American Airlines, TWU reach agreement
TULSA (FOX23) An American Airlines spokesperson announced the carrier has reached an agreement with the TWU Mechanic & Related and Stores workgroups.
American announced it would resume negotiations with flight attendants and mechanics this week. The pilots union reached an agreement with AA that has a 17% cost reduction instead of 20%. Both the flight attendants and mechanics unions can now negotiate for a similar offer.
AA spokesperson Bruce Hicks released this statement about the agreement:
“American Airlines is very pleased to have reached agreements on proposed contracts with the TWU Mechanic & Related and Stores workgroups. We reached agreements that address the needs of our people and still allow us to achieve the cost savings necessary for our company to compete and succeed.
As with APA, we were able to reduce the amount of targeted cost savings for these two TWU workgroups, in this case by about $35 million annually. Through this reduction, and a reallocation of profit sharing, we were able to provide additional pay raises, an adjustment to industry pay rates after three years, and changes in active medical benefits.
If ratified, these agreements would allow us to create a successful future for tens of thousands of American Airlines employees as we move through restructuring and beyond. The TWU tentative agreements, along with our tentative agreement with the APA, demonstrate that we can work creatively to reach a resolution that puts our company in a position to move forward quickly and successfully. We are pleased the Mechanic & Related and Stores TWU members will have the opportunity to review and vote on these tentative agreements.”
American, which has about 73,000 employees, filed for bankruptcy protection in November and announced a plan in February to eliminate 13,000 union jobs as part of a cost-cutting move.
American is Tulsa's largest private employer, with about 7,000 workers