July 19, 2003
American waives rest of fine
Pilots union's had still owed $26 million from penalty for 1999 sickout
07/19/2003
By ERIC TORBENSON / The Dallas Morning News
American Airlines Inc. said Friday it has forgiven $26 million of the $45.5 million fine levied against the Allied Pilots Association after its members conducted a 1999 sickout.
The amount represents what the APA still owed the carrier. A federal judge imposed the fine as punishment for the sickout.

The airline waived the $26 million during concessions talks this spring that saved the airline from bankruptcy. But the move wasn't made public until Friday, when American's parent company, AMR Corp., filed its quarterly Securities and Exchange Commission report.
The APA – which agreed to $660 million in annual pay and benefits cuts in April – told its 12,000 members about the fine in the spring. American spokesman Todd Burke acknowledged the move Friday but wouldn't comment further.
The pilots launched the sickout to protest American's handling of the December 1998 acquisition of Reno Air. They were upset about how the airline integrated Reno pilots into the American seniority list.
The 12-day sickout cost the carrier $200 million to $225 million.
American sued the pilots union, alleging it had violated the Railway Labor Act, which also applies to the aviation industry. Under the law, neither management nor unions are allowed to take "job actions" outside of contract talks – and only then if the parties are released from negotiations.
U.S. District Court Judge Joe Kendall of Dallas found the union and its officers in contempt because the pilots didn't comply with a back-to- work order and assessed the $45.5 million fine.
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