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Allied Pilots Association Releases Statement Concerning Status of Agreement with American Airlines Management
FORT WORTH, Texas, Apr 22, 2003 (BUSINESS WIRE) -- The Allied Pilots Association (APA), collective bargaining agent for the 13,500 pilots of American Airlines (NYSE:AMR), released the following statement this afternoon in response to questions regarding whether the union would seek to have its members revote on the cost-savings agreement reached earlier this month with American Airlines management:
APA's agreement requires the signature of our president in order to take full force and effect. In light of the revelations late last week about American Airlines management's executive compensation programs, our Board of Directors is now discussing whether to authorize our president to sign our agreement. The requirement that such agreements must bear the signature of our president in order to take full force and effect originates in APA's Constitution and Bylaws, and it is a material term to the conditions of effectiveness in the agreement we reached.
It's also important to note that our agreement contains a contingency clause similar to the other two unions' agreements that requires all three unions to have ratified and legally binding contracts, or none of the agreements are effective. Unlike the other two unions, however, we retain the right to decide whether to accept or reject our agreement even if one or both of the other unions accept theirs.
Because of these two unique aspects--the requirement that our president sign the agreement, and our ability to decide whether to retain the agreement no matter what the other two unions decide--our Board of Directors does not deem it necessary to call for a revote on the agreement by our membership.
FORT WORTH, Texas, Apr 22, 2003 (BUSINESS WIRE) -- The Allied Pilots Association (APA), collective bargaining agent for the 13,500 pilots of American Airlines (NYSE:AMR), released the following statement this afternoon in response to questions regarding whether the union would seek to have its members revote on the cost-savings agreement reached earlier this month with American Airlines management:
APA's agreement requires the signature of our president in order to take full force and effect. In light of the revelations late last week about American Airlines management's executive compensation programs, our Board of Directors is now discussing whether to authorize our president to sign our agreement. The requirement that such agreements must bear the signature of our president in order to take full force and effect originates in APA's Constitution and Bylaws, and it is a material term to the conditions of effectiveness in the agreement we reached.
It's also important to note that our agreement contains a contingency clause similar to the other two unions' agreements that requires all three unions to have ratified and legally binding contracts, or none of the agreements are effective. Unlike the other two unions, however, we retain the right to decide whether to accept or reject our agreement even if one or both of the other unions accept theirs.
Because of these two unique aspects--the requirement that our president sign the agreement, and our ability to decide whether to retain the agreement no matter what the other two unions decide--our Board of Directors does not deem it necessary to call for a revote on the agreement by our membership.