United Airlines strikes $10 billion deal with pilots for pay rises of up to 40%

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United Airlines strikes $10 billion deal with pilots for pay rises of up to 40%
United Airlines has reached a deal with its pilots.Thierry Monasse/Getty Images
  • United Airlines and its pilots' union have reached an agreement on pay and conditions.
  • The deal is worth about $10 billion over its four years, the Air Line Pilots Association said.
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United Airlines has reached a deal with its pilots that could give them total pay rises of up to 40%.

The deal was announced by the Air Line Pilots Association on Saturday, and is estimated to be worth about $10 billion in value over the four years covered by the agreement, the ALPA said in a news release.

Pilots will receive pay raises ranging from 13.8% to 18.7% when signing the contract with a cumulative increase of just over 40%, Bloomberg reported.

Improved quality of work-life, job security, work rules, retirement, benefits, and more are also being written into the landmark agreement. According to the union, 16,000 United pilots will be affected by the changes.

Garth Thompson, of United's ALPA division, said the solidarity displayed by the airline's pilots over the four years of negotiations was "instrumental in achieving this historic agreement."

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Representatives for United confirmed the four-year agreement to Insider and said it would deliver a "meaningful pay raise and quality of life improvements for our pilots."

In June United said it planned to hire more than 7,000 aircraft mechanics to combat a looming shortage in a "highly competitive job market." The carrier also launched a 36-month apprenticeship scheme.

United came under scrutiny last month after a storm caused chaotic flight disruptions that left passengers stranded at Newark airport. About 750 flights were canceled while CEO Scott Kirby flew on a private jet from New Jersey on the same day.

The pilot shortage in the US has been ongoing since post-pandemic travel picked back up. As of September 2022, the industry was reportedly short about 8,000 pilots, and the number could swell to 30,000 by 2025.

Airlines have resorted to hiring from abroad, paying their pilots more, and reexamining training requirements to try to keep more planes in the skies.

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