United Airlines pilots have reached a labor agreement that will increase their pay.

United Airlines and Pilots Reach Labor Agreement with Significant Pay Increase

The long-awaited labor agreement between United Airlines and its pilots has finally been reached, bringing good news for the latter. After rejecting an earlier offer last year, the pilots sought even higher wages due to the shortage of pilots in the industry. Now, they will receive a cumulative 34.5%-40.2% increase in pay raises over the next four years, according to the Air Line Pilots Association (ALPA).

With the shortage of pilots in the industry, the pilots’ union has gained enhanced bargaining power. Despite high inflation, consumers continue to spend on travel, resulting in a high demand for pilots. ALPA represents approximately 14,000 pilots at United Airlines and has successfully negotiated an agreement in principle with the airline’s management. The agreement includes substantial improvements to compensation, as well as advancements in quality of life, vacation, and other benefits.

United Airlines CEO Scott Kirby expressed his satisfaction with the agreement, stating, “We’re pleased to have reached an agreement with ALPA. The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy.”

This positive development comes after Delta Air Lines’ pilots ratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years. Industry officials consider Delta’s contract as the new benchmark for contract negotiations in North America. American Airlines also reached a labor deal in May.

United Airlines, Delta Air Lines, American Airlines, and Southwest Airlines are projected to hire approximately 8,000 pilots this year.

In recent years, unions across various industries, including aerospace, construction, airlines, and rail, have rejected initial offers from management in pursuit of higher wages in a tight labor market.

United Airlines pilots turned down a deal last year that offered more than 14.5% in cumulative wage increases, enhanced overtime, and training pay.

According to analysts at Jefferies, the United States is currently facing a shortage of approximately 10,000 pilots, and this supply-demand gap is expected to persist until 2027.

(Reporting by Rajesh Kumar Singh and Baranjot Kaur in BengaluruEditing by Nick Zieminski, Diane Craft and Aurora Ellis)

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