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Allied Pilots Association Exchanges Opening Proposals With American Airlines Management for Contract Negotiations; 'Union's Openers Are Designed to Address Pilots' Needs and American Airlines Management's Legitimate Concerns'

Posted on: Wednesday, 20 September 2006, 15:00 CDT

The Allied Pilots Association (APA), collective bargaining agent for the 13,000 pilots of American Airlines (NYSE:AMR), exchanged contract openers with American Airlines management today under the early-opener provision of the collective bargaining agreement.

"We look forward to working with American Airlines management to negotiate our next contract," said APA President Captain Ralph Hunter. "On many occasions, management has acknowledged our pilots as essential business partners. As such, we are seeking a contract that recognizes the key role our pilots play in the operation of the airline -- a contract founded on the concept of fairness.

"APA's proposal is designed to recognize the sacrifices our pilots made to keep the company solvent in 2003 and seeks to recapture lost purchasing power, increase schedule flexibility, and enhance career and retirement stability," Hunter added.

Consistent with the early-opener provision in the APA-AA Collective Bargaining Agreement, management served notice to APA on July 21 that it intended to commence negotiations. Since May 1, 2006, either party had been at liberty to serve 60 days' notice to the other, in accordance with Section 6 of the Railway Labor Act governing airline industry labor negotiations.

"Our opening proposal and the specific proposals that will follow are designed to address both our needs and American Airlines management's legitimate concerns," Hunter said.

Hunter reported that APA's opener is focused on six primary areas: compensation, job security, retirement security, gain-sharing, investment protection and quality of life issues.

"Thanks in large measure to the sacrifices made by our pilots and other line employees, American Airlines has successfully navigated from the brink of bankruptcy," he said. "As we begin negotiations, the time has come to provide our pilots with a return on their investment in the airline."

In May 2003, the pilots of American Airlines ratified an agreement that contained concessions valued at $660 million annually as part of the carrier's consensual restructuring outside of Chapter 11. The airline has since returned to profitability, reporting a profit of $291 million for the second quarter of 2006, its most recent reporting period. American Airlines management collected bonuses totaling approximately $94 million in April, providing further evidence of the carrier's ongoing recovery.

Founded in 1963, APA is headquartered in Fort Worth, Texas. There are currently 2,852 American Airlines pilots on furlough. The furloughs began shortly after the Sept. 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union's Web site address is www.alliedpilots.org. American Airlines is the nation's largest passenger carrier.

Source: Business Wire

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