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United Airlines, Union Correspond to 30% Wage Hike

April 5
7:23 AM 2016

United Airlines and its ground workers had reached tentative labor deals on Monday stating that they will get a 30% raise over the next five years. The contract envelops workers covered by Machinists union are ticket counter workers and gate agents, reservation clerks, passenger employees including food service and security workers.   

Business Insider reports that the agreements enclose contact center agents, airport operations employees, maintenance instructors, fleet technical instructors, related employees, storekeepers and security officers. The seven agreements to run until 2021, will have about 30% in pay increase over the duration of the deal and $100 million in lump sum payments and will be subject to approbation by the International Association of Machinists & Aerospace Workers.

United Airlines said that the agreements came after just four months of negotiations and arrived before the date when old contracts could normally be updated.  Labor contracts in the airline industry don't expire but can be modified. United Continental Holdings is trying to improve its labor-management history tinged with many problems and failures since changing CEOs last September, as reported by the CBS News.

"Members at United can now share appropriately in the value they created at one of the world's biggest and most successful airlines," said Sito Pantoja, the union's general vice president.

It was not long ago that airline unions deals with negotiations and job cuts in the face of losses and bankruptcy in the industry. However, high fares and low fuel prices have concluded in record profits in the airline industry and unions are resorting and winning importantly improved wages, reports CNN Money.

United Airlines is one of those airlines that perform well in terms of finance, with report of fourth quarter earnings record.  Last year, the employees were paid $698 million in profit sharing. The International Association of Machinists & Aerospace Workers members will vote on the reached agreement on April 15.

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