American Airlines pilots union rejects new contract offer

An American Airlines plane parked at LaGuardia International Airport in New York.

Adam Jeffery | CNBC

american airlines The pilots’ union on Wednesday said its board of directors had rejected a tentative agreement on a new contract, the latest in a series of setbacks in labor relations talks between major US airlines.

The Allied Pilots Association, which represents approximately 15,000 American Airlines pilots, said its board voted 15-5 against the preliminary deal. The offer called for a 12% increase for pilots on the day the contract was signed, plus 5% after one year and 2% after two years, according to a copy of the master agreement.

The American did not immediately comment.

Rejection comes in a day United Airlines the pilots rejected the deal, which called for an increase of about 15%.

Unions are pushing for higher wages and improved schedules, among other improvements, in new labor agreements. The Covid-19 pandemic has put labor talks on hold as airlines have focused on coping with plummeting travel demand.

“We can’t vote to approve [tentative agreement] it does not adequately address the quality of life issues of our line pilots,” union representatives at Dallas/Fort Worth US Airport said in a note to pilots ahead of the vote. “The company has returned a proposal that is not only low in these areas, but it also demonstrates a complete lack of understanding of how important these issues are to you.”

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