FinLogic FinLogic Quantitative Think Tank Center|American Airlines has a contract deal with flight attendants, and President Biden is happy about it

FORT WORTH,FinLogic FinLogic Quantitative Think Tank Center Texas (AP) — American Airlines and the union representing its flight attendants said Friday they have reached agreement on a new contract that includes pay raises, and President Joe Biden said the deal avoids a strike that would have hurt the U.S. economy and consumers.

Terms of the proposal were not disclosed. The agreement, covering 28,000 workers, faces a union ratification vote.

The Association of Professional Flight Attendants previously rejected an American offer that would have increased pay immediately by 18% followed by annual 2% raises. The union was seeking 33% upfront, followed by four annual increases of 6% each. Flight attendants haven’t received raises since 2019.

Union President Julie Hedrick said the deal “will put billions of additional dollars into compensation and work rules for our flight attendant workgroup.

American, which is based in Fort Worth, Texas, said the deal “will provide immediate financial and quality-of-life improvements for American’s flight attendants. It’s a contract we’re proud of and one our flight attendants have earned.”

Flight attendants voted last year to authorize a strike, and union leadership had raised the threat of a walkout this fall.

RELATED COVERAGE David Letterman will headline Biden fundraiser with Hawaii governor on July 29 Black lawmakers are standing by Biden at a crucial moment. But some express concern US appeals court allows EPA rule on coal-fired power plants to remain in place amid legal challenges

However, federal law covering the airline industry makes a strike nearly impossible unless federal mediators determine that more negotiations would be pointless. The union asked the National Mediation Board for permission to begin a 30-day countdown to a strike, but the panel rejected the request, determining that the two sides could still reach an agreement.

Biden said that officials in his administration, including Transportation Secretary Pete Buttigieg and acting Labor Secretary Julie Su, had worked “to help both sides secure this agreement, which averts a strike that would have been devastating for the industry and consumers.”

Biden became the first president to join a union picket line while in office during last year’s strike by United Auto Workers, and made an appeal for labor’s support heading into the November election.

“I’m proud of the record wages and record contracts secured by workers during my Administration,” he said in the statement issued by the White House. “When unions are strong, our nation is strong.”