© Reuters. FILE PHOTO: An American Airlines plane sits at a gate at Logan Airport ahead of the Fourth of July holiday in Boston, Massachusetts, US, June 28, 2023. REUTERS/Brian Snyder/File Photo
(Reuters) – American Airlines Group (NASDAQ:) said on Friday it increased the value of its contract for pilots by more than $ 1 billion to match a more generous deal at United Airlines, after a US union warned that certification was in danger.
The Texas-based carrier said the changes bring the total value of the proposed four-year contract to $9 billion. Its pilots are scheduled to vote on the deal on Monday.
American said it would retroactively match wage rates and wages in United’s initial July 15 agreement, and provide extended sick leave and increased life insurance.
United pilots will receive cumulative increases of between 34.5% and 40.2% in that four-year agreement.
The Allied Airmen’s Association (APA), which represents American pilots, warned Sunday that the certification is in jeopardy. Dennis Tajer, a spokesperson for the union, said earlier this week that United pilots will earn at least 2% more than their 15,000 American counterparts.
The union also said United’s back pay, days off for junior pilots and sick times were better.
A shortage of pilots and increased public support for unions gave union negotiators more leverage in contract talks.