Sarah Rumpf-Whitten
Sat, July 15, 2023
United Airlines and the union representing its pilots said Saturday they reached agreement in principle on a contract that will raise pilot pay by up to 40% over four years.
Over the course of the proposed four-year contract, pilots would receive 34.5% to 40.2% increase in pay, the Air Line Pilots Association (ALPA) said in a press release.
United Airlines jetliner parked at airport tarmac, featuring Star Alliance logo and various text markings, San Francisco International Airport, San Francisco, California, June 7, 2023.
Garth Thompson, chair of the United pilots’ union, called it an "historic agreement" that was made possible by the resolve of the 16,000 pilots.
Along with a significant pay increase, the proposed contract includes improvements in quality of life, vacation, and other benefits to pilots who have faced a turbulent working conditions since the COVID-19 pandemic.
"We're pleased to have reached an agreement with ALPA," United Airlines CEO Scott Kirby said. "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,"
Thousands of United pilots, represented by the Air Line Pilots Association International (ALPA), are participating in a nationwide picket on Friday as they push for higher pay.
Pilots with the Chicago-based airlines have not had a contract with the airline for four years as pilots demanding better conditions from management.
United's contract came up for renewal in 2019, and negotiations have been underway since.
Last year, its pilots overwhelmingly voted against a tentative contract, which the union said fell short of what members were seeking. Since then, United pilots have been protesting for a better deal.
United Airlines pilots picket outside San Francisco International Airport (SFO) in San Francisco, California, US, on Friday, May 12, 2023.
Union's representing the pilots believed they were in a strong position to renegotiate a strong contract following the resurgence of traveling post pandemic as well as Delta Air Lines and American Airlines recently receiving industry-leading contracts.
Delta Air Lines ratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
Industry officials say Delta's new contract has become a new benchmark for contract negotiations in North America. Rival American Airlines in May also reached a labor deal.
Reuters contributed to this report.
United Airlines pilots reach labor agreement, boost pay
United Airlines plane at Newark Liberty International Airport
Reuters
Sat, July 15, 2023
CHICAGO (Reuters) -United Airlines and its pilots on Saturday reached a labor agreement that will give the latter a significant pay increase, after the union rejected an earlier offer last year instead to seek even higher wages with pilots in short supply.
The pilots will get cumulative 34.5%-40.2% increase in pay raises in a new four-year contract, the Air Line Pilots Association (ALPA) said.
With fewer pilots, the group has been enjoying enhanced bargaining power. Consumers have kept up spending on travel even with inflation high, and the industry is short thousands of pilots.
ALPA represents about 14,000 pilots at the Chicago-based carrier. It said it reached an agreement in principle with United management, which includes substantial improvements to compensation, as well as advancements in quality of life, vacation, and other benefits.
"We're pleased to have reached an agreement with ALPA," United Airlines CEO Scott Kirby said. "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," he added.
The deal comes months after pilots at Delta Air Lines ratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
Industry officials say Delta's new contract has become a new benchmark for contract negotiations in North America. Rival American Airlines in May also reached a labor deal.
United, Delta, American Airlines and Southwest Airlines are estimated to hire about 8,000 pilots this year.
In the past two years, unions across the aerospace, construction, airline and rail industries have rebuffed initial offers from management, seeking higher wages in a tight labor market.
United pilots turned down a deal last year that included more than 14.5% in cumulative wage increases and enhanced overtime and training pay.
Analysts at Jefferies estimate the United States is short about 10,000 pilots. This supply-demand gap is projected to last until 2027.
(Reporting by Rajesh Kumar Singh and Baranjot Kaur in BengaluruEditing by Nick Zieminski, Diane Craft and Aurora Ellis)
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