American Seeks to Halt Worker Pay Raises
American Airlines, profitable again after racking up $8 billion in losses since 2001, faces a three-front battle to limit labor costs that are among the highest in the industry. The three unions representing American's employees want to make up for double-digit wage and benefit cuts back in 2003, when the company was on the brink of bankruptcy. They argue that their sacrifices saved the nation's largest airline and they deserve to be rewarded now with big pay raises. Not so fast, airline executives say. This week, American and the ground workers union broke off talks on a limited contract extension and pay increase. They'll resume negotiations in November. Last week, American offered pilots pay increases ? if they fly more hours. The proposal would not raise basic wage rates.
See "American Seeks to Halt Worker Pay Raises", David Koenig, San Francisco Chronicle, October 7, 2007