(Finance) – TheAllied Pilots Association (APA), which represents the 15,000 pilots of American Airlinesannounced that its members have voted to ratify an interim agreement which the union and the airline’s management reached on August 1. Drivers approved the new deal by a 72.7% margin in favour, with more than 95% of eligible drivers participating in the vote.
“American Airlines pilots have spoken: It’s time to move forward with a new employment arrangement that delivers substantial monetary gains and quality of life improvements – said Captain Ed Sicher, president of the Allied Pilots Association – This contract is a great first step towards restoring the wages, benefits and rules of work that were lost over the past two decades while our profession was under attack continuous”.
The new 48 month contract provides approximately $1.1 billion in upfront one-time payments and ratification bonuses; annual salary increases for the duration of the contract; and improvements to various benefits and work rules.
On average, pilots will see a Immediate salary increase of more than 21%, reads a note from the APA. Combined with increases in pilots’ 401(k) contributions and subsequent salary increases each May, pilot compensation rates increase by more than 46% over the term of the contract. Overall, the new contract will provide American Airlines pilots approximately $9.6 billion in additional value compared to the previous agreement.