Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, November 2, 1993 TAG: 9311020072
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Knight-Ridder/Tribune
DATELINE: NEW YORK LENGTH: Medium
Flight attendants can either accept the new contract, seek renewed bargaining or go on strike. They have said they would likely delay any strike until Nov. 22, the heavily traveled Monday before Thanksgiving.
Halting flights at the end of this month could be crippling to both the airline and the U.S. travel industry. The period around Thanksgiving generally is the busiest period of the year for airlines.
The new contract terms reduce staffing on many flights, generally to levels in place at other airlines. Flight attendants' pay goes up immediately, but they must share in medical costs and contribute to retiree health benefits.
Staffing reductions will eliminate about 940 jobs, American spokeswoman Patricia San Pedro said in Miami. Additional jobs may be eliminated as American pursues a plan to cut staff systemwide 5 percent to compete with low-cost competitors.
American said the pay raises average 7.8 percent per year, but the union said the actual increase is about 2 percent a year. Most of the increase consists of seniority increases in the prior contract, the union said.
Union leaders were reviewing details in Dallas. Union spokesman Randy Edwards said that on first impression, many terms seem more favorable than the company had offered during bargaining.
"If these terms were there all along, why didn't they offer them to us in bargaining?" he asked. "It seems like they are leapfrogging over the negotiating team to bring this to the members."
George L. Mueller, American vice president of customer services, said both sides win with the new contract.
The changes "are fair and reasonable and will provide flight attendants with wage increases and other benefits at a time when other major airlines are cutting" wages, he said.
American imposed a new contract quickly after a 30-day cooling-off period ended Saturday. Efforts to reach an agreement during the 30 days failed despite a late 23-hour bargaining session.
by CNB