American Airlines Pilots' Union requests federal mediation for contract talks.

ARLINGTON, Texas--(BUSINESS WIRE)--Jan. 16, 1996--The Allied Pilots Association (APA), collective bargaining agent for the pilots of American Airlines, has announced that it requested federal mediation today.

APA and airline management have been in negotiations for a new contract since exchanging opening proposals on June 30, 1994.

"While we have made some progress during the past 18 months, it is far too little and has taken far too long," said Captain James G. Sovich, APA President. "Accordingly, I have decided to request the help of a federal mediator."

Sovich noted that under the current CEO of American Airlines parent AMR Corporation, all four pilot contracts that APA has negotiated over the past decade have entered mediation, and in two cases gone to the end of cooling off. He further noted that the two parties can conclude an agreement at any time during the process, with or without a mediator.

"Although we are hopeful we can conclude an agreement without resorting to self help, I have also decided to activate our Strike Preparedness Committee," said Sovich. "However, I want to emphasize that we remain committed to negotiating an agreement that will ensure American Airlines remains the world's premier airline, while preserving the quality, value, and security of our careers."

Under the Railway Labor Act, the National Mediation Board will appoint a mediator, who will soon sit down with both parties and evaluate the issues and positions of each party. The mediator will suggest possible solutions, can select the location for talks and schedules, and can even sequester both sides in hopes of obtaining agreement. If mediated talks fail, or if the parties jointly request a release from mediation, the mediator will proffer binding arbitration. If both sides accept binding arbitration, practically speaking, the Railway Labor Act process is concluded. The issues already settled would be incorporated into a new working agreement, and the lengthy process of interest arbitration begins. During the American Airlines flight attendant negotiations, the flight attendants agreed to arbitrate the unresolved issues but management did not, beginning the 30-day cooling off period and resulting in a five-day strike.

"On the subject of arbitration, there are a number of key institutional issues that APA will not agree to arbitrate. You can only arbitrate issues you are willing to lose," said Sovich. "APA will not, under any scenario, subject our Scope Clause to arbitration."

As the collective bargaining agent for American Airlines pilots, APA represents a total of approximately 8,600 members. Founded in 1963, the Association is headquartered in Arlington, Texas, near Dallas/Fort Worth International Airport.

CONTACT: Allied Pilots Association, Arlington

Gregg Overman, 214/988-3188, ext. 280