What is likely the last act in the merger of American Airlines and US Air, the airline and five union groups have signed a series of contracts that for the first time brings employees together by their work rather than who they worked for in 2013 when the airlines merged.
The contracts cover mechanics, fleet service workers and maintenance trainers, all represented by locals of the International Association of Machinists (US Air) or Transport Workers Union (American). The workers will still be in separate unions, but all working conditions and wages will be the same across the company.
Among the new provisions agreed to are signing bonuses, wage rate increases over a five-year contract, improved profit-sharing and a tight limit on outsourcing maintenance, especially to overseas companies.
One key difference for the two unions: IAM has one of the few remaining defined-benefit pension plans in the airline industry, and it will be maintained. TWU members have 401k plans instead; the company will contribute the same amount to those plans as it pays into the IAM plan.
