American Airlines announced that they had reached an agreement with the Transportation Workers Union, which represents 10,350 ground workers at the airline. The deal includes pay raises in exchange for the outsourcing of 1,200 jobs. The airline thought it had a deal with the TWU last year, but the union did not submit it to their members to vote on. The deal also includes changes to retirement and health care benefits for new hires. The airline is still in negotiations with pilots, flight attendants and mechanics.
See "American strikes deal with bag handlers", David Koenig, Business Week, October 26, 2011