Former United Airlines CEO Oscar Munoz discusses a government report blaming airlines for cancellations and employee retention and his new book, Turnaround Time.
United Airlines and the union that represents its pilots said Saturday they had reached an agreement in principle on a deal that will increase pilots’ salaries by up to 40% over four years.
During the term of the proposed four-year contract, pilots would receive a pay rise of 34.5% to 40.2%, the Air Line Pilots Association (ALPA) said in a press release.
United Airlines jetliner parked on the airport tarmac, with Star Alliance logo and various text markings, San Francisco International Airport, San Francisco, California, June 7, 2023. (Smith Collection/Gado/Getty Images / Getty Images)
Garth Thompson, chairman of the United pilots’ union, called it a “historic agreement” made possible by the determination of the 16,000 pilots.
ticker | Security | Last | Change | Change % |
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UAL | UNITED AIRLINES HOLDINGS INC. | 53.34 | -1.89 | -3.42% |
In addition to a significant pay increase, the proposed contract includes quality of life improvements, vacation time and other benefits for pilots who have been facing turbulent working conditions since the COVID-19 pandemic.
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“We are pleased to have reached an agreement with ALPA,” said Scott Kirby, CEO of United Airlines. “Once ratified, the four-year agreement will deliver a significant pay increase and quality of life improvement for our pilots, while putting the airline on the right track to realize the incredible potential of our United Next strategy.”
Thousands of United pilots, represented by the Air Line Pilots Association International (ALPA), are taking part in a nationwide strike demonstration on Friday to push for higher salaries. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Pilots from the Chicago-based airlines have not had a contract with the airline for four years as pilots demanded better terms from management.
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United’s contract was up for renewal in 2019 and negotiations have been going on ever since.
Last year, the pilots voted overwhelmingly against an interim contract that the union said did not meet the wishes of members. Since then, United pilots have been protesting for a better offer.
United Airlines pilots demonstrate in front of San Francisco International Airport (SFO) on Friday, May 12, 2023 in San Francisco, California, United States. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Pilots’ union officials believed they were in a good position to renegotiate a strong contract following the post-pandemic travel resurgence, and Delta Air Lines and American Airlines were recently awarded industry-leading deals.
Delta Air Lines has ratified a new deal that provides over $7 billion in cumulative pay and benefit increases over four years.
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Industry officials say Delta’s new contract has become a new benchmark for contract negotiations in North America. Rival American Airlines also reached a collective bargaining agreement in May.
Portal contributed to this report.