Are AMR concessions facing resistance?

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Report: Contract concessions running into resistance

DALLAS (AP) =97 Leaders of unions representing American Airlines pilots,=20
flight attendants and ground workers are running into resistance from their=
=20
members over tentative contract concessions geared to help keep the airline=
=20
out of bankruptcy, according to a published report. The Wall Street Journal=
=20
reported in its Tuesday editions that union leaders are going back to=20
management to ask for changes. The newspaper said that complaints involve=20
the six-year length of the contracts and the minimal pay raises of 1.5%=20
that would begin next year. "The sense I am getting is that this (tentative=
=20
agreement) will not pass unless the six-year duration is shortened" and a=20
provision to revisit pay rates before the contract runs out is added, Capt.=
=20
Tom Frazer, chairman of the Allied Pilots Association's Miami base, said in=
=20
an e-mail to pilots Sunday. "It's not pretty. But it does represent perhaps=
=20
the best chance we have at this time for keeping American Airlines out of=20
bankruptcy," John Ward, president of the Association of Professional Flight=
=20
Attendants, told his members, the newspaper reported.

American spokesman Bruce Hicks said the company wasn't discussing where=20
things are in the process. "The process is under way," he told The=20
Associated Press. "They're in the process of meeting with their membership=
=20
in a series of presentations. The process continues. The ratification vote=
=20
is due early next week." Hicks said the company needs all three unions to=20
ratify the tentative agreements. Under the tentative agreements, about=20
2,500 pilots, 2,400 flight attendants and 1,100 to 1,400 ground workers=20
likely will lose their jobs. Remaining employees will work longer hours and=
=20
get less vacation. The deals call for $660 million in cuts from pilots,=20
$620 million from ground workers and $340 from flight attendants.=20
Management and nonunion employees also would take pay cuts totaling $180=20
million of the $1.8 billion in annual savings. Fort Worth, Texas-based AMR,=
=20
American's parent company, has lost nearly $5.3 billion in the past two=20
years and has faced increasing competition from low-fare carriers.


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