Unions call on AMR to end labor-law lobbying

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Unions call on AMR to end labor-law lobbying  =

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Tuesday January 21, 4:26 PM EST =


By Jon Herskovitz

FORT WORTH, Texas, Jan 21 (Reuters) - Unions representing 75,000 employee=
s at American Airlines parent company AMR Corp. (AMR) on Tuesday called o=
n AMR to stop lobbying Washington on labor laws, saying the campaign is h=
ampering cooperative efforts to keep the struggling airline in business.

"The only thing we should be concentrating on at this time, top to bottom=
, is the survival of this airline," John Darrah, president of the union t=
hat represents American's pilots, told a press conference.

The unions also suggested the airline may be looking to gain major conces=
sions from its labor force as it looks at the cost cuts its main rival, U=
AL Corp.'s (UAL) United Airlines, has squeezed from its employees as it r=
estructures under Chapter 11 bankruptcy protection.

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A spokesman for AMR said the company is spending all of its time and effo=
rt toward saving the carrier, adding that union leadership may be using t=
he labor law issue as a way to deflect some attention from the hard decis=
ions it will have to make.

Major airlines are laying the groundwork for their biggest push yet to ge=
t Congress to change the the Railway Labor Act, or RLA, a decades-old law=
 used for resolving contract disputes between airlines and unions. They c=
laim such action is necessary to help the industry recover from its worst=
 financial downturn.

With high labor costs cited by Wall Street as a chief reason for commerci=
al aviation's financial troubles, the big airlines believe their case aga=
inst RLA will resonate with the Republican-controlled Congress.

AMR Chief Executive Don Carty has been a prominent spokesman in the campa=
ign to change the RLA.

In recent weeks, Carty has also made public pleas for labor groups at AMR=
, the world's largest airline, to come to the aid of American, saying the=
re was no time to waste if they wanted to save the struggling airline.

COST CUTS

"We have asked Don Carty to pull back on this attack in Washington," said=
 James Little, director of the air transport division for the Transport W=
orkers Union

"We are not fixing something that is broken. It is only broken in their e=
yes," Little said.

AMR has said it is faced with even more pressure to reduce costs as Unite=
d and US Airways have seen their costs reduced in the bankruptcy process =
through items such as friendlier terms for paying debts.

American asked union leaders and nonunion employees last week "to forge a=
n unprecedented partnership with management." The plea from Carty and air=
line President Gerard Arpey comes as two major unions at the carrier cons=
ider a company request to freeze their wages and another union is trying =
to hammer out a new contract.

AMR, based in Forth Worth, Texas, is seeking to cut costs wherever it can=
 amid huge financial losses, with a goal of about $4 billion in permanent=
 reductions. American said it has already identified more than $2 billion=
 in cuts as it has slashed its capacity and cut its work force since the =
Sept. 11 attacks walloped the air industry.

Union leadership told the press conference that company management is loo=
king to slash labor costs to get to its goal of $4 billion, and an AMR sp=
okesman said cuts in personnel will be part of the mix for the remaining =
$2 billion in cuts.

"A big chunk of that has to come from a restructuring of our labor contra=
cts," said spokesman Tim Doke.

AMR will report fourth-quarter results on Wednesday. It posted a loss of =
almost $1 billion in the previous quarter. =



=A92002 Reuters Limited. =


Roger
EWROPS

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