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What Did The AA Pilots Agree To?  
User currently offlineCoronado From United States of America, joined Jun 1999, 1178 posts, RR: 2
Posted (11 years 6 months 6 days 1 hour ago) and read 3067 times:
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Either a reporter really goofed in paragraph 3 below, or th AA pilots have agreed to make hamburger flipper wages at the end of the 6 years, Smile No wonder they avoided bankruptcy!


Ananova:

American Airlines 'to ground 2,500 pilots'

Union officials say about 2,500 American Airlines' pilots will lose their jobs over the next year.

Some of the losses will come through retirement, and as part of the union's £420 million in annual concessions to save the company from bankruptcy.

As part of the agreement reached with the airline, pilots' salaries will be cut by 23% in the first year, beginning on May 1, and 17% each subsequent year of the six year pact.

John Darrah, president of the 13,000-member Allied Pilots Association says pilots have 14 days to ratify the new contract.

© Associated Press


Story filed: 20:37 Tuesday 1st April 2003




The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
5 replies: All unread, jump to last
 
User currently offlineCoronado From United States of America, joined Jun 1999, 1178 posts, RR: 2
Reply 1, posted (11 years 6 months 6 days 1 hour ago) and read 3057 times:
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The way the report reads and using my trusty calculator, the pilot making US$200,000 will by the the 6th year be down to 60,661--somehow I don't think so, , ,


The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
User currently offlineN659AA From United States of America, joined Aug 2000, 136 posts, RR: 0
Reply 2, posted (11 years 6 months 6 days ago) and read 3048 times:

The way I read it is that in years two through six of the contact, salaries would remain constant....17% below today's rate.

User currently offlineM717 From United States of America, joined Dec 2002, 608 posts, RR: 4
Reply 3, posted (11 years 6 months 6 days ago) and read 3022 times:

I have had it explained on another board that it is 23% now, then an additional 17% (from the current rate, not the rate after the initial 23%) to be spread over the remaining 5 years.

[Edited 2003-04-02 01:35:20]

User currently offlineCoronado From United States of America, joined Jun 1999, 1178 posts, RR: 2
Reply 4, posted (11 years 6 months 6 days ago) and read 3016 times:
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the way it is written it seems to state 'would be CUT 17% EACH subsequent year'' , as opposed to stating 23% cut effective May 1 and then a further 17% reduction applicable to years 2 through 6 of the agreement!! If I said computer chips were dropping 10% each of the next 5 years, most mathematically inclined people would conclude that next year price goes to 90%, the year after to 81%, etc.

I tend to agree with you, and conclude reporter mis-stated. Even so it means that the pilot making 200K this year, drops in another month, and thn drops again to 127,820 on May 1 2004 (1 year from now). That is a chunk of change . . .



The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
User currently offlineM717 From United States of America, joined Dec 2002, 608 posts, RR: 4
Reply 5, posted (11 years 6 months 6 days ago) and read 2998 times:

It should be noted that this is a 'tentative agreement" between American Airlines and the representatives of the APA, which represents the AA pilots. This agreement must still be voted on by the rank and file. This has not been done as of yet. They hope to have the voting completed by April 15.

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