American Airlines and union break off contract-extension talks

[Omaha Steve]

http://www.dallasnews.com/sharedcontent/APStories/stories/D8S23LNG0.html

10/04/2007

Associated Press

American Airlines and one of its labor unions broke off talks Wednesday on extending a contract covering mechanics and other ground workers.

Instead of extending the current contract that expires in May, the company and the Transport Workers Union plan to begin the bigger job of negotiating an entirely new contract.

"Over the past few weeks, American Airlines and the Transport Workers Union held a series of informal, facilitated meetings to discuss a limited number of contract issues," said American spokeswoman Sue Gordon. "These meetings have concluded and the parties have agreed to proceed into formal negotiations ... as originally planned beginning Nov. 7."

The development was a setback for American's hopes of buying a period of peace with ground workers so it could focus on negotiations with pilots and flight attendants.

The Transport Workers Union had been considering a company proposal to link pay raises to company performance. Details were not disclosed.

Union President James C. Little had written to company officials that cooperation between the union and the airline was eroding because workers had not been rewarded for American's improved financial performance.

FULL story at link.