3,000 jobs at American Airlines may be spared

Posted Friday, Apr. 27, 2012 0 comments  Print Reprints
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US Airways has pledged to save the jobs of more than 3,500 American Airlines mechanics and ground crew workers that American has proposed cutting, the Transport Workers Union said Friday.

Fort Worth-based American is revising its restructuring plan to retain thousands of jobs as well, a spokesman said late Friday.

According to documents released by the union, US Airways agreed not to eliminate the jobs of 1,500 mechanics and 2,042 ground workers at 30 airports nationwide if it merges with American.

The US Airways plan, however, would still shutter the Alliance maintenance facility in Fort Worth, just as American's would.

Last week, American's three largest unions announced their support for a possible takeover bid by US Airways and said they already had preliminary labor agreements with the Tempe, Ariz.-based airline.

This week, American has been in U.S. Bankruptcy Court in New York making its case for rejecting its labor contracts and imposing concessionary agreements.

Its plan, unveiled Feb. 1, would cut 8,500 jobs held by members of the workers union, close Alliance and outsource a significant amount of aircraft maintenance to third-party firms. The workers union represents 26,000 employees at American, including mechanics, stock clerks, baggage handlers and flight dispatchers.

Although it has expressed support for the US Airways plan, the union has continued to negotiate with American and plans to let its members vote on its final offers. A ratification vote "could take place very soon," the union said.

American spokesman Bruce Hicks said its new proposals, which it expects the union to make public in a few days, will also save more than 3,000 jobs. Overall, American originally proposed cutting about 13,000 union jobs.

"As we've said from the start, American Airlines' goal is to reach consensual agreements with all of our unions," Hicks said. "That's why we've worked hard with the TWU over the last several weeks on proposals that meet the company's necessary cost savings and address many of the TWU's concerns."

US Airways has not made a formal bid for American Airlines' parent company, AMR Corp., which filed for bankruptcy in November. And in the documents released by the workers union, the union warned members that a merger may not occur.

"There is no certainty that a possible merger with US Airways will take place," the union said. "A possible merger still faces many hurdles unrelated to labor issues."

US Airways' proposal

In its term sheets, US Airways said it would not cut the jobs of 450 mechanics and related workers in Tulsa or 250 jobs at various airport maintenance stations. If US Airways and American merge, the new airline would also protect 4,500 Tulsa aircraft maintenance technicians from furloughs.

US Airways does not plan to outsource 1,390 ground crew positions at 30 airports and 625 cargo- and mail-handling positions at airports in New York, Los Angeles, Dallas/Fort Worth and Miami. American said it planned to outsource staffing at airports with fewer than 20 daily departures.

US Airways would also begin an "enhanced severance program" that would offer $22,500 to union members who are over 45, who have more than 15 years of work experience and who relinquish recall rights. Only 1,500 workers would be able to participate.

American had offered its unions a profit-sharing deal that would take effect after the company emerges from bankruptcy. The US Airways offer does not include profit-sharing and limits workers union members' 401(k) company match to 3 percent of eligible earnings. American had offered those workers a 5.5 percent match.

US Airways executives said they focused on getting the support of unions first and are now talking to the unsecured creditors committee about their plan for a merged airline.

US Airways proposed a contract for pilots that would provide 5.5 percent raises at signing and 3 percent raises for each of the next five years.

The flight attendants proposal includes no furloughs or wage increases throughout the five-year contract. The pension plan would be frozen, but there would be automatic 401(k) contributions with no match required for five years.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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