Binding arbitration could bind pilot wages at AMR - Hawaii News Now - KGMB and KHNL

Binding arbitration could bind pilot wages at AMR

HONOLULU (HawaiiNewsNow) -

American Airlines has invoked binding arbitration with its pilots, citing stalemated contract talks, while gifting other employees with a surprise 4 percent raise.

Under the terms of binding arbitration at American, any additional wages or benefits have to be revenue neutral, and the airline said this means pilots will end up with less than if they had accepted the company's last proposal, offering a 23 percent raise.

Because they're still in negotiations, pilots don't get the 4 percent extra raise, which applies to union employees who have new contracts, including flight attendants, as well as non-union employees other than senior managers.

American has used the Christmas extra pay announcement to portray its work force as the best paid in the industry, spurring Delta Air Lines to make a similar claim based on the fact that it does profit sharing and American doesn't.

Rich Delaney of IAM District 141, in a statement Christmas Day, hailed American Airlines's “commitment to all its employees to pay industry leading wages.” The IAM represents ground workers at US Airways while the Transport Workers Union represents ground workers on the American side of the company.

Delaney said the IAM and the TWU needed as quickly as possible to enter joint talks with the airline. At this point they're waiting for the National Mediation Board to recognize their alliance as the bargaining agent for all workers previously represented by either union.

In other airline labor news, the IAM says 2015 raises for its members at United Airlines start Sunday, and the union reported progress on vacation and security issues in talks with Hawaiian Airlines that will resume in January.

Copyright 2014 Hawaii News Now. All rights reserved.

Powered by Frankly