16,000 CWA-IBT American Airlines Members Ratified 5-Year Agreement
Portfolio Pulse from Charles Gross
16,000 passenger service workers at American Airlines, represented by CWA-IBT, ratified a five-year agreement with an average initial wage increase of 20%. This contract comes after a period where many workers did not receive pay raises for four years, despite American Airlines being one of the largest U.S. airlines.
January 08, 2024 | 11:51 pm
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American Airlines' 16,000 service workers ratified a new 5-year labor agreement, which includes a significant 20% wage increase. This could impact the company's labor costs and potentially its profitability in the short term.
The ratification of the new labor agreement with a substantial wage increase for a large number of employees is likely to increase American Airlines' operational costs. While this is positive for employee relations and may boost morale, it could negatively impact the company's short-term profitability due to the higher expense. Investors may react to the news with concerns about the impact on earnings, which could lead to a downward pressure on the stock price in the short term.
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