American Airlines and its flight attendants were at the negotiating table with federal mediators in Washington, D.C. for the last six business days. As aviation watchdog JonNYC shares, the union reports back that no agreement was reached. They expect the National Mediation Board to insist on one ‘last ditch effort’ to reach an agreement early in June before declaring an impasse, which would start a 30 day ‘cooling off period’ before releasing the parties to ‘self-help’ (a strike).
— JonNYC (@xJonNYC) June 1, 2024
American Airlines flight attendants have not gotten a raise since January 1, 2019, and they’ve seen the value of their wages eroded significantly by inflation. Delta and Southwest flight attendants now earn more than they do.
Friday was ‘International Flight Attendant Day’ and the union used it to tell cabin crew that they demand a ‘fair share of the profits’ though it is not at all clear what that would be? American’s spending on flight attendants exceeds its profits many times over.
American Airlines flight attendants demand a "fair share of the profits" but I don't think this is helpful framing.
They haven't gotten a raise since 1/1/19 and have seen wages eroded by inflation. Southwest and Delta crew earn more than they do.
But American spends orders of… pic.twitter.com/YYblR8ZURS
— gary leff (@garyleff) May 31, 2024
It’s this lack of profitability that is a real problem in negotiations, because there’s less to bargain over. Even as American Airlines offers the same profit sharing formula Delta uses with its flight attendants, American cabin crew will earn less because American earns less profit.
Flight attendants have significantly reduced their wage demands while the company has increased its wage offer. However there’s still a gap in pay, and especially on retro pay (make-goods for the four and a half years of no increases since the contract became amendable), as well as work rules.
The union further complains that American mishandled recent bad weather schedule disruptions, stranding flight attendants without hotels again.
Union says @AmericanAir leaving stranded flight attendants on their own again for lodging during irregular operations. pic.twitter.com/hotnRDmCSp
— gary leff (@garyleff) May 29, 2024
and pic.twitter.com/auLZkMCXla
— JonNYC (@xJonNYC) June 1, 2024
The American Airlines flight attendants union is telling its members to ‘prepare to strike’ although they aren’t telling flight attendants how to prepare. First and second-year Boston-based flight attendants are eligible for food stamps.
This isn’t a work group with significant cash reserves to ride out a storm, or a union with the reserves to fund one. Instead we would likely see the union no show specific flights changing each day, rather than a full strike. This would allow most of its members to continue to receive pay, while creating uncertainty for customers who might book away from American.
Despite there not yet being a deal, though, the standard for being released to self-help is an impasse. If the parties appear to be making progress towards a deal, the National Mediation Board should not release flight attendants to strike. There will be a lot of pressure to keep them at the bargaining table, as they’ve done for six months (flight attendants wanted to strike at Christmas). A majority of the board are Democrats appointed by President Biden.
A strike at American Airlines would be both bad for the economy and for passengers, and therefore bad for Biden right before the election. He would face pressure to intervene to end a strike, as President Clinton did with American Airlines pilots and with flight attendants (the latter, pressing the parties to agree to binding arbitration rather than ordering employees back to work). Biden won’t want to intervene and anger labor going into the election however. Biden needs the parties to come to an agreement without a strike, and needs the National Mediation Board to kick the can down the road until they do so.
Ultimately I did not actually expect a final agreement in Washington this past week, we’re closer than ever before to one, so hopefully a deal can be reached and job action avoided. Management certainly cannot afford one, having just revised earnings guidance downward and with its stock under significant pressure.
It sounds like a strike will occur in mid summer. I don’t see where American Airlines can come up with the money to significantly increase wages so I lean toward bankruptcy as a way to abridge the other contracts. Some shedding of routes and right sizing of equipment and personnel could lead to an American Airlines more capable of competing. Maybe getting rid of the entanglement will turn out for the better for JetBlue.
Helping Biden shouldn’t be a goal. Helping the FAs should be.
One has to wonder if prolonged negotiations is really helpful to the average FA at this point.
FAs clearly deserve a raise as it’s been five years since the last one. However, if they take the current offer, their situation would be much improved. If they wait, they may achieve some modest additional improvements but wouldn’t a significant increase now be more beneficial to the average FA?
If they don’t strike , then they are chicken .
