American Airlines pilots’ union rejected the holiday pay incentive offered by the airline. The Allied Pilots Association’s board of directors voted against the holiday pay that was designed to encourage employees to work during the holidays.
According to the union, it wants permanent changes in its schedules. Also, the labor union is in the middle of a negotiation with American Airlines’ management. The incentive offered by the airline includes a premium pay of at least 150% and double pay for those who will work on holidays.
Is Holiday Pay Enough to Address Staffing Shortages?
Some airlines struggled with staffing shortages since the travel demand returned in the past months. American Airlines canceled more than 2,000 flights during the Halloween weekend. The problem started as a weather problem and then cascaded to staffing shortages.
Southwest and Spirit also experienced the same problems. Southwest Airlines even lost $75 million while Spirit Airlines lost $50 million.
To avoid a repeat of the operational disruptions, American offered bonus holiday pay for workers. American Airline will pay flight attendants three times their pay for trips that will fall on holidays. The same goes for those who will have perfect attendance from November to January 2.
Aside from flight attendants, ramp workers and mechanics will get $1,000 bonuses if they have complete attendance from November to January 2.
For American Airlines senior vice president of flight operations Kimball Stone and Chip long, vice president of flight operations, “We are, of course, disappointed, especially since we have holiday pay programs in place for all other frontline groups at the company”.
For airline analyst Morgan Stanley, the holiday pay is good sign. Stanley said that “These incentives show that American is willing to pay up now in order to avoid operational meltdowns during peak periods”.
Pilots’ Union Complained of Working Conditions
American Airlines pilots’ union complained regarding the airline’s schedules. With the number of flights, this leaves a small margin of error whether it’s dropping or picking up trips. Then, there are also instances when there are no hotel rooms or transportation.
Dennis Tajer, the spokesperson for the pilots’ union called the holiday pay “lazy”. He said that it is a “clear admission you mismanaged the airline”.
