United Airlines and its pilots’ union have agreed to a preliminary labor deal

United Airlines and its pilots’ union have reached a preliminary labor agreement that includes pay increases of up to 40.2% over four years. This deal brings an end to months of tense negotiations and airport pickets. It is part of a trend among major airlines to secure higher wages in response to the post-pandemic travel boom.

The Air Line Pilots Association (ALPA) announces the preliminary deal

The Air Line Pilots Association (ALPA) announced the preliminary deal on Saturday. This agreement comes after Delta Air Lines pilots ratified a new contract with 34% raises over four years, making them the first of the top four airlines to reach such an 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.

Workers push for higher pay and better conditions

Contract negotiations in the airline industry were put on hold due to the pandemic. However, with the return of travel demand and the resumption of talks, workers have been advocating for higher pay and improved working conditions.

Details of the tentative deal

The tentative deal, valued at approximately $10 billion, includes various improvements such as overtime pay, holiday pay, and scheduling. Pay increases will range from 34.5% to 40.2% depending on the type of aircraft a pilot operates. However, the agreement in principle is subject to ratification by United’s 16,000 pilots.

United CEO expresses satisfaction with the agreement

United CEO Scott Kirby expressed his satisfaction with the agreement in a LinkedIn post, stating that it fulfills the promise of providing pilots with an industry-leading contract. He emphasized that the four-year agreement, once ratified, will not only result in significant pay raises but also improve the pilots’ quality of life and support United Airlines’ future strategy.

Previous rejection and upcoming earnings report

Last year, the pilots overwhelmingly rejected a preliminary 18-month deal. United is scheduled to report second-quarter earnings, and executives are likely to face questions about the cost of this new labor agreement during the subsequent conference call.