I flew the other day and experienced multiple delays. In one case, we sat on the aircraft for about 90 minutes while a maintenance issue was addressed. During this unexpected extra delay, I was thinking how unfair it was that the FAs were not being paid for this added work time. They certainly deserved to be paid.
I assume under the new work agreement they would in fact have been paid? Another reason to get a deal done.
Before the pilots make $300-$400K, I’d like to see 80% of the FAs make $55K or above…
@Joe: Before American Airlines CEO Robert Isom received a pay increase resulting in a staggering $31,400,000.00 in 2023, which includes,
Base salary, bonuses, and stock awards.
Multiple incentives to retain top talent.
Performance-based metrics of the front-line workforce like completion factor and on-time departures.
Confirmed flight privileges in any cabin.
Legal fees for negotiating his compensation.
401(k) contributions, and more.
I want 80% of the professional flight attendants to make $55K or above.
In regard to FAs not being told HOW to prepare for a strike, the notice from the APFA also stated that it is now mailing strike handbooks to all members. As they did in 1993.
BIG TYPO, you mean “fas HAVE NOT gotten a raise” : “American Airlines flight attendants have gotten a raise since January 1, 2019, and they’ve seen the value of their wages eroded significantly by inflation. Delta and Southwest flight attendants now earn more than they do.”
thx
The base president’s letter is comedy, borderline unprofessional, and full of generalizations. That letter went straight to the delete folder and the paper copy into a shredder at Skyview.
The union should drop the “P” and merge with the AFA because they’re anything but professional. No wonder AA is stonewalling them, they’re a laughingstock.
#ActualAAFA … Good luck . To strike is to stand up .
American had PLENTY OF MONEY to give the pilots an industry-leading contract—with perks.
As one pilot just told me,
“I can’t believe how much they are paying me!”
We want the same.
Well gee maybe, I don’t know, stop raising Isom’s wages to meteoric proportions for no reason? That would free up some cash. Especially since fleets contract is heading to negotiations as well, and those people make a disgustingly low salary. Some of them are sleeping under the stairs or in the parking garage at the airport I work at.
Hopefully we’ll get the next update on Monday from the NMB. Until then, plan accordingly.
FAs are in a tough position. I can fully appreciate them wanting an increase since haven’t had one in 5 years (BTW your union shares most of that blame – they let perfect be the enemy of good and could have accepted a deal at 80-90% years ago). However you can’t get blood out of a stone. AA is not profitable flying (largely due to self induced wounds). However they can’t pay FAs if they don’t have the money.
Strike if you want. I fully expect whatever deal you get (and the one the pilots received) to be dramatically cut in chapter 11 within the next 12-18 months
Isom was at NWA when they broke the mechanics union (AMFA).
He better learn from his past.
An important reason to have a solid balance sheet as an airline is so that you have the financial wherewithal to impose lockouts. You give up a level of assertiveness on labor costs and big unions when you can’t push that lever. I have pity for FAs and think they should more to a new career. I’ve been on an AA flight once or twice and I mean, is it really worth it?
Joseph, oh but it is so very worth it! Many of us have come from other careers and currently have other careers and businesses on the side. Flexibility and traveling on someone else’s dime is much better in my book than the ole 9-5er M-F. Definitely not for everyone but for many of us, it’s been quite a ride.
A carrier can’t break labor contracts in a Chapter 11 filing. Only the judge can, if necessary for the solvency of the firm.
If new FAs – that fraction making under $55K today – aren’t happy with wages and can’t see how seniority will increase wages, they have chosen not just their employer but their career poorly. Starting wages are weak across the industry.
The reason the pilots got such a lucrative contract is that there was, and still is a pilot shortage. Between AA, DL, and UA, several hundred RJs remained parked, due to the regional being unable to fill all available slots.
Whereas a pilot needs 1,500 hours, before he can be considered for hiring by an airline, a potential flight attendant needs no prior aviation experience, in order to be hired. So, the pool of people who can become fight attendants is far greater.
Why must you spin things so terribly and ill informed??? Our current pay is equal to their PROFIT their NET INCOME not “exceeding it many times over”, our current pay is $1.48 billion (for the largest portion of the workforce by far 27,000 people) and yes their NET income is $1.5 billion, but their gross profits is $44.85 billion, our pay is not taking away their entire net profit it’s part of that $44.85 billion dollars. The pilots recent package is $9 billion dollars over 4 years!
