Presidential intervention may have prevented a strike, but as another deadline loomed in the American Airlines pilots dispute, AMR chairman Bob Crandall admitted he was unsure how to resolve the central issue of regional jets.
The Allied Pilots Association, which represents American's pilots, is haggling for wage increases. But the widest gulf between its views and those of management centres on the question of who should fly regional jets - American pilots, who earn an average of $120,000 a year, or American Eagle commuter pilots, who earn an average of $35,000. 'It is very hard to find a compromise,' says Crandall. 'We simply want the right to compete.' Other US carriers, including Delta Air Lines and Continental Airlines, are putting regional jets into their commuter subsidiaries, but American's pilots fear they will lose jobs to the regionals.
The two sides were due to start talks again by 14 March, this time with Robert Harris, chairman of the Presidential Emergency Board, mediating. The board was appointed after US president Bill Clinton intervened to halt the pilots strike immediately after talks broke down on 15 February.
The latest round of talks is being held in a secret location and a gag order has been imposed on all parties. The board was due to issue its recommendation as early as 17 March, but both sides have the option of rejecting it. Such a rejection could leave the way clear for a second strike unless Congress intervenes and makes the recommendation binding. However, Harris is a long-time airline labour arbitrator and he is likely to give President Clinton a recommendation that has been pre-approved by both sides.
Source: Airline Business
