American Airlines pilots are now reporting what they’re after in negotiations with American Airlines management and I find it . . . ambitious.  The highlights of their “asks” are:

• Eliminate Group II pay band and move the A-319 into Group III, with a weighted industry average before year three

• Pay rates that align us with our network-carrier peers at Delta and United

• Codeshare restrictions in line with those in the US Airways conditional labor agreement

• Contract duration that is shorter than the six-year duration in management’s “last, best, final offer”

• An industry-standard pension

• An equity claim that can be monetized and has an established “hard floor” protection

• Scope limits that include a hard cap or percentage limits on the 50- to 76-seat jets

To a degree, when you enter into negotiations at airlines, you ask for the world, promise the world to your membership and ultimately settle for something less than the world.

These goals are too much for the present situation.  They don’t set appropriate expectations for either side.

Changing airliners around into different pay groups will materially affect American Airlines’ cost plans.  AA has a solution for that problem:  Impose terms and live with the pilots bad behavior.

Negotiating for pay rates that are equivalent to those of both Delta and United pilots is too aggressive.  Let’s not forget that pilots at both those airlines paid their dues with lower rates and got their airlines to a high performing level before they earned those industry leading rates.  AA pilots haven’t paid their dues and I’m beginning to wonder if anyone bothered to tell them that the AIRLINE IS IN BANKRUPTCY.

Codeshare restrictions are about preserving jobs.  I get that and even approve.  I think that airlines should fly their flights and compete rather than buddy up in every possible way out there.  But I would also point out that while the bankruptcy judge didn’t let AA have carte blanche on codeshares, he pretty much let them get as much they needed and wanted.  This shouldn’t be the hot button issues that the union keeps making into.  American Airlines isn’t going to be a Virtual Airline.

Contract duration seems silly at this point too.  The pilots are already into their 6th year of negotiating a contract now.  Get something in place that allows both parties to go to work on their jobs.  Quit making a fuss and causing a distraction every 3 years when it comes to pay.  Take the 6 year duration and the stability and the benefit it will provide the company as well as you.  Going for a 3 year duration in the hopes that you’ll get an even better rate is just . . . silly.  There isn’t room in the airline industry to see those pay rates grow substantially and there won’t be for years to come.  Sorry guys, you’re fighting for a right that potentially leaves you at a greater disadvantage.

Industry standard pension:  How about you guys take an Industry Standard 401K like the rest of us.

Equity claim:  I’m fine with this but if the pilots want this, they *have* to give something up to get it.  You don’t get industry standard/industry leading benefits and wages plus a substantial equity claim that can be converted to cash and distributed to pilots as well.  That is called having your cake and eating it.  I really do wonder if anyone has mentioned that AMERICAN AIRLINES IS IN BANKRUPTCY.

Scope limits:  I’m in violent disagreement here.  I actually think that AA has limited itself too much with scope limits even now.  There will be growth on routes and routes that are 60 seat commuter routes today may well be 90 seat routes 10 years from now.  But a 90 seat route isn’t a mainline route.  Not in this decade.  There is a solution here:  Offer low, low pay rates to American Airlines to take on this flying internally.  Ask for an apprentice program that hires and trains new pilots and puts them into this commuter flying at “industry standard” regional airline rates with a growth path to mainline flying internal to the company.  But make it *cheap* for AA.  The upside?  The union gets these pilots earlier and has them “feeding” the union earlier in the process and they get to control one hell of a lot of more pilots than they otherwise would.

I don’t think we’ll see a successful agreement out of these latest talks.  I think reality hasn’t hit either party in a substantive way and I think that pilots will decry management and start impacting operations again after these negotiations break down.  I think the prospect of a real contract is slim and I begin to wonder if AA shouldn’t impose terms and take the operational hit for another month or two and let pilots get tired of their behavior.  Or, better yet, impose terms and hire yet another law firm to be prepared to seek an injunction against pilots when they start their slow down again.

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