American Airlines' proposal to immediately increase flight attendants' salaries by 17% was rejected on Wednesday, June 5, amid escalating contract talks.
Proposed Salary Increase Denied by Flight Attendants
In a report by CNBC, CEO Robert Isom extended an immediate 17% salary boost to flight attendants as the likelihood of a walkout grows since contract discussions drag on without a resolution.
He said they presented the Association of Professional Flight Attendants (APFA) with a new formula that would improve their profit share in addition to the 17% wage increase proposal. He claimed the company made the rare decision not to demand anything from the union.
However, APFA national president Julie Hedrick said the airline should prioritize negotiating a more permanent contract with the flight attendants.
Union and Airline Amid Escalating Contract Talks
The airline and the union have been at odds over salary and other key points in their ongoing contract negotiations. Since before the pandemic, flight attendants have not been granted contract hikes.
According to APFA, flight attendants have been instructed to prepare for a strike. It announced the launch of a "strike command center" on Wednesday to address concerns raised by cabin staff, which would provide dedicated phone lines and other resources to help members.
Nevertheless, the union and the carrier are expected to meet with federal mediators next week in a "last-ditch" attempt to reach an agreement.
American Airlines has been issuing what are being referred to as "poverty letters" to their first- and second-year flight attendants.
These letters are given as a result of their relatively low annual salaries, which in turn makes them eligible for public assistance programs such as food stamps.
During today's Annual Meeting of Shareholders, Isom addressed inquiries regarding negotiations with flight attendants.
"We're committed to paying all of our team members well and competitively. Our last remaining open agreement is with our flight attendants, and our plans assume we reach a deal in 2024." Isom said.
Although the airline is evidently eager to find a solution, Julie Hedrick, National President of APFA and a seasoned Flight Attendant, made it clear that they will not accept anything less than what they deserve.
If the strike proceeds, it will cast a shadow on what was anticipated to be a momentous summer for American Airlines.
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