TWU-IAM Association Wins Wage Hikes for 30,000 at American Airlines

Washington, D.C., August 5, 2016 – The TWU-IAM Association today announced it has reached an interim agreement with American Airlines to provide approximately 30,000 ground workers industry-leading wage rates, a lump sum payment and retirement improvements. Both sides will continue joint contract negotiations to resolve outstanding issues.

“Association members at American Airlines will receive the industry-best wages they deserve now,” said Association Chair and Vice Chair Sito Pantoja and Harry Lombardo, respectively. “The process of bargaining joint contracts after a mega airline merger like American and US Airways is complex and time consuming. Association members will not have to wait to share appropriately in the success of their airline while their Negotiating Committees bargain hard to complete the process.”

The agreement provides average wage hikes of approximately 22 percent, effective November 2016. 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. A lump sum payment will be made to members to bridge the gap until the November 2016 effective date.

The agreement also calls for enhancements to defined benefit and defined contribution pension plans. And, while not required under this agreement, the Company’s presentation to the Association included the possibility of insourcing some maintenance work that had previously been outsourced.

“We’d like to thank the Negotiating Committees and all Association members for making their voices heard loud and clear, and American Airlines for being a willing partner,” continued Pantoja and Lombardo. “We look forward to continuing these joint contract negotiations to achieve improvements in all areas of our contracts, including pressing for additional gains in wages and retirement security.”

Both the Fleet Service and the Mechanic and Related/Stores Negotiating Committees unanimously voted in favor of the interim improvements.

The TWU-IAM Association is an alliance between the Transport Workers Union (TWU) and the International Association of Machinists and Aerospace Workers (IAM). The Association was formed in 2013 following the merger of American Airlines and US Airways and opened negotiations to bargain single contracts for approximately 30,000 ground workers at American Airlines in December 2015.