by Donald Wood
Last updated: 8:50 AM ET, Fri July 28, 2023
The pilot’s union representing American Airlines announced
it had reached an agreement with the carrier on an updated labor contract that
would provide similar incentives to the recent deal between United Airlines and
its pilots.
According to Reuters.com,
the Allied Pilots Association (APA) reached a deal with American earlier this
month, but the agreement was in “jeopardy” after United announced a new
contract that would pay its pilots more money and better incentives.
Last week, APA spokesman for American, Dennis Tajer, said
the tentative agreement between United and its pilots would create a two
percent pay gap with American, with back pay provisions, days off for
junior pilots and sick time also favoring United.
While the APA did not reveal the value of the revised deal, American
CEO Robert Isom said the carrier would get a deal done and upped its offer to
its pilots by $1
billion in hopes of avoiding a crippling strike, bringing the total offer
to around $9 billion.
One aspect of the new deal the APA did share was a provision
that would allow pilot pay rates to be adjusted to match the wages of their
counterparts at United and Delta Air Lines. Southwest Airlines is the only
major carrier in the United States without a new pilot contract.
The APA told Reuters the revised deal provides pilots full
back pay for this year, with an American Airlines spokesperson saying the
agreement is one “its pilots deserve.” The pilots’ union will meet next week to
gain approval from its board before conducting a ratification vote.
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