Pilots, American Reach Tentative Accord

As the nation was celebrating Labor Day, American Airlines and its pilots union reached a preliminary contract accord after more than two years of talks.

Allied Pilots Assn. officials will meet later this month to consider the proposal, which union leaders called a “very fair contract.”

American executives refused to divulge details of the proposal, and APA spokesman Gregg Overman did not return calls Monday.

APA President Jim Sovich praised the offer in a telephone message to pilots.

“In my opinion, it is a very fair contract that provides the pilot with the job security, pension security and compensation he and she needs in exchange for the productivity enhancements the company needs to compete.”

In the message, Sovich said the proposal has “a combination of pay raises and stock options during the length of the contract that ensure the compensation package is industry-leading.”

Pilots at American have been working under the terms of a contract that became amendable on Aug. 31, 1994; negotiations for a new deal started two months before that.

“With this matter behind us, we can now focus our full attention on providing the outstanding service our customers expect,” American President Don Carty said in a statement.

The union never set a strike deadline, but threats were made earlier this year as the two sides used federal mediators to help resolve their differences.

It was unclear what role, if any, the mediation played in the proposed settlement.

At issue in the talks were pay, job security and working conditions. Pilots were seeking pay increases of 5% a year retroactive to Aug. 31, 1994. American had sought salary concessions, saying its costs aren’t competitive, but it dropped that demand during negotiations.

Sovich said pilots got a fair deal but said he’d accept the blame for concessions the union didn’t get.

“Fellow pilots, it has been a very long road,” he said. “As your president, any shortcomings in this proposed contract should appropriately be laid at my door and no one else’s.”

It was only about a week ago that APA directors, meeting in Washington, rejected what the airline called a “comprehensive settlement proposal.” That proposal was passed to the union board without endorsement from the negotiating committee.