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Office of the Press Secretary

For Immediate Release March 19, 1997


Emergency Board No. 233 Submits its Findings With Respect to the Dispute between American Airlines and its Pilots

The Presidential Emergency Board created by President Clinton on February 15, 1997 in response to the strike by the pilots at American Airlines, submitted its report to President Clinton today. The Board recommended three pay scale increases totaling 6.5% from 1997 through 2000 and stock options to resolve a long-running contract dispute between American Airlines and its pilots represented by the Allied Pilots Association. While not recommending that regional jets operated by AMR, American Airlines parent company, be flown by American's pilots, the Emergency Board recommended additional restrictions or "wraps" on AMR's use of the regional jets to enhance the job security of American's pilots. The Emergency Board also recommended gradual elimination of the "B" Scale, a lower pay scale for new hire pilots.

Although not legally binding on the parties, President Clinton expressed his hope that the Emergency Board's recommendations will assist the parties in reaching a negotiated settlement. President Clinton has been advised that the parties are continuing to negotiate and he encourages them to do so. "The best resolution is a negotiated settlement acceptable to both sides of this dispute," President Clinton said.

If no settlement is reached by 12:01 a.m. EDT on April 28, 1997, the pilots are free to strike and American is free to lock out its pilots or change their terms or conditions of employment.

The three member Emergency Board was appointed pursuant to the Railway Labor Act. It is chaired by arbitrator Robert O. Harris, with arbitrators Anthony V. Sinicropi, and Helen M. Witt serving as members of the Board.

Copies of the Report may be obtained at the office of the National Mediation Board. (202) 523-5920.