American Struggles With Costs, Unions as Mergers Boost Rivals
American Airlines is scheduled to begin talks with its pilots' union today, more than four years after talks began. The pilots are working at the same hourly rates as 1993, and are frustrated over the lack of progress. Flight attendants, mechanics and ground workers also began talks as long as three years ago. Only 90 technical specialists out of 50,000 workers have approved new contracts. The company is worried about slipping profits as negotiations drag on and competitors merge, giving them an advantage. American says that studies have shown that productivity is the reason behind their problems, and that the unions need to work with them to develop rules that help, not hurt, productivity. A tentative contract for baggage handlers was withdrawn in June by the Transport Workers Union, who said they would not recommend it. The mechanics and stock clerks rejected a contract offer last month, and voted to approve a walkout.
See "American Struggles With Costs, Unions as Mergers Boost Rivals", Mary Schlangenstein, Bloomberg News, September 20, 2010