SF Gate: American Airlines pilots join two other unions in balking at pay cut vote

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inancial0653EDT0018.DTL

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Wednesday, April 23, 2003 (AP)
American Airlines pilots join two other unions in balking at pay cut vote



   (04-23) 05:27 PDT FORT WORTH, Texas (AP) --
   American Airlines pilots are threatening to join other unions in balking
at wage and benefit cuts they already approved to keep the airline
solvent.
   Although the Allied Pilots Association said Tuesday it won't call for a
new vote on the measure, a spokesman said union directors were considering
telling their president, John Darrah, not to sign the ratification papers.
   Two other unions, the Transport Workers Union and the Association of
Professional Flight Attendants, have both called for another vote,
increasing the possibility that the deal will be rejected.
   Meanwhile, The Dallas Morning-News reported that the board of American
parent, AMR Corp., will likely discuss chairman and chief executive Donald
J. Carty's future during a previously-scheduled directors' conference call
on the airlines' earnings on Wednesday. The newspaper cited an
unidentified source close to the board.
   Board members are apparently dissatisfied with Carty because he failed to
tell union leaders about executive perks before employees voted on the
labor concessions last week.
   American spokesman Bruce Hicks called the report speculation and said the
company would have no comment.
   The unions reacted angrily when they learned after consenting to the
concessions that American had approved bonuses and pension payments --
executive perks that would be protected in bankruptcy -- but asked
rank-and-file workers to take deep pay cuts.
   Carty has apologized for not telling workers sooner about the perks. The
company has canceled the bonuses but not the $41 million in pension
funding.
   "The question has been whether we were going to have a revote, and our
board has determined there is no need for one because it's in our bylaws
and also explicit in the agreement itself that it does not take effect
until our president signs it," said Andy Sizemore, a spokesman for the
Allied Pilots Association.
   Sizemore said the decision on whether Darrah would sign the agreement
depends on what is "in the best interests of our pilots and American
Airlines."
   Also Tuesday, Association of Professional Flight Attendants spokesman
George Price said their new vote will involve a 30-day paper ballot. He
said details on when the revote would begin were being worked out.
   Some American employees, while angry about the management benefits, still
fear deeper wage cuts and more layoffs if fallout from the perks causes
the concession deals to fail, prompting American to file for bankruptcy.
   Airlines have been reeling for months, hurt by the sluggish economy,
fallout from the Sept. 11 attacks, fears over the SARS virus and the war
in Iraq. United Airlines is already in bankruptcy.

On the Net:
   AMR: www.amrcorp.com

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Copyright 2003 AP

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