Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Union rejects American Airlines' latest proposal offering 17% wage hikes

Published 06/05/2024, 01:07 PM
Updated 06/05/2024, 08:20 PM
© Reuters. An American Airlines commercial aircraft approaches to land at John Wayne Airport in Santa Ana, California U.S. January 18, 2022. REUTERS/Mike Blake
AAL
-

By Rajesh Kumar Singh

CHICAGO (Reuters) - The Association of Professional Flight Attendants (APFA), which represents over 23,000 American flight attendants, said on Wednesday that it unanimously rejects the latest proposal from American Airlines (NASDAQ:AAL).

The airline had offered its flights attendants immediate wage increases of 17% and a new formula for higher profit sharing in 2024 in their new contracts, CEO Robert Isom said earlier in the day.

The union said the latest offer of a raise comes without reaching an agreement on a complete contract, adding that "American Airlines Flight Attendants want and need a complete contract addressing all our concerns."

"We have a strike vote authorization of 99.47 percent, have picketed for months, and have demonstrated our resolve and solidarity. Our message has been crystal clear: we need an industry-leading contract," the APFA said.

The current round of negotiations started in January 2020 but was paused at the height of the pandemic. Talks resumed in June 2021.

The union has asked its workers to prepare for a strike after the negotiations last month failed to produce an agreement.

© Reuters. An American Airlines commercial aircraft approaches to land at John Wayne Airport in Santa Ana, California U.S. January 18, 2022. REUTERS/Mike Blake

American Airlines' flight attendants say they have not had a pay raise in over five years and have asked for an immediate raise of about 33%. Union officials say flight attendants have endured a lot since the pandemic - notably unruly passengers resisting the controversial mask mandate on planes.

The two sides are due to resume negotiations next week. The APFA has requested a release from federally mediated negotiations, saying American's offers "continue to fall far short of addressing the current economic environment."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.