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Friday, March 2, 2007

American Airlines outsources HR duties to IBM for $217 million

By Pegasus News wire

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FORT WORTH — IBM today announced a $217 million, 7½-year agreement with American Airlines to transform and manage many of the airline's human resource functions. American Airlines is the world's largest airline, with more than 88,000 AMR employees across the United States and Canada.

Some of the airline's employees are noticeably concerned about the move.

Photo not provided by AA, IBM

Some of the airline's employees are noticeably concerned about the move.

As part of the agreement, IBM will provide American Airlines support for training, recruitment and staffing and HR-related information technology and call center support. Mercer will also deliver health and benefit, pension plan, and compensation administration.

"Through our agreement with IBM, we're acquiring state-of-the-art tools and processes that will enhance our employees' access to and use of HR services," said Jeff Brundage, AA's senior vice president of human resources. "Moving the transactional work to IBM allows us to focus our energies and resources on our strategic business imperatives."

Source: IBM

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