In a big move, United Airlines’ pilots have ratified a new four-year contract according to Reuters. It includes a significant pay increase as well as other benefits, the union representing the pilots said on Friday
A committee represented by the Air Line Pilots Association, International (ALPA) reported 82% of the airline’s pilots voted in favor of a new comprehensive working agreement that adds more than $10 billion worth of value to the existing contract. Roughly 97% of eligible pilots participated in the ballot.
The pilots will receive a cumulative 34.5% to 40.2% increase in pay in the new four-year contract, along with better work-life quality, sick leave, work rule and vacation improvements, and an increase to retirement benefits for United’s 16,000 pilots.
“This industry-leading contract brings substantial benefits to our pilots and could not have happened without their unity and steadfast resolve, said MEC Chair Capt. Garth Thompson. “I am proud that our pilot group will be recognized for their contributions to the company’s success. United Airlines cannot thrive without the hard work of its labor groups.”
ALPA last year rebuffed an offer from United, forcing the airline to improve its terms. The contract is effective on September 29, 2023—and becomes amendable on September 30, 2027.
Pilot shortages in the United States have been persistent and are expected to last for years after many aviators left the industry during the pandemic. Analysts at Jefferies estimate the United States has a shortage of about 10,000 pilots.
United's shares were up following the news.
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