American Airlines and the union representing its mechanics and ramp workers have agreed to a tentative contract.
The three-year pact, announced Sunday, covers nearly 15,000 employees and provides for immediate base pay raises of 8 percent to 22 percent for different job classifications. Workers would get a 3 percent raise in the second year, and another 3 percent raise during the third year.
The agreement doesn't mean American's labor woes are over, however.
American's flight attendants are counting down to a strike that could come as early as June 30, unless President Bush intervenes. Fort Worth-based American also faces challenging negotiations with its pilots this summer, when the union and the company begin to hammer out a new contract in the wake of its acquisition of TWA.