American Airlines to grant pay rises to 30,000 staff

American Airlines and workers union TWU-IAM Association have come to an interim agreement on a salary increase for at least 30,000 employees of the US carrier.

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Average pay rises of 22% will be handed out to those working in mechanics, baggage handling and other areas immediately.

The union was only formed in 2013 after the merger between American and US airways. Talks will continue about a more long-term solution after the interim raises take effect.

“With 12 diverse work groups represented by the association, reaching a single agreement for this specific set of co-workers is taking longer than any of us anticipated,” COO of AA Robert Isom said in a statement. “Today’s interim agreement is unique.”

There are about 118,500 on American's payroll, according to FactSet. The deal will see a minimum of a 15% rise, to a possible 36% for maintenance and related employees, 24% for fleet service workers, 31% for tower planners and a huge 55% for weight and balance planners.

American Airlines stock has fallen 20% this year thus far, but gained 1.4% in morning trading on Friday.

According to a statement from American, the increases now give employees in the various sectors the highest hourly wage rates amongst their peers. at other network carriers