American Airlines

Flight attendants pact includes raises but not profit-sharing

A new five-year contract with flight attendants at American Airlines would provide annual raises but does not include profit-sharing, according to details released by the union.

The tentative agreement, reached Sept. 19 between the management of the Fort Worth-based airline and the Association of Professional Flight Attendants, includes immediate pay raises for flight attendants from both American and US Airways. If approved by the union’s 24,500 members, it would be the first contract for a consolidated work group since the airlines merged in December.

The union called the contract “industry leading,” worth $193 million more than the combined value of the contracts now in place for American and US Airways flight attendants.

The top pay scale would increase by 9.1 percent for American attendants and 12.4 percent for US Airways attendants.

All flight attendants would receive 2 percent raises in the second, third and fourth years of the contract and a 3 percent raise in the final year, the union said.

The agreement does not include a profit-sharing plan, which the union had negotiated in its previous contract.

The profit-sharing paid out only once, but with American reporting quarterly profits now, some flight attendants had wanted it reinstated.

Union leaders negotiated away profit-sharing for 2.5 percent wage increases in 2013 based on projections that then-US Airways Chief Executive Doug Parker and his management team made for the merged company.

Parker, now American’s CEO, has said in employee meetings that he believes workers prefer fixed pay increases instead of uncertain annual payments tied to profitability.

The Association of Professional Flight Attendants said its executive committee voted unanimously to send the tentative agreement out for a ratification vote this fall. Union leaders expect to visit all flight attendant bases at American to discuss the new contract before the vote.

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If the contract is rejected, the economic terms of a new deal will be determined in binding arbitration, the union told its members.

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