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American Airlines 'can't afford to sweeten deal' with labour

10-Sep-2010 1:29 PM

American Airlines Senior V-P Human Resources, Jeff Brundage, stated the carrier will not raise the overall value of a tentative contract rejected by its mechanics and stock clerks when talks with the labour group resume (Bloomberg, 10-Sep-2010). The majority of the airline’s 11,500 mechanics and 1,200 stock clerks last month voted against the pending agreement. Mr Brundage said: “The company can’t afford to sweeten the deal because it was rejected. That’s not going to happen. At the end of the day, our cost structure is going to have to be competitive.” He stated the carrier is willing to change elements of the contract while maintaining the same total cost.