Employee Ownership by Pilots at American Airlines

The Allied Pilots Association (APA) at American Airlines announced on December 7 that its members had approved a new six-year contract. Union members will own 13.5% of the stock in the new AMR, the parent company of American Airlines, when it emerges from bankruptcy, which analysts estimate would amount to at least $100,000 per pilot. The contract, approved by a a vote of 5,490 to 1,951, will also raise pilots' pay by 4% on signing and 2% per year after that, with an adjustment in the third year to bring pay in line with that of other big airlines.

Last week, AMR creditors invited the pilots union to join talks between AMR and US Airways on a possible merger, which the union has already endorsed. The president of the APA, Keith Wilson, said, "As the new owners of a significant percentage of the restructured airline, it's APA's responsibility to maximize the value of our investment by conducting thorough due diligence."