American-US Airways merger would give 4.3 percent raise to Transport Workers Union

Posted Tuesday, Jan. 29, 2013  comments  Print Reprints

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Mechanics and fleet service workers at American Airlines will get a 4.3 percent raise if the Fort Worth-based carrier merges with US Airways.

The raise is part of a memorandum of understanding reached by the Transport Workers Union and management of both companies over the weekend.

The memorandum is the latest step toward a possible merger between the two airlines. The board of directors at American's parent company, AMR Corp., is scheduled to meet as early as today to discuss the potential deal. A decision on a merger could come in the next couple of weeks.

The TWU, which represents more than 20,000 mechanics, fleet service clerks and other ground workers at American, said the memorandum outlines a process to develop a combined seniority list in the event of a merger. It also honors an equity grant and other contract terms that the bankruptcy court has already approved between the TWU and American.

"Our members have made incredible sacrifices to keep American Airlines afloat," Jim Little, president of TWU International, said in a statement. "If there is a merger, their critical role must be recognized. This agreement is a step in that direction."

American spokesman Missy Cousino said the memorandum is based on the seven new contracts reached with the TWU last year as part of its restructuring in bankruptcy and on conditional labor agreements reached with US Airways in April.

"The MOU was reached to give the parties greater clarity on both the costs and integration processes associated with a potential merger with US Airways," Cousino said.

The carriers have already reached integration agreements with their pilots and flight attendants unions.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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