Airlines wants to eliminate 1,200 nonunion jobs as it cuts costs while
under bankruptcy protection. That pushes the company's overall job-cut
target to 14,200. It announced plans in February to cut 13,000 union
pilots, flight attendants and ground workers.
American, the nation's third-biggest airline, has about 73,000 workers.
American outlined the cuts for many nonunion workers on Tuesday. The
company wants to outsource the jobs of all airport skycaps and cargo
agents, cancel a planned lump-sum payment that was due for nonunion
workers next year, freeze their pension plan, cut vacation and paid
holidays, and reduce medical benefits.
The airline says it will close a reservations call center in Tucson,
Arizona, and lounges at Washington's Dulles Airport and Kansas City
International Airport. The changes for agents and similar employees are
expected to save US$95 million, which American said would match the 20
percent cost-cutting targets for all other labour groups.
American and parent AMR Corp. filed for bankruptcy protection in
November. AMR lost US$2 billion last year, including restructuring
costs, and has lost more than US$10 billion since 2001. In February,
American announced plans to get rid of thousands of flight attendants
and ground workers, as well as 400 pilots, and make other cost
reductions designed to reduce annual labor costs by US$1.25 billion.
A hearing is scheduled to start Monday in New York on the company's
request to throw out union contracts and impose new pay, benefits and