US Air, AMR unions strike an accord - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
Subscriber Content Preview | Request a free trialSearch  
  Go

Restructuring

Print  |  Share  |  Reprint

US Air, AMR unions strike an accord

by Lou Whiteman  |  Published May 16, 2013 at 9:00 AM
AMR-shares-down-10-on-pilot-proposal227.jpgThe unions representing ground workers at merger partners US Airways Group Inc. and AMR Corp. said Tuesday they planned to join forces amid a move by a third trade group to take over representation at the combined company.

The International Association of Machinists and Aerospace Workers, which represent mechanics and other ground workers at AMR unit American Airlines Inc., and the Transport Workers Union of America said they have signed joint agreements to represent nearly 30,000 mechanics, fleet services and other workers at the soon-to-be-merged airline.

The two groups will request regulators hold elections among the combined employees after the close of the American-US Airways merger, expected later this year.

"This agreement allows us to use our combined strength and resources on behalf of all our members as we move forward at the new American Airlines," TWU president James C. Little said in a statement. "Both unions have decades of experience representing workers at US Airways and American Airlines and both unions are members of the AFL-CIO."

The agreement comes weeks after the International Brotherhood of Teamsters signaled its intention to try to represent mechanics at the merged airline, a move that could potentially disrupt the airlines' hope for post-deal labor peace. The Teamsters have been working to represent mechanics at US Airways since October 2012, part of a broader ongoing turf war between unions seeking to increase their membership.

The two airlines in February announced plans to combine as part of AMR's emergence from bankruptcy in a deal that would create the world's largest carrier. US Airways worked hard in the months leading up to the announcement to win backing from AMR workers in hopes of ensuring post-deal labor peace.

The prospect of a union turf war is worrisome for the airlines because it could lead to the competing sides overpromising to try to win votes. That in turn could lead to more difficult negotiations with management as the winning union tries to make good on those promises.

Share:
Tags: American Airlines | AMR | International Association of Machinists and Aerospace Workers | International Brotherhood of Teamsters | Transport Workers Union of America | US Airways Group

Free preview

This is only a preview of The Deal's sophisticated coverage. Explore the real-time intelligence as researched and reported on by our team of financial journalists with a license to The Deal Pipeline. Click here for more information.

Meet the journalists

Lou Whiteman

Senior Writer: Transportation

Contact



Movers & Shakers

Launch Movers and shakers slideshow

Ken deRegt will retire as head of fixed income at Morgan Stanley and be replaced by Michael Heaney and Robert Rooney. For other updates launch today's Movers & shakers slideshow.

Video

Coming back for more

Apax Partners offers $1.1 billion for Rue21, the same teenage fashion chain it took public in 2009. More video

Sectors