The Allied Pilots Association (APA), which represents pilots working for American Airlines, has reached an Agreement in Principle (AIP) with the carrier’s management over labor contracts.
The management of American Airlines and the Allied Pilots Association (APA), which represents the airline's pilots, have struck an Agreement in Principle (AIP) regarding labour agreements.
The news was made on Thursday, July 27, 2023, after a vote on an earlier tentative agreement was delayed after the United Airlines pilots union successfully negotiated a better contract.
“The APA Negotiating Committee has reached an Agreement in Principle with American Airlines management on proposed enhancements to the Tentative Agreement,” the APA said.
United Airlines pilots were promised a wage boost of about 40% over four years, though their vote on the proposed accord has not yet been held. In March 2023, the pilots of Delta Air Lines decided on a comparable level.
With the AIP, the union said, “American Airlines pay rates will increase to match the United and Delta pay rates”.
“We appreciate the Allied Pilots Association for its collaborative work to reach an updated agreement on a four-year contract for American’s pilots,” American said in a statement. “It’s a contract we’re proud of and one our pilots deserve.”
Robert Isom, CEO of American Airlines, raised the company's offer by about $1 billion last week.
The AIP and its associated contract language have been submitted for evaluation to the union's board and, if approved, will be put to a vote among members in August 2023.
Along with May, June, and July 2023, the AIP also guarantees a 21% fully pensionable ratification bonus for the following months: January, February, March, and April.
The AIP noted that the increases to 401(k) contributions would adjust to January 1, 2024, and January 1, 2026, "subject to United Pilots ratifying their agreement in principle."
The timing of contract talks coincides with an industry-wide pilot shortage that has given unions' negotiating position with airlines a boost.
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