American Airlines' pilots union ousted its president late Wednesday, a few hours after members decisively rejected a proposed contract with the bankrupt carrier.
David Bates, who had been less aggressive with American's management than previous union presidents, was asked by the Allied Pilots Association board to resign. In a letter sent to union members Thursday, Bates said his resignation was effective immediately.He was replaced Thursday afternoon by Keith Wilson, a first officer based in New York. Wilson will serve out Bates' term, which ends in June.By rejecting the latest proposal, the pilots have left the fate of their contract in the hands of the judge overseeing the Chapter 11 reorganization.U.S. Bankruptcy Judge Sean Lane told company and union attorneys that he plans to rule on the pilots' contract as scheduled Aug. 15. He will wait until after the flight attendants complete their ratification vote Aug. 19 to rule on their contract.Under Section 1113 of the bankruptcy code, American has asked the judge to reject its labor contracts and impose concessionary terms that it says are necessary for the company to restructure.American declined to comment on the leadership change at the pilots union.Bates became president in July 2010 and adopted a less hostile stance in his negotiations with American. The two sides appeared close to a new contract in October, but the deal fell apart right before American's parent company, AMR Corp., filed for bankruptcy.The pilots union board remained split on the best course of action. It approved sending the latest offer from American out for ratification by a 9-7 vote. On Wednesday, the pilots rejected the offer, 61 percent to 39 percent.The proposed six-year contract would have provided pay raises for pilots and given the union a 13.5 percent stake in the company after bankruptcy.But it also would have allowed increased domestic code sharing with other carriers.Union representatives said many pilots opposed the six-year length and a lower pay scale for narrow-body planes. Others said they remain unhappy with American's top management.In his letter to pilots Thursday, Bates said he thought ratifying the agreement "would have been the best course for our pilot group.""The majority of our pilots signaled their preference for taking a different path," he wrote. "Given these circumstances, I concluded that continuing to serve as your president was not in the interests of the pilots I have been charged with representing."Wilson, the new president, has served on the union's negotiating committee and several terms as a domicile vice chairman. In a message sent to pilots Thursday evening, Wilson urged unity, but his tone also suggested a harder stance toward management."The pilots of American Airlines rightfully deserve a contract that respects the many sacrifices we have all made during the past decade," said the message, signed by the full board."We will soon find out which path AMR management chooses to take -- whether they acknowledge our critical importance to the day-to-day operation and long-term health of this enterprise, or whether they repeat their past mistakes."Andrea Ahles, 817-390-7631Twitter: @Sky_Talk
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