AMR wins labor deals with five union work groups

Reuters News
Posted: May 15, 2012 11:04 AM
AMR wins labor deals with five union work groups

(Reuters) - Five out of seven work groups represented by the largest labor union at AMR Corp's American Airlines voted to accept contract terms offered by the bankrupt airline, the Transport Workers Union (TWU) said on Tuesday.

The union said the deals eliminated the need for the airline to void their contracts. Two other TWU work groups rejected the airline's contract proposals.

Fleet service clerks, dispatchers, ground school instructors, maintenance control technicians and simulator technicians approved the airline's offer.

Aircraft maintenance and related workers along with stores clerks voted to reject the terms in the offer, the union said.

The vote on AMR's last and best proposal came amid a court battle in which the airline is seeking permission to impose temporary unilateral contract terms on the TWU if it does not approve the offer.

AMR is also looking to impose temporary unilateral labor terms on unions representing pilots and flight attendants.

The airline, which went bankrupt in November amid high labor costs, has said it needs $1.25 billion in annual labor-related savings to become profitable.

(Reporting By Kyle Peterson; editing by Gerald E. McCormick and Jeffrey Benkoe)