American Airlines Maintenance Workers Overwhelmingly Approve Contract After 5-Year Battle
More than 30,000 mechanics, fleet workers and other union workers overwhelmingly approved a new contract Thursday that gives them pay raises, bonuses and job security as the carrier enters another period of uncertainty.
The three biggest groups in the TWU-IAM Association all reported more than 90% approval. Getting a deal for the maintenance workers turned out to be one of the most difficult tasks in the history of American Airlines and comes as the company’s existence is once again in peril from a sudden decimation in traffic, this time caused by the coronavirus pandemic.
The deal gives immediate 4% to 18% pay raises for each worker depending on experience and job, $3,000 to $6,000 signing bonuses, and annual raises during the five-year life of the deal. It also guarantees jobs for every worker at their current location, which could be an important factor as the company looks to slim down payrolls in the coming months.
The deal also includes baggage handlers and facilities maintenance workers.
The unions covering workers bragged that they won concessions from American putting limits on outsourcing and keeping much of its heavy maintenance work in-house.
“The resounding approval of these contracts yet again proves that by standing together and demonstrating our solidarity and determination, we are able to achieve contracts our members deserve,” said a statement from association Chair Sito Pantoja and Vice Chair Alex Garcia. “It is that same resolve that will get us through this unprecedented crisis facing our airline, our industry and our country.”
For its part, American gets labor peace with mechanics for the first time since they started negotiating in 2015. American called it a best-in-class contract that gives better pay and benefits to its workers than competing airlines.
“This agreement is a long-awaited milestone for our company,” said a statement sent to employees by American Airlines senior vice president David Seymour on Thursday night, after the vote was announced. “Not only will our … colleagues receive an industry-leading contract, but it also marks the first time that all our represented team members — in every workgroup throughout the company — will be working under joint agreements.”
But the deal didn’t come easy. After years of being deadlocked in contract talks and mediations, American sued the union association in May, alleging a work slowdown intended to put pressure on the airline in negotiations. American blamed maintenance workers for thousands of delays and cancellations last summer. The company said labor strife contributed to struggles it had delivering passengers on time.
American won a federal injunction in court in August, setting the stage for six more months of talks before the tentative deal was reached.
Part of the problem in getting a new contract was the fact that the unions for legacy American Airlines and U.S. Airways never signed a unified deal when the two companies merged in 2013. The two groups brought different benefits and priorities to a new contract, and American had a problem finding a deal all parties could approve.
Details of the contract, including when raises and bonuses will come, should be announced to members in the coming days.
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