American Airlines Pilot Deal in Jeopardy

American Airlines pilots were supposed to vote on a new four-year deal that would increase their pay to about 42% next week. However, the American Airlines pilot union warned that the preliminary deal is in jeopardy after the ratification of a new contract.

American Airlines Pilot Deal in Jeopardy?

Allied Pilots Association (APA) representing more than 15,000 American pilots, call the proposed pay rates along with the quality-of-life items stipulated in the contract “woefully deficient by comparison” to the ones outlined in the preliminary deal.

Initially, the union was supposed to vote on the preliminary agreement on July 24. But after this development, this brings the union back to the bargaining table.

The APA announced that it would review ways how they should proceed. On Tuesday, the president of the APA, Edward Sicher, sent a memo to pilots. According to his memo, he spoke with airline executives. This includes the CEO of American Airlines Robert Isom, and the airline’s executive vice president and chief strategy officer, Steve Johnson.

In Sicher’s memo, “Mr. Isom and Mr. Johnson both acknowledged that significant improvements must be made, with Mr. Isom reiterating his assertion that management ‘will take care of our pilots’.”

A spokesperson for American Airlines said that the airline is going “to make sure our pilots are taken care of.”

2% Pay Decrease

The first thing that the union noticed in the contract is the pay. According to the union, it has at least a 2% pay decrease compared to Delta and United pilot contracts. According to Dennis Tajer, spokesperson of the APA, the current agreement doesn’t have back pay for January to April 2023. Another difference in the current contract is the month when the pay increases are given. Delta and United provide pay increases every May while American gives its pay increase every January.

On the bright side, Tajer believes that there is an easy fix for the current situation. However, the spokesperson said that the union reauthorized funding and decided to reenergize its strike center. This is a normal process whenever a contract is considered “under jeopardy.”

“We have to make sure that we have all of our assets ready,” according to Tajer. He added, “That’s worst-case scenario.”