Business News

Union says AA workers to get raises from merger

Posted: 01/28/13 at 6:00 pm EST

DALLAS (AP) -- A labor union says American Airlines ground workers would get immediate 4.3 percent raises if the carrier merges with US Airways.

The Transportation Workers Union said Monday that it negotiated the pay hike with the two airlines, which have been discussing a potential merger for months.

The money would be in addition to terms of contracts that mechanics, bag handlers and other workers accepted in recent months.

American and parent AMR Corp. are operating under bankruptcy protection. AMR is considering whether to accept a merger pushed by US Airways Group Inc. or emerge from Chapter 11 on its own.

AMR's creditors will also have a role in the decision, which is expected in the next few weeks.

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