American Sends Layoff Notice to 11,000 Workers

4,400 likely will lose their jobs in bankruptcy restructuring

   

American Airlines has notified more than 11,000 employees of impending layoffs, although a company spokesperson says that fewer than 40% of those receiving the warnings will actually lose their jobs, according to the Associated Press.

The impending firings come as a result of restructuring following a declaration of bankruptcy by the airline and its parent company, AMR Corp. (PINK:AAMRQ), last November.

Spokesman Bruce Hicks estimated that American would ultimately release only 4,400 or so of the employees — mostly ground workers and mechanics — who received the layoff warning notifications, which federal law requires employers to send to any worker whose position might be affected.

American also is offering bonuses to ground workers and flight attendant who leave on their own accord. To date, 2,600 employees have left the company after accepting payment.

While eight labor unions have negotiated cost-cutting contracts with American, the American Pilots Association voted down American’s last offer. In response, American forced its pilots to accept lower pay and new working rules, after receiving permission to do so from a federal judge.

The Allied Pilots Association was meeting with figures in the Obama administration this week in an attempt to clear the way for a strike, the AP reported. So far, the White House has withheld its permission.

– Ryan Hauck, InvestorPlace


Article printed from InvestorPlace Media, http://investorplace.com/2012/09/american-sends-layoff-notice-to-11000-workers/.

©2014 InvestorPlace Media, LLC

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