American Airlines extends contract for ground workers after lawsuit

American Airlines has reached a significant agreement with labor unions representing its ground workers, including mechanics and baggage handlers, in Fort Worth, Texas. This two-year contract extension, announced on a Friday, will provide substantial pay increases for approximately 34,000 employees. The Transport Workers Union and the International Association of Machinists and Aerospace Workers are the unions involved in this negotiation, which aims to enhance worker compensation and job stability. Under the new agreement, top-scale wages for ground workers will see an increase of 12% to 15% starting January 1, with total raises projected to reach between 18% and 26% over the duration of the contract extension. While this extension will raise American Airlines' labor costs, it is expected to foster a more stable workforce environment, which is crucial for the airline's operations. The timing of this agreement is notable, as it follows recent successful contract ratifications by other employee groups within the airline. Flight attendants recently approved a contract that includes cumulative pay raises of up to 36% over five years, while pilots secured a deal that boosts their pay by more than 40% over four years. These developments indicate a broader trend of increasing compensation across various employee categories within American Airlines. The unions have not yet announced when the workers will vote on the ratification of this contract extension, but the agreement is set to run through 2026. This move reflects American Airlines' commitment to addressing labor relations and ensuring a motivated workforce amid ongoing industry challenges.