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American Airlines flight attendants reject union contract amidst arbitration - Global Banking & Finance Review
Image depicting American Airlines flight attendants during a union meeting, reflecting the rejection of their five-year contract. This decision impacts 24,000 workers and complicates airline integration after the merger with US Airways.
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AMERICAN AIRLINES CREW REJECT UNION CONTRACT

Published by Gbaf News

Posted on November 12, 2014

1 min read
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M&A Digital banking Wealth Management

JOSH BOAK, AP Business Writer

American Airlines Contract Vote Results

WASHINGTON (AP) – Flight attendants at American Airlines have rejected a five-year contract, forcing the world’s largest carrier and its union for cabin-crew workers into binding arbitration.

Narrow Margin Decides Outcome

Just 16 votes blocked the contract Sunday – with 8,180 voting for and 8,196 voting against, according to the Association of Professional Flight Attendants.

Impact on Airline Operations and Workers

The rejection of the contract affects roughly 24,000 workers and complicates the integration of American Airlines and US Airways. The two merged last year to form the world’s biggest airline operator. The proposed contract included guaranteed raises but ended a profit-sharing plan.

Record Profits Amid Labor Dispute

Last month, American Airlines Group Inc. reported an all-time best $942 million profit in the June-through-September quarter, nearly double the amount that American and US Airways earned separately last year. CEO Doug Parker predicted more records for the fourth-quarter.

Key Takeaways

  • Flight attendants at American Airlines narrowly rejected a five‑year contract by 16 votes.
  • The vote—8,180 in favor versus 8,196 against—forces binding arbitration under the Railway Labor Act.
  • The contract would have provided guaranteed raises but eliminated a profit‑sharing plan, affecting around 24,000 workers.
  • The rejection complicates integration efforts following last year’s merger between American Airlines and US Airways.
  • Negotiations now move into binding arbitration, delaying a contractual resolution.

References

Frequently Asked Questions

How close was the vote on the contract?
The contract was rejected by just 16 votes: 8,180 voted in favor and 8,196 voted against.
What are the next steps after the rejection?
With the vote failing, the dispute goes to binding arbitration under the Railway Labor Act.
How many flight attendants are affected?
Approximately 24,000 flight attendants are impacted by the contract rejection.
What did the proposed contract include?
It included guaranteed raises but eliminated a profit‑sharing plan.
Why is this happening now?
The rejection complicates post‑merger integration between American Airlines and US Airways.

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