Judge Delays Ruling on Union Contracts at American Airlines
A judge on Thursday postponed a ruling on whether to throw out contracts covering thousands of unionized workers at bankrupt American Airlines, giving labor and management an extra week to try and reach deals to save the company money, Reuters reported yesterday. Judge Sean Lane was set to rule on Friday on the airline's motion to abrogate terms covering pilots, flight attendants and certain ground workers. American said Lane postponed his decision until June 29, averting for now the possibility of management imposing work rules and other terms until long-term deals could be cut. American sought bankruptcy in November, partly blaming high union labor costs for losing its competitive edge vs. rivals who restructured in court several years ago and then strengthened themselves further through mergers. The case is In re AMR Corp et al., U.S. Bankruptcy Court, Southern District of New York, No. 11-15463.