American Airlines' court-mediated labor talks to begin

Dallas Business Journal by Matt Joyce, Staff Writer

http://www.bizjournals.com/dallas/news/2012/05/30/american-airlines-court-mediated.html

American Airlines  will begin court-mediated negotiations this week to hammer out labor contracts with unions representing some airline employees.

Fort Worth-based American recently completed making its case in U.S. Bankruptcy Court in New York in a section 1113 hearing to throw out its existing labor contracts as part of its bankruptcy restructuring.

The hearings followed unsuccessful negotiations between American and the unions representing its pilots, flight attendants, mechanics and others over American's plans to rewrite contracts.

"It would be an understatement to say that this has created uncertainty all around. In the spirit of driving to fair, consensual agreements, the bankruptcy court has offered the assistance of another bankruptcy judge to serve as a mediator to help conclude the process," AMR Corp.  (PK: AAMRQ) chief executive Tom Horton said in a letter distributed to employees on Wednesday. "The mediated sessions will begin this week and I believe these will be constructive."

American already reached new contract agreements with five work groups represented by the Transport Workers Union. Fleet service, dispatch, maintenance control technicians, simulator technicians, and ground school and simulator pilot instructors work groups approved deals in May covering about 11,000 employees.