American Airlines, Mechanics Reach Tentative Deal

A lengthy and at times contentious negotiation between American Airlines and its mechanics and fleet service workers appears to be coming to a close.

According to multiple reports, the two sides have reached a tentative deal for a new contract valued at $4.2 billion.

Negotiations between the airline and the unions representing the mechanics and the fleet service workers went on for four years.
Workers must still ratify the proposed agreement.

Signing bonuses range from $3,000 to $6,000, according to Forbes, and wage increases range from 4% to 18%. That is in addition to pay rate increases between 23% and 56%, provided by American in 2016.

Forbes also noted that the contract includes “an industry-best profit-sharing formula” that could be precedent-setting. It provides 10% of American’s first $2.5 billion of pre-tax income as well as 20% of pre-tax-income above $2.5 billion.

The deal also protects against outsourcing and offshoring, two bugaboos that were important to the two unions, the International Association of Machinists and the Transport Workers Union. Combined, they represent about 31,000 mechanics and fleet service workers at American.

TWU President John Samuelsen said, “This contract is a victory for the union’s membership. We’ve secured industry-leading increased wages, significantly improved our working conditions and, very importantly, increase the amount of aircraft maintenance work which will be performed in the USA.”

“Our Maintenance & Related and Fleet Service team members are the very best in the business and work incredibly hard to care for our customers,” American Airlines CEO Doug Parker said in a statement. “They deserve contracts that include meaningful improvements in pay, quality of life and job protections.”