Union Halts Support for Cost Cuts at American

Upon news that American Airlines has decided to pay managers $100 million in bonuses, the company's flight attendants said they would no longer support efforts between the company and union to lower costs.

The company disclosed its payments in January, and has prompted the union to revoke efforts to reach a compromise. Chief Executive Gerard Arpey's is attempting to reduce costs and avert bankruptcy. The airline and its three biggest unions on Mar. 8 began arguing before an arbitrator over whether the bonuses violate workers' contracts.

Fort Worth-based American, the world's No.1 carrier, plans to pay some managers a total of &99.9 million even as it loses money and seeks cuts from workers.

Some $2 million may go to one executive alone.

The union is contending that the plan violates a 2003 agreement establishing annual incentives that were to align management compensation with pay for line employees.

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