United Flight Attendants Ratify Contract - Top Pay Will Exceed $100/Hour, $740M Lump Sum Payout
View from the Wing • • business
Key Points:
- United Airlines and its flight attendants union reached a tentative agreement in March, granting the first raise in 5.5 years and resulting in senior flight attendants earning over $100 an hour.
- The new contract was ratified by 82% of voting flight attendants, with an 88.85% voter turnout, reflecting strong union support after a previous contract was rejected.
- The agreement includes raises that offset inflation losses, boarding pay, and sit pay for long layovers, though some flight attendants remain dissatisfied with certain terms.
- United flight attendants’ hourly rates now surpass those at Delta and American, but United lacks the profit-sharing arrangements present in Delta's and American's contracts, potentially affecting long-term pay competitiveness.
- United will pay $740 million in retroactive pay as a signing bonus, which will increase labor costs but is not expected to harm the airline’s financial health under current economic conditions.