American Airlines Proposes 20% Cut in Salaries

American Airlines, seeking deep cuts in its costs as it makes its way through bankruptcy court, said Wednesday that it wanted a 20 percent reduction in salaries and benefits from its employees as well as a termination of their pension plans. It also said it wanted to cut about 13,000 workers, or 16 percent of its current work force.


The company, which filed for bankruptcy court protection in November, said it aimed to reduce overall costs by $2 billion a year, including $1.25 billion in employee savings. The Dallas-based airline made the announcement after meeting with representatives of its three biggest unions .... Read more at http://www.nytimes.com