87% of voters accepted the $4.2 billion labor agreement between the union and American Airlines. The contract stipulates that from October 1, the salary of flight attendants will be increased by 18% to 20.5%, and the salary increase will reach 3.5% each year thereafter.
The Zhitong Finance App learned that American Airlines (AAL.US) flight attendants approved a five-year labor agreement, ended one of the most controversial contract negotiations in the industry, and raised flight attendants' salaries by 20.5% in early October.
Shortly after the vote ended, the American Association of Professional Flight Attendants issued a statement on September 12, local time, saying that 87% of voters accepted the $4.2 billion labor agreement reached between the union and American Airlines. The contract stipulates that from October 1, the salary of flight attendants will be increased by 18% to 20.5%, and the salary increase will reach 3.5% every year thereafter. Wages will increase by 33% to 36% in five years. The contract also includes a one-time bonus, etc.
Julie Hedrick (Julie Hedrick), president of the Professional Flight Attendants Association, said, “This contract is an important milestone for our flight attendants. It provides an immediate salary increase of up to 20.5%, as well as significant retroactive pay to resolve the time spent in negotiations,” the association represents approximately 0.028 million American Airlines crew members.
Flight attendants are the Fort Worth-based airline's largest trade union organization.
The contract agreement gave American Airlines leaders a sigh of relief. If the two parties fail to reach an agreement, they will face the threat of a strike by flight attendants. Transportation Secretary Pete Buttigieg (Pete Buttigieg) and Labor Secretary Julie Su (Julie Su) participated in negotiations overseen by the National Mediation Committee (NMB) in June. More than 160 lawmakers also pushed NMB to reach an agreement across the aviation industry.
American Airlines CEO Robert Isom said in a statement: “Reaching an agreement for our flight attendants has always been our top priority, and today we celebrate reaching this important milestone.”
Like other airline workers, flight attendants have been seeking salary increases and other work rule improvements after the COVID-19 pandemic derailed negotiations and the cost of living soared in recent years.
United Airlines (UAL.US) and its flight attendants union are still negotiating a new contract, while Alaska Airlines (ALK.US) crew recently rejected a preliminary labor agreement.
Other industries also received higher pay in the new contracts, some of which were signed after the strike, such as the auto industry and Hollywood.
On Thursday, about 0.033 million Boeing (BA.US) employees will vote on a new contract with a 25% pay increase. Some employees say they will reject the new contract. If the new contract is rejected, Boeing could face a strike.