Academic journal article Monthly Labor Review

Pan Am Settles with Flight Attendants

Academic journal article Monthly Labor Review

Pan Am Settles with Flight Attendants

Article excerpt

Financially-troubled Pan American World Airways moved closer to its goal of winning $180 million a year in labor and cost reductions from its unions by settling with the Independent Union of Flight Attendants on a 39month contract calling for a reported cut of $33 million a year. Earlier in 1988, members of the Air Line Pilots and the Flight Engineers Beneficial Association had accepted cuts and Pan Am had imposed an 8-percent pay cut on Teamsters' members under provisions of the Railway Labor Act after the employees had refused to use arbitration to resolve bargaining differences.

Under the Flight Attendants' contract, wages were cut by differing amounts, depending on the tier: for the upper tier or "A" scale (those hired prior to May 1985), the cut was 11.715 percent; for the lower tier or "B" scale (those hired after May 1985), the cut was 2 percent. The only increase was in the starting rate for B scale employees hired during the contract term; they begin at $1,000 a month, instead of $907.

In return for the cuts, Pan Am agreed to move toward elimination of the two tiers. …

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