Union says workers would get raises under US Air-AMR merger

Mon Jan 28, 2013 11:26am EST

Jan 28 (Reuters) - The Transport Workers Union of America, which represents ground workers at American Airlines, said on Monday it has reached an agreement with US Airways Group Inc and AMR Corp that would grant immediate raises of 4.3 percent for its workers, should a merger of the two carriers take place.

The wage increase is spelled out in a memo of understanding reached over the past month with representatives of senior management at US Airways and American Airlines. The memo requires court approval.

The TWU represents more than 20,000 workers at American Airlines.

US Airways and AMR are in the final stage of negotiating a merger, with final price and management structure still to be resolved, people familiar with the matter said last week. AMR's board is meeting on Monday and Tuesday to discuss the latest developments in the talks, the people said.

A merged American-US Airways would have revenue of $38.69 billion based on 2012 figures, in front of current world No. 1 United Continental Holdings Inc, which had revenue of $37.15 billion last year.

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