American’s Chief Sees No Compromise
American Airlines Chairman Robert Crandall said Wednesday that he does not see how a compromise can be reached on a critical contract issue with the Allied Pilots Assn., which will be free to strike the airline in mid-April at the end of a government-ordered cooling-off period.
Crandall told a news conference that he doesn’t want a fight with his pilots but that he can’t see how the company could compromise its position that the new regional jets American wants to buy must be operated by lower-paid crews at its American Eagle subsidiary. Crandall said he hopes an agreement can be worked out for a new contract before the strike deadline.
“It’s time to make a deal,” Crandall said, although he offered no concessions.
A special Presidential Emergency Board, appointed by the White House to avert a strike for at least 60 days, on Wednesday wrapped up five days of hearings on the dispute. The board’s next step is to make nonbinding recommendations for a settlement. If either side rejects those, the union will be free to strike April 17 unless Congress enacts special legislation. Crandall said he thinks congressional intervention is unlikely.
At the conclusion of Wednesday’s hearings, the board offered to try to mediate a settlement over the next few weeks. The two sides are considering the offer.
Meanwhile, labor problems are threatening to spread to United Airlines, where the Assn. of Flight Attendants has announced plans for a so-called hit-and-run strike campaign to disrupt operations at the world’s largest airline.
The campaign, called Create Havoc Around Our System, or CHAOS, is patterned after a similar, successful tactic the union used against Alaska Airlines in 1993 when it staged unannounced strikes of 20 minutes to an hour to ensure a disruption of passenger service.
It could be months before the AFA is free to stage any disruptive walkouts under the terms of federal law. AFA began posting informational pickets at selected airports last weekend as part of an escalating public relations campaign to warn travelers about the union’s labor dispute with United. United spokesman Richard Martin said the airline does not think the CHAOS campaign will have much impact and that he hopes the two sides can reach agreement on a new contract before the AFA feels the need to escalate the campaign. “We’re working really hard to get an agreement,” Martin said.
Complicating the negotiations was a settlement this week between United and both the Air Line Pilots Assn. and the International Assn. of Machinists, providing for 10% pay raises over the next two years and a huge boost in pension contributions. Both the pilots at American and the flight attendants at United are citing the size of the United settlements in their respective negotiations.
