United Airlines Reaches Multi-Year Deal with Pilots Union

United Airlines announced it had reached a labor agreement with its pilots on Saturday to provide the employees with a significant pay increase.

According to Reuters.com, the Air Line Pilots Association (ALPA) revealed that United pilots would receive a cumulative 34.5-40.2 percent increase in pay raises throughout the new four-year contract.

The ALPA, representing about 14,000 United pilots, said it reached a deal in principle with United management that “includes substantial improvements to compensation, as well as advancements in quality of life, vacation and other benefits.”

The pilots’ union had bargaining power during negotiations as the combination of pilot shortages across the industry and increased travel demand and spending put the ball in their court in talks with executives.

“We’re pleased to have reached an agreement with ALPA,” United Airlines CEO Scott Kirby told Reuters.com. “The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy.”

Last month, Kirby announced the carrier had offered its pilots an incremental contract worth over $8 billion over four years, making it the largest labor deal ever offered by an airline in the United States.

In March, Delta Air Lines became the first major carrier in the U.S. to overhaul pilot contracts, with 78 percent of Delta pilots voting in favor of a four-year contract that includes a 34 percent raise.

American Airlines was the next carrier to reach a new deal with its pilots, which included a four-year contract and features “pay rates comparable to the wages secured by pilots at Delta Air Lines.”