Unionized mechanics at American Airlines, the second-largest U.S. carrier, have voted against ratifying a pay deal that was offered on May 5, possibly setting up a labor dispute.

The Transport Workers Union said on its website that 6,074 mechanics and related members of the union rejected the tentative agreement, with 3,371 members voting in favor. Members of Stores union also rejected the dea.

However, Maintenance Control Technicians ratified the contract, put forth by American Airlines and the Transport Workers Union, with 60 members voting in favor and 18 against.

Airline strikes
are rare but are allowed under U.S. law if mediated negotiations are at a standstill. President Barak Obama has the authority to intervene and temporarily halt a strike once it has started.

Increase your money and finance knowledge from home

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »