The union and management had reached a provisional agreement the end of May. However this proposal never was voted on by its 11,000 baggage handlers and other ground workers. Neither party has explained why the pending agreement was suspended. However the union has reported that there are outstanding issues related to management contracting out work.
American's ground workers union has asked the National Mediation Board to declare a stalemate in negotiations. If the board agrees, mediated talks between the two parties would end and a 30 day cooling off period could begin, after which American workers could legally strike.
American management contends that it has already made a deal with its ground workers union and the union should stand by that deal. The union's president overturned a decision by union negotiators and refused to send American's latest contract offer to its members for a vote. Unfortunately, without the vote, no deal is in place. It seems odd that the management would feel this way without the vote. The fact that management is making these statements gives the impression they feel the vote will not support the deal.
American's offer includes pay increases and other "enhancements" to workers while providing American the ability to improve its productivity and efficiency.
Historically the National Mediation Board has been reluctant to allow strikes of major U.S. airlines. The most recent airline strike occurred between Spirit Airlines and its pilots and was resolved in less than a week.