The union that represents American Airlines (NASDAQ:AAL) flight attendants on Wednesday rejected a company proposal to immediately raise pay by 17%.
CEO Robert Isom offered flight attendants immediate 17% wage increases earlier Wednesday as contract talks continue without a deal, bringing the prospect of a strike closer.
The airline and the Association of Professional Flight Attendants have struggled to reach a new contract agreement, differing on major issues, such as pay. Flight attendants haven’t received contract raises since before the pandemic.
“We have made progress in a number of key areas, but there is still a good deal of work to be done,” Isom said in a video message to flight attendants.
The union said the two sides are scheduled to meet with federal mediators next week for a “last-ditch” effort to get a deal done, adding that flight attendants were told to prepare for a strike.
Strikes are extremely rare among airline employees. The last took place in 2010 among Spirit Airlines pilots. If the two parties can’t reach a deal, a release by federal mediators would be triggered, a process that would take several weeks.
AAL shares barely moved mid-morning Thursday, dipping three cents to $11.59.
