American to talk with unions for attendants, ground workers

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American to talk with unions for attendants, ground workers

DALLAS (AP) =97 The chief executive of cash-strapped American Airlines wants=
=20
to keep the world's largest carrier from sinking more deeply into financial=
=20
distress. Representatives of the carrier were expected Monday to begin=20
formal meetings with two unions representing flight attendants, ground=20
workers and mechanics. For the first time, according to the Fort=20
Worth-based airline, it would be working with all three of its major unions=
=20
in an attempt to cut labor costs and avoid federal bankruptcy court.
"We still have the opportunity to fix our structural problems and make=20
ourselves into a formidable competitor," Don Carty said in a weekend=20
message to airline employees. "Make no mistake, there's still a lot to do,=
=20
but we're generating some very good momentum now." Executives of AMR Corp.,=
=20
American's parent company, have said that they must lower costs by $4=20
billion a year, including $1.8 billion in labor concessions, to stay in the=
=20
air. That includes getting $340 million in concessions from the Association=
=20
of Professional Flight Attendants.

Leaders of the flight attendants' union, which represents 26,000 workers,=20
has directed negotiators to take "whatever actions deemed necessary to=20
reach a consensual agreement" during talks with management on wage and=20
benefit reductions. "APFA intends to reach agreement with management that=20
will be sent to the membership for ratification," union president John Ward=
=20
told The Dallas Morning News in Monday's online edition. "Stay strong.=20
Together we can do this and avoid bankruptcy." In advance of meetings=20
scheduled Monday with the Transport Workers Union, which represents about=20
34,500 ground workers and mechanics, American has said it needs to cut=20
about $620 million from pay and benefits. In earlier talks with the Allied=
=20
Pilots Association, airline officials asked the union and its 13,500=20
members to shoulder $660 million of the burden, or about 30 percent of pay=
=20
and benefits. Talks since the beginning of March have focused on changes in=
=20
flight rules that would save American money as well as health care and=20
pension costs.

"We haven't reached agreement on any one issue, but we've covered a lot of=
=20
ground," said pilots' union spokesman Gregg Overman. "These are very=20
sweeping and wide-ranging discussions covering the gamut." Union officials=
=20
have said they can have a deal in hand and ratified within 60 days. "We=20
understand the timetables associated with this process," Overman said. "Our=
=20
aim is to have something we can evaluate in a period that can be measured=20
in weeks." Company executives say they have already grounded planes,=20
reduced and simplified their flight schedule and eliminated about 14,700=20
jobs in a continued travel slump. Transport workers two weeks ago rejected=
=20
a concession plan presented by American, saying the carrier hadn't proved=20
that it needed to cut out that much. But since then, American's stock was=20
delisted from the Standard & Poor's 500 index after losing more than 90=20
percent of its value in the last year and the company has reportedly hired=
=20
a team of bankruptcy lawyers. "During the coming days, we will deal in full=
=20
good faith with the company. That does not mean we will agree to the=20
proposal," ," the union told its members in a letter last week. "In the=20
end, though, it is clearly in our members' interest to avoid a bankruptcy,=
=20
and we will do our best to accomplish this."


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