36631
TWU Rejects American Contract
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 2
Article Text:
Members of the Transport Workers Union of America overwhelming voted down a contract offer made by American Airlines, according to a vote tally released by a union officer Tuesday.
The votes, counted on Saturday, revealed 12,143 members
voted against the offer while only 5,140 voted to accept
the proposal which American says would raise salaries and benefits by $610 million over the next four years.
But Tulsa-based Local 514 President Ed Wilson, who provided the tally, said concessions made by the union in 1983 have saved American billions of dollars.
"The vote was a clear indication TWU will not be bullied by corporate power," Wilson said from Fort Worth, where
he will be among the union negotiators meeting with American officials on Wednesday.
Wilson would not disclose the location of the meeting, but he said it would be held in the Dallas area and begin sometime Wednesday morning.
He said the vote refuted American's earlier claim that most of the opposition to the company proposal was concentrated in Local 514.
Breaking down the voting by city, Wilson said TWU members in New York, Los Angeles, San Francisco, Boston, Washington, D.C., Chicago, Detroit and Raleigh Durham said no to the
offer.
Only Dallas and Detroit voted in favor.
In Tulsa, 4,866 TWU members turned thumbs down on the proposal compared to 804 who favored it.
Over the weekend, TWU International Vice President Ed Koziatek called the voting one of the heaviest turnouts ever.
"We feel obligated to American Airlines," Wilson said. "We're proud of the company we've built. We want to provide reliable and safe transportation to the flying public. But we're also asking for fairness from management."
American did not have a corporate spokesman available to respond on Tuesday afternoon. Over the weekend, the company said it was "terribly disappointed by the decision not
to ratify."
Wilson said relatively lower wages to its workers have given Fort Worth-based American a big advantage over other air
carriers.
"We want to get on a level where we are playing with everyone else," he said. "American is not meeting the industry
standards in pay and benefits."
Wilson also said TWU hopes a strike can be avoided.
"We don't want the public to suffer," he said, adding
the union has only struck twice against American, in 1950 and 1969.
The union's contract with American expired March 1.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL20204
April 6, 1989
American, Union Take Pact Dispute to Mediator
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 2
Article Text:
A federal mediator will attempt to resolve an impasse in
contract negotiations between American Airlines Inc. and
the union representing its mechanics and ground crews.
Negotiators from American and the Transport Workers Union of America met in the Dallas-Fort Worth area Wednesday but both sides emerged saying an impasse had developed.
American spokesman Jim Brown said the Fort Worth-based carrier determined "no purpose would be served by further meetings."
The meeting was held after TWU members rejected a $610 million contract offer in a vote described by the union as "overwhelming and unprecedented." Over 12,000 transport workers voted
against the offer while only 5,140 were in favor of it.
After American rejected further negotiations, TWU asked for federal mediation under the Railway Labor Act.
"We have requested the services of the National Mediation Board in order to fully comply with the provisions of the law," the union said in a release.
Dave Bushnell, a spokesman for the National Mediation Board, said the board accepted the mediation request on Wednesday.
"We were sort of expecting it," he said.
Bushnell said the board's first step will be the appointment of a mediator, which could be done as early as later this week.
"Then the mediator will fly out to meet with each side," he said. "Eventually he will arrange a face to face meeting between the parties."
Under federal mediation laws, work will continue at American facilities under the provisions in place on Wednesday.
"Everything is frozen at current conditions," Bushnell said. "The union is prohibited from taking any job actions or strikes. The company must maintain wages and working
hours and conditions."
Bushnell said there is no prescribed period for mediation to last.
"In the Eastern Airlines situation," he said, "mediation went on for 13 months. While I wouldn't say that was a short mediation period, it also wasn't the longest. It's hard
to predict how long it might take. The mediator can keep
the parties together indefinitely. It's purely at his discretion."
If the mediator determines the impasse cannot be resolved, both sides are released. After a 30-day cooling off period, then TWU would be free to walk out.
In Wednesday's release, the union said the following demands would have to be met for contract ratification:
Employees must not be required to contribute to medical insurance costs.
The company's pay progression scales, which the union
says are inconsistent with industry standards, must be changed.
American must change its incentive pay proposal.
What the union sees as a vacation accrual disparity
must be corrected.
Contract terms must not exceed three years.
Wages must be retroactive to March 1 (when the old
contract expired).
