Judges Decision
AMR can abandon pilots' union contract: judge
REUTERS — 5:45 PM ET 09/04/12
NEW YORK (Reuters) - A judge on Tuesday ruled that AMR Corp, the bankrupt parent of American Airlines, can abrogate its collective bargaining agreement with its unionized pilots.
Judge Sean Lane issued his ruling from the bench at a hearing in U.S. Bankruptcy Court in Manhattan, saying the company successfully corrected certain issues that had caused him to reject its earlier same request.
AMR, which is seeking to save more than $1 billion a year in labor costs, can now unilaterally impose temporary work terms on its pilots as the sides continue to hash out long-term deals.
(Reporting by Nick Brown; Editing by Leslie Gevirtz)