American Airlines CEO vows to hike wages

American Airlines CEO vows to hike wages

Jun 17, 2022

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Robert Isom, American Airlines CEO said this week that the company will revise its pay proposals for 14,000 of its pilots, acknowledging the increased pay standards since the company made its most recent offer before the pandemic. The Texas-based airline had previously floated a 4% date-of-signing increase plus 3% annual raises after that. But it was put on hold due to the pandemic. In a video message to pilots posted on Monday, Isom said, "It was industry-leading at the time we proposed it. As the pandemic wanes, the standard for compensation has gone up."


Isom's message comes just two days after two of American’s subsidiaries, regional carriers Piedmont and Envoy, extended big raises to their pilots. This included a temporary 50% pay hike through the end of August 2024, in hopes of easing a pilot shortage that has curbed growth plans. Meanwhile, United Airlines became the first major carrier in the pandemic to reach a contract deal with its pilots' union. 


Pilots at American Airlines and those at other carriers, including Delta's have been picketed in recent months to protest the grueling schedules airlines have planned to capitalize on the rebound in travel demand. A spokesman for Allied Pilots Association, American's pilots’ union said that the company will have to do more than raise wages. He added, "There is no work-life balance."


Source: CNBC

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