AMR Corp.'s American Airlines, seeking to reduce labor costs while in bankruptcy, defeated an effort by some employees to block wage and benefit cuts as they consider joining a union. Bankruptcy Judge Sean Lane yesterday denied a request from passenger service agents for an order prohibiting the airline from imposing changes to employment terms with a union-representation election set to take place. The ruling is a win for AMR as it seeks $1.25 billion in annual labor savings that it says it needs to restructure and exit bankruptcy. The Fort Worth, Texas-based airline is in court this week seeking to void labor contracts with unions representing pilots, flight attendants and mechanics.
