United Airlines and its pilots’ union, the Air Line Pilots Association (ALPA), have reached a preliminary labor deal that includes significant pay increases for pilots over the next four years. The agreement, which comes after months of negotiations and airport pickets, makes United’s aviators the latest group from a major airline to secure higher wages in the wake of the post-pandemic travel boom.
The deal follows similar agreements reached by Delta Air Lines and American Airlines with their respective pilots’ unions. Delta pilots ratified a new contract that included 34% raises over four years, making them the first of the top four airlines to reach a new agreement. American Airlines and its pilots’ union also reached a new labor deal with 40% raises over four years, pending a ratification vote by members.
Contract negotiations across the industry were put on hold due to the pandemic, but as travel demand returned and talks resumed, workers have been advocating for better pay and improved working conditions.
The tentative deal between United Airlines and ALPA is valued at approximately $10 billion. In addition to the pay increases, the agreement includes other enhancements such as overtime pay, holiday pay, and improved scheduling. The cumulative pay increases for pilots range from 34.5% to 40.2%, depending on the type of aircraft they fly.
However, the agreement in principle still needs to be ratified by United’s 16,000 pilots before it can be finalized.
United CEO Scott Kirby expressed his satisfaction with the agreement, stating in a LinkedIn post, “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.” Kirby also highlighted that the four-year agreement, once ratified, will not only provide pilots with a significant pay raise but also improve their quality of life. He believes this deal will help United Airlines achieve the goals outlined in their United Next strategy.
It is worth noting that the pilots had previously rejected a preliminary 18-month deal last year, indicating the importance of reaching a mutually satisfactory agreement.
United Airlines is set to report its second-quarter earnings after the market closes on Wednesday. Executives are likely to face questions about the cost of the labor deal during a conference call the following day.
What factors contributed to United Airlines pilots securing significant pay increases in their preliminary labor deal?
Breaking News: United Airlines Pilots Secure Significant Pay Increases in Preliminary Labor Deal
United Airlines and the Air Line Pilots Association (ALPA) have reached a preliminary labor agreement that will result in substantial pay increases for pilots over the next four years. This deal, achieved after months of negotiations and airport pickets, is the latest development in a trend of major airlines granting higher wages to their employees amid the post-pandemic travel surge.
Similar agreements have been made by Delta Air Lines and American Airlines with their respective pilots’ unions. Delta pilots have ratified a new contract, including 34% raises over four years, making them the first among the four major airlines to reach such an agreement. Meanwhile, American Airlines and its pilots’ union have also reached a new labor deal, offering 40% raises over four years, pending member ratification.
Pandemic-related delays put contract negotiations on hold across the industry, but as travel demand rebounded, talks resumed, and workers began advocating for better compensation and working conditions.
The tentative deal between United Airlines and ALPA is valued at approximately $10 billion. In addition to pay increases, the agreement incorporates other enhancements such as overtime pay, holiday pay, and improved scheduling. The pay increases for pilots range from 34.5% to 40.2%, depending on the aircraft they fly.
However, the agreement still requires ratification by United’s 16,000 pilots before it can be finalized.
United CEO Scott Kirby expressed satisfaction with the deal, stating on LinkedIn, “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.” Kirby emphasized that once ratified, the four-year agreement would not only deliver significant pay raises but also enhance pilots’ quality of life. He believes this deal will propel United Airlines towards achieving their goals outlined in their United Next strategy.
It is noteworthy that pilots had previously rejected an 18-month preliminary deal last year, underscoring the importance of achieving a mutually satisfactory agreement.
United Airlines is scheduled to report its second-quarter earnings after the market closes on Wednesday. During a conference call the following day, executives are expected to address inquiries about the cost of the labor deal.
This is great news for United Airlines pilots! It’s important for them to be duly rewarded for their contributions, especially considering the post-pandemic travel boom. This preliminary labor deal is a positive step towards recognizing their efforts and ensuring fair compensation.