Farewell Low Wages: United Airlines Flight Attendants Finally Get a Raise

New Wage Agreement After 5.5 Years

United Airlines has successfully negotiated a new agreement with its flight attendants' union, marking the first wage increase in 5.5 years. Following the union's rejection of an agreement last summer, I anticipate that this new deal will pass.

Flight attendants have been feeling the pinch of inflation and often earn less than their counterparts at other airlines. They've also expressed dissatisfaction with how their union has represented them, particularly when it chose to negotiate with American Airlines first, which weakened their bargaining power.

Terms of the New Agreement

This new agreement not only offers higher wages but also includes various trade-offs. United Airlines will now be allowed to own a regional airline without needing to hire union employees. However, this doesn't necessarily mean more flights, as they remain limited by contracts with pilots.

United flight attendants still haven't reached the same profit-sharing levels as non-union staff at Delta or the agreements achieved by American Airlines flight attendants. The new deal also requires a reduction in retroactive payments for the flight attendants.

Consequences of Rejecting the Initial Agreement

By rejecting the initial agreement, flight attendants missed out on significant earnings. The formula for retroactive payments in the original agreement was 4% for September-December 2021; 4% for 2022; 4% for 2023; 14% for 2024; and 25% for January-July 2025.

In contrast, the formula for the new agreement is 4% for September-December 2021; 4% for 2022; 4% for 2023; 4% for 2024; 22% for 2025; and 25% for January-May 2026. Consequently, in 2024 alone, flight attendants will lose out on 10% of their wages.

The Challenges in Negotiation

For a flight attendant earning $60,000 in 2024, this means a loss of $6,000 under the new agreement. The retroactive payment also has a lower formula for 2025. Rejecting the initial agreement translates to an additional 10 months of lower pay.

As a result, the total retroactive payment in this agreement will increase, as that represents the savings that United has accrued and profited from during the waiting period.

Working Conditions and Growth

Working conditions have improved in the new agreement, but this is somewhat offset by delays in higher wages and boarding pay. While this new agreement brings wages closer to industry standards, the company and union have not effectively communicated its benefits. The published wage may appear to be the highest in the industry, but it's funded through lower savings and profit-sharing.

Conclusion

I can't deny that this is a good agreement, as it at least prevents United flight attendants from being further impacted by inflation. However, overall, it's still a tough time for the staff, and the new agreement does not truly compensate for all that they have lost.