American Airlines and workers union TWU-IAM Association have come to an interim agreement on a salary increase for at least 30,000 employees of the U.S. carrier. Mechanic and Related workers will elevate three percent above similarly classified workers at Delta Air Lines and Fleet Service, Stores/Material Logistic Specialists and Maintenance Training Specialists’ wages will increase one percent ahead of their counterparts at United Airlines in November, 2016.
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The deal will add $75 million to American’s pre-tax costs in the third quarter and $120 million in the fourth quarter, according to a Securities and Exchange Commission filing.
The workers represented by the TWU and the IAM were the last unionized group to get a new contract with the post-merger company. Today’s interim agreement is unique, and thanks to the experienced leadership of Association Chair Sito Pantoja, Association Vice Chair Harry Lombardo, and two extremely motivated and capable negotiating committees, we have joined together to put the interests of our co-workers and Association members first.
The 30,000 ground workers, who are represented by the TWU-IAM Association, will also receive a lump sum payment and retirement improvements as part of the deal.
“These increases now give employees in each of these groups the highest hourly wage rates amongst their peers at other network carriers”, the airline and the union said in the statement. “The process of bargaining joint contracts after a mega airline merger like American and US Airways is complex and time consuming”.
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American chief operating officer Robert Isom in a statement admitted that the contract, which involves what was once 12 workgroups, “is taking longer than any of us anticipated”, the interim agreement is a step in the right direction. American Airlines’ stock gained 1.4% in morning trade.
