United Airlines Pilots' Ratify New Labor Contract Worth Billions

Reuters reports that United Airlines pilots have ratified a new four-year contract in a significant development. 

It includes a substantial salary increase and additional benefits, the pilots' union announced on Friday.

The Air Line Pilots Association, International (ALPA), a majority of 82% of the airline's pilots cast their votes in support of a novel comprehensive working agreement, which enhances the value of the current contract by over $10 billion. Ninety-seven percent of eligible pilots cast ballots.

United's 16,000 pilots will receive a cumulative compensation increase of 34.5% to 40.2% under the terms of the new four-year contract.

The pilots will benefit from enhanced work-life balance, sick leave provisions, work rule modifications, vacation allowances, and retirement benefits.

This industry-leading contract provides substantial benefits to our pilots and would not have been possible without their unanimity and steadfast determination.

ALPA rejected United's offer from the previous year, compelling the airline to amend its terms. Effective as of September 29, 2023, the agreement is subject to modification until September 30, 2027.

Pilot shortages have persisted and are anticipated to continue for years in the United States, as a significant number of aviators withdrew from the industry during the pandemic.

The United States is facing an approximate shortage of 10,000 pilots. United's stock rose in response to the news.

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