Seven Of Eight Groups Agree To Cuts
American Airlines said Sunday it has reached a
tentative agreement on contract changes with seven of the eight
groups represented by the Transport Workers Union. The carrier
wants a total of $1.8 billion in annual cost savings from workers
carrier said that late Saturday, it reached a tentative agreement
with ground school instructors, one of six smaller TWU units. On
Friday night and earlier Saturday, tentative agreements were
reached with stock clerks, dispatchers, meteorologists, simulator
technicians and technical specialists.
These six groups represent about 2,500 workers. On Thursday, a
tentative agreement was reached with the fleet service group, with
more than 16,300 members. The TWU also represents approximately
16,200 mechanics and related employees.
"Face-to-face negotiations continue around the table, around the
clock with the mechanics, flight attendants and pilots," the
company said. American noted that it is asking all employees,
including management, for a total of $1.8 billion in permanent,
annual savings to restructure the company and its finances.
agreed over the weekend to $660 million in concessions in an
attempt to help the world's largest airline avert a bankruptcy
filing. The Allied Pilots Association, which represents 13,500
workers, agreed to wage cuts and changes to work rules after weeks
of negotiations, the Financial Times reports on its Web site.
But the newspaper said that the progress "comes against a
background of intense talks with investment banks and partners to
secure up to $1.5 billion in debtor-in-possession financing for a
potential bankruptcy. Those talks have been led by Citigroup, which
has significant exposure through operating a credit card for
"Analysts and investment bankers have expressed doubt that the
$1.8 billion in cuts, an amount first proposed on Feb. 4, would be
enough to avoid a bankruptcy. American had been losing $5 million a
day, and the war in Iraq has reduced international traffic, which
accounts for nearly a third of its revenues."