The Transport Workers Union said it has reached new tentative agreements with American Airlines for its mechanics and store clerks.
The new deals include 3 percent pay raises upon signing for the mechanics, and 3.5 percent pay raises for store clerks. The union said health insurance coverage was also improved over the Fort Worth-based carrier's previous offer.
"These two new agreements represent an improvement from the company's previous offers and its motion to void our contracts pending before U.S. bankruptcy court," said TWU International president Jim Little.
American had reached agreements with these two work groups in May, but members voted the proposals down.
The TWU said it expects to conduct ratification votes that will conclude around August 8, the same day that the pilots union is expected to announce the results of its ratification vote of a tentative agreement with American.
The agreements also include equity claims in the new American Airlines, once its parent company, AMR Corp. emerges from bankruptcy, that will be "negotiated between TWU and AMR based on the offer proposed to the APA pilots, subject to court approval."
American has offered the Allied Pilots Association a 13.5 percent equity stake in the new company as part of its tentative agreement.
Company spokesman Bruce Hicks said American was pleased to reach agreements with the TWU that include cost savings for the company. American reduced its cost savings target for the TWU by about $35 million a year from its initial February proposals.
"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," Hicks said." 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."