Last Friday we noted here that we had heard of a potential contract extension deal in the works between TWU and American.

Today Trebor Banstetter at the Ft. Worth Star-Telegram confirms that information, citing letters the TWU has posted on the union’s website which detail a contract extension proposal that would link pay raises for mechanics and other ground workers to company performance.

According to Trebor:

“The proposal, made late last week, stems from an August meeting between Gerard Arpey, American’s chief executive, and Jim Little, the TWU’s international president. At the meeting, Little told Arpey that union members are willing to continue collaborating with management, but only for some type of additional compensation, according to sources familiar with the negotiations.

Little followed up with a letter to Arpey outlining his concerns, and Arpey responded with a letter in which he said he is committed to maintaining their collaboration.

“As a result of a letter from Little to Arpey, the company approached the negotiating committee with a proposal to explore the possibility of seeking non-traditional compensation, and a possible contract extension,” union officials told members in a message. Labor leaders said they have appointed a committee to examine the proposal during the next two weeks.”

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