American Airlines pilots' union rejects new contract proposal

Key Points
  • American Airlines pilots' union rejected a labor deal 15-5.
  • The rejection comes a day after United pilots turned down a proposed agreement.
  • Unions are negotiating with airlines throughout the industry.

In this article

American Airlines jet parked at LaGuardia International Airport in New York. 
Adam Jeffery | CNBC

American Airlines pilots' union on Wednesday said its board of directors rejected a tentative agreement for a new contract, the latest in a series of setbacks in labor talks across major U.S. airlines.

The Allied Pilots Association, which represents roughly 15,000 American Airlines pilots, said its board voted against the tentative deal 15-5. The proposal called for 12% raises for pilots on the date of contract signing, plus 5% after one year, and 2% after two years, according to a copy of the agreement in principal.

American didn't immediately comment.

The rejection comes a day after United Airlines pilots turned down a deal that would have included roughly 15% raises.

Labor unions are pushing for higher wages and better schedules, among other improvements, in new labor deals. The Covid-19 pandemic had put labor talks on hold as airlines focused on making it through a massive drop in travel demand.

"We cannot vote to approve a [tentative agreement] that does not adequately address the quality-of-life items of our line pilots," union representatives based at American's Dallas/Fort Worth International Airport hub said in a note to pilots before the vote. "The Company has returned a proposal that is not only subpar in these areas, but it also demonstrates a complete lack of understanding how important these issues are for you."