Union Agrees with American on Contract Changes

The changes cover 10,700 of American's 75,000 employees

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    Union officials say thousands of ground workers at American Airlines will see an easing of cost-cutting contract terms that they approved last month.

    The changes cover 10,700 of American's 75,000 employees.

    The Transport Workers Union said Thursday that the workers will get improvements in pay and medical and retirement benefits over the deals they approved in May.

    Fort Worth-based American, which is operating under bankruptcy protection, offered a 17 percent cut in spending on pilots, compared with 20 percent for the ground workers.

    The ground workers had so-called "me-too" clauses, to match better deals offered to other work groups.

    Mechanics rejected a contract proposal last month but will begin new negotiations with American on Monday.