Could Strike If Impasse Declared

Pilots at American Airlines made wage and benefit concessions to save the airline from bankruptcy in 2003. That five-year agreement became amendable on May 1 this year, but talks on new terms have already been underway for two years.

Sensing a need for stronger tactics, the Allied Pilots Association last summer elected a new slate of executives who promised a harder line in dealing with American.
That harder line started with a September letter from new APA President Lloyd Hill to American CEO Gerard Arpey, in which Lloyd blasted Arpey's leadership, charged that airline pressure on employees to work when sick had been responsible for pilot suicides, and called executive bonuses, "blood money."

As ANN reported, Lloyd promised Arpey, "We'll see you in court, in the newspapers, and on the picket line."

The pilots made a starting proposal for a 50 percent pay raise, to bring pay levels back to 1992 levels, adjusted for inflation, with an immediate billion-dollar payment to bolster the pension fund.

The airline's official response is no big surprise. The Washington Post reports that American has rejected the terms, saying they would add $3 billion to the company's annual operating cost and, "are not in the best long-term interests of either our company or our pilots."

The rejection offered no alternative terms, so the union is demanding to know from management if that means the talks are at an impasse. That determination is far more than semantics. The contract containing the concessions did not expire on May 1, but became "amendable."

The distinction is that pilots still are under contract, and can't legally strike unless an impasse is declared. If the two sides can't agree they're at an impasse, the National Mediation Board would have to decide. An impasse would clear the way for a strike.

The timing is particularly ugly for American Airlines. The airline lost $328 million in the first quarter as fuel prices soared, and has since raised fees for almost every function tied to flying on a commercial airliner today -- from checking a single piece of luggage, to calling American's phone service to make a reservation.

American also faces upcoming contract talks with its flight attendants and ground workers, who are no doubt watching closely to see how the tough stand by pilots works out.

FMI: www.aa.com, www.alliedpilots.org