Check a key item off of American Airlines' 2015 to-do list.
As it continues to fully integrate US Airways little more than a year after the merger of the two carriers became official, one of the big goals for American this year was to settle its labor issues with various unions.
The airline did just that today, as the Allied Pilots Association (APA) - representing 15,000 pilots at American Airlines - announced that its members have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years.
"Today's results provide immediate and significant pay increases to our pilots, and represent another step forward in our integration," American president Scott Kirby said in a statement. "We are especially pleased that American is in a position to support pay increases that recognize the contributions of our pilots this early in our integration. We also acknowledge and applaud the hard work and leadership of APA Chairman and Captain Keith Wilson, the APA national officers, the negotiating teams from the APA and the company, as well as members of the APA Board."
Wilson said two-thirds of the pilots approved the new contract. Some 94 percent of union members voted on the deal that will cover pilots from American and UA Airways.
The deal does not include a profit sharing plan, which American has been reluctant to establish.
"By voting in favor of the (joint collective bargaining agreement), our pilots will benefit from higher pay rates. In effect, the pilots of American Airlines made a business decision," Wilson said in a statement. "APA will now focus on further engagement with American Airlines management to address ongoing shortcomings in our contract. Our total compensation will still trail industry-leader Delta, while work rules affecting our pilots' quality of life need meaningful improvement. There's a lot of work remaining to achieve the industry-leading contract our pilots deserve."
By approving the deal, both sides avoided going to arbitration, as American needed to do with its flight attendants' union last month.
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