US Airways Union Assails 'Back Room Deal' With AMR Workers

Tickers in this article: AAMRQ.PK LCC

CHARLOTTE, N.C.(TheStreet) -- The International Association of Machinists has blasted US Airways (LCC) for negotiating a deal with American's (AAMRQ.PK) ground workers before negotiating a deal with its own.

In an email titled "US Airways, American Airlines Announce Back-Room Deal" and sent to members on Monday, Sito Pantoja, IAM general vice president, declared: "US Airways needs to get serious about coming to contract terms with its own employees instead of bribing American's employees to support its merger dreams."

On Monday, the Transport Workers Union said its members at AMR signed a deal assuring 4.3% raises if a merger occurs.

"This 4.3% raise is not even a down payment on what IAM members at US Airways will get at the conclusion of our negotiations," Pantoja said. "IAM members can rest assured that their negotiators will not ask them to accept such a paltry pay increase."

TWU represents about 21,000 mechanics, fleet service workers and other related trades at American while IAM represents about 5,700 fleet service workers and 3,500 mechanics at US Airways. Contract negotiations are ongoing after a 2008 contract became amendable in January 2012.

-- Written by Ted Reed in Charlotte, N.C.

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