Airline relief makes headway; unions to vote on cuts

Advertiser Staff and News Services

American Airlines Inc.'s unions have to "sell" a series of brutal tentative agreements that take away a combined $1.62 billion from their members' pay and benefits.

A weary two weeks lie ahead for union officers of American's pilots, ground workers and flight attendants as they rush to explain the deals made to avoid a bankruptcy filing from American's Fort Worth, Texas-based parent, AMR Corp.

For many employees, a "yes" vote would eliminate their job.

Meanwhile, Congress all but assured the nation's airlines more than $3 billion in relief yesterday with the House and Senate appropriations committees separately approving packages in the war supplemental legislation that reimburse carriers for security costs and fees.

The Senate committee approved $3.5 billion in aviation relief, including $375 million for airports while the House committee agreed to $3.2 billion in payments for airline security costs and an additional $235 million for airports to pay for modifications to accommodate systems that detect explosives in baggage. The bill is on a fast track for final passage by April 11.

Changes in American's contracts would mean the airline would need far fewer flight attendants and pilots. That's on top of 7,000 jobs cut in the past six months. The pilot union said Monday night that 2,500 more of its members would be lost in the next year.

American Airlines has about 200 employees in Hawai'i and does not have any pilots based in the state.

The carrier is continuing plans for a Chicago-Maui route five days a week to start this month.

If any one of American's 10 union groups votes against the agreement governing those specific workers, the airline will almost certainly file for bankruptcy protection.

Each of the agreements runs six years — far longer than most labor unions prefer — and most call for immediate pay cuts, new restrictions on vacation and sick leave and changes in rules that mean American employees will work more hours per week to receive their lowered pay.

Some experts believe that the votes will pass, as American's employees recognize bankruptcy would be worse.

"We have a huge task in front of us to educate our membership," said George Price, spokesman for the Association of Professional Flight Attendants, whose board approved $340 million in annual cuts late Monday.

Price wouldn't disclose details of the agreement; the flight attendants are only major group that hasn't released at least cursory details of the concessions.

The Allied Pilots Association has an exceptionally difficult road ahead. The pilots union's agreement requires up to 2,500 American pilots to be furloughed over the next year, including retirements, in addition to 1,078 already laid off.

Without a new contract since Aug 31, 2001, the pilots face a choice to accept a deal that will lower their pay 23 percent almost immediately before slowly regaining the lost wages over six years.

Union president John Darrah released the details of the $660 million in annual concessions to pilots Monday evening.

Knight Ridder News Service contributed to this report.