Exclusive-American Airlines pilot deal in ‘jeopardy’ after United’s contract agreement – union memo

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CHICAGO (Reuters) – American Airlines (NASDAQ:AAL)’ pilot union has warned that the ratification of the company’s new contract deal is in “jeopardy” as United Airlines has raised the benchmark with its own deal, according a union memo seen by Reuters.

American pilots are due to start voting next week on a new four-year deal that provides for a pay increase of about 42% and other benefits.

But the Allied Pilots Association (APA), which represents over 15,000 American pilots, said the proposed pay rates as well as some quality of life items in the agreement pale in comparison with those in United’s preliminary deal.

“Management is fully aware that the proposed UAL (United) deal has now put the ratification of our TA (tentative agreement) in jeopardy,” the union said in the memo.

It asked the company to further improve the contract to “meet the new industry standards” if it wants to have a deal that can be ratified by its pilots.

“Surely AA (American Airlines) management cannot expect our pilots to accept an agreement that puts us behind our contemporaries at other airlines for at least the next four years,” the union said.