AA ground workers reject concession request

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AA ground workers reject concession request

FORT WORTH, Texas (AP) =97 Union leaders who represent ground workers at=20
American Airlines rejected a plan for $620 million in concessions, saying=20
the carrier is in financial trouble but didn't prove it needs that much=20
from the employees.
The decision late Tuesday by the Transport Workers Union deals a blow to=20
the Fort Worth-based carrier's effort to win $1.8  billion in employee=20
givebacks by restructuring labor agreements with several unions. American=20
said the TWU's rejection was just one step in the process, adding that the=
=20
two sides are still negotiating and the proposal wasn't a=20
'take-it-or-leave-it' matter.
"It expressed our view as to the sorts of modifications necessary to avoid=
=20
bankruptcy," said American spokesman Bruce Hicks. "The union has stated it=
=20
was prepared to work with us in good faith to accomplish this objective."=20
American had asked the group to give up $620 million a year in pay and=20
benefits that would make the airline more efficient and less costly.=20
However, the union said its analysts did not come to the same conclusion.

"The company asserted in their proposal that our advisers and consultants=20
have concluded that the company requires the $620 million relief," said Jim=
=20
Little, the union's international vice president, in a recorded message to=
=20
members. "Our consultants and advisers have concluded that the company does=
=20
need relief, but have not yet confirmed the specific amount." Three unions,=
=20
representing more than two-thirds of American's 100,000 employees,=20
acknowledge that some cuts are necessary to save American and have=20
expressed willingness to discuss concessions with the carrier. TWU leaders=
=20
were the first of the three unions to set up negotiations with American.=20
Some analysts thought TWU was the most likely to swiftly bring a concession=
=20
package to a vote by its members. The union, which has a contract in place=
=20
until 2004, is under no obligation to change its terms. But it has said it=
=20
believes that some sacrifice is necessary if the airline is to avoid=20
bankruptcy. Meanwhile, American continues to talk with its pilots' union,=20
represented by the Allied Pilots Association, in attempts to win $660=20
million in concessions. It has yet to schedule one-on-one talks with the=20
Association of Professional Flight Attendants. The airline's parent AMR=20
lost $5.2 billion over the past two years as it struggled with a downturn=20
in business travel and competition from low-fare rivals like Southwest=20
Airlines, and is expected to lose $800 million more during the first=20
quarter of 2003.


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