American Air CEO increases pay, other benefits in new contract offer to pilots
DALLAS-FORT WORTH (CBSNewsTexas.com) - Just days before American Airlines' 15,000 pilots were set to begin voting on their tentative agreement with the Fort Worth-based carrier, CEO Robert Isom committed to further increasing their pay and other benefits.
In a video message to pilots, Isom said, "Our commitment -- my commitment -- stands: Our pilots will be paid as well as the best-paid pilots in the industry. Which means we need to revisit our TA (tentative agreement). And you've waited patiently for a new contract for a very long time, so we need to make those changes fast to stay on track for a ratification in August."
The pilots begin voting at 7 a.m. CT Monday.
Isom's comments come about a week after United Airlines presented its pilots with a better deal.
On Friday morning, Captain Dennis Tajer, a spokesman for the association which represents American's pilots, told CBS News Texas that after four years of negotiations, he was confident American will quickly match United's offer after talks with airline leadership last weekend. "There was an agreement there, let's keep the ball rolling and let's make some adjustments."
Tajer said pilots are looking for improved pay and quality of life. "Delta and United are doing this, from the pay to the work-life balance issues. American has no choice but to match that, otherwise, you're not going to attract the few pilots that are out there."
In his message to pilots, Isom said the airline's improvements to the contract are worth $1 billion, bringing the total package to more than $9 billion.
That includes matching United Airlines' pay rates and back pay for its pilots, extended sick bank, and increased life insurance among other benefits.
"My sincere hope is that we can reach an agreement quickly, maintain our target of an August ratification and begin delivering more than $9 billion of value and new quality of life to you before Labor Day," Isom said.
At Southwest Airlines, which has been negotiating with pilots for three years, the Southwest Airlines Pilots Association has approved a strike authorization vote and recently asked to be released from federal mediation.
Captain Casey Murray, President of the Southwest Airlines Pilots Association said, "A strike is looking more and more and more likely. We don't want to strike, but at this point, we do not feel like we are being heard."
But Southwest Airlines Vice President of Labor Relations, Adam Carlisle, issued a statement to CBS News Texas saying,
"We feel confident that the mediation process will continue driving us even closer to a final agreement that rewards our Pilots and supports our business. We have a 52-year history of taking care of Southwest Employees, and we look forward to continuing that legacy."
Murray said pilots while pilots want better pay, their main request is for more efficient scheduling. "It affects our pilots, it affects their quality of life. It affects fatigue. Our fatigue rates are higher than they have been in years. We're the only union in the world that is not asking for less work and more money. Our pilots work a lot and that's what we're known for. But at the end of the day, there also needs to be an expectation that when they show up at work, they're going to fly what they're scheduled to fly."
The associations representing pilots at Southwest and American Airlines said because there's a pilot shortage, the airlines must compete for them.
Without more pilots, the associations said the airlines can't grow.
"They have the airplanes, they want to buy more, you got to have the pilots to fly them," Tajer said. "If you have the pilots to fly those airplanes, airplanes have seats, more seats that are out there, it matches up to demand and you actually have an impact."
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