American Airlines
flight attendants approved a five-year labor deal, ending one of the industry’s most contentious contract negotiations and giving cabin crews raises of up to 20.5% at the start of October.
Eighty-seven percent of the American Airlines flight attendants who voted approved the contract, the union said Thursday, shortly after polls closed.
“This contract marks a significant milestone for our Flight Attendants, providing immediate wage increases of up to 20.5%, along with significant retroactive pay to address time spent negotiating,” said Julie Hedrick, president of the Association of Professional Flight Attendants, which represents the carrier’s roughly 28,000 cabin crew members.
Flight attendants are the biggest unionized work group at the Fort Worth-based airline.
The contract deal is a relief for American Airlines’ leaders, which had faced a strike threat from flight attendants if the two sides could not get to a deal. Transportation Secretary Pete Buttigieg and Labor Secretary Julie Su had attended negotiations in June, overseen by the National Mediation Board. More than 160 lawmakers have also pushed the NMB to get to deals across the airline industry.
The recent approval of a five-year labor agreement between American Airlines and its flight attendants marks the resolution of one of the most challenging contract negotiations in the airline industry. With 87% of voting flight attendants in favor of the deal, this new agreement promises significant benefits to American Airlines’ roughly 28,000 cabin crew members. A pivotal moment for the company and its workforce, the contract promises immediate wage increases, retroactive pay, and sets the tone for improved relations between the airline and its employees.
For months, negotiations between American Airlines and the Association of Professional Flight Attendants (APFA) had stalled, creating uncertainty for both the flight attendants and the airline’s leadership. The contract, initially plagued by contention, was closely watched by the entire aviation industry as the flight attendants—American Airlines’ largest unionized workgroup—pressed for better wages and working conditions. With a strike looming if negotiations failed, tensions were high, and the pressure mounted from all sides to secure an agreement.
Transportation Secretary Pete Buttigieg and Labor Secretary Julie Su became involved in the discussions, attending the June negotiations overseen by the National Mediation Board (NMB). This level of federal oversight is unusual but underscored the importance of the negotiations to the broader airline industry. Furthermore, more than 160 lawmakers from both political parties urged the NMB to reach an agreement, showing that the stakes of this contract extended beyond American Airlines alone. The eventual success of the negotiations has wide-ranging implications for the future of airline labor relations, potentially setting a standard for how disputes in the sector will be resolved.
One of the most significant outcomes of this labor agreement is the wage increase. Flight attendants will see pay raises of up to 20.5% starting in October, providing much-needed relief to workers who have endured years of stagnation. According to Julie Hedrick, APFA President, the contract also includes retroactive pay to compensate for the lengthy negotiation period. This retroactive pay is a significant win for flight attendants who had been fighting for fair compensation since the beginning of the negotiation process.
Hedrick emphasized that this contract “marks a significant milestone” for flight attendants, not just in terms of wage increases but also in the improvements to work conditions and job security. American Airlines flight attendants had felt that their contributions to the airline, particularly during the turbulent period of the COVID-19 pandemic, were not being adequately recognized. Many were frustrated by the slow progress of negotiations, which made this contract approval all the more impactful. The new deal also signals that the airline is investing in its workforce, a critical factor in maintaining employee satisfaction and service quality.
This agreement could be a blueprint for future labor negotiations across the airline industry. Many other airlines have been grappling with similar disputes between management and workers. Like American Airlines, other major U.S. carriers have faced workforce dissatisfaction over wages, working conditions, and benefits. Now, with American’s flight attendants securing a sizable wage increase and retroactive pay, other airline unions may feel empowered to push for similar terms.
The outcome of these negotiations also comes at a time when the airline industry is rebounding from the financial impacts of the pandemic. Throughout 2020 and 2021, airlines laid off workers, reduced salaries, and cut down on benefits to cope with the financial strain brought on by travel restrictions and plummeting demand. Flight attendants, who continued to work in precarious and often hazardous conditions during the pandemic, felt particularly aggrieved by these measures. The post-pandemic recovery, marked by a surge in travel demand, has led to increased profits for airlines, and flight attendants believe they deserve a larger share of this success.
While American Airlines’ management may have initially resisted the wage increases, the deal is likely to have a positive long-term effect on the company. By securing the loyalty and satisfaction of its flight attendants, American Airlines can ensure better service quality for its customers, reduce turnover, and avoid the disruptions of a potential strike. Moreover, satisfied employees are more likely to provide excellent customer service, which is essential for maintaining competitiveness in an industry where customer experience is crucial.
The involvement of federal officials like Secretary Buttigieg and Secretary Su, as well as the support from lawmakers, demonstrates the importance of this contract in a broader political and economic context. The Biden administration has placed a significant focus on labor rights and union negotiations, and this agreement is an example of their approach to supporting worker-friendly outcomes. The administration’s attention to these negotiations could signal its intent to back similar efforts in other industries facing labor disputes.
The success of the National Mediation Board in facilitating the agreement could lead to more frequent involvement in future labor negotiations, particularly within the airline industry. The NMB, an independent U.S. government agency tasked with preventing disruptions to commerce caused by airline and railroad disputes, played a critical role in moving these negotiations forward. Its involvement, coupled with pressure from lawmakers, ensured that both parties remained at the negotiating table and worked towards a resolution.
While the approval of this contract is undoubtedly a victory for American Airlines flight attendants, challenges remain. One of the most immediate concerns is how the airline will balance the increased labor costs with its need to remain profitable. The airline industry is notorious for its thin profit margins, and American Airlines will need to find ways to manage the financial implications of the wage increases without significantly raising ticket prices, which could alienate customers. The company may explore cost-cutting measures in other areas, though these efforts will need to be carefully balanced to avoid causing additional employee dissatisfaction or reducing service quality.
Another potential challenge is the impact this agreement will have on other labor groups within the airline. American Airlines employs a variety of other unionized workgroups, including pilots, mechanics, and ground staff. These employees may now look to the flight attendants’ agreement as a precedent and push for similar wage increases and benefits. While American Airlines has successfully averted a strike from its flight attendants, it may face further labor negotiations in the near future.
The approval of the five-year labor deal between American Airlines and its flight attendants is a landmark moment in airline labor relations. The contract provides substantial wage increases, retroactive pay, and job security improvements for the airline’s flight attendants, while also offering the company a way forward in terms of employee relations. The deal has implications not only for American Airlines but for the entire airline industry, potentially setting a precedent for future labor negotiations. With the support of federal officials and lawmakers, this agreement highlights the importance of fair labor practices and may influence the direction of labor relations in other industries as well.