The new American Airlines: Tough labor talks are ahead
Skift Take
US Airways and American Airlines made big strides prior to the merger to get labor on board, but new CEO Doug Parker will need to keep on wooing union leaders and rank and file if he wants the love fest to continue.
The day American Airlines and US Airways announced their merger proposal, their union leaders smiled and shook hands with airline executives and one another.
Some union presidents, including those who represent American's pilots, flight attendants and ground workers, had advocated for a merger of the carriers for months, even signing conditional labor agreements with US Airways executives in April.
Others, such as US Airways' pilots and flight attendant leaders, got involved in the discussions later but willingly signed memorandums of understanding to help ease the integration.
But despite the hugs and good will exchanged when the merger was announced Feb. 13, challenges lie ahead for the unions. Seniority integration lists need to be crafted. Workers must decide which union they want to represent them in contract talks with the merged carrier.
"We're not going to see how amicable this merger is for a few more years, when the difficult questions come," said Gary Chaison, professor of labor relations at Clark University in Massachusetts.
And if the unions, along with airline management, can't solve these issues in a timely fashion, that could limit the financial benefits touted by AMR CEO Tom Horton and US Airways CEO Doug Parker.
"Union issues have to be put away if American is going to be successful going into the future," airline industry consultant Darryl Jenkins said.
AMR has 54,700 unionized workers. US Airways has 30,260.
Happy to work together
For the flight crew, nothing is more important in a merger than seniority.
The memorandums of understanding signed by the pilot and flight attendant unions outline how to discuss seniority. But the issue probably won't be decided for over a year.
"Nothing in an official