American Airlines is expected to seek to have its labor contracts broken by a federal judge next week as the company continues its bankruptcy process. The airline has been in continual negotiations with its various unions to cut costs and eliminate jobs, but representatives do not expect continued talks to be fruitful. Under federal law, companies can request that a judge throw out union contacts so long as efforts have been made to negotiate with the unions to reach a compromise first. Union leaders claim that it has been American Airlines? intention since the beginning to have the contracts voided, and that the ongoing negotiations have been just a pose for appearances.
See "American Airlines, in bankruptcy process, likely to ask judge to cancel union labor contracts", The Washington Post, March 21, 2012