American, pilots say they're ready to restart contract talks

Posted Wednesday, Sep. 26, 2012 0 comments  Print Reprints
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American Airlines and its pilots union are ready to start talking.

Each sent letters to the other this week expressing a desire to restart contract negotiations. If a meeting is scheduled, it would be the first time the pilots and American meet at the bargaining table since June.

After the summer talks, American's pilots voted down the bankrupt carrier's last and best offer, which led to a bankruptcy judge allowing American to reject its current pilot contract and impose work rules that it says are necessary to restructure.

When American started implementing some of those work rule changes last week, it had higher-than-usual flight delays and said it was canceling flights partly because more pilots were calling in sick and more last-minute maintenance requests were being made.

The Allied Pilots Association, which denies that it has organized a sickout or work slowdown, had asked American to "put in writing" its request to restart talks, and it received a letter Monday from American.

The union responded the next day.

"I replied in a letter [Tuesday] that we are likewise interested in the resumption of talks and that we share the same commitment to reaching a consensual agreement on behalf of the pilots we represent," union President Keith Wilson said in a hotline message to pilots Tuesday afternoon.

"Please conduct yourselves as the consummate professionals that you are," he added.

American spokesman Bruce Hicks said the airline is committed to reaching a deal with its pilots as it has with all its other union groups, including the flight attendants and the mechanics.

"We were disappointed that the tentative agreement with the APA did not ratify," Hicks said, referring to the offer that included pay raises but increased the amount of code-sharing American could have with other domestic airlines. "We have been ready to return to negotiations with the APA for the past several weeks."

Maxim Group analyst Ray Neidl said it is important for American to reach a deal with the union, and in a research note to investors Tuesday he compared American's pilot dispute to the labor tensions at Eastern Airlines in the 1980s that partly led to that carrier's demise. Neidl said the issues between American and the pilots have become "emotional."

"The pilots union has been strong in its statements saying that this was no organized job action, which is illegal, but nevertheless it has caused temporary inconvenience for customers," Neidl wrote. "We believe that any job actions, organized or otherwise, hurt the company in the short term if it continues."

Separately, more than 1,500 mechanics and maintenance facility clerks have applied for an "early out" program being offered by American Airlines to Transport Workers Union members.

According to the union's Local 514 website, as of Tuesday morning, 1,507 workers had asked to be considered for the program, which includes severance payments starting at $12,500 depending on the worker's seniority and time at the company.

Notably, 713 workers at the Tulsa maintenance facility have signed up with 218 employees at Alliance Fort Worth also opting for the program. The Dallas/Fort Worth maintenance line has 163 employees asking for the early out.

Union members had until Tuesday evening to sign up for the program and until Sunday to let American know if they want to change their minds.

With the early out program, American will lay off fewer mechanics and ground crew workers than it originally anticipated.

In February, American estimated that it would cut 8,500 Transportation Workers jobs in its restructuring plan, which includes closing its Alliance maintenance facility. Last week, the carrier said that number had shrunk to 4,400.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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