FORT WORTH- American Airlines (AA) pilots union announced on Thursday that they accepted an improved offer for a new labor contract. This decision comes shortly after a more lucrative deal at United Airlines (UA) caused delays in the voting process at American.
The revised preliminary agreement aligns the pay scale with UA, where pilots are expected to receive approximately 40% raises over four years.
Delta Air Lines (DL), whose pilots approved their contract in March. The new deal also includes other enhancements. American CEO Robert Isom recently increased the company’s offer by approximately $1 billion.
American Airlines Pilots Union Accepts Deal
Fort Worth-based carrier expressed its appreciation for the Allied Pilots Association’s (APA) collaborative efforts in reaching an updated four-year contract agreement for the airline’s pilots.
The company stated that they are proud of the contract and believe it is well-deserved by their pilots. Voting on the new contract will begin for American pilots in August.
This agreement is part of a trend in the transportation industry where workers advocate for and achieve higher wages. Due to a shortage of pilots and other factors influenced by the pandemic, unions are pursuing larger salary increases and other improvements.
Another recent example is the preliminary labor agreement between UPS and the International Brotherhood of Teamsters, which will raise pay for over 300,000 workers and successfully avert a potential widespread strike that could have had significant effects on the U.S. economy.
Subsequently, the Voting for that deal is scheduled for next month.
Union Wanted Better Work-Life Balance
The union said earlier that it wouldn’t agree to the TA until it outlined “sufficient compensation” and enhanced work and quality-of-life rules, like that of United Pilots.
The deal United pilots’ union made with the airline gave the employees up to a 40% raise. Further, with about a $10 billion value over four years includes bonuses, extended sick bank, better life insurance, and other benefits.
And those aren’t the only two pilot unions battling for better deals. Delta Air Lines (DL) pilots agreed to a four-year deal with 34% raises in March. Southwest Airlines (WN)‘ pilots union recently approved a strike authorization vote after three years of unsuccessful negotiations.
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