American Passenger-Service Workers Approve 5-Year Contractby
American Airlines Group Inc. said a union representing 14,500 reservation agents and airport passenger-service workers approved a five-year contract that included “significant” pay raises.
The agreement provides an average initial increase of 30 percent, 2 percent raises at the end of the first and second years and 2.5 percent in each of the following two years, according to a statement on the Communications Workers of America website. The initial increase follows concessions that workers had given American while it was in bankruptcy.
The pact also strengthens protection against furloughs and specifies work that can’t be outsourced. The contract won the support of 73 percent of those voting, the Communications Workers and the International Brotherhood of Teamsters said in a statement Monday. It was the first contract for the workers at American, where they are represented jointly by the two unions, and includes employees from 2013 merger partner US Airways.
“This agreement is a huge step in making us truly one combined team,” Kerry Philipovitch, a senior vice president at American, said in the statement.
Wage increases under the new pact will be included in Dec. 24 paychecks.
American fell 1 percent to $41.26 at the close in New York, leaving the stock down 23 percent this year.