An arbitrator who heard testimony from unions and executives about a controversial management bonus program at American Airlines said Tuesday that he will delay a decision in the case until after the airline's board of directors meets this week.

The delay raised the possibility that American's board might take action on the bonus plan, which outraged many employees when it was disclosed this year. The board's compensation committee is scheduled to meet.

The arbitrator, Robert Harris, said he will talk to lawyers for the airline and its unions Friday "to determine what further steps are necessary" to resolve the matter.

The plan will award bonuses to about 1,000 managers next month based on the value of shares of AMR Corp., American's parent, on April 18.

If calculated based on Tuesday's closing price of $26.15 per share, the plan would be worth about $100 million.

The airline's three unions filed a grievance over the payouts in January, alleging that the payments violate a provision of their contracts that prohibits executive bonuses unless equal awards are given to union members.

Labor leaders and management testified before Harris this month.

A decision had been expected Tuesday.

"Our hopes are that the board will revisit the issue," said Lori Bassani, a spokeswoman for the Association of Professional Flight Attendants.

Fort Worth Star Telegram

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