American to slash up 5% of American Eagle workforce (

March 23, 2012

DALLAS – American Eagle, which operates feeder flights for American Airlines, said Wednesday that it wants to cut annual labor costs by $75 million and could shed 500 or more jobs over time…

James C. Little, president of the Transport Workers Union, which represents ground workers at American and Eagle, agreed that American’s proposed cuts are much deeper than Eagle’s.

“But $75 million spread across a much smaller company is still a major hit,” Little said as he awaited details from Eagle.

The president of the flight attendants’ union, Robert Barrow, said Eagle “plans to slash operating costs on the backs of labor.” He said the company was taking advantage of the bankruptcy process to demand deep, long-term concessions from unions.

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