Nov. 12 (Bloomberg) -- American Airlines’ pilots union said talks on a new contract recessed for the weekend, after bargaining that was both “productive” and “discouraging.”
Leaders for the Allied Pilots Association will take a break until Monday, Tom Hoban, a union spokesman, said yesterday. Union members received an update on the negotiations with AMR Corp.’s American in an e-mail.
Both parties said earlier this week that an agreement could be near. They have been negotiating a new contract for more than five years.
“Our team began the week with a goal of getting a tentative agreement into the hands of our pilots,” Sue Gordon, an AMR spokeswoman, said in an e-mail. “We’ve made significant movement to meet pilots’ interests in virtually all contract areas.”
Pilots and management still have “gaps” in their proposals for compensation, domestic code-sharing, phased-in productivity, pension for new hires, sick time and vacation, the APA said in the note to members.
“Talks were productive in some respects, as we narrowed the gap on issues that are close to agreement, such as the daily filling of open time and a new premium pay structure,” APA said in the e-mail. “But they have been discouraging in other ways, as senior management is still entrenched in their desire for more domestic codesharing exceptions” and substandard pay.
The Fort Worth, Texas-based airline is proposing pay raises of 3.2 percent in the first year and 1 percent in each of the next three years, while proposals for work rules amount to a $100 million reduction in annual costs, APA said in the e-mail to its 10,000 members.
The APA board has a meeting starting on Nov. 15, and the negotiating committee plans to take a break during the week of the Thanksgiving holiday, the e-mail said.
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