US Airways Predicts 42 Percent Fewer Job Cuts In Merger With American

April 29, 2012
Union says merger, however, would still eliminate the positions of about 4,900 mechanics, baggage handlers and other airport ground employees

US Airways Group Inc., building labor support for a possible bid for American Airlines, envisions 42 percent fewer job cuts among Transport Workers Union members than the bankrupt carrier is proposing. Under a US Airways agreement with the TWU, the airline would cut 450 jobs at American's maintenance base in Tulsa and grant two-year furlough protection to the 4,500 workers who remain, according to union documents.

Systemwide, a merger would eliminate the positions of about 4,900 mechanics, baggage handlers and other airport ground employees, the TWU said Friday in documents sent to members.

AMR Corp., parent of American Airlines, has said it needs about 8,500 cuts in that group. Of those jobs, AMR initially estimated it would cut 2,100 TWU jobs in Tulsa, as well as several hundred more in other positions. American employs about 7,000 locally.

The TWU, which has 24,000 members at American, joined pilots and flight attendants unions last week in backing a US Airways takeover bid. Fort Worth-based AMR has said it prefers to leave Chapter 11 as a stand-alone carrier.

On Friday in U.S. Bankruptcy Court in New York, the company concluded initial arguments on its plan to void labor contracts and impose new terms. The TWU, in documents that outlined the plan by Tempe, Ariz.-based US Airways, said "a possible merger still faces many hurdles unrelated to labor issues. Any agreement with US Airways will not take effect until all such hurdles are overcome."

American's final contract offer to the TWU will be sent to union members for ratification next week. The union has continued talks with American even as it argued against rejection in court of existing contracts.

Also under the US Airways plan, airport ramp jobs that AMR proposed to outsource in 30 cities would be retained, and enhanced severance would be offered to as many as 1,500 TWU employees.

US Airways hasn't made an offer for AMR, which filed for court protection Nov. 29. Most of the contract terms for the TWU weren't disclosed last week when that union, the Allied Pilots Association and the Association of Professional Flight Attendants threw their support to US Airways.

Copyright 2012 The Tulsa World