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AMR Wins Labor Deals with Five Union Work Groups

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Five out of seven work groups represented by the largest labor union at AMR Corp's American Airlines voted to accept contract terms offered by the bankrupt airline that will cut thousands of jobs, the Transport Workers Union said yesterday, Reuters reported. The vote ends a court battle between the groups and AMR over the airline's bid to void its current collective bargaining agreements as it seeks to save $1.25 billion a year in labor costs, including $990 million from its unions. Had that request been successful, AMR might have been allowed to unilaterally impose even more stringent labor terms. That same court battle continues this week, however, for the TWU groups that turned down the deal, as well as two other unions representing AMR pilots and flight attendants who elected not to vote on the deal. Those groups are taking a higher-risk path, accepting the specter of deeper cuts on the hope that Bankruptcy Judge Sean Lane will deny AMR's bid.