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Air controllers contract talks stall: union

Posted on: Friday, 31 March 2006, 13:48 CST

WASHINGTON (Reuters) - Contract talks between the U.S. Federal Aviation Administration and the air traffic controllers' union broke down on Friday, raising the possibility the government could impose employment terms, according to the labor group.

Talks have been in mediation for four weeks, with the two sides differing mainly over wages. If the talks are not revived, the FAA can send proposed contract terms to Congress. The FAA has said it believes it can impose a contract on the 14,500 unionized controllers if Congress fails to act.

Since talks began in July, relations between controllers and the FAA have sunk to their worst level since 1981, when then-President Ronald Reagan fired 13,000 striking controllers who refused his back-to-work order.

The talks had been moving slowly on the issues of staffing, wages and work rules as the FAA seeks to bring costs down.

An FAA spokesman could not be reached immediately for comment. The FAA has sought lower wages for new hires, a key issue for the controllers union since many are now or soon will be eligible to retire.

John Carr, the president of the National Air Traffic Controllers Association, said in a statement, "We offered to meet the FAA's stated goals and they said no."

FAA Administrator Marion Blakey has said her agency is facing budget pressures and must cut costs. She has said the next controller contract will be less generous than the last, negotiated in 1998.

Blakey said in January that she wanted an agreement in place early this year. The FAA says average compensation -- including overtime and benefits - tops $165,000 for unionized controllers.

Source: REUTERS

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