The Allied Pilots Association said its board of directors will meet on January 2 and 3 to discuss American Airlines’ latest proposal to the pilots.
If the union does not accept the Fort Worth-based carrier’s offer, the two sides are scheduled for arbitration hearings on February 24 through February 26. And if the offer is accepted after January 3, but before arbitration starts, pay raises will no longer be retroactive to December, American said.
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American Airlines management presented a revised proposal to APA today in the joint collective bargaining agreement talks, along with a proffer of arbitration.
American Airlines President Scott Kirby outlined specifics of the revised proposal in a letter to all pilots. In his letter, Mr. Kirby states that the proposal includes "a pay scale that provides pilots with increases of approximately 23% upon signing, bringing American's pilots to rates 7% higher on average than Delta's rates. This increase would be effective for the current December's bid period — and we have told the APA we will maintain that effective date if the offer is accepted prior to January 3, 2015." He also states that "negotiations for a joint collective bargaining agreement have concluded."
Mr. Kirby also reiterated the company position on what he characterized as "non-wage" items. "Our offer also includes a number of non-wage enhancements that were made in response to requests by APA. The Company estimates the net economic impact of these non-wage items in total to be an increase in annual pilot costs of approximately $20 million over five years. In an arbitrated award, these enhancements would likely go away, as they would have to be offset by reductions elsewhere in the contract."
As we continue collecting relevant details from management and finalizing contractual language for review by the APA board of directors, we will update you further.
The arbitration is scheduled for Feb. 24–26, with arbitrators Richard Bloch, Dana Eischen and Stephen Goldberg.
APA President CA Keith Wilson has scheduled a special board of directors meeting for Jan. 2 and 3. The board will determine the union's response to management's revised proposal.