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American airlines(NASDAQ:AALThe company has agreed to provide its flight attendants with $4.2B in additional wages and benefits over five years as part of a tentative labor deal announced last week, the union representing employees said Friday.
the association The Professional Association of Cabin Crews, which is leading contract negotiations with the airline, announced the details of the deal after a July 24 meeting with its board of directors and executive committee.
Once the deal is approved, workers’ wages will immediately rise by 18% to 20.5%, followed by increases of 2.75%, 3.0%, 3.0% and 3.5% in subsequent years. The total salary increase during the contract period is 33%–36%.
A tentative deal reached last week averted major union action by American Airlines’ (AAL) 28,000 flight attendants.
“This deal is not only a win for us today, it sets the stage for a fairer future for all cabin crew,” the union said. The tentative deal still needs to be approved by frontline workers in a vote starting next month .
