An introductory labor deal between United Airlines and its pilot’s union has come to a close with the agreement to put into effect a 40.2% pay raise that will occur over the course of the next four years. With this deal, United Aviators will be the first major airline to reach an agreement for higher wages over the post-pandemic travel boom.
This initial negotiation that had been announced by the Air Line Pilots Association was disclosed on Saturday. The in-process deal then gained notice after Delta Air Lines pilots confirmed a new contract that comprised a 34% increment over four years.
However, while American Airlines and its pilot’s union have come to terms for this new labor deal, it still needs an approval vote by members.
In-Depth Contract Information
All at once, the global pandemic stopped contract negotiations across the airline industry. However, the worker’s efforts for fair pay, as well as better working conditions, continued as the travel demand rose once again. And now, the union seems to be preparing to request a release from federal mediation, the next step toward a potential strike.
As per the United Pilots Union, the deal is slated to cost around $10 billion. It covers a host of other enhancements, including overtime pay, holiday pay, and scheduling. Cumulative pay raises range from 34.5% to 40.2%, based on the type of aircraft flown by a pilot. With the immediate signing, pilots would be entitled to get pay hikes from 13.8% up to 18.7%.
The contract requires approval from the company’s 16,000 pilots in order to reach finalization.
“We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on it,” United CEO Scott Kirby said in a LinkedIn post. “The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy.”
The pilots strongly rejected an initial 18 month deal last year. The Allied Pilots Association, which is comprised of many American Airlines pilots, stated that they analyzing a new United deal. They plan to bring this forward before the group votes on its respective agreement.
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“American Airlines CEO Robert Isom has pledged to match our industry peers in the current bargaining environment,” the union said Saturday. “In the coming days, your union leadership will endeavor to determine whether Mr. Isom plans to follow through on that pledge in light of this latest development.”