United Airlines has renewed a contract with its pilots giving them up to a 40% raise. The move has raised questions in the minds of the American Airlines pilot union convincing them to reconsider their own deal. American’s pilots are due to vote on their new contract towards the end of this month; United’s new deal – amounting to $10 billion in value over the life of the contract – has put the complete process in jeopardy, Reuter reports.
According to Reuters, American’s pilot union has warned that the ratification of the company’s new agreement is in ‘jeopardy.’ The news outlet had access to the memo sent out to American pilots in which the union said: The airline’s management is fully aware that the proposed UAL (United) deal has now jeopardized the TA's (tentative agreement) ratification. The union has asked American to tweak the contract to ‘meet the new industry standards’ set by United.”
The memo further reads: “Surely AA (American Airlines) management cannot expect our pilots to accept an agreement that puts us behind our contemporaries at other airlines for at least the next four years.”
The pilots and United management have been negotiating for more than four years for a fair deal. The renewed contract includes perks such as improvements to quality of work-life, compensation, job security, work rules, retirement, benefits and much more.
This new contract has set new industry standards which other airlines are looking forward to follow.
“We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on it,” United Airlines said in a statement. “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.”
Delta pilots approved a contract in March 2023, which included about a 34% increase in pay.
Meanwhile, American Airlines’ pilots are set to vote on a new contract towards the end of this month with terms that push for wages to be increased by more than 20% this year in addition to the raises indicated in 2020 and future raises.
The American Airlines pilots deal is closer to the Delta Air Lines contract, but the United Airline’s pilots deal has given the American’s pilot union added reasons to negotiate a better deal with the management.
According to Reuters, Dennis Tajer, a spokesman for American's pilots union, noted that United's contract will lead to at least a 2% pay gap between United and American pilots.
Tajer also said that United is offering a better back pay provisions than what American has provided in its pilot deal. United’s junior pilots have also been offered a better deal than American’s, with more days off and sick time.
Going ahead it will be interesting to see how the American Airlines pilot union close the deal with airline management.