[Doctor Stochastic]

Some time ago PBS ran a two hour show on the demise of Eastern Airlines (anyone remember them?) When they went under, throwing thousands out of work, the head of one of the unions said, "I've been working 50 years to kill Eastern."

[kcvl]

American Airlines, the world's largest carrier, is in much the same position as United. It is awaiting votes on most of $1.8 billion in annual labor concessions that it negotiated with its labor groups last week. Its unions are expected to deliver results of the voting on Tuesday.

Union leaders have said that members are uneasy over the cuts because they last for so long — six years — and provide for annual raises of only 1.5 percent. Officials at that union halted voting late this week because of disagreements with American over terms of the concessions, but voting resumed yesterday.

[kcvl]

April 3, 2003

American's flight attendants would take 15.6% pay cut

American Airlines' flight attendants would see their pay cut by 15.6 percent effective May 1 under their proposed wage concession with the airline.

The Association of Professional Flight Attendants, which represents American's 26,000 flight attendants, released a summary of the concessions on the public area of its Web site. The concessions also include no pay increase effective Jan. 1, 2004, and a 1.5 percent salary increase on May 1 of the years 2004 through 2008.

In addition, flight attendants would no longer receive furlough pay, holiday pay, longevity pay, or night pay, and would see their vacation reduced by 33 percent. Concessions also include eliminating benefits for overage leaves, crew meals and part-time flying.

Although the summary available to the public does not mention any layoffs, various media reports have said up to 2,000 flight attendants would be laid off under the plan.

The flight attendants' retirement benefit plan would remain unchanged, the union said.

The proposed agreement also includes profit sharing of up to 15 percent of eligible pay, if a threshold is met. The union would receive 17.9 percent of 37.88 million outstanding AMR shares, as well.

Union members must vote on the proposed agreement before it takes effect.

American Airlines asked its three unions to make $1.8 billion in permanent cost cuts in order to stave off bankruptcy.