Published on 27 Jun 2022 on Zacks via Yahoo Finance
United Airlines (UAL) Pilots Likely to Get Huge Pay Hike
Labor trouble has emerged as a major sore point for the U.S. aviation industry of late. Amid this problem, United Airlines Holdings, Inc. UAL announced that it received some encouraging news on the labor front as UAL pilots, represented by the Air Line Pilots Association, Int’l (ALPA), approved a tentative agreement (TA) on modified terms for their collective bargaining deal.
The United Master Executive Council represents 14,000 professional pilots at UAL. However, the new contract still has a long way to go before it becomes effective. We note that tentative agreements do not necessarily mean that the deal will be operational. The TA will now be sent to the membership for ratification.
The voting procedure must be complete by Jul 15. The provisional deal will be valid only if the voting result is favorable. On successful ratification, the TA will generate an additional value of $1.3 billion for the United Airlines pilots over the course of the two-year agreement.