If the union approves, United Airlines Holdings Inc. will offer its pilots a contract with cumulative salary and benefit increases of more than $8 billion over the course of four years. This would be the most lucrative labor agreement ever offered by a major American airline.
United Air Predicts new pilot offer to add over $8 billion
The action comes as pilots in North America are negotiating new employment contracts with corporate management and pressing for better compensation and working conditions.
The historic pilots contract signed by Delta Air Lines in March, which provides $7 billion in increased pay and benefits, has pushed competing airlines to offer similar conditions in advance of the beneficial summer travel season.
United’s new offer was the subject of a Bloomberg News report earlier in the day, and CEO Scott Kirby was quoted as saying that official negotiations with the union have been ongoing every week.
The carrier located in Chicago has validated the information in the Bloomberg story.
The company’s pilots union earlier this month approved a strike vote, which is a bargaining technique unions have been adopting in contract negotiations.
Kirby did not provide any other information about the proposal, other than to claim that United will outperform any recent contracts made by its two main competitors.
We have differed with the corporation on item costs, and we believe they have overstated several of them. We still have substantial concerns with sick leave, long-term disability, and quality of work life (balance), according to a union representative who is associated with the Air Line Pilots Association, who talked to Reuters.
In contrast, United Airlines shares increased 3.5% in afternoon trading as the market as entire gained.
Reporting by Reporters Newswire
