TWU to reopen negotiations with American Airlines

Airline Industry Information, Jan 23, 2007

AIRLINE INDUSTRY INFORMATION-(C)1997-2007 M2 COMMUNICATIONS LTD

The Transport Workers Union of America is reopening negotiations with American Airlines, a unit of AMR Corp (NYSE: AMR).

The union is reportedly the largest at the airline, representing more than 27,000 ground workers including aircraft maintenance technicians (mechanics). Negotiations are expected to begin in November.

Over the past three years American Airlines' management and TWU members have partnered on a redesign of the airline's repair facilities. As a result, instead of 800 mechanics working 25 days on a complete aircraft overhaul, the process is now completed in 13 days with just 450 personnel. The cost has been reduced by 55%.

The union says that the airline's gains should be "shared with the people who generate new revenue and keep the planes flying".

Gary Yingst, the director of TWU's Air Transport Division, will be the union's lead negotiator. Between now and May the union will solicit proposals from its local unions at American and communicate with members about bargaining strategies. The union is responsible for contracts covering seven work groups at American: Aircraft Maintenance Technicians and Related, Stores, Fleet Service and Ground Service, Technical Specialists, Flight Dispatchers, Flight Simulator Technicians and Ground School Instructors.

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