Labor Demands Cloud AMR Outlook
American Airlines is in the midst of contract negotiation with its unions. The company is expected to report a large loss this quarter, but workers ? who gave the airline massive concessions six years ago to avoid bankruptcy ? are fighting for a reversal of those cutbacks. Incidentally, other airlines secured even greater concessions through bankruptcy courts, making the current labor costs at American Airlines some of the highest in the industry. But perceived greater support in Washington has promoted the Allied Pilots Association to request a 50% wage raise, while maintenance workers and flight attendants have also made pay demands. Unions have also attacked the bonuses paid to executives at American as well. Negotiations with some of the unions have entered federal mediation. In such cases unions may not strike unless federal mediators declare an impasse.
See "Labor Demands Cloud AMR Outlook", Mike Esterl, The Wall Street Journal, April 13, 2009