US Airways, Union Reach Tentative Agreement for Ramp and Baggage Handling Employees

TEMPE, Ariz. (AP) -- US Airways Group Inc. said Wednesday it reached an agreement with the International Association of Machinists and Aerospace Workers on a contract for the airline's 7,700 ramp and baggage handling employees.

The agreement, which is still subject to ratification, establishes new wages for the workers.

If ratified, the agreement would be effective through Dec. 31, 2011.

The employees are currently working under two separate agreements -- one for US Airways employees and one for America Fleet Service employees. US Airways bought America Fleet Service in 2005.

The agreement provides for a single contract that would cover both.

US Airways shares rose 29 cents, or 3.3 percent, to $9.13 in electronic after-hours trading. During regular trading, shares fell $1.03, or 10.4 percent, to close at $8.84.