AMR Union to Vote Again on Concessions in Light of Bonuses

Enraged by an American Airlines plan to give bonuses to top executives, the flight attendants’ union said late Friday that it would scrap results of a vote that approved concessions the company says it needs to stay out of Bankruptcy Court.

The union said it planned to schedule a new vote as quickly as possible.

American parent AMR Corp. said Friday that executives had decided not to accept the bonuses, which were disclosed after employees voted to accept $10 billion in concessions over six years. Chairman and Chief Executive Donald J. Carty apologized for not telling unions about the bonuses sooner.

Still, the president of the flight attendants’ union said the company had failed in its obligations to employees.

“The vote is so tainted that we are proceeding with a revote,” said John Ward, president of the flight attendants’ union.

The union’s move threatened to push American closer to a bankruptcy filing just two days after flight attendants and members of its two other main unions narrowly approved the concessions, which included wage cuts.

After learning of the plan for a new round of voting by the Assn. of Professional Flight Attendants, American said it stood by the results of the earlier vote.

“American Airlines has a valid, ratified agreement with the APFA,” company spokesman Bruce Hicks said.

Leaders of unions representing pilots and ground workers also complained about the bonuses, along with the company’s decision to partially fund supplementary pensions for 45 top executives. The pensions would be protected even if American files for bankruptcy protection.

The unions contended that those moves were inappropriate at a time when the airline was asking employees to ratify pay cuts of 15.6% to 23%.

American said it would not rescind the added pensions, which it said were necessary to keep senior executives.

American disclosed the bonuses and extra pension benefits late Tuesday in a Securities and Exchange Commission filing. They caused an uproar when employees learned of them Thursday.