Judge: American Airlines can cut workers' pay, benefits ahead of union vote

http://www.bizjournals.com/charlotte/news/2012/05/17/judge-says-amr-can-cut-pay-benefits.html

Lance Murray
Digital Content Producer- Dallas Business Journal

American Airlines    can cut wages and benefits of some employees who are considering joining a union, Bloomberg reports. U.S. Bankruptcy Judge Sean Lane denied a request from passenger service agents for an order prohibiting American from changing employment terms just ahead of their vote on joining a union.
American's parent company, Fort Worth, Texas-based AMR Corp.    is seeking $1.25 billion in annual labor savings for the airline as it moves through Chapter 11 bankruptcy.
AMR (PK:AAMRQ) proposed new contracts for all of its unions in February as part of its restructuring plan. It has argued in court to have its current contracts voided.
But the unions, with thousands of jobs on the line, are not giving up without a fight. Some groups recently published an “open letter” advertisement expressing support for a merger with US Airways Group Inc. And others have demonstrated at the bankruptcy court in New York and at AMR’s headquarters.
The groups that make up the Transport Workers Union are split on American's latest offer, with five ratifying new agreements and two refusing. The Allied Pilots Association has asked the judge to keep its contracts intact, saying American has asked for too much.
Meanwhile, US Airways (NYSE:LCC) has made clear that it wants to merge with American. American maintains that it intends to exit bankruptcy as a stand-alone carrier, but the company has said it will consider a merger as it navigates the court.
US Airways is the dominant carrier at Charlotte Douglas International Airport, where the airline operates its largest hub.
Lance Murray can be reached at 214-706-7106