AMR Corp. is asking a bankruptcy judge to sign off on new labor agreements with its mechanics that will save the American Airlines parent nearly $172 million per year while also providing for annual pay increases, Dow Jones Newswires reported yesterday. Transport Workers Union (TWU) of the America members ratified the concessionary labor agreements earlier this month. AMR said that the new collective bargaining agreements, which last for six years, will save it $171.7 million annually and give it greater flexibility. The scope and requirements of certain jobs will be expanded, certain job protections will be eliminated and overtime, vacation and sick leave terms will be modified. Employees will benefit from annual pay increases and company contributions into their pension plans, while their existing pensions will be frozen.
