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American Airlines (AAL) Gets Into Labor Trouble Once Again
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American Airlines (AAL - Free Report) , like most other airlines in the United States, is being constantly hit by labor crisis. Only a few days after the company’s pilots, represented by the Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase, its flights attendants have voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if needed.
More than 26,000 flight attendants at AAL are represented by the APFA. Highlighting their frustration at a suitable deal not being reached, 99.47% of the APFA covered flight attendants voted for a strike in the event of a contract not being agreed upon.
Per APFA’s national president Julie Hedrick, "Flight attendants are fired up and ready for a contract. They (the company) ignore this strike vote at their peril,", national president of APFA, said in a statement. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period. Following the expiry of that period, the attendants may commence a strike.
Even though flight attendants have voted in favor of a strike, it is highly doubtful whether the same will materialize, as the law makes it extremely difficult. So, negotiations are likely to continue. The union hopes that this strike approval will exert pressure on AAL in ongoing negotiations. Naturally, we expect investors to eagerly wait for further updates on this crucial issue.
With U.S. airlines grappling with labor shortages, the bargaining power of various labor groups has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows. As a result, we are seeing many labor deals being inked in the space. Apart from AAL’s deal with pilots, referred to above, in July, United Airlines’ (UAL - Free Report) pilots provisionally agreed on a multi-billion-dollar contract to increase their pay up to 40% over the four-year duration of the contract. In March, Delta Air Lines’ (DAL - Free Report) pilots ratified a four-year deal, which made DAL’s pilots eligible for a 34% pay-hike over the next four years.
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American Airlines (AAL) Gets Into Labor Trouble Once Again
American Airlines (AAL - Free Report) , like most other airlines in the United States, is being constantly hit by labor crisis. Only a few days after the company’s pilots, represented by the Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase, its flights attendants have voted to give their union, Association of Professional Flight Attendants (APFA), the power to call a strike if needed.
More than 26,000 flight attendants at AAL are represented by the APFA. Highlighting their frustration at a suitable deal not being reached, 99.47% of the APFA covered flight attendants voted for a strike in the event of a contract not being agreed upon.
Per APFA’s national president Julie Hedrick, "Flight attendants are fired up and ready for a contract. They (the company) ignore this strike vote at their peril,", national president of APFA, said in a statement. In the event of AAL’s management and APFA failing to come to an agreement through federal mediation, the latter can request to be released into a 30-day cooling-off period. Following the expiry of that period, the attendants may commence a strike.
Even though flight attendants have voted in favor of a strike, it is highly doubtful whether the same will materialize, as the law makes it extremely difficult. So, negotiations are likely to continue. The union hopes that this strike approval will exert pressure on AAL in ongoing negotiations. Naturally, we expect investors to eagerly wait for further updates on this crucial issue.
With U.S. airlines grappling with labor shortages, the bargaining power of various labor groups has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows. As a result, we are seeing many labor deals being inked in the space. Apart from AAL’s deal with pilots, referred to above, in July, United Airlines’ (UAL - Free Report) pilots provisionally agreed on a multi-billion-dollar contract to increase their pay up to 40% over the four-year duration of the contract. In March, Delta Air Lines’ (DAL - Free Report) pilots ratified a four-year deal, which made DAL’s pilots eligible for a 34% pay-hike over the next four years.
American Airlines and Delta carry a Zacks Rank #3 (Hold) each while United Airlines currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.