=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/2003/07/02/f= inancial2118EDT0371.DTL ---------------------------------------------------------------------- Wednesday, July 2, 2003 (AP) Judge declines to stop labor deal at American Airlines (07-02) 18:18 PDT FORT WORTH, Texas (AP) -- A federal judge on Wednesday rejected a union group's bid for an injunction to block a labor deal with American Airlines that included layoffs and steep pay cuts. U.S. District Judge Loretta A. Preska in New York ruled the workers fail= ed to meet the standards for a preliminary injunction, including showing that they would suffer irreparable harm without it. A New York-based local of the Transport Workers Union filed suit to block agreements to cut American's labor costs by $1.8 billion a year. American said it needed the concessions to avoid bankruptcy. Pay cuts took effect June 1, and the airline laid off 3,100 flight attendants this week. American, the world's largest carrier, said an injunction could further threaten the troubled airline's condition. The labor concessions were narrowly approved in voting by pilots, flight attendants, mechanics and other ground workers. Local 562, representing workers at several New York-area airports, asked Preska to order a new vote, saying that some union members didn't have time to study the deal and that workers never ratified last-minute changes. The local's lawsuit is still pending. Local union officials did not respond to requests for comment. In a similar ruling Monday, another federal judge rejected a bid by some flight attendants for a preliminary injunction to block the layoffs of former TWA workers. American's parent, Fort Worth-based AMR Corp., bought TWA in 2001. AMR, which has lost more than $6 billion since the beginning of 2001, cut 3,100 flight attendants this week and indicated it is studying further spending cuts. The company is considering closing at least one of its three maintenance facilities, reducing some flights and mothballing another 57 aircraft by next summer. In trading Wednesday on the New York Stock Exchange, AMR shares fell 55 cents, or 5.2 percent, to close at $10.05. On the Net: AMR site: www.amrcorp.com Local 562: www.twu562.org =20 ---------------------------------------------------------------------- Copyright 2003 AP