- Labor Union to Suggest Alternatives to AMR Cost Cuts
(Reuters) – The union representing seven categories of ground workers at bankrupt American Airlines will offer alternatives to some of the job cuts and concessions the company says it needs to survive, the head of the Transport Workers Union said on Tuesday.TWU has asked American’s parent company AMR Corp for details on how it arrived at the cost-savings targets it unveiled this month when it said it planned to eliminate 13,000 jobs and terminate pensions.
Union president James Little told Reuters in an interview the union hopes to draw on the labor deals it struck with the company prior to the Nov. 29 bankruptcy filing to salvage some of those jobs.
“It’s irresponsible for us to take those numbers for granted and not do our own analysis,” Little said.
AMR said it was aiming for $2 billion in total annual cost reductions, including $1.25 billion in employee-related expenses.
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