American's Brown did not comment on the demands but said the airline "regrets this situation has developed."
TWU said it will take "all actions available . . . to
obtain the just demands of our membership" if mediation
fails.
In the April 1 vote in which TWU's rank-and-file voted to reject the offer, union leaders also were authorized to
call a strike.
Local 514 President Ed Wilson said earlier this week TWU's last strike against American was in 1969.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL20480
April 11, 1989
Mediator Named in American Contract Flap
By Staff Reports
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: B5
Estimated Printed Pages: 1
Article Text:
Harry Bickford of Miami, Fla., has been named mediator in the contract dispute between American Airlines Inc. and
the Transport Workers Union of America.
The National Mediation Board confirmed on Monday it had
selected Bickford.
A meeting has been scheduled between union and company negotiators in Dallas on April 18.
TWU requested the involvement of the NMB after contract negotiations broke down. In votes tallied on April 1, TWU members rejected an offer from American. The Fort Worth-based carrier announced after a meeting the following week that it saw no purpose in continuing negotiations.
American termed the contract package rejected by TWU as its final offer.
The union and the carrier disagree over wages and seniority schedules.
TWU represents American's mechanics and ground crews.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL21486
April 15, 1989
Transport Workers Stage Brief Picket
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b5
Estimated Printed Pages: 2
Article Text:
No service disruptions were reported at Tulsa International Airport Friday afternoon as members of Local 514 of the
Transport Workers Union of America marched in an informational demonstration connected with the union's contract dispute with American Airlines Inc.
Local President Ed Wilson estimated the number of marchers at over 1,000.
The union members, carrying signs reading "What is right is right" and "AA expansion at workers expenses, began
the march at about 4 p.m. It ended around an hour later.
Wilson said the union is demanding industry standards for wages, progression rates and benefits in exchange for what TWU estimates have been over $2 billion worth of concessions made by the union since 1982.
Wilson called American the most profitable airline in the world and pointed to its recent expansion as evidence.
TWU represents about 22,000 of American's 67,000 employees.
The union requested federal mediation after its members voted down what American termed its final offer. The company then broke off negotiations, saying further talks would
serve no purpose.
The mediator appointed for the dispute, Harry Bickford, has called the two sides together for a meeting at Dallas on Tuesday.
The union's contract with American was up for renewal on March 1, but the advent of federal mediation has frozen
the terms of the old contract in place until the mediator releases the parties.
"It is the TWU's intention to continue to bargain in good faith until TWU members regain a small portion of those
concessions that resulted in American Airlines being the
dominate airline with records profits," the union said.
The informational picketing at Tulsa was part of a national demonstration called by TWU.
Associated Press reported "a couple of hundred" demonstrators were at American's home terminal at Dallas-Fort Worth International Airport. Similar numbers were at O'Hare in Chicago.
Demonstrators in smaller numbers were reported at numerous other airports where American operates.
The demonstrators at Tulsa marched in front of the main entrances of the terminal at the airport.
Airport Director Brent Kitchen said the demonstrators had posed no interference to traffic flow.
"The union was truly cooperative in avoiding disruptions," Kitchen said.
An American spokesman said the company was "frankly puzzled" by the union's decision to demonstrate.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL22537
May 3, 1989
American, Transport Workers Reach Agreement
By Associated Press
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 2
Index Terms:
AIRLINES
UNION
AVIATION
Article Text:
DALLAS - American Airlines and the Transport Workers
Union reached agreement Tuesday on a contract for the company's 23,000 ground service workers after 2 1/2 weeks of mediation.
Details of the contract were not released pending agreement on final language and a vote by the membership.
The mediation was requested after union members turned down American's $610 million offer 12,143-to-5,140.
The offer included raises of as much as 99 percent for some workers, but union leaders had objected to a two-tier wage scale under which it takes new hires as long as 12 years
to reach top pay. The union had sought to reduce that to
about five years. The union also objected to provisions
which would have employees contribute to the company health plan for the first time.
Airline officials complained that the contract was a victim of union politics because several locals were in the midst of election campaigns and candidates used the contract as an issue.
Ed Koziatek, the union's international vice president for American, just last week had expressed doubts that the mediation would lead to a contract.
The four-year pact became amendable on March 1. Under federal law, airline contracts do not expire. If the two sides cannot reach agreement, a mediator is called in to spark negotiations; if the mediator declares an impasse in the talks, there
is then a 30-day cooling off period.
