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Ground workers at American Airlines will get big raises

August 5, 2016

FORT WORTH, Texas (AP) — American Airlines has agreed to pay raises for about 30,000 ground workers that unions say will average 22 percent.

The airline said Friday that it would give “significant pay increases” to 12 groups of workers ranging from mechanics to bag handlers. American said in a regulatory filing that the new hourly wage rates would be comparable to pay at Delta Air Lines and United Airlines.

The contract will increase American Airlines Group Inc.’s pretax costs by $75 million in the third quarter and $120 million in the fourth.

Fort Worth-based American, the world’s biggest airline, earned a record $7.6 billion last year and $1.65 billion in the first half of this year.

The employees are represented by the Transport Workers Union and the International Association of Machinists and Aerospace Workers. The unions and American are still negotiating on other terms of a new contract.

American’s shares rose 86 cents, or 2.6 percent, to close at $34.44.

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