American Airlines pilots have rejected the airline’s final contract proposal, putting the decision to a judge to decide if the labor group’s collective bargaining agreement will be terminated.
The Allied Pilots Association said on Wednesday that its board of directors voted 11 to 5 against approving management’s “final offer” for a tentative deal and sending it on to the membership for a vote.
American filed for bankruptcy in November and is seeking $1.25 billion in annual labor cost savings to compete more effectively with rivals with lower labor costs. Most of the savings will come from unionized workers.
The two sides have been close in the past to an agreement. Key issues are wages, benefits, when pilots work and what planes they fly.
The pilots’ board cited a lack of specifics “in various areas” and the need for more time to analyze contract provisions and related language, the union said in a statement.
American wants the current contract with its pilots terminated and bankruptcy Judge Sean Lane is expected to rule on this on Friday.