DALLAS -- AMR Corp.''s American Airlines reached tentative agreements with all three of its unions today, averting a bankruptcy filing.
People close to the situation said pilots, mechanics and flight attendants have all signed tentative agreements on management giving the company $1.8 billion in annual labor savings. The company set a midday deadline Monday, saying it would have to seek Chapter 11 bankruptcy protection if it couldn''t reach deals
The tentative agreements will still have to be ratified by union members over the next two weeks.
Details of the pilot and flight-attendant deals aren''t yet available. American''s mechanics tentatively agreed to a 17.5% paycut, according to the Transport Workers Union, plus changes in work rules and reduction in benefits. Other divisions of the TWU, such as baggage handlers, agreed to 16% pay cuts and other changes in work rules and benefits.
In exchange for the concessions, the TWU will receive stock options or other equity in AMR.
http://biz.yahoo.com/djus/030331/1352001092_1.html
People close to the situation said pilots, mechanics and flight attendants have all signed tentative agreements on management giving the company $1.8 billion in annual labor savings. The company set a midday deadline Monday, saying it would have to seek Chapter 11 bankruptcy protection if it couldn''t reach deals
The tentative agreements will still have to be ratified by union members over the next two weeks.
Details of the pilot and flight-attendant deals aren''t yet available. American''s mechanics tentatively agreed to a 17.5% paycut, according to the Transport Workers Union, plus changes in work rules and reduction in benefits. Other divisions of the TWU, such as baggage handlers, agreed to 16% pay cuts and other changes in work rules and benefits.
In exchange for the concessions, the TWU will receive stock options or other equity in AMR.
http://biz.yahoo.com/djus/030331/1352001092_1.html
