American Airlines Announced a Profit Sharing Program to Improve Relation with Workers

American Airlines Announced a Profit Sharing Program to Improve Relation with Wo

American Airlines Group Inc. that has been making an effort to improve its relation with its workers gave in to the pressure from employees to adopt a profit-sharing program. For a while the airline's main focus has been to improve the labor relations and to perk up its performance.

On Wednesday, Doug Parker, the CEO and Chairman and Scott Kirby, the president of American Airlines told the workers in a message that beginning in this year, a five percent of pretax income which excludes one-time items, will go towards a profit-sharing fund. The first payout will start in early 2017.

Splitting certain amount of earnings with the employees is not new in the airline industry as Delta Air Lines Inc., United Continental Holdings and Southwest Airlines Co all follow the same path and American is the most recent carrier to join the pool.

The program marks a reversal from Parker's earlier stance in January when he defended the American's decision to go in for a pay higher base rate than to offer a profit sharing option.

On Wednesday in a separate announcement the company said it plans to raise the pay of its flight attendants by six percent which will come to effect from April 1 and is pending approval from the union.

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