Workers at American 'not happy' with deal

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Workers at American 'not happy' with deal
By Dan Reed, USA TODAY

FORT WORTH =97 Leaders of American Airlines' three unions say they expect=20
some organized opposition to the $1.6 billion package of concessions that=20
employees will soon vote on. Shares of AMR, American's parent, have more=20
than doubled this week on investors' belief that tentative agreements with=
=20
labor unions will help it avoid bankruptcy reorganization. AMR closed at=20
$4.25 a share Wednesday, up 42%. But ratification is not assured. "I'm sure=
=20
we'll see some" organized opposition, says Gary Peterson, president of=20
Local 567 of the Transport Workers Union, representing about 2,000=20
mechanics and technicians in Fort Worth. The choice before American's more=
=20
than 70,000 union workers =97 big cuts in pay and benefits and some layoffs=
=20
now or risking bigger cutbacks later if American files for Chapter 11 =97 is=
=20
not the "no brainer" outsiders might assume."This is not an agreement that=
=20
anyone is happy with," Peterson says. "With this agreement, our mechanics=20
will be making less" than Southwest's. The decision comes down to "will we=
=20
be better off taking this deal? And there's no question in my mind that we=
=20
would do much worse in bankruptcy," he says.

There's precedent for airline workers rejecting concessions under threat of=
=20
a bankruptcy filing. Mechanics and other ground workers at United Airlines,=
=20
represented by the machinists union, did that in November. Bruce Hicks, a=20
spokesman for American, says management knows getting all three deals won't=
=20
be a slam-dunk. But American's workers have learned what could happen to=20
them in a Chapter 11 case now that they've seen the cutbacks endured by=20
United and US Airways workers in those bankruptcy reorganizations, he says.=
=20
American's deal with the Allied Pilots Association cuts pilot pay 23% in=20
the first year and 17% in later years vs. today. About 2,500 pilots are=20
expected to lose their jobs. Some captains with little seniority could see=
=20
pay cuts of 35% because they could be demoted to first officer to replace=20
those laid off. The 35,000 mechanics, bag handlers and other TWU workers=20
would take pay cuts of 15% to 19%. They would also lose vacation days,=20
shift pay and other benefits. More than 2,000 are expected to be laid off.=
=20
Pay cuts for flight attendants are said to be in the 15% range. About 2,000=
=20
full-time attendants could be laid off.

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