Reuters: Bankruptcy News: UPDATE 1-American Airlines parent may reject union pacts

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UPDATE 1-American Airlines parent may reject union pacts Mar 22nd 2012, 18:32 Thu Mar 22, 2012 2:32pm EDT * Company move could come within a week * Union preparing for court fight NEW YORK, March 22 (Reuters) - The parent of American Airlines Inc was preparing to void union contracts through the bankruptcy process within one week unless there was a "profound change" in the unions' labor proposals, a lawyer for the company said on Thursday. Harvey Miller, who represents AMR Corp, told a federal bankruptcy judge at a hearing in New York that there appeared to be no basis to expect "real forward movement" obtaining union concessions and avoid the rejection of collective bargaining agreements. Talks were ongoing, he added. The third-largest U.S. airline filed for Chapter 11 protection from creditors in November, citing uncompetitive labor costs after years of fruitless talks with its unions. It has said it was looking to cut as many as 13,000 jobs to trim costs by some $2 billion. Unions said they preferred consensual deals as opposed to having terms imposed on workers by a court, as often happens in bankruptcy proceedings if the sides reach an impasse. The Transport Workers Union of America, which represents thousands of ground workers at AMR, said its lawyers were preparing to defend its members in court, should that become necessary. "We've always been prepared to fight for our members, either by reaching an agreement or going to court. We are prepared for either eventuality," James Little, president of the TWU, said in a statement. The Allied Pilots Association is committed to reaching an agreement and would oppose a company move to use the bankruptcy court process to try to end union contracts, spokesman Gregg Overman said. AMR's bankruptcy case is In re: AMR Corp, U.S. Bankruptcy Court, Southern District of New York, No. 11-15463. Link this Share this Digg this Email Reprints

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