American Airlines CEO Faces Off with Flight Attendants Union Over Compensation
American Airlines CEO Robert Isom clashed with the Flight Attendants Union during an all-hands meeting following the airline's recent earnings call. Over 4,000 employees attended the session, which centered on Isom's compensation and the company's offer to flight attendants. His comments sparked a tense exchange with union head Julie Hedrick, who demanded better pay and benefits.
Isom announced plans to match Delta Airlines' recent 5% pay increase to maintain an industry-leading contract. However, he pointed out that Delta's compensation structure isn't contractual, which Hedrick saw as insufficient. She pushed for retroactive pay and urged Isom to include Southwest Airlines in their economic analysis, but he declined, leading her to walk out in protest.
Isom stressed that reaching a new contract would require ongoing negotiations, noting that a strike would not resolve the issue. This stance has heightened tension between the airline's management and the union, creating uncertainty for flight attendants. The outcome of this confrontation will have a significant impact on American Airlines' labor relations in the coming months.