American Airlines' main unions have filed grievances over stock-based executive pay-outs that could total some USD$70 million and have roiled the carrier's bid to forge a consensus.
Unions representing American's pilots, flight attendants, mechanics and other workers said late on Tuesday that they had filed "presidential grievances" over the bonuses, which are slated to go to some 1,000 management employees.
The unions, who took pay cuts in 2003 to avert a threatened bankruptcy filing, also said they welcomed what they said was American Airlines Chief Executive Gerard Arpey's willingness to further discuss the issue.
They also said in a statement that they were committed to the "working together" process under which worker-management committees have joined to look for ways to cut costs and raise revenues to stem losses at the Fort Worth, Texas-based carrier.
The grievances call the planned pay-outs, based on a surge in American's stock price last year, a violation of an annual incentive program (AIP) which all workers agreed to participate in as part of the 2003 pay cut deal.
"The elected leaders of our three unions and the employees we represent remain deeply concerned over the irrationality of tying cash bonuses solely to the performance of our stock," the unions said in the joint statement.
"Moreover, upon reviewing contractual language governing the AIP, we believe these cash bonuses to be in violation of our collective bargaining agreements.
The unions said they will pursue discussions with senior management even as they pursue the grievances, which would lead to arbitration.
American Airlines spokesman Roger Frizzell said the airline expects union meetings with Arpey to continue over the issue.
"Our plan is to continue our dialogue as we have in the past," he said, adding that the airline was aware the grievance procedure would be pursued as he said it had been in past disputes.
The pay-outs fall under an executive compensation plan approved in 2003 that covered work until the end of 2005, and include senior and mid-level managers.
Arpey himself will not receive a pay-out under the plan, which he did not participate in in 2003, though he has participated in similar plans kicked off since then.