American Airlines could possibly lay off 13,000 of its employees
as it enters bankruptcy protection, according to reports. The
airline filed for bankruptcy in November of last year.
Negotiations with its three major unions will soon start as the
nation’s third-largest airline aims to cut its labor costs by 20
percent. Management positions are on the chopping block as
well.
In a letter to employees, American Airlines CEO Thomas Horton said
the company wants to cut a reported $2 billion per year and in
return raise $1 billion in revenue.
“We are going to use the restructuring process to make the
necessary changes to meet our challenges head-on and capitalize
fully on the solid foundation we’ve put in place,” Horton
said.
Workers that could be laid off include bag handlers, skycaps and
even flight attendants and pilots.
The Allied Pilots Association (APA) said in a statement to
passengers that the scenario is nothing new. “In 2003, to help
prevent a bankruptcy filing by American Airlines, our pilots
overwhelmingly approved billions of dollars in contract concessions
that remain in effect today,” the statement said. American Airlines
employs 10,000 pilots.
“Along with financial reforms, American Airlines’ restructuring
must also include a commitment by those who manage our company to
cultivate a better corporate culture-a culture that values the
crucial competitive edge that a fully engaged workforce provides,”
APA said.
“Whatever the industry, the best companies all have at least one
element in common: highly motivated, enthusiastic employees who
deliver exceptional service day after day. We stand ready to help
create that same winning culture at American Airlines.”
Transport Workers Union (TWU) President James C. Little said that
his union will do everything possible to protect its members, who
include mechanics, fleet service workers, flight dispatchers and
maintenance workers.
“I definitely was surprised, I was surprised at the depth of the
cuts,” Little reportedly said in an interview. “The trouble I have
sleeping is, what happens to all the families we represent and the
employees at American impacted by us? It also impacts the
community, as well.”
In New York, American Airlines has 3,555 employees at JFK airport
and 3,006 at LaGuardia. TWU represents 1,000 employees at both
airports. A third of the 1,841 members of the Association of
Professional Flight Attendants based out of JFK live in the New
York metro area, while a third of its 1,287 members that are based
out of LaGuardia live in the area as well.
© 2012 New York Amsterdam News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Article source: http://www.amsterdamnews.com/union_matters/american-airlines-may-lay-off/article_f73a44fa-5353-11e1-9e05-0019bb2963f4.html
Other Posts
Filed under: Daily Layoffs News
Like this post? Subscribe to my RSS feed and get loads more!
Leave a Reply
You must be logged in to post a comment.