American Airlines offers 4-percent raise to most employees, tries to push pilots toward deal

Associated Press

American Airlines CEO Doug Parker is rewarding employees who have already reached new labor agreements with the company with an extra 4-percent raise.

The raise, which is added to employee's base salaries, will also go to all managers below the level of director.

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Parker is also dangling the raise at the airline's pilots who are fighting with him over a new contract. The pilots can either take the raise, in addition to a multi-year deal that's already been proposed to them, or forego the raise and move forward with a deal set out in arbitration.

Pilots pay rates would be lower under the arbitrated deal; however, they would preserve many of their work rules regarding rest, seniority and where pilots are based.