An embattled negotiation between American Airlines and their flight attendants union could lead to a strike after the airline’s latest offer has fallen through.
17% Wage Hike Offer
Amid contract negotiations this week, major US American Airlines offered their flight attendants a 17% wage hike, which would be effective immediately if accepted.
Swift Rejection
However, following the offer of an immediate wage hike, the pay rise offer was swiftly rejected by the Association of Professional Flight Attendants, the union that represents the company’s attendant workforce.
Ongoing Negotiations
These negotiations between the corporation and union have been ongoing for years, first starting in January 2020. They were paused for a year during the Covid-19 pandemic, before resuming in June 2021.
New Profit-Sharing Formula
The offer was initially made as part of a new profit-sharing formula and would have signaled the first contract raise for flight attendants since before the pandemic.
Potential Strike on the Horizon
But now, it is looking increasingly likely that the stalled negotiations could result in a strike. While strikes in the airline industry are extremely rare (with the last occurring in 2010), if the two organizations cannot reach a deal it would trigger a release by federal mediators.
One Final Attempt
Now, the two sides are planning to meet with federal mediators in one final attempt to reach an agreement. In the meantime, the union has advised employees to prepare for a strike.
Video to Staff
American Airlines CEO Robert Isom sent a video to all flight attendants on Wednesday, keeping them updated on negotiations from the company side and the wage hike offer.
“A Good Deal of Work to be Done”
“We have made progress in a number of key areas, but there is still a good deal of work to be done,” he said. “So, to get you more money now, we presented APFA with a proposal that offers immediate wage increases of 17% and a new formula that would increase your profit sharing.”
Unusual Offer for Unusual Times
“This means we’ve offered increased pay for all flight attendants and are not asking your union for anything in return. This is unusual, but these are unusual times,” he elaborated.
Not Enough for the APFA
While the offered pay rise may seem enticing, the APFA has maintained that it is not enough and does not fulfill the requests they have made of the company.
Asking for 33%
American Airlines flight attendants have not received a pay rise in five years. Their union has demanded an immediate pay raise of approximately 33%, meaning that the airline has only committed to just over half of the desired amount.
Representing 23,000 Flight Attendants
The APFA currently represents more than 23,000 flight attendants working for American Airlines.
Falling Far Short
The union is already pushing to be released from these negotiations on the basis that the airline continues “to fall far short of addressing the current economic environment.”
“Way Past Time”
“It is way past time for management to acknowledge our contributions to the airline, address the new industry standard, and compensate us fairly,” said union president Julie Hedrick. “We are neither backing down nor settling for less than we’ve earned.”
Pushing to Be Industry Leaders
The union has been pushing for a premium contract in the airline industry, one that overtakes Delta Airlines which has also offered its staff a 17% pay rise.
Committed to Reaching an Agreement
Isom maintains that the airline wants to continue pushing for an agreement with the union. “We are committed to reaching a new agreement and now is the time to make a deal,” he said.
Circumventing the Union?
Hendrick and the APFA also condemned Isom’s decision to communicate about negotiations directly with staff, saying “Our CEO has decided to negotiate with our members directly. He is trying to circumvent the union.”
Flight Attendants Remain Uninterested
She also confirmed that as well as the unanimous union vote against the offer, flight attendants have also voiced their disinterest across the board in union chat groups and emails.
“Too Little, Too Late”
“Too little, too late,” one flight attendant’s post read following the announcement. “Stop trying to negotiate with the members and get to the damn table.”
Ongoing Negotiations Industry-Wide
United Airlines is far from the only airline trying to push through contract negotiations. United Airlines, Alaska Air, and Frontier are also currently in the midst of establishing new contract deals with employees.
23 Steep Taxes Adding to California Residents’ Burden
California: a place of sunshine, innovation, and, unfortunately, some of the nation’s highest taxes. From LA’s beaches to Silicon Valley’s tech hubs, residents grapple with a maze of state taxes. Here’s a glance at 23 taxes that might surprise both Californians and outsiders. 23 Steep Taxes Adding to California Residents’ Burden
Cash in on Nostalgia: 21 Toys Now Worth a Fortune
Time to dust off the boxes and find that once-cherished toy from your childhood. For collectors and enthusiasts, these items have become valued objects, and they can be worth big bucks – are there any of these in your attic? Cash in on Nostalgia: 21 Toys Now Worth a Fortune
Millennials Don’t Buy These 19 Products Anymore
Millennials are changing consumer habits, quietly replacing once-staple products and traditions. Often criticized for their disruptive preferences, this generation is reshaping the marketplace with digital expertise, ethical buying, and a taste for the unconventional. Millennials Don’t Buy These 19 Products Anymore
Featured Image Credit: Shutterstock / Markus Mainka.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.