The Friedman Files

We had this breaking story in the last half hour of the program this morning on NBC5 Today.  American Airlines mechanics, baggage handlers, and other employees represented by the Transport Workers Union rejected a contract offer late last night.

This will come as a big disappointment to the company which hoped to secure a deal with the TWU, which has generally been the most agreeable union of the bunch in recent years.

According to details posted on the company’s negotiations website….

http://www.aanegotiations.com/twuTimelineUpd.asp

…the company says it was offering a two year contract with lump sum pay increases to workers.  A 5% lump sum payment on the date of signing and a 3.5% payment one year after the signing date.  The company also says it agreed to adopt a new profit sharing plan which would have been paid in 2009.  The deal also included increases in vacation days and holidays, according to the company’s description of the offer.

In recent weeks I had been hearing that negotiations were speeding along toward an agreement, maybe in the next month or so.  Obviously, the two sides were getting closer but some of the work-groups within the TWU apparently rejected the offer.  We’ve had no official comment yet from the union on the deal.

Here’s an excerpt from the company’s statement today:

        “American sought to address the key areas of interest identified by the TWU, including pay, holidays, sick leave and vacation; and at the same time recognize the economic realities facing the industry and our company.

             American Airlines, along with the entire airline industry, is facing unprecedented challenges. In addition, American’s labor costs are the highest in the industry. While we could not address structural increases at this time, the tentative agreement did include improvements in pay and paid time off for TWU-represented employees.”