By Susanne Pagano
HOUSTON--American Airlines has reached an “agreement-in-principle” with the Allied Pilots Association on a tentative labor agreement, the bankrupt airline and union announced Nov. 9.
The union's board of directors is expected to vote within the next week on whether or not to send the agreement to the membership as a tentative agreement for a ratification vote.
After more than a month of intense negotiations, the pilots union agreed to present American's parent, Fort Worth-headquartered AMR Corp., with a comprehensive counterproposal, and management responded by agreeing to the proposal, union spokesman Gregg Overman said in a Nov. 9 online message to pilots.
“APA designed our comprehensive counter-proposal to provide our pilots with an industry-standard contract while enabling American Airlines to complete a successful restructuring and compete on a level playing field with its network-carrier peers,” Overman said.
The parties did not provide details of the new agreement.
American Airlines spokesman Bruce Hicks said the carrier “worked hard with the APA's negotiating committee to structure an agreement that addresses the priorities identified as most important to our pilots, while staying within the economic framework supported by the Unsecured Creditors' Committee to ensure American's successful restructuring.”
The union represents about 8,000 pilots at American Airlines and is the last work group to reach a cost-cutting labor agreement since the carrier filed for Chapter 11 protection in November 2011 (23 BBLR 1476, 12/1/11).
Members of APA overwhelmingly rejected what American called its final contract offer in August. The tentative six-year deal included pay raises, some furlough protections, and a 13.5 percent equity stake in the company after the airline emerges from bankruptcy protection (24 BBLR 1069, 8/16/12).
Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York then granted the airline's motion authorizing the carrier to abrogate the pilots' current collective bargaining agreement as part of the reorganization plan to cut labor costs and emerge from bankruptcy (24 BBLR 1175, 9/13/12).
By Susanne Pagano
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)