American Eagle is proposing a term of eight years for all of its collective bargaining agreements, which includes an amendment round in 2016. At that time, any contract provision can be addressed. We will once again benchmark our costs against the most competitive large regional airlines to ensure Eagle’s labor costs remain in line and can adjust the terms of the agreement – up or down – to ensure we remain competitive.
The 2016 amendment round calls for abbreviated negotiations of 150 days – if no agreement is reached between the company and union negotiators, we will submit to interest arbitration to successfully reach a conclusion. The goal is to have all necessary contract changes in place by 2017.
This method of negotiation has been in place between Eagle and its pilots union since 1998 and has proven very successful to reaching mutually agreeable outcomes in an expedited fashion. It also adds an incentive for American to continue having Eagle provide its regional feed, as we can guarantee labor peace for eight years – something that none of our represented competitors can match.
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