A strike can be called only after that period expires.
The TWU represents about 23,000 of American's 67,000 employees. Its members include the airline's mechanics, bag handlers, ground crews, stock clerks, guards, meteorologists and aircraft cleaners.
Also Tuesday, American's parent company, AMR Corp., confirmed it is on the verge of ordering about 100 new commuter aircraft in a "several hundred million dollar" deal.
The aircraft, seating between 30 and 40 people, will be used for the company's AMR Eagle Inc. subsidiary that feeds some of its major hubs.
Published reports have said the company is leaning toward Swedish manufacture Saab although others mentioned as possible suppliers include Boeing Canada-DeHavilland Division, based near Toronto, and ATR, a joint French-Italian company.
Fort Worth-based American is coming off its most profitable year ever, during which it became the nation's largest carrier. AMR posted 1988 net income of $476.8 million, a 140.3 percent increase from 1987 and 37.9 percent higher than the previous record of $345.8 million in 1985.
The company also reported first quarter profits of $101 million, a 47.7 percent jump from 1988's first three months. Operating revenues were $2.45 billion.
The purchase would be the fourth by American this year. In March, American announced a $3.09 billion deal with Dutch manufacturer Fokker for 75 F-100 planes and options for
another 75; and an approximately $2 billion purchase of
25 Boeing 757s and 10 Boeing 767s.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL27104
May 3, 1989
American, union come to terms
By AP
Section: BUSINESS
Edition: FINAL HOME
Page: 7B
Estimated Printed Pages: 2
Article Text:
DALLAS (AP) - A marathon bargaining session has led
to an agreement in principle between AMR Corp. and the Transport Workers Union on a new contract, averting a threatened strike at American Airlines, the nation's largest carrier.
Neither side released details of the pact Tuesday, except a brief company statement that said union and management
officials believe "the agreement benefits both the company and the union and will enable American to continue the growth plan that has made the airline an industry leader."
The statement by Fort Worth-based AMR said the agreement was reached following a 27-hour continuous bargaining session. Details were withheld pending "agreement on final language and ratification."
The airline and union, which represents about 23,000 of the company's 67,000 employees, had submitted to mediation after American's proposed $610 million four-year contract was rejected in March.
The rejected contract guaranteed raises for all employees, ranging from about 28 percent over four years to about 100 percent during the contract. However the union objected
to American's two-tier wage scale, under which it takes
new employees 12 years to reach top pay. The union had wanted that reduced to five years.
In addition, there were complaints that even with the increases American mechanics and ground service employees would not be the industry's highest-paid.
Also at issue was the company's plan to have employees pay $10 per person - and up to $30 per family - toward health insurance each month. The company previously has paid the entire premium.
The mediation, led by Harry Bickford, continued daily from its April 14 beginning until last Friday, when the parties took a two-day break before resuming Sunday, according to Ed Koziatek, the TWU's international vice president for
American.
As late as Friday, however, Koziatek continued to predict that the talks would not be successful.
Airline officials have complained that the contract suffered from union politics as several locals were conducting election campaigns while the pact was up for ratification in March.
The four-year pact became amendable on March 1, but was rejected 12,143-to-5,140. However under the federal Railway Labor Act, transportation contracts do not expire until
after a lengthy process which involves mediation, followed by a 30-day cooling-off period should the mediator declare an impasse in the negotiations.
The TWU represents the airline's mechanics, bag handlers, ground crews, stock clerks, guards, meteorologists and aircraft cleaners.
Also Tuesday, AMR confirmed it is on the verge of ordering about 100 new commuter aircraft in a "several hundred million dollar" deal.
The aircraft, seating between 30 and 40 people, will be used for the company's AMR Eagle Inc. subsidiary that feeds some of its major hubs.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL27031
May 4, 1989
TWU President Says Much to Be Resolved
By W.K. Stratton
Section: BUSINESS/OIL
Edition: FINAL HOME EDITION
Page: b1
Estimated Printed Pages: 1
Index Terms:
AIRLINES
UNIONS
Article Text:
Negotiators for American Airlines and the Transport Workers Union of America still have much work ahead of them before their contract impasse is resolved completely, a union official said Wednesday.
The company and the union announced an agreement had been reached during negotiations on Tuesday. But Local 514 President Ed Wilson termed it a "handshake agreement."
