American Airlines Seeking to Cancel Labor Contracts

American Airlines has asked a bankruptcy judge to cancel its union contracts in its ongoing efforts to restructure. American filed the request in U.S. Bankruptcy Court in New York, Tuesday.

In a letter sent out to American Airlines employees on Tuesday, CEO Thomas Horton said "The next phase of this process will be the most challenging. This is the point at which we must achieve competitiveness and flexibility associated with all of our employee related costs." Horton goes onto say "This will require many changes in the way we do business and regrettably job losses." spoke with Rick Mullings with the Transport Workers Union. Mullings says the TWU is prepared to make their case before a judge. He says they knew that this "was coming."

Mullings goes onto say that they don't expect the judge to hear the request "for at least a couple of weeks." He says their negotiating committee is still meeting with the company and is hoping for a "consensual agreement."Mullings added "we're going to push on."