American Airlines negotiates a contract extension with labor unions that it sued 5 years ago

FORT WORTH, Texas — American Airlines and labor unions representing mechanics, baggage handlers and other ground workers said Friday they reached agreement on a two-year contract extension that includes double-digit pay increases.

The agreement covers 34,000 employees who are represented by the Transport Workers Union and the International Association of Machinists and Aerospace Workers.

The TWU said top-scale wages would increase 12% to 15% on Jan. 1 and 18% to 26% over the term of the extension.

The unions did not say when workers will vote on ratification. The extension would run through 2026.

The agreement would raise American's labor costs but bring it a longer period of stability with its workforce. Union flight attendants recently ratified a contract that includes cumulative pay raises of up to 36% over five years. Last year, pilots approved a pact that boosts pay more than 40% over four years.

John Samuelsen, international president of the Transport Workers Union International, said the unions avoided repeating a 2019 confrontation, when American sued the two unions, claiming they were conducting an illegal work slowdown to gain leverage in contract negotiations.