Why American Can Avoid a TWU Strike
DALLAS ( TheStreet) - It is hard to imagine that American and its largest union, the Transport Workers Union, will be unable to reach a deal without a strike, because the relationship has been good for so long.
Additionally, American needs to show that it can indeed make a deal, as it continues talks with unions that have been more recalcitrant.
With open contracts at every major carrier, the airline industry is headed into a period in which labor relations will be the dominant issue. The general theme is that in every case, inside or outside of bankruptcy court, labor groups made concessions to keep airlines afloat between 2002 and 2005. Now, unions want to regain some or all of their sacrifice, despite the industry's fragile recovery.
American, one of the two major network carriers that did not seek bankruptcy protection, is slightly ahead in the sequencing. The Transport Workers, with 28,000 American workers in 11 bargaining units,
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