According to news reports, American Airlines has rejected a contract proposal from its pilots' union, saying it was too costly. A UPI report says:The carrier, which has its headquarters in Dallas, said the package would increase its pilots' costs by more than $1.4 billion a year and couldn't be sustained.For its part, the Allied Pilots Association, the union representing the 12,000 American Airlines pilots, issued a news release expressing their "disappointment" over the breakdown in negotiations, and citing management's "unwillingness to bargain in good faith" as the reason for the breakdown. In addition to pay, work rules, and retirement, negotiators had been considering the issues surrounding flow-through/flow-back provisions aimed at facilitating career advancement for American Eagle pilots while maintaining seniority protection for American Airlines pilots.
American's pilot cost per hour would be more than that of competitors Delta Air Lines and Continental Airlines combined, the company told the Allied Pilots Association Thursday.
Looks like binding arbitration is now on the horizon for American Airlines and its pilots.
