Talks between American and Flight Attendants Stalemated

Just about everyone can agree that cheap vacation packages, cheap airplane tickets and discount hotel rooms are highly desirable. However, when it comes to labor negotiations between American Airlines and its flight attendants, your view of the discussions depends on which side of the table you are sitting at. The flight attendants union has declared that their negotiations with American are hopelessly stalemated, while the company said that it was looking forward to more bargaining.

The union reported that it would request federal officials begin a 30 day off cooling period, after which the flight attendants could legally strike. In the past the National Mediation Board has refused many similar requests from other airline unions. Experts think it likely that the Board will order both sides to restart negotiations.

The disagreements are focused on wages and benefits. The union represents 18,000 American attendants and is try to negotiate raises and benefit improvements to offset the reductions that the attendants agreed to in 03 when American was on the brink of bankruptcy.

American is arguing that it cannot restore past higher wages and benefits and in fact needs to cut labor costs. American lost $3.6 billion in the past two years and claims that it spends more per attendant then Continental, Delta, United and US Airways. It has offered an eight year contract during which some years there will be guaranteed 2 percent raises and other years prevailing industry average raises.

American is also in the midst of negotiating with the pilot and ground workers unions regarding new contracts. The ground workers have announced the intention to request the ability to strike if a deal is not reached soon.

It is hard for airline unions to legally strike because of federal law. In 09 the mediation board turned down an appeal by Hawaiian Airlines to strike. Amerijet Internationals (a cargo carrier) pilots did strike for 17 days last year. www.cheapfares.com

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