SF Gate: American Airlines gives proposal to ground workers

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inancial2226EST0344.DTL
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Monday, March 3, 2003 (AP)
American Airlines gives proposal to ground workers



   (03-03) 19:26 PST FORT WORTH, Texas (AP) --
   American Airlines submitted a proposal Monday on how the Transport Worke=
rs
Union could restructure its existing labor agreement to meet the airline's
request for $620 million in annual employee cost reductions for
TWU-represented employees.
   The suggestions were for the "mechanics and related" group and the "joint
committee," which covers fleet service clerks and six other units.
   Last month, American told its workers that it needs to cut $1.8 billion =
in
labor costs.
   American said its proposals for the TWU lay out a variety of options to
achieve the needed cost savings and provides the framework for the
collaborative discussions.
   American said its negotiating team would meet Tuesday with TWU
International representatives to answer questions. The airline said it
expects to begin meeting soon with the union's negotiating teams.
   A message left at TWU's New York headquarters was not immediately return=
ed
Monday night.
   American lost $5.2 billion over the past two years as it struggled with a
downturn in business travel and competition from low-fare rivals. The
company is expected to lose $800 million more during the first quarter of
2003.
   Shares of AMR Corp., American's parent, rose 29 cents Monday to close at
$2.63 on the New York Stock Exchange.

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Copyright 2003 AP

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