(Adds terms of tentative contracts, quote from Machinists'
* Annual pay increases of 3 percent for three years
* Better job security and medical benefits
* American Airlines stock climbs 1.7 percent
June 16 American Airlines Group on
Monday said the company and the Machinists' union reached
tentative agreements covering more than 11,000 employed at US
Airways as mechanics, maintenance training specialists and
The three-year agreements, which provide 3 percent pay
increases and improved job security and medical benefits, must
be ratified by the employee groups.
US Airways, which merged with AMR Corp to form the new
American in December, had been in contract talks with the union
for about three years, the International Association of
Machinists and Aerospace Workers said.
The tentative contracts include "gains in every item that
was negotiated," IAM spokesman James Carlson said. "There was no
step back in any category."
Ratification would pave the way for talks to begin on a
joint contract that would cover the 30,000 ground workers at the
The Machinists' union and the Transport Workers Union of
America, which represents the former AMR Corp ground workers,
formed an alliance last year that will eventually seek to be
certified as the bargaining agent for all the ground workers,
American Airlines shares rose 1.7 percent to close at $41.06
(Reporting by Karen Jacobs in Atlanta; Editing by Jan Paschal)