%headline(Union says AA workers to get raises from merger

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Associated Press

Posted on January 29, 2013 at 4:02 AM

DALLAS (AP) — A labor union says American Airlines ground workers would get immediate 4.3 percent raises if the carrier merges with Tempe, Ariz.-based US Airways.

The Transportation Workers Union said Monday that it negotiated the pay hike with the two airlines, which have been discussing a potential merger for months.

The money would be in addition to terms of contracts that mechanics, bag handlers and other workers accepted in recent months.

Fort Worth, Texas-based American and parent AMR Corp. are operating under bankruptcy protection. AMR is considering whether to accept a merger pushed by US Airways Group Inc. or emerge from Chapter 11 on its own.

AMR's creditors will also have a role in the decision, which is expected in the next few weeks.

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