« Hedge funds says AMR is not being "sufficiently transparent" in restructuring process | Main | APA and American continue talks over the weekend »

October 19, 2012

American pilots union wants shorter contract, codeshare restrictions and pay rates like Delta and United

As American Airlines and its pilots union finish up a second week at the bargaining table with no deal, the Allied Pilots Association reemphasized its desire for an industry-standard contract.

"We look forward to a prompt resolution to the ongoing talks and to an industry-standard contract that properly recognizes the value our pilots provide to American Airlines. At this juncture, the onus is on AMR to bargain expeditiously and in good faith," the hotline message sent to pilots on Friday evening said.

The union also listed some of its priorities in the negotiations including a shorter contract than the six years that American has proposed, pay rates similar to its competitors, Delta and United and codeshare restrictions similar to what US Airways has agreed to in its conditional agreement with the APA.

With the rhetoric from the pilots, analyst Jason Goldberg at the Leading Edge Consulting Group said it is apparent that the pilots feel they have leverage at the bargaining table as they believe management needs a pilot contract before exiting bankruptcy. However, American is unlikely to meet all of the pilots' desires in a new contract.

"We reiterate our belief that the present round of negotiations will almost certainly result in failure, and that the medium term outlook for an agreement is similarly bleak," Goldberg said.

Keep reading for the full message from APA which was signed by 21 union leaders.

-Andrea Ahles

Fellow pilots,

With the resumption of bargaining, we want to emphasize to you our commitment to attaining an industry-standard contract.

It’s likewise imperative that AMR management understands what we are seeking to accomplish in these negotiations. We have made it clear at the bargaining table that there will be no agreement unless our objectives, as delineated in the counter proposal we have presented, are appropriately addressed. “Son of LBFO” or some derivation thereof will not meet the minimum standard set by the pilots of American Airlines and reinforced by our network-carrier peers.

The priority items APA has identified are reasonable, consistent with industry standards and will enable American Airlines to complete a successful restructuring. They include, but aren’t limited to:

- Eliminate Group II pay band and move the A-319 into Group III, with a weighted industry average before year three
- Pay rates that align us with our network-carrier peers at Delta and United
- Codeshare restrictions in line with those in the US Airways conditional labor agreement
- Contract duration that is shorter than the six-year duration in management’s “last, best, final offer”
- Hard furlough protection that reflects date of signing for the junior pilot
- An industry-standard pension
- An equity claim that can be monetized and has an established “hard floor” protection
- A non-punitive sick policy, with APA control of sick vendor for verification of usage
- No-cost items such as deadhead priority
- Contract language governing layover hotel selection
- Industry-standard per diem (for example, DAL pilots’ $2.25 domestic/$2.70 international)
- Scope limits that include a hard cap or percentage limits on the 50- to 76-seat jets

To summarize, we look forward to a prompt resolution to the ongoing talks and to an industry-standard contract that properly recognizes the value our pilots provide to American Airlines. At this juncture, the onus is on AMR to bargain expeditiously and in good faith. “Kicking the can” delay tactics will not stand.

We will keep you informed as bargaining developments dictate.

In unity,

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef017c32a77118970b

Listed below are links to weblogs that reference American pilots union wants shorter contract, codeshare restrictions and pay rates like Delta and United:

Comments

Donald

Hey APA: your company Is in bankruptcy. You had every opportunity to negotiate this sort of contract before your company filed. Even still, both Delta and United renegotiated the the type of terms you seek after their bankruptcy exits.

Hey APA: you say you don't want the company to "kick the can," but isn't that what you are doing by ignoring the fact that your demands are part of the reason you are in the spot you are in?

Hey APA: get a clue!

APA

AA pilots are a bunch of blood suckers. They will try anything to squeeze every dollar out of the shareholders and put themselves ahead of the flying public.

ray nastasi

the bottom line is horton and aa management have to go. why cant the creditjors see this? everyone else does!

Andrew

Yet again, it doesn't matter what the airline can afford, it only matters what the pilots want...I'm sorry, but demanding the same contract as Delta is not going to get the pilots anywhere.

It is creditors making the final decisions now, and the pilots are talking about raising costs, not lowering them, in bankruptcy...it is not going to happen.

airlinerealist

And they want icewater in hell, too. Welcome to bankruptcy, AA pilots.

You may well get to where you want to be eventually, but in the short term you're going to have to suck it up, just like the pilots at Delta and United did during their bankruptcies.

CAL

HEY JERKS - Us Airways offered the pilots a great deal. Why should they sign onto a terrible deal with AMR? They already took huge consessions in the last contract and AMR spent years looting the company for giant bonuses. I hope you are not other pilots that are blaming these AMR pilots for the AMR mess. I know other pilots wouldn't be that stupid...unless they were petty, jealous and short-sighted about their own futures. I am guessing you are just a bunch of business men that fancy yourselves pilots and pretend to know something about the industry.

Corporate Pilot

Wow. It is apparent that none of the posters here understand the concept of leverage. Here is a formula to explain this: No Bucks = No Buck Rogers! Sooo Simpo!

huggies

Here we go again! Pilots want Delta pay but not the generous Delta scope that goes with it. So AA must give them Delta pay and the US more restrictive scope.

So while Delta allows 325 jets in the 70 seat range I wonder how many the US agreement with the APA allows. Can the fine journalists provide the facts please!

Delta pay with lower productivity. It needs to be a win win not we win you lose.

If they want the Delta deal (ie industry standard) they should take every thing that goes with it.

Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.