Pilots Union Board votes to send American’s deal to members - KYTX CBS 19 Tyler Longview News Weather Sports
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(CBSDFW) -- The Allied Pilots Association board will send American Airlines' "last, best offer" to its members for a vote.
The deal
will give pilots a 15 percent raise over the next six years; freeze member pensions instead of eliminating them; and give those in the union a stake in the company after it emerges from bankruptcy.
The vote was tight: The board voted 9-7 to pass the deal down to the nearly 10,000 members in the union.
"The deciding factor was whether or not this last, best final offer really met the minimum standard to go to the membership here and you've got a lot of divided opinions amongst our board members about whether it did or didn't," said Tom Hoban, spokesman for the Allied Pilots Association.
The union now has the next six weeks to educate its members about the deal –– a federal bankruptcy judge has agreed to an August 8 deadline.
In a statement, American Airlines spokesman Bruce Hicks said the company is "pleased" the board voted to take the decision to its members for a vote.
"We believe this agreement addresses the needs of our pilots while achieving the goals of our business plan and further demonstrates our commitment to reaching consensual agreements with all of our unions," Hicks said in a prepared statement.
Last week, the pilots union board rejected American Airlines' previous offer and asked the company to request the federal bankruptcy judge delay a ruling so the two could negotiate the terms more. The judge granted American's wish.
AMR Corporation, American's parent company, had called to cut pilot compensation by $315 million–– far lower than the company's previous suggestion of $370 million. However, it still trails U.S. Airways's offer to the union; it only called $240 million in cuts.
That company has launched a continued pursuit to merge with the Fort Worth-based carrier. American has said it's open to a merger, but has been laser-focused on emerging through bankruptcy as a standalone airline.
The deal the pilots union board will send to its members does not include a merger with U.S. Airways.
Hoban said the union is happy to pass the deal to members for a vote –– it allows American to take the next step in the bankruptcy process.
"Whether or not that means consideration of U.S. Airways as a merger partner or American's standalone plan, it essentially sets this piece aside and now you've got two competing bids with regards to the plan of reorganization," Hoban said. "It's the end of the beginning, so to speak."
