United Airlines pilots walk inside the airport as they participate in an information picket at Newark Liberty International Airport in Newark, New Jersey on May 12, 2023.
Eduardo Munoz | Reuters
united airlines and his pilots union have agreed to a preliminary labor agreement that includes wage increases of up to 40.2% over four years, ending months of tense negotiations and picketing at airports. The deal makes United flyers the latest from a major airline to settle for higher wages amid the post-pandemic travel boom.
The preliminary agreement, which the Air Line Pilots Association (ALPA) announced on Saturday, comes months later. delta airlines The pilots ratified a new contract that included increases of 34% over four years, the first of the four major airlines to reach a new agreement. american airlines and his pilots’ union has reached a new labor agreement with 40% increases over four years, though it still faces a ratification vote from members.
The pandemic halted contract negotiations across the industry, but workers have been pushing for higher wages and better working conditions since travel demand returned and talks resumed.
ALPA said the tentative deal is worth around $10 billion. It includes a number of other enhancements, including overtime pay, holiday pay, and scheduling. Cumulative salary increases range from 34.5% to 40.2% depending on the type of aircraft the pilot flies.
The agreement in principle will not be finalized until it is ratified by the company’s 16,000 pilots.
“We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on that,” United CEO Scott Kirby said in a LinkedIn post. “The four-year agreement, once ratified, will deliver a significant pay increase and quality of life improvements for our pilots, while putting the airline on track to realize the incredible potential of our United Next strategy.”
The pilots overwhelmingly rejected a preliminary 18-month contract last year.
United is scheduled to report second-quarter earnings after the market closes on Wednesday, and executives are likely to face questions about the cost of the deal during a conference call the next day.
