American Airlines Parent Company Files Motion To Dissolve Labor Contracts

AMR, the parent company of American Airlines, says it has begun filing a motion to dissolve its collective bargaining agreements with its three major unions.

Called a Section 1113 motion, the company says it's being transmitted to the court electronically and will take several hours to complete.  

Read: Principle Memorandum of Law

The motion is a request for the judge overseeing AMR's bankruptcy to cancel the contracts the company has with its unions and replace them with new ones.  The company announced last week that it planned to file the motion.

3/22/2012:  Related Story:  American Airlines Turns Up The Heat On Its Unions

The unions -- representing the companies pilots, flight attendants and mechanics -- have said it's a tactic designed to force them to grant more concessions to management.

The company notes in its motion that its competitors that have gone through restructuring were given permission to restructure their collective bargaining agreements with their unions. 

The unions and the company have been negotiating, but according to CEO Tom Horton the negotiations were not moving fast enough.

"With losses mounting and oil prices rising, there is growing urgency to move more quickly. The bankruptcy law provides a process for the court to address such a situation as has been done in virtually all prior successful airline restructurings," wrote Horton in a statement released to News On 6.

Read: Horton's Letter

Horton goes on to say that he believes the best course of action is a new agreement supported by all the parties.  

"This will remain the ultimate objective of all parties as we proceed and we will continue to work with our union negotiating committees to reach agreement. At the same time, all our existing labor contracts will remain in effect and we will continue to work through the required changes for all management and other independent workgroups," Horton said.

Transport Workers Union International President James Little released his own statement, saying the motion won't stop negotiations.  The TWU represents the mechanics and other ground personnel, about 7,000 of which work at the maintenance base in Tulsa.

"The 1113 motion does not change the fact that our negotiators are still at the table in Dallas trying to work out an agreement with AMR. If we are unable to reach an agreement, we are fully prepared to vigorously represent our members in court and explore all options," said Little.

Once the motion is filed with the bankruptcy court, it will be up to the judge to decide how to respond to it.  The judge has 51 days to act.  

AMR announced on February 1, 2012, that it planned to cut 13,000 jobs company-wide, including 9,000 from work groups represented by the TWU. Those cuts would include 2,100 jobs at the Tulsa overhaul base.

Read all of News On 6's coverage of American Airlines' bankruptcy here.