American Airline Contract Approval
Tough negotiations between American Airlines parent corporation, AMR, and the pilot’s union have continued over the last few weeks. Despite tough debt restructuring plans, the pilots are holding firm to their denial of alternative contract offers by AMR. However, the baggage handlers have decided to accept a new contract and avoid further negotiations.
After AMR asked the bankruptcy judge to throw out the contractual obligations to pilots, the union representatives have fired back in hopes of protecting employee benefits. These heated negotiations have taught some American employees a lesson: accept what is being offered and move on.
The baggage handlers at American Airlines sister airline, American Eagle, have accepted the contract being offered rather than risk layoffs. The new contract would allow baggage handlers a 3 percent wage increase during the 6-year contract agreement and offer protection against job loss. Increased holidays and an improved profit-sharing plan are also part of the new agreement.
American Airlines officials are pleased with the acceptance of the new contract proposal between some of its employees, as they continue to insist that labor reductions and modifications are essential for the company to successfully exit Chapter 11.