• Posted on Friday, May 16, 2008

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American pitches short-term contract to mechanics union

By Trebor Banstetter | Fort Worth Star-Telegram

The union representing American Airlines mechanics and other ground workers is mulling a short-term contract agreement with the airline, according to sources close to the negotiations.

Fort Worth-based American has made a proposal to the union for an 18-month deal, said one source with knowledge of the negotiations. The source asked not to be named because he was not authorized to speak publicly about the proposal.

That's shorter than most airline contracts, which typically last three to four years. American offered the union a contract extension last year, but labor officials rejected that proposal. However, the airline industry has since gone into a tailspin amid crushing fuel prices. Most analysts are predicting that American will post heavy losses this year.

Read the full story at star-telegram.com.

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