November 14, 2022: -United Airlines gives pilots 5% raises as part of a pandemic cost-reduction agreement after many months of schedule, days following pilots overwhelmingly rejected a new contract agreement.

Negotiations for new labour deals have been complex at United and other carriers.

In 2020, the Chicago-based carrier and the Air Line Pilots Association, representing United’s over 13,000 pilots, agreed to provide aviators with a round of buyouts as the firm is looking to decrease costs during the industry’s worst-ever crisis.

In exchange, the firm stated it would raise its pilots’ hourly payment by 5% once the airline went to a pretax margin of over 5% for 12 months. They agreed to the job and pay protections.

United cited the carrier’s comeback to profitability and upbeat outlook for handing the increases out this year. Although United has still failed to make money in the initial nine months of the year, it anticipated a profitable end to 2022. The airline reported a pretax limit of 9% in the last quarter.

The company could have waited until May to pay the raises, Bryan Quigley, senior vice president of the airway operations at United, stated to pilots. The raises will take effect in the December bid month.

“This is a notice of good faith and a down payment on a market-based industry which leads labour agreement,” Quigley wrote. “It’s also recognizing your role in helping United survive the pandemic and recover so much stronger.”

United pilots overwhelmingly voted down a recently proposed agreement that would have surged pay by about 15% over 18 months.

“Accelerating our increase does not change the fact we need a contract that completely recognizes the contributions we make every day to the completion of our airline,” United’s pilot union stated Thursday.

The union said United pilots plan to picket outside United’s flight training centre in Denver on Tuesday. Delta, Southwest, American and FedEx pilots have picketed to demand better pay and schedules in the latest months.