Saturday, September 20, 2008

American sends layoff notices to 469 workers


BY TREBOR BANSTETTER
tbanstetter@star-telegram.com

American Airlines informed 469 airport services employees that they could be laid off in November, as the airline shrinks its schedule amid high oil prices and a softening economy.

American sent 353 of the notices to employees based in Chicago. Workers in Raleigh, N.C.; Los Angeles; San Francisco and Columbus, Ohio, also received letters.

Notices for this round of cuts were not sent to any American employees based at Dallas/Fort Worth Airport, said American spokeswoman Tami McLallen. But in July, the airline informed 158 D/FW-based employees that they could be facing layoffs.

"This follows the capacity reductions we’re implementing to remain competitive in the industry," she said. "Unfortunately those reductions require a reduction in jobs as well."

The letters were sent to gate and ticket agents, ramp workers, automotive mechanics and airport-based management and support staff, McLallen said. The airline has not yet sent notices to mechanics and other maintenance employees.

The Transport Workers Union represents more than 25,000 ground workers at American, in seven employee groups.

American has said it intends to cut about 1,300 hourly jobs and 200 management and support positions in its maintenance and engineering division. Overall, more than 6,000 jobs will be eliminated at the airline by the end of the year as it downsizes.

Airline officials hope to reduce the number of layoffs with a voluntary early retirement program. American won’t need to furlough any flight attendants, for example, despite cutting 900 attendant jobs thanks to the incentives to leave the company.

McLallen said the airline has not yet calculated how many ground workers have applied for early retirement. Last month, airline officials said that 400 maintenance and engineering employees had already requested early retirement packages.

American, like other carriers, is struggling with record prices for jet fuel this year, and is also grappling with slowing demand for travel as the economy cools.

"It is quite clear that we can no longer operate our airline at its current levels," said Mark Burdette, American’s vice president of employee relations, in a letter sent last week to union officials. "We must quickly reduce our operating schedule for the coming months, and as a result, will need fewer people to operate the airline."

Shares of AMR Corp. (ticker: AMR) were down 25 cents at $11.25 in mid-day trading Wednesday.

TREBOR BANSTETTER, 817-390-7064

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