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American, TWU-IAM Workers Seal the Deal on 27-Month Contract

Over 34,000 mechanics, fleet service clerks, and load planners will see wage increases over the next two years.

An American A321neo in a maintenance hangar (Photo: AirlineGeeks | William Derrickson)

American Airlines workers represented by the TWU-IAM Association ratified a new 27-month contract extension with the carrier on Tuesday.

The contract gives pay increases to over 34,000 mechanics, fleet service clerks, and load planners. In a statement from the association, TWU-IAM said that 68% of members voted to approve the contract extension with a 90% yes vote.

Highlights of the now-ratified contract agreement published by TWU are as follows:

  • A two-year extension beginning Jan. 1, 2025.
  • Wage increases ranging from 12% to 15% on the effective date and 18% to 26% over the life of the extension.
  • 3% out-year increases.
  • Several non-economic quality-of-life issues were also addressed as part of the negotiations.

“This action affords our members’ securities and protections now rather than later, and the financial stability to address any unforeseen challenges that may lie ahead,” the union said in an online statement.

The raises are also bolstered by increased crew chief and license premiums, an emailed TWU news release stated.

“We set goals, and we achieved them,” said TWU International President John Samuelsen in the release. “When the International and TWU locals work hand-in-hand, we win.”

“With this new agreement, our TWU-IAM Association-represented team members join their colleagues who have all approved new agreements that underscore American’s commitment to ensuring our team is paid well and competitively,” said American’s CEO Robert Isom in a news release. “I’d like to thank both the Association and company negotiating teams for seeing the important win this contract extension is for our team and for working to reach a deal — one that ensures our team is paid among the best in the industry — so quickly.”

American CFO Devon May said during the carrier’s earnings call on Oct. 24 that the ratification of the new contract covers more team members in a shorter period of time than ever before.

“Not only do these agreements ensure we’re taking care of our team, but they also provide a level of certainty in our planning that will help us efficiently achieve the goals we’ve set for American,” May said. “We’re focused on delivering on our commitments, and we believe achieving our long-term targets will unlock significant value.”

AirlineGeeks.com Staff

Author

  • Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories. Every person has a story to tell, and Caleb wants to help share them! He can be contacted by email anytime at [email protected].

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