A $4.2 Billion Agreement with American Airlines

In a historic moment, after more than four years of bargaining, the TWU-IAM Association announced in January 2020 that they had reached Agreements in Principle with American Airlines for five new joint collective bargaining agreements (JCBAs) worth $4.2 billion. These agreements covered more than 30,000 Mechanic & Related, Fleet Service, Maintenance Control, MLS/Stores, and Maintenance Training Specialist members.

The Association negotiating committees were finalizing and proofing contract language on agreed-upon provisions of the tentative contracts. This process was expected to take a few weeks. Preliminary highlight sheets were attached to the bulletin, but the final, complete contract language would be available to all members.

In addition to being posted on union websites, the complete agreement would be mailed to each member’smember’s home before voting began. After the language was finalized, membership ratification details and voting information were announced.

When negotiations began, the Association negotiating committees faced the tremendous challenge of combining dissimilar, mature contracts negotiated by different unions with different airlines into JCBAs for the new American Airlines. Regardless of how difficult, lengthy, and contentious that process would be, they chose to get the right agreement for Association members.

These Agreements in Principle provided all Association members with wages, benefits, work rules, job security, and retirement income that had never before been accomplished. Total compensation (wages, premiums, retirement, and profit sharing) was the best in the industry.

These Agreements in Principle were only possible with the membership’s support, solidarity, and patience. The Association asked for continued patience as they completed and proofed every word so members could be presented with all the information they needed to make an informed decision when they voted on ratification.

Agreement in Principle Highlights:

• Wage Increases: Fleet Service: DOS +4.8%. +2% at +12,24,36,48 months after the date of signing
• Profit Sharing: Top of industry profit sharing formula
• Premiums: Crew Chief Premium: DOS: $2.20/hr. DOS+3: $2.40/hr.
• Signing Bonus: $3,000
• Scope and Job Protection: All employees had system and station job protection in their current status
• Medical: All Association Members: The Standard plan’s current design and employee contribution remained the same
• Retirement: IAM National Pension Plan (IAMNPP): Increased IAMNPP contributions to the equivalent of 5% of total pay
• Vacation: The following vacation schedule took effect on DOS: Completion of 1 year, two weeks; 4 years, three weeks; 11 years, four weeks; 24 years, five weeks; 29 years, six weeks
• Holidays: 10 holidays; Double-time and a half if worked
• Overtime: Minimum one hour of OT; New double-time language after 12 hours on any workday
• Sick Leave: Accrued ten sick days per year; Sick leave bank maximum increased to 1600 hours

This event marked a significant achievement for the TWU-IAM Association and American Airlines.