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AMERICAN AIRLINES, PILOTS AGREE ON DEAL TO REDUCE JOB CUTS

American Airlines has reached a deal with its pilots’ union designed to reduce the number of job losses in October as the airline shrinks because fewer people are flying during the pandemic, the Associated Press (AP) reported on August 5, 2020.

The airline had previously offered early retirement to pilots and other employees. But, Senior Vice President Kimball Stone said Tuesday, “we still had many more people than necessary to run our operation.”


The agreement with the Allied Pilots Association would let pilots work every other month through next May, or take leave while receiving training so they could be rehired if travel demand recovers.


It is the latest among a number of deals negotiated by airlines and their unions to limit or avoid job cuts in October. That is when federal relief for airline labor costs and a ban on layoffs end. Congress is considering giving passenger airlines another $25 billion to avoid layoffs shortly before the Nov. 3 election. Last month, American, which is based in Fort Worth, Texas, warned 25,000 employees, including about 2,500 pilots, that they could be furloughed, or laid off with rehiring rights. More than 800 American pilots took early retirement.


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