American Airlines pilots union rejects pay hike offer
Earlier this week, United Airlines pilots rejected a tentative contract and Delta pilots authorized a strike if necessary
The union representing American Airlines pilots said on Wednesday that its board of directors rejected a proposed agreement that would have offered a raise of about 19% over two years.
The Allied Pilots Association (APA), which is the certified collective bargaining agent for all American Airlines pilots, confirmed to FOX Business that its board of directors rejected the proposal after it failed to gain enough votes.
The APA tweeted Wednesday that only five people of 15 voted in favor of it.
DELTA PILOTS OPEN VOTING FOR STRIKE AUTHORIZATION AS CONTRACT NEGOTIATIONS FALTER
APA spokesperson Dennis Tajer told FOX Business that the proposed tentative agreement failed to meet membership’s contract goals.
"American management has done very little to address contract provisions regarding schedule reliability and instead focused more on keeping mainline pilots’ pay increases as low as possible," Tajer said.
Representatives for American Airlines did not respond to FOX Business' request for comment.
Under the proposed offer, pilots would have received a 12% raise immediately after the contract was signed followed by another 5% pay hike and an additional 2% after two years, according to Reuters.
It differed slightly from American's proposal in June to hike pilot pay by nearly 17% by the end of 2024.
CEO Robert Isom said in a video sent to pilots over the summer that the airline’s workers "will be paid well, and paid competitively, no matter what."
DELTA AIR LINES PILOTS PICKET NATIONWIDE FOR BETTER CONTRACT AMID FLIGHT DISRUPTIONS
The APA has not only been seeking higher wages, but it was also looking for improved schedules especially as the industry continues to grapple with a staffing shortage.
"Management’s failure to invest in a pilot contract that levels up to meet passenger demand only creates more uncertainty for the holiday travel season and even next summer," Tajer added.
It's also not the only pilots union that's pushing for significant pay boosts amid a tumultuous time for the industry.
On Tuesday, United Airlines pilots overwhelmingly rejected a tentative contract that would have included raises of nearly 15% over 18 months.
The Air Lines Pilots Association (ALPA) said it was determined to win an industry leading contract "that fully recognizes our contributions to the success of our airline."
UNITED AIRLINES PILOTS VOTE TO 'RESOUNDINGLY' REJECT CONTRACT OFFER
United said the two sides are working on a new agreement that is expected to include better pay rates and other improvements.
Delta pilots, also represented by the ALPA, on Monday voted to authorize union leaders to strike if necessary to get a new contract agreement.
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The union said its pilots are still working under pay rates, contractual provisions and benefits that were negotiated six years ago.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 61.05 | +0.62 | +1.03% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 87.51 | +2.08 | +2.43% |
| AAL | AMERICAN AIRLINES GROUP INC. | 13.81 | +0.19 | +1.40% |
Delta told FOX Business that "ALPA's stated purpose for the vote is simply to gain leverage in our pilot contract negotiations, which continue to progress under the normal process set by the Railway Labor Act and in partnership with the National Mediation Board."
Still, the carrier says it's confident, after making significant progress in negotiations, that both parties will reach a "fair and equitable" agreement.
The Associated Press contributed to this report.