FORT WORTH, Texas (AP) -- Low-level management employees at American Airlines could get a share of company profits and, if they lose their jobs, at least six months' severance pay if the merger with US Airways is approved. Payouts will be similar to US Airways' policies.
American also says the severance policy is designed to give the employees financial security so they can focus on their work during the merger process. The severance offer will last for two years after the merger.
American's parent company, AMR Corp., disclosed the changes Friday in a regulatory filing, one day after the airline notified employees.
AMR announced in February that it plans to merge with US Airways Group Inc. The combined carrier would be the world's biggest and keep the American Airlines name, but it would be run by the CEO of US Airways.
In the letter to the salaried workers, senior vice president Denise Lynn said that management employees also got a 3 percent raise in January.
For the profit-sharing plan, AMR dropped a requirement under an old plan that it earn at least $500 million before anyone got profit sharing. Any payments for 2013 would be made in March 2014.
Under the new plan, those eligible would get profit sharing of about 1.3 percent of pay for every 1 percentage point of the company's pre-tax profit margin. She gave an example in which a supervisor earning $50,000 would get $1,300 in profit sharing if the company's pre-tax profit margin were 2 percent.
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