AMR, pilots agree on language for new labor deal
By Nick Brown
(Reuters) - Bankrupt AMR Corp, parent of American Airlines, has agreed with its pilots' union on language for a new labor deal to be voted on by union members, the union announced on Friday.
AMR has been in talks with the Allied Pilots Association as it tries to reduce labor costs and emerge from bankruptcy.
The APA's board on Friday presented a "counter-proposal" to offers from AMR management, which the company accepted, according to the statement. The contract must be ratified by union members, who rejected a previous labor proposal in August.
Union spokesman Dennis Tajer would not disclose specifics on the tentative deal, but said it was "industry-standard, which has been our goal all along."
Last week, Tajer told Reuters the union had been seeking a deal on par with competitors like Delta Air Lines, particularly on issues of pay and outsourcing flights to pilots not represented by the union.
AMR has already reached new collective bargaining agreements with unions representing its flight attendants and ground workers. A deal with pilots would achieve peace with all unionized workers.
Investors would view a consensual agreement as a huge step.
"To put good value on the equity, you need to have an agreement with the pilots," Ray Neidl, an airline analyst with Maxim Group, told Reuters on Friday. Continued...