American Airlines workers object to plan

Restructuring proposal would lay off 13,000 employees

By Andrea Ahles
McClatchy Newspapers

Posted: Wednesday, Feb. 15, 2012

American Airlines unions and employees protest Tuesday at Dallas Fort Worth International Airport. Workers are unhappy with a restructuring plan that would cut jobs and pensions and close a maintenance facility. Khampha Bouaphanh - MCT

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Tempe, Ariz.-based US Airways, which operates the vast majority of flights at Charlotte Douglas International Airport, has said it is looking into a possible merger with American Airlines.

US Airways is the smallest of the five major U.S. carriers, and needs a merger partner to expand significantly. But labor issues could present a major obstacle to any tie-up with American while that company is in bankruptcy court.

As American sorts out its labor problems and tries to cut jobs, US Airways is still trying to integrate all of its work groups. America West acquired US Airways while US Airways was in bankruptcy court in 2005, and pilots from the two airlines still don't have a unified contract. Negotiations have stalled while a federal court case over pilot seniority is being worked out.

The stakes for Charlotte could be high, as any combination of US Airways with another carrier could affect the future of the airline's Charlotte hub. American has the right to present its own plan for reorganization to bankruptcy court first, but if the plan isn't approved, bidders such as US Airways or Delta could get involved and take a run at the company. Ely Portillo

FORT WORTH, Texas About 300 flight attendants, mechanics and ground crew workers protested American Airlines' restructuring plan that would lay off 13,000 employees, terminate pensions and shut down a Fort Worth maintenance facility.

Protesters marched in front of Terminal D at Dallas/Fort Worth Airport on Tuesday, holding signs that said American was "Blaming Labor AgAAin" and "AA's employees are the 'heart' of American" - using the symbol to emphasize the Valentine's Day event.

"I have 14 years of service and if (management) gets what they want, I won't have a job," said Aaron Morrison, a wheel and brake shop mechanic who drove from Tulsa, Okla., to attend the protest.

American unveiled its restructuring plan two weeks ago. Along with the planned layoffs, the airline also proposed terminating pensions and shutting its Alliance maintenance facility.

Workers said that the carrier, which filed for Chapter 11 bankruptcy protection on Nov. 29, needs to pay its pensions and that corporate greed at the carrier needs to end, referring to executive bonuses that management received in previous years.

Mechanic Greg Cooke said he doesn't want to move again. During 24 years with American, Cooke has moved his family from Raleigh to Dallas-Fort Worth, back to Raleigh and then back to Fort Worth to work at the airline's Alliance maintenance base.

Now a facility mechanic at Dallas/Fort Worth Airport, Cooke is worried he will lose his position there as the company restructures.

"I understand it somewhat," said Cooke. "But I don't want to have to move again just to put another four years in before I retire. I'm tired of them taking and asking off of the backs of the employees."

American said that the restructuring process is difficult but necessary.

"We are meeting with representatives from each union to negotiate the changes needed to make us successful, and are focused on reaching consensual agreements in the next few weeks," said American spokesman Bruce Hicks. "Our goal is to exit as a growing, profitable company that preserves tens of thousands of jobs."

American is scheduled to meet with union leaders for 10 days starting today. If the company is unable to reach an agreement with its unions on changes the carrier believes are necessary to restructure the company, American can ask the bankruptcy judge to impose new labor contracts as part of Section 1113 of the bankruptcy code.

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