Union rejects American Airlines offer

It also would have adopted a new profit-sharing plan. Unlike counterparts at Continental Airlines Inc., American's union employees haven't received profit sharing the past two years because profits were too small to trigger awards.

American is also negotiating over a new contract with pilots -talks have made little progress so far, according to the union -and soon with flight attendants. Union employees are working under wage and benefit concessions that were approved in 2003, when the company was close to bankruptcy.