American Airlines mechanics, bag handlers and other ground workers represented by the Transport Workers Union will receive an immediate 4.3 percent raise if the bankrupt carrier merges with US Airways Group Inc.
AMR Corp.’s American Airlines said today it would switch from terminating pensions to freezing them for most employees, seeking to hasten agreements on $1.25 billion in concessions sought in bankruptcy.
American Airlines pilots’ rejection of a final cost-cutting contract opened the way to let parent AMR Corp. seek deeper concessions in bankruptcy court as it fends off potential suitor US Airways Group Inc.
The American Airlines pilot union leader who was one of the first and most visible proponents of a merger with US Airways Group Inc. resigned, a day after pilots rejected the AMR Corp. unit’s final cost-cutting contract offer.
American Airlines pilots, flight attendants, mechanics and baggage handlers asked U.S. mediators to intervene in talks with management as the carrier seeks $1.25 billion in labor concessions, including 13,000 job cuts, in bankruptcy.
AMR Corp.’s American Airlines, the third-largest U.S. airline, asked a bankruptcy judge to let it void labor contracts with union workers after failing to reach agreements on $1.25 billion in annual cost reductions.