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AMR Expects 4400 Job Cuts, Warns 11,000

The Prof

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AMR expects about 4,400 job cuts, warns 11,000 - WSJ.com

American Airlines is sending layoff warning notices to more than 11,000 employees although a spokesman says the company expects job losses to be closer to 4,400.

The notices went out to mechanics and ground workers whose jobs will be affected as American goes through a bankruptcy restructuring.

Separately, the leader of the pilots' union blasted the company, saying it is "paying lip service" to negotiating a contract while using the bankruptcy process to wring punitive cost-cutting concessions from pilots.

Eight other labor groups approved long-term contracts that will help AMR cut annual labor spending by about $1 billion. Pilots, however, voted overwhelmingly against the company's last contract offer, and a federal bankruptcy judge allowed American to impose new pay and working rules on pilots.

The acting president of the Allied Pilots Association, Keith Wilson, said in a message to members that he would meet this week with Transportation Secretary Ray LaHood and other senior officials in the Obama administration and Congress. The union has asked federal officials to approve steps that could eventually lead to a strike, but that permission hasn't been granted.

Pilots are holding a strike-authorization vote. And according to the company, they are calling in sick more often than usual, contributing to an increase in canceled flights. American has trimmed its September and October schedule by up to 2 percent to make sure it has enough pilots to operate flights.

American and parent AMR Corp., which is based in Fort Worth, filed for bankruptcy protection in November.

thank goodness the private sector is doing fine

Cancellations Surge at American Airlines | NBC 5 Dallas-Fort Worth
 
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