Welp.
It's gonna get crazy at AMR...
Sent from my TRS-80
It's gonna get crazy at AMR...
Judge lets American Airlines toss out its pilots contract
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By tmaxon
tmaxon@dallasnews.com
4:17 pm on September 4, 2012 | Permalink
U.S. Bankruptcy Judge Sean Lane ruled Tuesday that American Airlines can abrogate its collective bargaining agreement with the Allied Pilots Association.
The judge rejected the APA’s arguments that American hadn’t made its case that it needed to toss out the contract to proceed with its bankruptcy reorganization.
Section 1113 of the federal bankruptcy code allows companies to throw out its collective bargaining agreements if it meets a number of requirements. The judge ruled that American had met those requirements.
“We appreciate Judge Lane’s thoughtful consideration of our renewed Section 1113 motion regarding the pilot contract,” American spokesman Bruce Hicks said after the hearing.
“But, there is no sense of accomplishment in this outcome. We worked very hard to reach a consensual deal with our pilots, just as we did with each represented employee group. However, the pilots rejected the tentative agreement on August 8, so it is time to move forward,”
“Judge Lane’s ruling is very important because it will allow us to implement the changes that are necessary for our successful restructuring. We will be sharing the implementation plan with the APA, and will communicate details of the plan to pilots in the coming days.,” he said.
“Our goal remains to reach a consensual agreement with our pilots, and we are resolute in our efforts to put American Airlines in a position to win and create new opportunities and a brighter future for our people,” Hicks said.
The judge encouraged both sides to get a consensual deal, noting that he can’t do it for them.
“That’s something that you will have to do. I have a lot of sympathy for employees, the pilots, just as I did when we had the original trial… I wish you good luck in working out an agreement,” Judge Lane said after issuing the decision.
He indicated he will sign an order on his decision Tuesday evening or Wednesday morning.
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