AA pilots to propose contract next month

Sept. 13, 2007

Sep. 12--American Airlines pilots' union will offer a detailed contract proposal to the airline next month, a plan that could include provisions to increase security on flights, the union's new president said.

Lloyd Hill, an American captain based in Miami, was elected president of the Allied Pilots Association in June. He has kept a low public profile since then, but he spoke to the Star-Telegram on Tuesday at the union's Fort Worth headquarters after a 9-11 memorial service.

"So far there haven't been any big surprises," Hill said. "It's been busy, but I was expecting that."

Labor leaders are crafting a detailed, comprehensive contract proposal that Hill said will be given to management at the beginning of October, once it is approved by the union's board. It will be the most detailed proposal that has been offered by either side since the contract talks began a year ago, and will include offers on pay, work rules, scheduling and other items.

He declined to disclose specifics, but the proposal is likely to include substantial pay increases for pilots. Hill has been critical of a previous pay proposal submitted by the union's former president, which requested a 30 percent pay raise and signing bonus, arguing that it wasn't enough.

The proposal will reflect what the union is hearing from pilots in an survey that is scheduled to be wrapped up this week, he said.

Sue Gordon, an American spokeswoman, said American executives would review any proposal they receive from union officials.

"We would sit down and evaluate it to see what the impact would be on our pilots and the business," she said. "And then we'd respond in an appropriate time."

Gordon added that management strongly believes that any increases in pilot wages must come with improvements in productivity.

"Productivity gains must be factored in so we can achieve a competitive cost structure," she said.

Hill said the proposal could include measures to improve security. He said that American, other airlines and the Transportation Security Administration have prevented many "common sense" security measures that would protect flight crews and the public.

"Typically security isn't the kind of thing you want to be negotiating in a contract," he said. "But times have changed."

Despite his new role, Hill has not yet met with CEO Gerard Arpey, and he said he has no plans to do so anytime soon.

"It's the job of our negotiating team to meet with management, and I don't want to get in the way of that," he said.

The stance is a significant break from American's recent push to work most closely with union leaders.

Shares of AMR Corp., American's parent (ticker: AMR), closed at $23.90 Tuesday, up 81 cents.

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[email protected]

Trebor Banstetter, 817-390-7064

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