“American Airlines was sued by its pilots’ union, which is seeking to block the airline from rejecting a labor agreement and forcing new employment terms on the union because the contract has expired.
American parent AMR Corp. (AAMRQ) can’t use its bankruptcy case to reject the collective bargaining agreement because the contract expired in 2008, the Allied Pilots Association said in a complaint filed yesterday in U.S. Bankruptcy Court in New York.
American, based in Fort Worth, Texas, filed for bankruptcy in November, saying its cost structure wasn’t competitive with other airlines. Companies can use bankruptcy to reject labor contracts with unions to cut costs….”
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