American Airlines, mechanics union reach tentative accord
The Transport Workers Union, representing 11,500 mechanics and ground workers, and American Airlines reached a tentative contract agreement today after a years-long negotiation. It is the first contract agreement to be reached since the $1.8 billion dollar bailout of AA. The agreement covers three years, and provides for annual wage raises (3% this year, and 1.5% the two following years) as well as a one-time lump-sum bonus when the contract goes into effect. About 400 workers at the Kansas International Airport overhaul base will be shut down by September - most of the employees will retire, though some will be transferred to other operations. Although the union has been silent on the subject of the new agreement thus far, both sides appear to be happy that a potential contract is finally on the table.
See "American Airlines, mechanics union reach tentative accord", Randolph Heaster, Kansas City Star, May 5, 2010