AA labor talks still ongoing, but slow

Aug 22, 2008 (Tulsa World - McClatchy-Tribune News Service via COMTEX) -- AMR | Quote | Chart | News | PowerRating -- Aug. 22--Months after they began, negotiations are continuing on new contracts between American Airlines and its pilots, mechanics and flight attendants unions, representatives of the parties say.

But sandwiched between American's proposal in May to lay off 6,800 people companywide and ground more than 75 planes because of high fuel prices and its announcement last week of a major downsizing at its Kansas City maintenance base, contract negotiations appear to have stalled, officials said.

Representatives and members of the Allied Pilots Association, the Transport Workers Union and the Association of Professional Flight Attendants said the company's lack of urgency is a negotiation tactic.

Five-year contracts with the three unions became amendable in May.

"I think they're holding their cards until the end so they can scare us into an agreement," an aircraft mechanic at American's Maintenance & Engineering Center said in a telephone interview.

Chuck Schalk, a mechanic at John F. Kennedy International Airport in New York, said TWU negotiators are as tight-lipped as company management about contract negotiations.

"We don't hear much about negotiations," Schalk said. "It's typical of the

TWU. The last we heard was a company proposal was voted down by the negotiations committee in June. I can't find anybody who can tell me how negotiations are going."

TWU Local 514 President Steve Luis and Vice President Mike McDonald did not return calls seeking comment.

Complicating negotiations are the memories of five years ago when American wrested wage and benefits concessions from the unions in return for not filing a bankruptcy petition. The three unions gave up $1.62 billion a year in wages and benefits during the past five years.

In the face of more than $300 million in bonuses awarded to American's executives and managers in the last two years, the unions are in no mood for more concessionary contracts, spokesmen said.

"We're meeting (in contract negotiations) at a snail's pace," said pilots union spokesman Karl Schricker. "Management is delaying, delaying, delaying. This contract is going to cost them more money, so it's to their benefit to delay."

After a $1.4 billion loss by American parent AMR Corp. in the second quarter -- the company's third straight quarterly loss after six consecutive profitable quarters -- American negotiators are quick to remind their union counterparts of the critical financial condition of the company and the airline industry.

American negotiator Tami McLallen said the parties must consider many factors.

"We're interested in any proposal that balances the needs of all employees, helps us manage our costs, increases productivity and positions us to compete for the long term," McLallen said.

In an effort to soften the impact of layoffs, American has offered early retirement incentives to the flight attendants and mechanics.

More than 900 flight attendants elected to take early retirement bonuses or voluntary leaves. As a result, "We're not having any furloughs," said flight attendant union spokesman Frank Bastien.

On Thursday, American extended by a week its deadline for TWU members and managers to accept early retirement incentives. The company said it plans to cut 1,300 mechanics and 200 managers in the fourth quarter if TWU ranks are not reduced by voluntary retirements.

Members of the TWU, which represents 25,000 workers at American and is the largest union at the company, now have until Aug. 30 to decide whether to accept the early retirement bonuses, the union said on its Web site.

Company officials said the mechanics, one of seven TWU work groups negotiating separately with the company, offered management a comprehensive contract proposal last Friday. The company will respond to the mechanics' proposal within the next few days, officials said.

McLallen said management and the pilots union will meet next week in negotiations with federal mediator Mike Tosi. Follow-up sessions are scheduled in mid-September, she said.

Management and representatives of the flight attendants union met briefly in July. The two sides are scheduled to resume negotiations Sept. 10, negotiators for the two sides said.

"We're very optimistic about arriving at a mutually acceptable agreement," McLallen said.

"We're in the beginning of the process," Bastien said.

D.R. Stewart 581-8451

don.stewart@tulsaworld.com

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