AMR Progresses in Talks With Largest Union
American Airlines parent AMR Corp. plans to offer a new contract proposal to its largest union early next week, just days after the company asked a bankruptcy judge to reject its labor accords so it can impose new contracts.
AMR said negotiations are progressing with the Transport Workers Union, which represents nearly 20,000 AMR employees. The company offered concessions to union leaders Thursday night that included cutting fewer TWU workers, AMR said in a note on its restructuring website Friday. The Fort Worth, Texas, company has proposed to shed 8,800 TWU workers.
AMR said it would offer a new contract proposal that reflects the new concessions by early next week, "and will continue to work through the weekend to meet that deadline."
AMR, the nation's No. 3 airline by traffic, filed for bankruptcy-court protection four months ago, after falling behind its peers who have strengthened themselves through bankruptcy restructurings and consolidation. The carrier has lost more than $14 billion since 2001, including the disclosure on Friday that it lost $619 million in February.
On Tuesday, AMR filed a motion in bankruptcy court to begin the process of rejecting its labor contracts so it can impose the changes it seeks. AMR wants to freeze at least three pension plans and cut 13,000 workers as it seeks $1.25 billion in labor savings. The motion was largely expected, and is seen as a tactic to pressure its unions in labor negotiations to accept the deep cuts.
AMR said in the note Friday that its "goal remains to meet these savings through consensual agreements with our unions."
Negotiations are moving more slowly with its pilots and flight attendants unions. An AMR spokesman said Friday that the company met with leaders of its pilots union this week to discuss freezing—rather than terminating—the pilots' pensions, but the two sides didn't sit down for formal negotiations. The company also didn't formally negotiate this week with its flight attendants' union, but met once to discuss scheduling and medical benefits.
The TWU couldn't immediately be reached for comment.
Write to Jack Nicas at jack.nicas@wsj.com