American Airlines has made an important announcement regarding wages and expenses: the company revealed on Tuesday that it will pay flight attendants an additional four percentage points of what they already earn, Reuters reports.
Increased profits resulting from cheaper oil prices has been cited as one of the primary ways American Airlines was able to make the wage boost.
"There are many ways to share success, but when it comes to compensation, we believe it is best to reward (workers) with industry leading wage rates - not lower wages supplemented by compensation that varies with airline profitability," Chief Executive Officer Doug Parker wrote in a letter to employees, Reuters also reports.
American Airlines, which has fared well financially in recent months because of the oil surge, has also been criticized in the past for its relationship to its workers.
Tensions between workers and airline officials came to a rise in September 2012, which hundreds of American Airlines employees (mainly pilots) organized a march on a picket line in Chicago.
Among the complaints mentioned during the standoff were declining protection of benefits and wage decreases. Union leaders representing the airline employees were also accused of being too close with American Airlines officials in charge of collective bargaining.
The company's decision and subsequent announcement was largely seen as a way to save face from its previous squabbles with employees.
It is also important to mention that the wage increase will bring salaries seven percent higher than their counterparts at Delta or United, Parker also included in his statement.
