US Airways makes deals with 3 AMR unions

[Omaha Steve]

Source: AP-Excite

By DAVID KOENIG and JOSHUA FREED

DALLAS (AP) - US Airways has struck deals with unions at American Airlines to win their support for a possible merger of the two airlines.

The unions are angry that American is trying to cut jobs and labor costs while under bankruptcy protection. They represent 55,000 pilots, flight attendants and ground workers at American, the nation's third-largest airline

The unions can't force a merger on their own, but they can work with other creditors of American's parent company, AMR Corp., to persuade the bankruptcy judge to open the door to a deal.

Doug Parker, the chairman and CEO of US Airways Group Inc. (LCC) (LCC), said Friday that to win a merger with American, his company still needs support of AMR's creditors, management and board of directors.


Read more: http://apnews.excite.com/article/20120420/D9U8P1M01.html

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In this Nov. 29, 2011, file photo, an American Airlines employee helps passengers check-in at a ticketing counter at Dallas Fort Worth Airport in Dallas. US Airways has struck deals with labor unions at American Airlines to win their support for a possible merger that could save about 6,200 jobs at American, or nearly half the jobs that American wants to eliminate. The three unions at American said in a statement that a merger with US Airways is the best way to fix American and its parent, AMR Corp., which filed for bankruptcy protection in November. (AP Photo/Richard W. Rodriguez, File)

[Lars77]

1. What a great way to fuck up the market

Its much easier to fix prices with just two large consortiums. Get rid of that annoying competition and stuff.

[cpamomfromtexas]

2. Pretty historic. Husband attended meeting today.

For the first time in the history of companies using the bankruptcy courts to gut contracts--- IT IS ACTUALLY LOOKING LIKE THERE WILL BE CONSEQUENCES FOR INEPT MANAGEMENT.

Make no mistake, the movement to something of this sort was after the 1113 dreamsheet put out by management when they filed for bankruptcy. Their plan was more of the same failed ideas, that only highlighted management incompetence. They should have been embarrassed, but if they were capable of being embarrassed, they wouldn't have tanked American in the first place.

I don't know a single pilot that hasn't been looking for alternatives especially since the 1113 was dropped in late November.

They did announce that there would be at least two jobs that would be eliminated. They put up the photos of Horton (CEO) and Human Resources Brundige ("employees are just bricks in our backback&quot . My husband said the room erupted with applause.

[IamK]

3. Saving 6,200 jobs = losing 8,000 jobs...

The unions representing American's pilots, flight attendants and ground workers said they struck a deal with US Airways that would preserve 6,200 of the 14,200 jobs American says it would cut if it pursues its current plan.

Their joint statement supporting a merger is an unusual and dramatic twist that comes ahead of a showdown next week with AMR over the company's request in bankruptcy court for permission to void labor contracts and impose new terms.

Airline consultant Robert Mann, a former AMR executive, said he cannot think of another occasion when airline unions actively supported a merger, because those deals usually mean job cuts.

"For the American unions, it's a real indictment to the company's plan. In fact, they are casting their lot with the devil they don't know rather than the devil they do," Mann said

http://news.yahoo.com/amr-unions-want-chance-u-air-merger-080259711--sector.html