To counter rival United Airlines, now American Airlines has given a boost to its offer to new pilot contract by more than $1 billion. This new offer from American Airlines would bring the 4 year value to around $9 billion.
American Airlines, in this way will match United pay rates, backpay and other incentives like sick time and life insurance.
In a message to pilots on Friday, American Airlines Chief Executive Officer Robert Isom said :
“The new offer from American Airlines would bring the four-year offer’s value to around $9 billion, and match United pay rates, backpay and other benefits such as sick time and life insurance”.
American Airlines boost to $1 billion
For years, pilot unions and American Airlines have been negotiating on these. Due to pandemic and growing pilot shortage, you can easily guess, who will have more bargaining powers? Of course, pilots. The airline pilots were scheduled to start voting on current deal from tomorrow i.e. Monday.
This new offer also matches the 21% pay bonuses on par with United and Delta Airlines.
Union President Ed Silcher said that leadership will conclude whether this proposal is worthy of vote or not.
He said that the leadership will see whether management’s comprehensive proposal is worthy of a membership vote or not”.
Airline Chief Executive Officer Robert Isom said that if changes are not approved in time, we will return to the negotiations table. We will return to the bargaining table and will do whatever is necessary.
Robert Isom added that they will not be taking hurried action. He said that we run a complex business and any changes to what we agreed to, even small ones may have a big impact. Revision of all of these items would take time.
The airline pilot union has indefinitely postponed the voting for the tentative agreement. The voting will now take place at a time and date to be determined.
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