"The language still has to be drawn up and written down," said Wilson in a telephone interview from Dallas, where
he has been taking part in negotiations.
He also said while an accord had been reached on major issues, there remained differences between the union and the company on other aspects of the contract.
"Those will have to be worked out," Wilson said.
The veteran Tulsa labor leader described the sessions as "really tough."
"I won't say they were the most difficult I've been involved with," he said. "But there have been many that were easier."
Neither American nor TWU is releasing details of the contract.
Wilson said the agreement was reached after a 27-hour negotiating session. Before that, union negotiators met for five hours.
He said he thought work on the contract might be finished by Friday.
"But everything is still subject to ratification," Wilson added.
Wilson said once the contract has been drafted, ratification ballot will be mailed to union members.
"While they're in the mail, we hold informational meetings."
He said contract details will be released after those meetings.
The agreement was reached after two-and-a-half weeks of mediation.
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL27405
June 5, 1989
TWU ratifies pact
By DON STEWART
Section: BUSINESS
Edition: FINAL HOME
Page: 6C
Estimated Printed Pages: 3
Article Text:
In a vote that surprised and disappointed its leadership, members of American Airlines' Transport Workers Union have ratified a four-year contract worth $610 million in wages and benefits.
Throughout American's system, affirmative votes were cast by 75.8 percent of the 22,000-member TWU membership, union leaders said.
In Tulsa, where 6,300 union members are employed at American's Maintenance and Engineering Center at Tulsa International Airport, 66 percent of those voting cast ballots favoring ratification, said Ed Wilson, president of Local 514 of
the TWU.
American officials said they were pleased with the results of the vote, which was conducted nearly a month ago by the various union locals.
"We are delighted at the outcome of the TWU vote," said Charles Pasciuto, American's vice president, employee relations.
"This contract includes many innovative provisions that will benefit both the company and its employees. This clears the way for us to continue building the airline by giving our customers the finest possible service on the industry's youngest and best maintained fleet.
"It is a real win-win deal."
Wilson, who last month urged union members to reject the proposed contract in favor of a more generous proposal that would pay workers more than $900 million in wages and benefits, said he was surprised at the outcome.
"We made concessions while they (American) are making enormous profits," Wilson said. "I think it (the contract) is a
big mistake on the part of both parties.
"We are going to give them $1.5 billion in wage concessions over the next four years. They are going to make so much
money they'll make General Motors look like pikers."
The new contract includes union concessions on work rules, wages, benefits and starting wage rates, Wilson said.
However, the contract did not include American's initial proposal whereby employees would begin contributing toward their own health insurance, a key obstacle in early negotiations between the two sides.
That stumbling block was overcome with the company's proposal of "flex benefits," under which the company will allocate to each employee a certain amount of money to be used toward benefits and the worker will be able to select the desired coverage.
The contract also accelerates the advancement of workers along American's 14-step pay scale. Currently, it takes
workers 12 years to reach the top of the wage scale; workers sought to advance to the top in five years.
Under a compromise agreement, the two sides agreed that some workers could advance to the top of the scale in 10
years. The new scale will take effect in three years, Wilson said.
Much of the wage increases will go to workers at the top of American's wage scale, TWU officials said.
Today, the industry average pay for senior TWU workers is about $20.50 per hour. American's senior ground workers
will be paid $21.50 per hour under the new contract, Wilson said.
American, which is in the midst of an expansion program that calls for the airline to buy up to $2 billion worth
of new aircraft per year through the mid-1990s, sought to avoid a strike or wage concessions that would have come
at the expense of long-term growth, said American spokesman Al Becker.
"This contract allows us to continue our growth plan and through that we can continue to provide job opportunities and increasing job security.," Becker said.
Wilson said American negotiators told him that the new contract includes wages and benefits for 7,000 workers the company intends to hire during the next four years.
Instead of the new contract offering American TWU workers wages and benefits of more than $600 million, a more accurate figure would be about $390 million, not counting the money for new employees, Wilson said.
"We weren't negotiating for those (new) people. We were negotiating for workers who are already with the company," Wilson said.
As far as the company's assertion that the new contract assures workers job security, Wilson said, "The job security they gave us was for people who would not have been laid
off anyway in a growing industry."
Copyright 1989 Tulsa World. World Publishing Co.
Record Number: TUL36631
