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American Airlines pilots’ union rejects pay hike proposal By Reuters

© Reuters. FILE PHOTO: An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. REUTERS/Mike Blake
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(Reuters) – American Airlines (NASDAQ:) pilots’ union on Wednesday said its board of directors has rejected a draft agreement that offered a 19% pay hike over two years, as the proposal failed to garner enough votes.

The Allied Pilots Association (APA) has been pushing for higher wages and improved schedules among other things, at a time when the air travel industry is facing a staff shortage, impacting the company’s ability to meet robust air travel demand.

The APA in a tweet on Wednesday said the proposed agreement received 15 votes, with just five in its favour.

The company last month offered a 19% pay increase to its pilots over two years in a new contract, after proposing in June to hike the base pay by about 17% through 2024.

American Airlines shares were down 1.6% in afternoon trade.

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