Union Rejects American Airlines Offer
FORT WORTH, Texas (AP) – The union that represents mechanics and bag handlers at American Airlines has rejected a contract proposal, according to the company.
American, the nation’s largest carrier, said on its negotiations Web site late Friday that the Transport Workers Union had rejected a comprehensive proposal that included no pay raises but lump sum payments and additional vacation and sick leave.
The proposal included provisions on pay, holidays, sick leave and vacation while recognizing “the economic realities facing the industry and our company.”
American’s parent, Fort Worth-based AMR Corp., lost $328 million in the first quarter, due largely to record prices for jet fuel.
“In addition, American’s labor costs are the highest in the industry,” the company said on the Web site. “While we could not address structural increases at this time, the tentative agreement did include improvements in pay and paid time off for TWU-represented employees.”
A call to a union spokesman for comment was not immediately returned on Saturday.
American’s proposal didn’t include wage increases but called for lump sum payments of 5 percent upon signing and 3.5 percent a year later. The airline also indicated it would explore “variable” pay tied to corporate and local business results.
The company would have added one holiday this year and two next year and increase holiday pay to double time from time and a half. Sick leave would rise to six days this year and eight next year, from five.
It also would have adopted a new profit-sharing plan. Unlike counterparts at Continental Airlines Inc., American’s union employees haven’t received profit sharing the past two years because profits were too small to trigger awards.
American is also negotiating over a new contract with pilots – talks have made little progress so far, according to the union – and soon with flight attendants. Union employees are working under wage and benefit concessions that were approved in 2003, when the company was close to bankruptcy.
