Ending Soon! Save 33% on All Access

American Airlines Pilots Union Rejects Bonus Pay Aimed at Fixing Understaffing Problems The union is rejecting the holiday offer in favor of more permanent changes.

By Chloe Arrojado

COOPER NEILL | Getty Images

With holiday travel ramping up, airlines are desperate to alleviate staffing problems that have plagued the industry over the past few months.

American Airlines has aimed to address this labor shortage by offering a 50% pay increase to pilots who work during the Thanksgiving, Christmas and New Year's season. However, the Allied Pilots Association (APA), which consists of more than 14,000 American Airlines pilots, rejected the offer.

"The Board received a full briefing from the Negotiating Committee and thoroughly considered all aspects of the proposed [letter of agreement] before voting 20-0 to reject it," the APA wrote in a statement on Tuesday. "While understanding that its rejection creates a disparity among our fellow work groups that have accepted management's proffered incentives, the Board concluded that the need to achieve meaningful permanent improvements in a new collective bargaining agreement must remain APA's focus."

Related: Southwest Pilots' Union Sues Airline Over COVID-19 Response

Union spokesperson Dennis Tajer told CNBC the extra pay was "lazy" and "a clear admission you mismanaged the airline." Instead, the union said it wants more permanent improvements, like with how the airline creates its schedule.

"We are, of course, disappointed, especially since we have holiday pay programs in place for all other frontline groups at the company," Kimball Stone, American's senior vice president of flight operations, and Chip Long, vice president of flight operations, wrote in response, according to CNBC. "But we will continue to look for opportunities to work with APA to support you during the holidays, as well as explore our options to maximize availability of existing premiums."

American Airlines isn't just extending the holiday bonus to pilots in its attempt to fix its staffing problems. It's also offering to pay flight attendants triple for trips during select periods this holiday season, along with extra pay for perfect attendance between mid-November and January. In addition, the carrier is offering other employees $1,000 for perfect attendance between November 15 and January 2.

American Airlines has already exemplified how holiday disruption can descend to disaster. Over Halloween weekend, it was forced to cancel more than 2,000 flights after turbulent weather created staffing issues.

Related: American Airlines Pilots to Picket Over Staff Shortages, Fatigue

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Social Media

How To Start a Youtube Channel: Step-by-Step Guide

YouTube can be a valuable way to grow your audience. If you're ready to create content, read more about starting a business YouTube Channel.

Growing a Business

Want to Expand Your Market Overseas? Here's Everything You Need to Know About Global Logistics in 2024

With rising geopolitical tensions and changing market conditions it can be hard for businesses to navigate supply chain logistics even in a post-pandemic world. Here are three tips from the CEO of an international customs brokerage.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Elvis Presley's Granddaughter Fights Graceland Foreclosure, Calls Paperwork 'Forgeries'

The 13.8-acre estate was scheduled to be sold in a public foreclosure auction on Thursday. Presley's granddaughter and heir, Riley Keough, is fighting to save Graceland in court.

Business News

Kickstarter Is Opening Up Its Platform to Creators and Making Big Changes to Its Model — Here's What's New

The company noted it is moving beyond traditional crowdfunding and making it easier for businesses to raise more money.