Welcome to Extreme Investor Network, where we bring you the latest updates on business news that will impact the investment world. Today, we’re diving into the recent developments at American Airlines that have ended one of the industry’s most contentious contract negotiations.
American Airlines flight attendants have approved a five-year labor deal, giving cabin crews raises of up to 20.5% at the start of October. This approval comes after 87% of the flight attendants who voted approved the contract, marking a significant milestone for the carrier’s roughly 28,000 cabin crew members. This deal not only provides immediate wage increases but also addresses significant retroactive pay issues that have been on the table for some time.
“This contract marks a significant milestone for our Flight Attendants, providing immediate wage increases of up to 20.5%, along with significant retroactive pay to address time spent negotiating,” said Julie Hedrick, president of the Association of Professional Flight Attendants.
The negotiations were closely watched as American Airlines leaders faced a strike threat from flight attendants if an agreement could not be reached. The involvement of Transportation Secretary Pete Buttigieg and Labor Secretary Julie Su in the negotiations highlighted the importance of reaching a deal, overseen by the National Mediation Board.
In contrast, United Airlines and its flight attendants’ union are still in negotiations for a new contract, while Alaska Airlines recently had its cabin crew members reject a tentative labor deal. It’s clear that airline workers across the industry are pushing for higher pay and other work-rule improvements, especially after the challenges posed by the Covid-19 pandemic.
This trend of demanding higher pay and better working conditions is not unique to the airline industry. Other sectors, such as the auto industry and Hollywood, have also seen successful negotiations for higher pay through strikes and other means. Boeing is also facing a potential strike as 33,000 workers vote on a new contract with 25% raises.
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