=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/03/05/f= inancial1007EST0051.DTL ---------------------------------------------------------------------- Wednesday, March 5, 2003 (AP) American Airlines' ground workers union leaders reject concession request, = but talks continue (03-05) 07:07 PST FORT WORTH, Texas (AP) -- Leaders of the union representing baggage handlers, mechanics and other ground workers at American Airlines Inc. have rejected a proposal for $620 million in concessions for the financially strapped carrier, saying American needs relief but that its the plan didn't show it needed that specific amount to avoid bankruptcy. The decision late Tuesday by the Transport Workers Union throws a hitch into the Fort Worth-based carrier's effort to win $1.8 billion in givebacks from its employees through restructuring labor agreements. But American, the world's biggest airline, said the rejection was just o= ne step in the process, adding that the two sides are still negotiating and the proposal wasn't a `take-it-or-leave-it' matter. "It expressed our view as to the sorts of modifications necessary to avo= id bankruptcy," said American spokesman Bruce Hicks. "The union has stated it was prepared to work with us in good faith to accomplish this objective." American had asked the group to give up $620 million a year in pay and benefits that would make the airline more efficient and less costly. However, the union said its analysts did not come to the same conclusion. "The company asserted in their proposal that our advisers and consultants have concluded that the company requires the $620 million relief," said Jim Little, the union's international vice president, in a recorded message to members. "Our consultants and advisers have concluded that the company does need relief, but have not yet confirmed the specific amount." Three unions, representing more than two-thirds of American's 100,000 employees, acknowledge that some cuts are necessary to save American and have expressed willingness to discuss concessions with the carrier. TWU leaders were the first of the three unions to set up negotiations wi= th American. Some analysts thought TWU was the most likely to swiftly bring a concession package to a vote by its members. The union, which has a contract in place until 2004, is under no obligation to change its terms. But it has said it believes that some sacrifice is necessary if the airline is to avoid bankruptcy. Meanwhile, American continues to talk with its pilots' union, represented by the Allied Pilots Association, in attempts to win $660 million in concessions. It has yet to schedule one-on-one talks with the Association of Professional Flight Attendants. The airline's parent AMR lost $5.2 billion over the past two years as it struggled with a downturn in business travel and competition from low-fare rivals like Southwest Airlines, and is expected to lose $800 million more during the first quarter of 2003. In morning trading on the New York Stock Exchanmge, AMR shares were up 3 cents at $2.53. =20 ---------------------------------------------------------------------- Copyright 2003 AP