Givebacks at other airlines could impact AMR talks

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



By John Crawley
WASHINGTON, July 11 (Reuters) - American Airlines(AMR) Chairman Donald Carty
said on on Thursday he hoped the pace of contract talks with the carrier's
pilots would quicken in mediation, but he did not rule out that big labor
concessions at other carriers might affect the scope of an agreement.

"We'll have to wait that out," Carty told a National Press Club audience on
the prospects that potential givebacks elsewhere could impact negotiations
with the Allied Pilots Association, which represents 13,000 pilots at the
world's biggest airline.

"Of course we haven't seen any real concessions at any other carrier at this
stage," Carty said. "At American, we've taken the view that it is
management's job to find all of the ways to enhance profitability of our
business short of going after our employees to solve that problem.

"There are a lot of changes we can make that we can control. If there were
massive concessionary agreements at major competitors, it would obviously
have an impact on the future of American and the future of its employees,"
Carty said.

United Airlines (UAL) and US Airways (U) are seeking economic concessions
from all their employee groups as part of efforts to turn around their
finances. As a condition of federal loan guarantees, the two carriers must
slash labor costs substantially.

American did not seek loan credits from the government to bolster its
business plan for reversing huge losses blamed on an industry wide drop in
demand caused by recession and the fallout from the Sept. 11 attacks.

United pilots recently agreed to a 10 percent wage reduction in return for
increases later and stock options. Pilots at US Airways have tentatively
agreed to roughly 26 percent in pay cuts but talks continue on a final deal.

The talks between American and its pilots, which began a year ago, have
stalled over wages as the union seeks salaries in line with industry leading
contracts won by their colleagues at United and Delta Air Lines (DAL) in
recent years.

The National Mediation Board, which oversees airline contract negotiations,
appointed a mediator on Monday for the American talks.

American pilots are paid on average about 20 percent to 30 percent less than
their counterparts at United and Delta.

Robert Ames, an American captain and vice president of the pilots union,
said the contract negotiations could drag on despite the influence of
mediation to reach a deal.

"We would like to conclude this in six months. If we don't get (an
agreement) in six months, we might not get it for a year," Ames said in an
interview after Carty's remarks in Washington.

Recent mediated contract talks involving big airline unions were not settled
quickly. Some prompted White House intervention or the threat of
intervention to prevent strikes and facilitate 11th-hour settlements.


©2002 Reuters Limited.

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]