AMR Cuts 1,200 More American Airlines Jobs in $1.25 Billion Labor-Savings Plan

Posted: April 19, 2012 in Airlines, Aviation & Airports (General News), USA
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American Airlines will cut 1,200 airport baggage and cargo jobs and close an Arizona reservations center under a bankruptcy restructuring plan to trim annual labor spending by $1.25 billion.

“Not a single decision that affects a single employee was made lightly”

“Not a single decision that affects a single employee was made lightly”

Today’s announcement of new reductions means all of the carrier’s airport jobs in seven U.S. and two Canadian cities will be outsourced. AMR Corp’s American detailed changes for the nonunion group 11 weeks after telling other workers it would do away with 13,000 of their jobs, freeze pensions and make work-rule and benefit changes.

merican, the third-biggest U.S. carrier, will begin presenting testimony on April 23 to persuade a bankruptcy judge to let it void existing union contracts and impose new ones to secure the spending cuts. The request follows the Fort Worth, Texas-based airline’s failure to negotiate agreements with any of its unions. Talks can continue during the court hearings.

“Not a single decision that affects a single employee was made lightly,” the company said in a letter signed by Craig Kreeger, senior vice president for customer experience; Virasb Vahidi, senior vice president for marketing and planning; and Jim Ream, senior vice president for operations.

American’s goal to cut annual expenses 20 percent for each work group translates to a $95 million reduction for the 10,000 airport and cargo agents. Most of the changes will occur during the next 60 to 120 days, the airline said.

Read the full Bloomberg story here….

By Mary Schlangenstein
Apr 18, 2012


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