The pilots' union at American Airlines has rejected the company's latest contract offer. The move could clear the way for a judge to decide whether American can impose its own cost-cutting terms, including layoffs.

The union board voted 11-5 on Wednesday to reject the company's offer.

A federal bankruptcy judge is scheduled to rule Friday on whether American can break its current contracts with pilots and other union workers. The pilots' union wants a delay in that ruling.

American and parent AMR Corp. filed for bankruptcy protection in November.

 

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