Pilots' union rejects contract at American Eagle
Union leaders rejected a contract offer for pilots at American Eagle, raising doubts about the fate of the American Airlines unit.
Eagle wanted the pilots to make labor-cost concessions in exchange for getting new, larger planes. Leaders of the local Air Line Pilots Association chapter rejected the offer on Wednesday without sending it to members for a vote.
Union officials said company negotiators warned repeatedly that without a deal, they would keep shrinking the airline until it's small enough to liquidate.
William Sprague, chairman of the union council, said pilots agreed to concessions during American's recent bankruptcy reorganization, but management then demanded “significant” new cuts.
The company declined to comment immediately.
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