ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, February 14, 1997 TAG: 9702140054
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
American Airlines rejected a compromise offer from its pilots' union Thursday as tonight's strike deadline approached. The company's chief executive urged President Clinton to intervene to avoid a walkout at the nation's largest airline.
Testifying on Capitol Hill, American President Robert Crandall said Clinton should exercise his emergency powers to prevent pilots from striking at 12:01 a.m. Saturday. Mayors and some members of Congress from areas that would be particularly affected also have asked the president to step in.
Although negotiations were scheduled to continue, both sides were preparing for a walkout. The airline canceled most overseas flights so aircraft would not be stranded, and the board of the Allied Pilots Association planned a teleconference at the strike deadline.
At the White House, the Transportation Department sent Clinton a report projecting the strike would cost up to $200 million each day and could strand up to 40,000 passengers.
``We hope that that analysis of economic damage won't need to be a useful document,'' said White House spokesman Mike McCurry.
The president, who has emergency powers to intervene temporarily, urged both sides to reach an agreement.
Hopes for a settlement rose early Thursday, when the union offered to have its pilots accept lower pay scales for operating jets on regional routes as long as the company accepted its other demands.
But American's parent company, AMR Corp., says it doesn't want American pilots to fly the new jets that have been proposed for regional routes. AMR wants its American Eagle subsidiary, with lower-paid pilots from another union, to fly the commuter jets.
``In reality, those jets are going to be operated as American Eagle or they are not going to be operated,'' spokesman Al Comeaux said. ``There are costs involved beyond pilot costs. We have to be competitive.''
The regional jet issue has been a sticking point in negotiations for some time. Both sides agree the smaller routes are necessary for American to remain competitive, but they don't agree on who should fly the twin-engine jets that carry up to 70 passengers.
American mechanics, flight attendants and other workers all have higher salary ranges than their counterparts at American Eagle, a conglomerate of four small airlines funneling $1billion in traffic to American Airlines.
The average American Airlines pilot makes $120,000 a year, twice what the average American Eagle pilot makes.
The union wants 3 percent pay increases each August for the next three years and a 2 percent raise Aug. 31, 2000.
The pilots also want stock options to buy 7.25 million shares at below-market cost and they want to phase out over four years a lower pay and pension scale for newly hired pilots that has been in place since 1983.
The company is offering a 6 percent raise over the life of the contract and options for 3 million shares of stock.
LENGTH: Medium: 61 linesby CNB