Bankrupt AMR Corp has come to terms with its pilots union on language for a new labor deal to be voted on by union members, according to a statement to be released by the union on Friday afternoon.
AMR, parent of American Airlines, has been in talks with its pilots as it tries to reduce labor costs and emerge from bankruptcy.
Continue Reading Below
A negotiating committee for the union on Friday came to terms with the company on language for a new deal, according to the statement, a copy of which was obtained by Reuters prior to its being made public.
The contract still has to be ratified by union members, who rejected a previous labor proposal in August.
AMR declared bankruptcy last November, saying it needed to cut more than $1 billion a year in labor costs. It has already reached new collective bargaining agreements with its flight attendants' and ground workers' unions.
(Reporting by Nick Brown; Editing by Gary Hill)