Delta does NOT have the same profit sharing formula. AA gets 1.1% Delta got 11% or 12% (I can’t imagine exactly which, one was United, but it was double digits)
It’s not 4 and a half years of lost wages, it’s over 5 years, in the beginning of YOUR article you cited we haven’t had a raise since 1/1/19.
The union IS telling us how to prepare, if you posted the entirety of the APFA union hotline you shared, it shows they’re sending us information. That they aren’t able to say much till Monday per request of the NMB. Reading the whole hotline (as you did) it’s apparent it’s “prepare” as in “this is actually a possibility on the near horizon”, not “we are striking in 30 days, not giving you any instructions”.
Management can’t afford it??? They just upped Robert Isom’s (CEO) salary to $31.4 million dollars. They announced slightly lower profits than anticipated, they didn’t announce a loss. I’m just flabbergasted how you spin any fact into a salacious half truth. Every time. Obviously it’s working because you’re still here, but it’s despicable to put out false information to line your pockets with clickbait headlines and information.
For those saying we should take what we can, they started at 11% raise, they are now at 15% (including 401k and things, not just wages), inflation has been 31% since we last got a raise. That’s a pay cut
At AA, it takes three calls, being on hold on average an hour, to get accommodations. Scheduling, Hotels & Limos, Crew Tracking. Each FA has a different call going on. Then we find out no hotels available, sold out. Then we drive 70 miles to closest hotel. SCHEDULING doesn’t know workrules, so we tell AA….later!
@Laura I do not think you know what profit is. American’s 2023 *revenue* was ~ $53 billion. That is not profit.
Currently American and Delta do not have the same profit sharing formula, but American has offered Delta’s formula.
I also think you need to work on your understanding of the calendar. The current contract did not provide for a raise 1/1/2020. There were no ‘lost wages’ in 2019.
If delta and southwest pay more they should just go work for them. It’s the union construct of seniority over quality that keeps them locked in with one company and it shows in the customer service product. The longer someone is in one these roles the less they care to do. International route FAs are so bad especially compared to foreign carriers. As customers we should pray AA has the fortitude to break the spine of this union and rid themselves forever of the old haggard crowd.
Maybe if the AA flight attendants would actually do their jobs like serving customers throughout the flight instead of using jumpseat seatbelts to barricade themselves in the galley to avoid any risk of interacting with passengers they’d actually deserve a raise. This is the most entitled and LAZY group of people ever who want to be paid to hide in the galley violating federal law by using personal electronic devices and reading magazines rather than serve customers. Pathetic group. AA would do well to lock them out and fire them all to get some decent people who actually want the job.
Just think of the wonderful caring and attentive service that AA FAs will provide after they receive a contract with a healthy raise!
/s
Think about it. The pilots will go crazy if the flight attendants strike and shut it down. If flight attendants are not there to fly, the pilots do not fly. No one gets paid. The Strike will not last. Isom and Byrnes must go. The most inept we have ever seen at AA. Clueless.
American operates in the same business climate as the other majors – same fuel prices, same airport landing fees, same catering costs.
The difference is AA management is incompetent – really its just rebranded USscare…
The AA board members are not airline people and Isom makes more than $30 million annually.
Put him out! If you think Raju developed the ill-fated strategy in some kind of vacuum you’re naive. Isom approved and should take the fall.
Southwest (with a union) and Delta (without) both earn more….
AA had $$$ to settle with pilots, buy new planes and expand DFW campus with new buildings.
Now they are broke?
Go bankrupt again! Maybe the courts will mandate new leadership.
Additionally I wonder how a 90 year old law like the Railway Labor Act is not discriminatory?
Port workers, merchant marine, longshoremen, teamster truckers, the United Auto Workers and Mine workers do not abide/governed by it.
They – if on strike – are damaging to the economy as well.
The AFA and APFA should sue fora case before Supreme Court – that is if Alito is not busy flying flags and Thomas is not on a free vacation
If I were president I would pull all of American airlines financials, analyze them then call in the American c-suite, then American flight attendants Union and bring them to an agreement. There’s absolutely no reason why the funds for the flight attendant food stamps should not be coming out of taxes for American airlines profits. There is no reason the government should be subsidizing payroll for a companies such as American airlines which already received cares act money.