American Airlines has reached an agreement with its flight attendants union on a new contract, which includes immediate raises of 18% to 20%, full retroactive pay, and boarding pay that the union states averages to an 8.5% raise.
However, the contract also extends the period new flight attendants will work 'straight reserve,' making it more challenging for new hires and effectively creating B-scale work rules. The approval of this contract by members remains uncertain. If rejected, it could lead to further lengthy negotiations and potential strike risks.
Senior crew members may feel they can secure better terms later, while junior crew based in Boston are currently eligible for food stamps. Rejection of the agreement might be seen as a pathway to a better contract in the future. However, American Airlines is underperforming financially and does not expect profits this quarter, traditionally a strong period. Economic downturns could jeopardize the gains currently offered.