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Arlington Star-Telegram

October 23, 2007

AA pilots Submit Proposal

American Airlines pilots submitted their contract proposal to management earlier today. We're still wading through it, but here are a few highlights:

- Adjusting pilot pay back to regain 1992 purchasing power. How much does this mean in terms of an actual raise? According to the Bureau of Labor Statistics, it would work out to about 49 percent if adjusted through 2007. The BLS doesn't have inflation figures for 2008, but based on the numbers from the union, the final raise would be about 53 percent if it goes into effect on May 1, 2008, which is the date the contract officially opens for changes.

- A signing bonus of 15 percent of pilots' income between July 21, 2006 and the effective date of the new contract.

- Annual raises of 6 percent for the duration of the contract, plus adjustments for inflation.

We'll update the blog as we learn more, and you can expect comprehensive coverage in tomorrow's Star-Telegram, as well as on Star-Telegram.com.

UPDATE, 3:00 P.M.

Here are a few more items in the proposal:

- Holiday pay for any pilot working on 10 specific holidays, including Christmas, Labor Day and Super Bowl Sunday.

- An increase in vacation days, bringing the maximum number of days to 56, from 42 currently.

- Changing sick time to a bank of "personal time" that can be used for any reason, including illness. Pilots will be given 250 hours when they're hired, and will accrue 80 hours per year.

- Eliminating the one-year probation period for new hires.

The union is also asking for some significant changes to the way the next contract would be negotiated. It would essentially begin contract talks 180 days before it becomes open to changes on Jan. 4, 2011. There is a provision for mediation at 120 days before that date. If no agreement is reached by Jan. 4, the union has the ability to engage in "self help" - such as a strike.

And the union is asking for the company to pay all of its direct negotiation costs. Typically those expenses are shouldered by the union.

That would significantly speed up the negotiating time, and it would also give pilots the ability to strike much earlier in the process. Under current federal law, a strike is only possible after lengthy negotiations and mediation and can drag on for years.

The pilots say they don't have an overall figure to sum up the contract's total cost to the airline. But officials I spoke to today said it would add about one half-cent to the cost of flying one seat one mile (a standard industry measurement). Overall, he said, that would still give American lower unit costs than Continental, Delta and US Airways.