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American Airlines, union reach deal to hike agents' pay

Published 11/30/2015, 05:47 PM
© Reuters. People walk past an American Airlines logo at John F. Kennedy (JFK) airport in in New York
AAL
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By Abhirup Roy

(Reuters) - Members of the association representing American Airlines Group Inc's (O:AAL) reservations and gate agents approved a new five-year contract that includes an immediate 30 percent average wage hike.

The world's largest airline had agreed in September to a tentative contract that was put to vote with the members of Communications Workers of America and the International Brotherhood of Teamsters (CWA-IBT), which jointly represent nearly 15,000 workers.

"Immediately an average of 30 percent in increases takes effect," IBT spokeswoman Kara Deniz said in an emailed statement to Reuters.

CWA spokeswoman Candice Johnson said workers will get two wage increases per year.

"It's a contract that provides especially for the lower-wage workers," Johnson told Reuters. "It's life changing, especially, say for home-based agents."

CWA said 73 percent of CWA-IBT members voted in favor of the deal.

The Fort Worth, Texas-based carrier, formed by the merger of American Airlines and US Airways in 2013, is aiming for a smooth integration of its workforce and has already concluded contracts with its pilots and flight attendants.

© Reuters. People walk past an American Airlines logo at John F. Kennedy (JFK) airport in in New York

American Airlines' shares closed down about 1 percent at $41.26 on Monday. The stock was little changed in extended trading.

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