The Transport Workers Union announced on Monday ground workers at American Airlines will get a 4.3 percent raise if a merger with US Airways occurs.
The raise is part of a memorandum of understanding that was agreed to by the TWU and the management of both companies.
"Our members have made incredible sacrifices to keep American Airlines afloat," said TWU International president Jim Little in a statement. "If there is a merger, their critical role must be recognized. This agreement is a step in that direction."
The TWU, which represents over 20,000 mechanics, fleet service clerks and other ground workers at American, said the memorandum outlines process to develop a combined seniority list in the event of a merger. It also honors an equity grant and other contract terms that the bankruptcy court has already approved between the TWU and American.
American spokesman Missy Cousino said the memorandum is based on the seven new contracts it reached with the TWU last year as part of its restructuring in bankruptcy and on the conditional labor agreements the union reached with US Airways in April.
"The MOU was reached to give the parties greater clarity on both the costs and integration processes associated with a potential merger with US Airways," Cousino said.